Funding confirmed, 58p target from analysts

gracey

"qxl are not overvalued that is fact!
they have more cash than market cap so how can they be overvalued?"

once again you havent a clue have you ?

Comparing the cash they have with market cap is down right stupid. Do your homework before spouting misinformation.

the cash they have got, isnt something they have received for free.

The £15m from the bond issue is a loan. CSFB have the opportunity of converting those bonds into shares. Once the £15m loan is converted into shares, QXL will issue hundreds of millions of new shares.

As for the equity commitment, the cash they receive from that isnt going to be free. They will recieve the cash in exchange for millions if shares.

So if you did your homework, QXL market cap is way way way higher than their cash position (and that cash position is dwindling).

The cash per share AFTER the potential issue of new shares (for the £15m bond issue) and £11.6 equity comitment (if QXL utilitise it) is much much lower than the current 2.5p share price (in fact negligible cash per share).

So effectively QXL doesnt have "spare" cash (like say C&W, or even ebay) which can equate to per share value.

The only value QXL has attributable to the share is the company brand and its business which the market currently values it at around 2.5p/share.