In the worst-case scenario, hypothesise that the co. needs to raise £2m tomorrow (£1.3m for loan note, £700k for bring new products to market). It issues/places 2m shares at 0.5p = 400m shares, so next week there are 1167m shares.
What do you think PBT will be next year? Lets say again, a poor performance for '07 would be £250k.
eps = 25000000/1167000000 = 0.021p
p/e ratio = 0.5/0.021 = 23.8
What I'm saying is that even in the worst-case scenario today's share price is slighty overvalued but for '07 the company would be debt-free, have the products in the market, and with no cashflow problems.
The reason I'm calm about this situation is the company is putting forward a very strong argument for supporting it and even in worst-case scenario the financial fundamentals are supportive of the share price at today's level.
Thankfully though, in contrast to euro99's unsubstantiated belief that the loan note holders have all got guns pointing at the WTV board and even if this wasn't the case the board would replace them as stiffers of shareholders for as much as possible, I'm sure that things will resolve themselves with minimal discomfort to shareholders.
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