WILL QXL DIRECTORS BUY ANY SHARES

guitar man

What you have failed to take into account is the convertable loan and in particular the equity commitment. The high risk to anybody contemplating investing in QXL is the impact of equity dilution.

Yes, QXL may survive but at what cost to the equity capital caused by the issue of further shares under the terms of the equity commitment.

If all goes well wth QXL by this time next year you might have reduced losses and an issued capital of 1.3billion shares with future dilution at around 3 billion.

What nobody understands is that if the price of QXL crashes to 0.5p (possible) by mid 2002 then if QXL need further financing and they resort to the equity commitment then every £1m raised means another 200m new shares being issued. Whats the odds that QXL demand shareholders to approve an increase in the authorised share capital at some stage in 2002?

What price QXL then?

I say avoid. This risk is not worth it.