UK 04:22 Sunday, 25 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
AIM-listed DQ Entertainment (DQE) looks set for imminent suspension on the resignation of Allenby as Nomad on 22 Feb (next Monday) as previously notified by the company on 4 Feb in controversial circumstances. Since then the company has issued three RNSs, none of which has given any update on progress on finding a replacement.
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Comments
Drunken Sailor
Nigel,
I think there may be some value in the Indian subsidiary which is listed on the Indian Stock market. The AIM listed parent is a complete basket case. Any value in the Indian subsidiary will end up with the Bond Holders. I think getting the parent off AIM has been the bondholders plan all along.
From Announcement 9 Dec 14:
“AIM cancellation and Group re-organisation
In order to align the interests of shareholders in DQE with that of the Bondholders, such that those shareholders also get the benefit of a Qualified Liquidity Event, and notwithstanding that DQE Mauritius must use its best endeavours to undertake a Qualified Liquidity Event within 36 months of the Closing Date under the terms of the Bonds, DQE Mauritius has undertaken to the Investor that it will use its best endeavours to procure a cancellation of trading on AIM of DQE together with a merger between DQE and DQE Mauritius as soon as possible (“Cancellation”), before or concurrent with a Qualified Liquidity Event. Best endeavours in this case includes procuring the issue of a circular and convening a meeting of shareholders, procuring a recommendation for Cancellation from the Board (subject to their fiduciary duties and applicable law) and taking such action necessary to enable the merger between DQE and DQE Mauritius. Failure to use best endeavours would amount to an event of default under the Bonds with the result that the Bonds would be redeemable at the Redemption Price. A Cancellation would be subject to compliance with the AIM Rules for Companies and the UK Takeover Code. Further announcements in this regard will be made when appropriate.”
Nigel Somerville
Drunken – thanks for that, it does rather look that way, especially if a Casino exit riggers bond defualt. They say thanks very much and the equity holders lose everything.
I think the main point from where we are right now is that the AIM exit and bond default route appears the most likely to the global shorting conspiracy.
But to everyone else, why take the risk – there are plenty of other dodgy-looking Casino chips to choose from…
Drunken Sailor
Nigel,
I ate my crisps courtesy of my investment in DQE at Christmas 2014. When I bought in I did not know about the trade receivables as a proportion of annual revenues test – thanks to Shareprophets and lots of bags of crisps, courtesy of DQE, I do now and it is a test I perform whenever I research a new stock. There is no point losing money and not learning from it. The other question I now always ask myself when researching is: is this capital expenditure really adding asset value or is it just avoiding expensing things to inflate the P&L? – Asking that question has saved me a fortune too.
I still can’t match your ability to anorak through CH filings, but I am getting there.
Keep up the good work, as AIM slowly cleans up its act, I feel the “standard list” will still need yours and Tom’s attention more and more.