The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Kabbaa and gohigh
If you see my previous posts there is no way they have 57% votes based.on the shareholders
Interesting. I quite liked the idea of another "ITS" if it works in this case.
The company is loss making for years, with yearly losses way above the market cap.
The company is dependant on its creditors who have £11m con notes at the lower of the 5 day vwap, which is currently around 0.25p and falling, or 0.5p. That is 11x the market cap, so 1100% dilution. These con notes also have a 20% coupon.
The NAV of £20m would never be achieved by an administrator and presumably no one other than the large shareholders want to finance this and only will do so on onerous terms.
I think you have a situation where either the shareholders will get very little or nothing back when the loans are called in, or the shareholders will be diluted many times over up on equity conversion.
In short, no, this ain't ever doing an Itsarm style rise!
There's a reason there has been very little volume traded in this in the past 18 months or so.
I suspect people buying in now, only did so because it dropped a lot in one day and they haven't read the news of the company in the past 2 years!
My guess is they will either shut the company down in the next 2 years or continue to lend money and dilution will eventually be ginormous.
If they do not have the 75% votes needed in the bag already, they can easily convert their notes to get it.
1mln buyer
Good luck Laura. I have a small holding here too. Any hint of positive news and it really could do well. Worth the small risk IMO.
Something does not add up from what they are claiming ,with BOD only owning 0.2% I looks like something murky is going on trying to Broad day light robbery
Company has received irrevocable undertakings from Harwood Capital and Bayford Group Shareholders holding in aggregate 228,416,332 Ordinary Shares (representing approximately 57.20 per cent. of the existing issued ordinary share capital of the Company) to vote in favour or the Resolutions. These Shareholders wish to continue to support the Company's growth strategy as ongoing Shareholders and therefore do not wish to sell their current shareholdings
Bayford & Co. Ltd.
29.10 %
Harwood Capital LLP
3.569 %
Jarvis Investment Management Ltd.
3.395 %
Janus Henderson Investors UK Ltd.
2.670 %
BlackRock Investment Management (UK) Ltd.
2.323 %
West Yorkshire Pension Fund
2.010 %
James Sharp & Co. LLP
1.746 %
WH Ireland Ltd.
1.587 %
Wayne Jonathan Hayes
1.223 %
Hargreaves Lansdown Asset Management Ltd.
1.222
They claim 57%acceptance but there only 40% held by institutions?? (See the website)
Yes Bond
This could really motor on any intriguing developments so I have purchased a small amount and will add more on Tuesday
Their assets are far more than £800k
Are the BoD still being paid ?. If so what are they doing to warrant their money ?.
Could be worth a small punt. We know they have 57% of the votes and they need 75% to pass the delisting resolution. Been 5 red days in a row so possibly a blue day coming? Looks like selling has all but dried up but I guess anything could happen between now and the end of September. Having said that, there doesn't seem to be much interest here so maybe I'm missing something? We'll find out soon I guess.
GLA DYOR
Does anyone think this could do an ITS lver the next 4 or 5 weeks please
£800,000 market value
Well the DT isn’t the place to get your tips. Their tip for 2023 was Premier Miton LOL ….
Interesting idea!
Yes, Another AIM lame duck bites the dust leaving private investors screwed. I think this was one of Questors tips in the DT. Well Telegraph readers have lost the lot.
I can only have sympathy if you’re a long-term holder here. I was invested here long ago . . . Luckily I made it out unscathed.
1 share in this company back in November 2020 would cost you 40p.
And now the share price of sitting at 0.3p.
It is horrible, what the Norwood have done to this company :-(
But they can’t go above 30% otherwise they have to make an offer don’t they? The convertible loan somehow gets them out of the takeover code but buying now in the market surely doesn’t? Bayford is around 28% and Harwood 27% rounded down to nearest whole %
Nah...they just buy up what the need in the market
I would not rule out a low ball offer by the majority, they could easily launch a takeover at say 1p-1.5p and it would get voted through.
DYOR
This is a good business that has been managed terribly in recent years. However, in 2022 they appointed key people who are turnaround specialists. The turnaround has been slow because the new directors only subsequently realised how bad a situation the company was in. With larger shareholder loan support and the ongoing work of the directors we are starting to see green shoots. If we weren’t they wouldn’t be looking at a delisting, the company would have been heading to administration. Whether this delists or not, IMO it’s a good recovery stock but obviously better if it remains listed. The reasons they give for a proposed delisting have been cited as the same reasons in other company RNSs over the last year or so such as saving costs, management time, easier to raise capital etc. These may be true but the real reason is they see enhanced shareholder value in the distance and the large shareholders want to grab as much of it as they can which is to the detriment of us PIs which is why I will be voting against the delisting resolution
Something fishy this way pass..
We already have 57% consent you lot had better vote yes? why waste time on the vote then?
New vans new contracts new this new that look at us taking a hit all to the good of progress in the company for shareholders now this?
wtf
you lot are getting sh....ed
this wrong
According to the RNS they are set for recovery, at pace. Emphasis is made by using the words ‘at pace’ in the RNS. The current convertible loan term is extended to 31 December 2024 and I cannot see that this is conditional on the delisting resolution getting through. Even so the conversion price is 0.5p, currently double the SP this morning. It seems to me that at these prices this is a recovery play but the delisting resolution needs to be voted down. Don’t let them get your shares on the cheap when they are otherwise set up to get more shares for x2 at 0.5p. IMO and DYOR
Mick, imv net assets are often stacked with values related to brands and other items that are not necessarily marketable so I would not bet the farm on those figures . I do think the move to take this private underpins both its viability and selfish intentions of those involved. Good luck to you all.
From today's results:
Net assets per share at 31 March 2023 were 5.2p per share.
Current SP is 0.25p.
The net assets would be after the net debt is taken into account. The proposed de-listing is to get rid of minorities in my view so that only the big fish stay on and eat the cake. The company is not insolvent so the proposed de-listing is not the same as administration. I expect at least the SP to run up to over 0.6p to 1p -there is plenty of time to the meeting next month.
DYOR
I have ben interested in this company for some time and currently have no position. Looking at the terms of the loan facility it seems to me that the company was doomed from the moment the loan was ntered into with the extorionate interest rates. The only positive is that its survival as a private company might secure some jobs, otherwise this whole episode seems very shady to me.