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Desperation??? hmmmm...potential of at least 10:1 risk reward medium term IMO, no brainer in my view...calculates to 10% chance of getting this reward. IMO there is a better than 25% chance of the company surviving in it's present form and growing in the medium term and back to where it was pre-covid longterm. You pays your money...
Desperation is a reliable thing, if you take someone's £100k, destroy most of it, then ask for another £10k on the basis it might help restoring value, many will sign up to that deal.
Form an orderly queue please.
If you hold shares with Freetrade then you won’t be able to participate 🥲
McColls
RBG rights @ 1p .... latest by 28/4/2024.
Take up all entitlement and you can buy extra.
Thanks. Appreciate the reply. Not heard anything from HL about it yet, so will hold tight a bit.
Open Offer to Qualifying Shareholders of Revolution Bars Group plc of 7 New Ordinary Shares per 8 existing Ordinary Share.
Applications together with payment in full must be received no later than 11.00 am on 30 April 2024
Does anyone know when, if it happens, when we’ll get the opportunity to buy the shares in the RI? Just so i know when to have free funds by. Thanks
IMO:
what I will say at this point is that I find the price action a bit revealing.
Sky news has had its finger very very close to the pulse on finance matters to the effect that it very well understands what is going on in recents UK restructures.
the names mentioned, the market cap, and the price action in my view a sale is on the cards.
but the basis of the sale would be that new money has a higher creditor ranking versus standard equity.
my guess is that the company will enter a form of CVA and exit with new ownership, total lower ranking shareholder wipeout with enhanced value for the new creditors who supplied sufficient liquity to enable a sale.
if this werent the case the share price would have rocketed much much more of the new money arrangements.
I still think these are valuable brands to a much larger group with economies of scale.
I think a few bought in to quick today
Going to sound a bit naff Triumph but neither an ordinary Jo with around 160k of shares at say 3.1p average.
I was thinking sell at 2.1p if it gets there 30% loss.
If there a full sale that's it
If we go through the arrangement buy the rights which I think have vested and anything over 2p I break even.
I'm lucky in lots of respects respects as I might escape with limited damage. Feel sorry for LTHs to think they were over £2 and had an offer.
Are you long or short?
Triumph - my buy in price was about 3p so relatively I'm lucky.
I think the warrants are fine at 4p
My main problem is the placing at 1p feels to low.
Don't really know whether to stick of twist on this one.
This restructuring is a bad deal all around for current SHs. No nobel prize for me stating the obvious, but for example in exchange for the secured lenders wiping off £4m in debt, and waiving of liquidity covenants, they will be given almost 10% of the company in exchange for a few peanuts if the shareprice stays above 4p for over 60 days!
Sure its a risk for the secured lender, but what a ridiculous warrant exercise price. Success is just another way to F up curent SHs. The best for current SHs is an outright purchase of the company before this restructuring takes place, take the losses and run.
if all resturcturing goes to plan, approx market cap will be £15m, of which £11.6m will be cash, valuing the company as it currently stands at £3.4m, or 1.45p per share.
if you are still holding now, you are basically betting on the company recieving an offer before restructuring takes place above 1.85p or takeover speculation that may cause a spike. There is literally no other reason to hold. Given the debt the company is in, and the dismal profits if any (skewed this year by a one off lease sale), bandits c.3p looks very very generous indeed. I doubt any PE would want to pay more than 1.45p for this outfit given this is the valuation of the company as things stand after restructuring. Any offer above 1.45p would be beneficial to the small PI.
Only big SHs, banks, secured lenders and of course the board benefit from this restructuring and its subsequent sucess (if any). PIs, as per, will be left with nothing. And this current premium over the 1p placing price will reduce with time as we get closer to the restructuring event.
All in all, a bad deal. But it never was going to be a good deal for current SHs. Lets hope the company gets sold.
Only a win for new investors if restructure goes through. If someone offers 5p now they will likely get it and new investors get nothing. That is why I am not selling as you only get rights (and diluted 84%) if nobody buys in the short term.
I am expecting the SP to naturally rise back to 3p, where we were before Sky news leaked the company in talks about fundraising. SP was False drop to 1.2p on fear of administration. Ask yourselves who leaked the info to Sky News, reported to be an investor. That investor knew the SP would tank on such news, giving them their 1p price per share if the fundraising goes ahead. Now that’s been agreed, SP can return to where it was just a week ago. Higher the SP now the better for the three new investors, a higher SP may put off a potential offerer in their eyes. Win win now for the three new investors, some of us may still win here also.
Large buy just went through, was unable to get a quote for a good 2 mins, and buy is now 1.98p
Im at 2.5 in my isa, and 8.9 standard account, even 1k now avg down would drop it to 6.7.
risky risky.
Billbob as the effective date is the 9th you get your rights anyway.
I have a lot for me 150k of shares average 3.1p
Thinking of selling if it's 2.2p.
Take a small loss if sale
If they go with current plan I get 135k of rights. If they can reach 2p. I escape overall at evens.
I must confess this is a lot better than I feared but I know I have a low entry price.
I think there's too much of a risk for only 2x to 5x return, 10x minimum surely?
Volume so far today is less than 4m shares so less than 2% of the company - so irrelevant imho. The restructure is a stay of execution and if used I would expect a break up over six months - so I will take up my rights on the same terms as Luke Johnson et al. Big question is can anyone step up in the next couple of weeks to buy what is there (with 20m gbp of net debt) at a more attractive level than the restructure option? That is why I think some people have chosen to buy at 1.6p - but it is a binary bet albeit one that could return 2-5x.
Yeah, thats a deep hole to cover at 5pps
Banburyboy, I think the bank will have the final say here, not the three new investors. Will be sold before we get to September imo.
I also can’t get Eldose Babu out of my mind. I wouldn’t be surprised if he and his family feature here with an offer for the company. As we know Eldose was aggressively buying in December taking his shareholding to 17%, paying 5p a share. We learn this week that another family member has also been buying and holds 1.7%. I am of the opinion this was strategic buying in December, I refuse to believe an investor of this magnitude buys up 17% of a company on a whim. Time is on our side. This is going to get interesting imo