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Agneissearner,
Slowlyslowly is not advocating one way or the other, simply explaining an RTO in very understandable terms which many will find very helpful
You would not be cross ramping you would just be providing proof that there good opportunities hence the RTO for a small UK Pharmaceuticals Company is going to be beneficial for AMC Shareholders.
AGE
Slowly slowly thank you for your detailed explanation of the purpose of an RTO.
Would you kindly give me one example of an AIM Company where the Board have created shareholder wealth and also one UK Pharmaceuticals Company that has also managed to create shareholder wealt and that it has not done endless highly dilutive share placings!
AGE
I didn't see your previous message by the way, I was typing my reply. "I'm still waiting" lol. Seriously? You don't get to demand that I answer questions. That's not how forums like these work - I don't owe people answers, information or opinions.
But you wanted an answer to the other half of your question: One example where an AIM board has delivered shareholder value. I can think of many. But I don't cross-ramp.
To answer your question: No, I don't work for AMC or any of their professional advisors. No, I don't actually hold shares in AMC. (I did, but sold before suspension). I have no skin in this game. I just saw people posting having misunderstood the purpose and mechanics of a reverse takeover, and thought I'd explain in case some readers find it helpful.
In essence, it's most similar to an IPO, when a previously unlisted company lists on the London market. In this case, it's a pharmaceutical company that wishes to become public. They do it by merging with an existing company that has no trading operation (Amur, in this case), rather than floating directly. The name will change from Amur to whatever they're called. The board will change from Amur's to the people behind the pharma. The management will be the people running the chemo tech development company.
It is the nature of a reverse takeover that it's frequently into a different sector, because the sector (mineral exporation) that the shell was in becomes irrelevant - AMC don't do that any more. We're just a listed shell, that's it. People who had read up on reverse takeovers before suspension would have known that it's rare for an RTO to be into the same sector as before.
When this is finalised, a prospectus will be issued explaining everything, just like for an IPO. It's then up to AMC shareholders to decide whether to vote in favour of the reverse takeover, or to vote against (hoping to push the company to wind up and return what cash remains to shareholders after costs). I'd just caution, as I said, the fact that AMC is a listed company is worth something. If this merger goes through, the cash AMC holds is still there - it becomes owned by the new company, and AMC shareholders would still own their share of that. If they complete an RTO, the value of the listing gets priced into the deal, so AMC shareholders get to keep that value too. If AMC gets wound up and capital distributed, you lose any value from the fact it was once a listed entity.
Slowly slowly I am waiting for a reply to my questions below?
But going by your LSE nickname it may well take you a while to respond!
AGE
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Slowlyslowly given me one example of an AIM Company where the Board have created shareholder wealth!
Do you work for AMC's PR firm by any chance?
If you think that Shareholder Share Action Groups cannot achieve much then have a look at the LSE AMC forum and you will see that we managed to get a vote of 33% against the resolution to approve share placings so we blocked the Board as they needed 75%.
AGE
Todays RNS has caught me by surprise. I thought that there would be RTO opportunities, but had expected them to minerals & mining.
Pharma is not something that i understand and I estimate that with my share holding, a 2nd dividend is worth about £100k. I would not put that such an amount into one Pharma and so it will be a no vote from me.
If thats the best they can find, issue the 2nd dividend, wrap up the company and stop this nonsense.
I have nearly 11 million AMC shares so we would be off to a good start in forming a AMC Shareholders Share Action Group!
Any more of you want to join me in forming our Group?
I will administer it by obtaining your contact details and shareholdings so that we know how many shares in total that we can organise to vote against the RTO if we are not satisfied with it.
It takes time to arrange all of this so best to plan well ahead and put a plan of action in place should it be needed!
AGE
I suggest we form a AMC Shareholders Share Action Group and then we all vote against the resolution for an RTO if it is not going to create value for AMC Shareholders.
Just have a look at the Scirocco Energy (SCIR) LSE forum where the Board sold its main asset at a loss of £7.813m it then managed to get shareholders to change direction by going into the Green sector and they loaned £1.578m in total to EAG Ltd that they only owned 50% of it's shares to then buy GGL for £700k with 80k for solicitors costs and £100k for due diligence costs and GGL had negative net assets of £250k so a net liability.
They then sold EAG/GGL fot £702k with £150k of contingent consideration to loose between £725k to £875k depending upon whether they receive the contingent consideration or not.
The largest shareholder has requisitioned a General Meeting to return the remaining cash to shareholders before they squander it but the Chairman has other ideas as he wants shareholders to vote against the resolution to give him more time to do an RTO or invest in the Green sector.
The Chairman of SCIR's record on creating value for shareholders is absolutely appalling!
Would any of you be interested in creating an AMC shareholders share action group and then we can collectively block the RTO if we are not satisfied it?
EAG
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Judging by the other shareholder meetings they will easily get it passed. No one cares enough to do anything else. It's not the greatest and it will likely perform very poorly in this market, but it's better than expected. Returning cash would be better, but how do you force them to do it.
I agree 100% with ilovesushi.
The Board were acting in Shareholders best interests then they would have returned the remaining cash to the shareholders.
The RTO is all about the Board's self preservation in order to keep the gravy train going as long as possible.
AGE
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When and if you vote no, the board will have no option to wind up the company and return all funds to shareholders. Said funds must now be lower during all this time, slowly being eaten away.
Do shareholders really want to enter pharmaceuticals? They can do now. Why be forced into it? Drug delivery target is years away from monetisation and want a listing for one purpose only. An outlet where they can obtain money, for shares.
VOTE NO. Get cash back instead and invest your own money for yourself. Get rid of this board.
ValRix 31 December 2019 accounts
The departures from the board led to some financial and organisational disruption but we have been able to stabilise the situation. Since the year end,we have completed three share issues in February, April and May 2020, raising an aggregate of approximately£1.4m, before expenses, and concluded a consolidation and subdivision of the issued share capital to permit the raising of capital.
Yes 125 shares for 1 new share!
AGE
Judging by the other shareholder meetings they will easily get it passed. No one cares enough to do anything else. It's not the greatest and it will likely perform very poorly in this market, but it's better than expected. Returning cash would be better, but how do you force them to do it.
Current share price of VAL is 4.20-4.30
RNS below dated 13 January 2023 with placing price at 11.00 p so down 6.80 p or 61.81%
London, UK - ValiRx Plc (AIM: VAL), a life sciences company focusing on early-stage cancer therapeutics and women's health, announces a Placing to raise approximately £1 million (before expenses), through the allotment and issue of 9,090,909 new Shares at the Issue Price of 11 pence per Share (the "Placing"). The Placing was conducted by Turner Pope Investments as sole placing agent for the Company.
6 April 2020
125 for 1 share consolidation!
Seems there is always people telling sh’s what’s best for them.All we need to know is,which of the options would be quickest.We can then take what little is left and do what we want.
MD
AVACT recently did a placing at a huge discount
Slowlyslowly given me one example of an AIM Company where the Board have created shareholder wealth!
Do you work for AMC's PR firm by any chance?
AMC has cash that the Board should have returned to Shareholder rather than gambling it on an RTO with a Pharma.
I suggest you have a look at the share price graphs of ValiRx, Sareum , Hemogenyx.
The Modus Operandi of most AIM Boards is to ensure they are well remunerated, then keep themselves in that job as long as they possibly can, award themselves lots of out of the money executive share options, take big risks with shareholders money, carry out highly dilutive share placings without shareholder pre-emption rights, then carry out a 1 for 100 share consolidation, then keep on placing shares!
AGE
When and if you vote no, the board will have no option to wind up the company and return all funds to shareholders. Said funds must now be lower during all this time, slowly being eaten away.
Do shareholders really want to enter pharmaceuticals? They can do now. Why be forced into it? Drug delivery target is years away from monetisation and want a listing for one purpose only. An outlet where they can obtain money, for shares.
VOTE NO. Get cash back instead and invest your own money for yourself. Get rid of this board.
It's clear lots of posters here don't understand the purpose of an RTO by a cash shell like AMC. This is not the board and management of Kun Manie moving into pharmaceuticals. There is here a listed company. That status is worth something - it costs time and money to get a company through the hoops required to list on the London market. AMC no longer has any trading business (that's what it means to be a shell). But it is still a listed company, so if they can merge with a private company that wants to list, that private company has a cheaper and easier way to list on the markets than going through an IPO themselves. Most of the shares in the resulting company would be owned by the former owners of the other company, because they're the one that is worth something. But the current AMC holders all keep their shares too. The management of the new company would be the management of the pharma, and the board would also pivot. This isn't about Robin and others trying their hand at something different; this is them doing what they said they're do, and try to merge with a private company to allow AMC shareholders to extract the value there is in the fact they own shares in a listed company.
You can just imagine the thought process that went on to say they decided on a Pharma for an RTO!
Must have gone something along the lines of:
What is a very risky sector to invest in? Answer "Pharmaceuticals"
Could we end up receiving a massive amount of Executive Share Options if the drug comes good? Answer "Yes"
What if we end up running out of cash? Answer "We shall do a highly dilutive share placing"
But that will destroy shareholders wealth! Answer "This is the AIM market, just think about the gain we will make on our Executive share options!"
Great let's enter into a Heads of Terms for an RTO with a UK Pharmaceuticals Company rather than giving back the Shareholders their cash and we will then try to convince them to vote to approve the deal.
If given a choice Turkeys would not vote for Christmas as we all know what happens to Turkeys at Christmas.
Do not let the Board convince you that is is a good idea to be a Turkey!
AGE
Maybe one of the options would be a return of capital instead - I see the pigs lining up on the runway!
As I suspected a RTO at the latest or nearest to legal time they could Announce.Now have to see how this has been put together. still got.my fingers crossed but not optimistic of outcome !!!
At least it brought a smile to my face thismorning.When I read that the company is developing an early delivery system I nearly choke on my porridge.The irony of amc delivering anything early is the best laugh I’ve had in a good while.
MD
The change to pharmaceuticals might inject some interest, but will only inoculate AMC temporarily against totally dying. Without knowledge of the industry, it would have been better to have put our money on the horses. The result would be known immediately, and we wouldn't have to pay the jockey forever while he ran some eternal race.
These burn more cash than miners - Same old Same old - leave everything to the last minute - Robbing still living up to his name:)
Will be fun to read all the horse manure he issues about how a great opportunity this is for shareholders... Bla Bla Bla. But really all he's doing is getting his gravy train back up to full speed!
luv
Geng