Kamel, good luck with FJET. Not a good day there today but it takes a while for a stock to turnaround after a big fundraising. I'm hopeful that the increased flights, August passenger numbers and September interims will see it starting to move up at last -- always assuming that Ebola doesn't shut the whole continent down! Here, AIUI, the shares will still be traded for a week or so after the 11p pay-out so any movement in that period will be interesting. I confess to having sold a chunk, partly because I reckoned I could leverage the funds better elsewhere rather than wait an indeterminate amount of time for an indeterminate second pay-out. Had the company issued an RNS to update the position wrt distribution 2 (timing, if not quantum), I could have been persuaded to let it ride. Indeed, the SP movement today suggests that someone knows more about distribution 2 than we do (hopefully not Hawkwood or any related parties but it looks like someone is confident of getting at least 3p). Thanks for the pointer to Omega Diagnostics. Would I be right in thinking that this company poodles along taking a step forward here and a step back there and not making any money for its shareholders of the past seven years…until or unless the great white hope that is CD4 explodes into a commercial maelstrom and makes everyone rich (at last)? It might happen - but my experience in similar stocks is that they take forever to get CE and regional regulatory approvals for their miracle cures. Could CD4 still be years away from generating any revenue? And what kind of deal does Omega have with the Aussie not-for-profit inventors of the gadget? It's the kind of company I would like to give a good shaking to because they clearly have good products/treatments and they seem to have a global empire of sorts but they get excited about very small increments on fairly low base numbers. Perhaps their patents are worth more than they let on but I would really like to see them signed up to some juicy marketing/licensing deals with one or more blue chip pharmas. Maybe CD4 is the key to the door but will I live long enough to see it come to market?
The other aspect of this that may be interesting is that I'd imagine some holders will exit entirely prior to the delisting. Those shares will be bought up by interested parties who are gambling on receiving an excellent return on their 1.25p-1.5p in a relatively short space of time. There will be some who are "in the know" and the demand for the shares may well give a pretty good steer as to the eventual outcome. Good luck all. P.S. shylock I had a dabble with FJET as it does appear to have a strong chance of a positive outcome. By way of a reciprocal recommendation, have a look at Omega Diagnostics. They are local to me and I'm hearing good things at the moment and they are a very well run outfit. Hope things are good with you.
RE: What is going on ?
The other aspect of this to bear in mind is that following the delisting of the shares it would be almost impossible to trade your shareholding and in all likelihood you would be unable to dispose of your shares in the intervening period. The business would still provide shareholders with information and ultimately pay out the residual proceeds.
RE: What is going on ?
Hi Mongie, I don't know for certain but my understanding is set out below, if anyone else can update / correct it that'd be much appreciated. - 1 B Share issued for every A share held at the record time (6pm 22 August - a week tomorrow) - 11p per B share paid out ("redemption") and then the B shares are cancelled (done by Tuesday 26 August) - A shares will likely be worth c.1.5p following the issuance of the B shares (given that the 11p redemption per B share is factored into the current price of 12.5p) and will be cancelled from AIM at 5pm on 1 September - Further payout once warranty claims on the two disposals are clarified / settled, could be up to an addition 4p per share, much more likely to be in the 2-3p range as other costs will need to be paid out in the mean time and we cannot be certain what warranty claims there may be (although we all hope there are none). This could take up to a year from the disposal date, so next April but hopefully something can be done to get the issues settled sooner. The current price does give some "value" to those buying at the moment, but it's uncertain at this time, hence the SP isn't in the 13 or 14p range. I would hope that we will see 14p in total for our shares, with 3p coming next year, so it's a question of whether you are happy to wait 8 months or so for the extra 3p or do you can in now at 12.5p and sell?
What is going on ?
Edwin thanks for the swift reply and explanation, being a bit of a beginner on shares and also given the historical confusion with bgbl I wondered if I could as for a bit of a Janet and John explanation into what potentially can happen as I am confused with the 11p price for our shares and then the b shares and the if's and maybe, the trading price is around the 12.5 p mark so realistically what will I get back if everything goes according to plan per share ? Will it be an initial 11p per share and then a buy back of my b shares ?
RE: What is going on ?
Subject to approval by the Court, it is expected that B Shares will be issued after 6.00 p.m on 22 August 2014 and each B Share will be redeemed by the Company for 11 pence by 26 August 2014 and cancelled by the Company on redemption. It is expected that the redemption proceeds will be sent to relevant Shareholders by 5 September 2014. Further details of the B Share Scheme are contained in the Circular posted to Shareholders on 2014.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.