I don't think these should be written off as a gimmick. Don't forget they were first mentioned in the Lexinta placing. Lexinta invested heavily at 4p and want more when the share price is on the move, at the end of this year. Credit to AB for granting the same to current holders.
Not sure why people think the price is going to drop to 2.5p. Investors loaded up at between 3-4p over the last couple of months. No traders in this at present and so I just can't see anyone selling them at 3p or less. I'm expecting a bounce as soon as the offer closes.
The reason I won't be buying is because it doesn't represent value for money. Even the 7p warrants are a bit of a joke. So, I can get a sixth of my current holding again now an have a further warrant to match to exercise at a later date if I wish. I'd rather take the the cash value of a sixth of my holding and purchase shares when they are 2.5p nd everyone else is moaning about being locked in with their new issue of shares and on ZEMA approval buy again, probably then at about 3.25p. we'll be lucky even at approval these breaking 3.75p. they'll be plenty of chance to buy and buy again before ever those with the warrants could ever hope to exercise their warrants. Do I still BMR will be a success...Yes. but the truth is now we are probably still two years away from getting anything like a decent retrn on 3p. Let alone the warrants that will be gathering dust.
We can't be sure what the demand has been? I mean I know just from reading the boards if we take whatever people broadcast on here as the truth then it's a mixed bag, even some of the perma bull BMR investors haven't taken up the offer.
I would hope it's not excessive and given how little interest there appears I wouldn't say it'll get much worse dilution wise, then again....
If you apply for your entitlement you'll get that regardless it won't be 'scaled back' to satisfy excess share requests as far as I am aware?
As for any excess shares claimed for there appeared to be a desire to satisfy all orders of possible, even if this meant raising more than £750k - somewhere within the circular it states an additional placing could be done to satisfy orders of excess shares.
presumably I am right in thinking that there is a finite amount of shares on offer sufficient to raise £750k and that any oversubscribed orders will be scaled back. What I'm not sure about is whether the scaling back would only apply to excess orders or if we would all be scaled back. I only applied for my entitlement. Has anyone any thoughts on this?
Thoughts.... With the shares being issued at 3p, one assumes that they will all be taken up, thus a few large buys will appear. Will they drop the SP due to the new number shares in the market? Or Due to the large buys appearing will the SP rise??? Or Will they balance each other out...?
My thoughts are that the SP might dip initially but quickly bounce up.. Any one else have a thought on this????
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