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say you had 1,000 AMGO shares @ 6p Friday price = 60 GBP (for scalability)
for the RI you may add 19,000 @ "undefined" price to bring your total holding to 20k. The price of RI must be lower than the market price and that's why AMGO have the whole year. On the other hand, they don't need to raise a lot (15m+) so why do they say a minimum of 19:1? Does it work out to less than 1/20th of the Firday close price? If you sell 20k at 0.3p (1/20th of 6p) than you break even. The timing has to be right guys, it really depends on the SP at the time of RI.
Is it just me but i expected worse after the rns. Still holding.
right to sell rights to buy at 3.5p when sp will be 0.3p. It will not work unless you sell them short.
sp will be 0.15p if they can raise 30m. for current sp at 3.5p they need to raise 700m to keep this price????
Jimmyg56
No … nothing funny about it really!
Wonder if Gary and the board will be selling their rights as well?
The noble peasant
There will be a market for them at what price I have no idea tho!
Mark/Chugger - yes, will look to do that but it's very dependent on there being sufficient interest. I need to take a long hard look at the prospects for Amigo 2.0 and the whole sub-prime lending sector. Seems there will always he the threat of mis-selling, especially if a lender is seen to be doing too well.
Anyone know if the x19 will be legally binding now it's in an RNS?!
SELL ALL OF YOUR RIGHTS
The rights associated with shares in a rights issue can be traded in the market and have an intrinsic value. These are known as nil-paid shares or nil-paid rights. Shareholders are able to sell their rights to someone else and receive some money, all without having to sell their existing shares.
https://www.sharesmagazine.co.uk › ...
How rights issues work and the decisions investors need to make
Sorry chuggernaught see your post after I finished typing
@Thenoblepeasant. You will most likely be able to sell the rights if you don’t wish to take them up. Worth checking it out.
no funds for 2:1 let alone 19:1. When does the voting take place? If it's after the court decision they can propose 100:1 but I think PIs already suffered enough. Tell AMGO to find the money elsewhere, e.g. from CEO's wages :)
TheNoblePeasant. Check out the term 'tail swallowing'. There should be the opportunity to sell your rights on a secondary market at the discounted price. The price you get is what the secondary market is willing to pay (and how well the rights issue is subscribed). But my point is that you will be able to take up what you can afford and sell the rest of your rights (price TBD)
Some of us were saying his salary and his LTIP were unjustifiable when he was setting out to inflict 90%+ losses on vulnerable customers. Many shareholders cheered him to the rafters at that stage.
Funny how times change…
Cookie. It’s not gonna be any consolation but I learnt the hard way!
Everyone has at least a couple of these in there trading investing past that you ultimately learn a lot from.
I think it’s gonna be a torrid week across all markets so don’t beat yourself up about it.
Definitely learnt a lesson here, a very expensive one at that! I really bought the narrative that this would bounce once the big boys stopped selling. Like many here, I don't have 20 X my holding to take up a rights issue...so the big boys can come in and hoover them up when the time comes. Legalised robbery!
I think you’re pretty spot on Mark, as usual. Should of heeded your advice a long time ago. Hard lesson learnt today, that’s for certain.
Like babies probably. Legalised criminality.
Cookie1970, £600k salary.
Why should he care?
I wonder how well Gary and the BOD sleep at night?
It’s worse than that I reckon.
And I could be wrong usual caveats etc.
After dilution of sp by rights issue and the subscription ( which will no doubt be taken up by JPM Bybrook etc at a discount) it ticks along for a while before they decide to do a share consolidation back to the levels we had at the start of all this and the only people left out of pocket are the pi who took part and those who didn’t have roughly 1/20th of their holding and that’s IF it survives.
FCA need to investigate the CEO, absolutely rotten to the core. Big boys sell off to be given an opportunity to get back in at a hugely reduced price, has the world lost all sense of decency??? Total sh17show.
oh yea, im sure that was entirely based on "luck" from bybrook/JPM
Bybrook were the luckiest of all holders to get out before the BOD dropped that one weren't they.... LOL
Bybrook