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Yes agree...15p for each share owned equals .approx 0.78 pence at the 19:1 ratio
F me. There are some total brain dead people. I despair.
Investor... do you want to expand on that?
£15m / 475m shares = £0.031 per share held
at least that biglippy
id expect within 1-2months they launch new products and FCA approve lending... this gives the chance of at least 1q possibly 2q results to show potential of the business
They have UPTO 12 months so I'd say 6 to 8 months after the court hearing before any raise gets underway,thats just my opinion what time scale do others think?
Amlakalo: the £15m contribution to the Scheme is expected to be funded from an equity raise and new capital commitments of between £120m and £300m, of which it is hoped to raise a minimum of £70m in new equity. It is required that the new equity raise must be completed within a year of the sanction of the Scheme by the Court.
Please ignore my inexperience here but when does the dilution kick in? straight after the court?
Yes agree...15p for each share owned equals .approx 0.78 pence at the 19:1 ratio
Freekick,
This is the thing:
£70m @ 0.78p (Not 78p just to be clear) :) multiply that by 19 = 14.82p per share that you own.
£300m @ 3.3p per share multiply by 19 = 62.7p per share that you own
My point would be that unless the SP is at those levels (14.8P or 62.7p) they are raising at a premium
Unless the Dilution is greater than 19/1
Or II involved and buying larger chunks of the RI
ultimately this is all guess work... this will be clearer when nearer the RI point...
Some people have stated RI will happen on day after sanction of SOA as well which is utter rubbish... why would Amigo agree 12months with ICC as part of SOA to do it on day 1...
A RI was always required even in SOA 1 it was stated by Amigo in court that a RI would be required to fund the new lending for the business which Gary stated a RI would be based on a business proposal not just to repay complaints... which is exactly what this RI is.
* 3.3 pence
If there are 475 mill shares in issue currently and Gary has stated a minimum of 19:1 then that would result in 9.025 billion shares. £70 million divided by that = 0.78 pence per share, or £300 million, which I've also seen suggested ad a raise figure, = 3 3 pence per share. If it is 19:1 how can these figures be anything different?
I agree that is the basic maths of it Jimmy... the questions are will the SP match those requirements... otherwise they are trying to raise at a premium or dilution is greater which will still cause issues with fulfilling the raise... unless II are involved... once IIs are involved SP will raise as previously seen with SOA1...
All of this is speculation and almost irrelevant until SOA2 is passed and at that point we will start to establish more...
Does Lending start before RI?
If so how profitable is it?
What are the new products?
what is the RI structure/timeframes etc
are IIs Involved?
There has been a lot of negative RNSs and rightly so as the company is trying to sort out its complaint liabilities and until that is resolved there is no business effectively!
Once the SOA is resolved i expect more positive RNSs to be released inline with the points above which will in turn increase SP.
By my calculations, if Amigo needs to raise £70m from the rights issue, shareholders who want to avoid dilution will have to find around 15p for every current share they own.
If it’s £90m, it’ll be around 19p for each share.
Can't see this high mcap in real world, only in rosy pony dreamland may be, otherwise is not fundamentally justified.
They're are not lending atm, only collecting.
Upcoming / planned (if any) equity raise (via RI / dilution, +£70/+£90m) will be just to cover basic balance sheet deficit (there's a separate requirement to meet minimal capital sufficiency/reserve to get approval from FCA to resume lending)
Equity is in negative territory (but this might marginally change into some minimally positive number depending on how much is spent on claims in the end, subject to final court result and FCA/FOS, plus there are costs of running business and defaults on loans).
Bond maturity is in Jan-2024 (after redemption there's still £50 mil. outstanding + interest)
New debt will be much more expensive (and general market interest is expected to be high throughout 2023/2024 + AMGO exclusive risk premium).
Profits (if any at all) will be very low (b/c of repressive regulatory pressure on industry of high-margin lenders + amgo reputation even if they trade under new brand).
Another poster who only questions the down turns but readily accepts any "rockets to the moon 30p next week".
Firstly, technicals - RSI has exited overbought, macd has turned to a sell and still below the key MAs.
Secondly, fundamentals - I like that this is now lending but the RI will cause a lot of problems for LTH. People want to ignore the effects but we know exactly what happens with large placings. They are done at discounts and SP generally falls below the placing price.
Hedged, what are you basing your figures on? Apart from the fact that it has spent 50% below 5p in the past year (which I don't think is factual) and totally irrelevant to current circumstances
Jay - what are you basing your figures on?
Market cap
(Approx figures)
Market cap today. £32m = share price 6.5p
Market cap after court. £75m = 15p
Market cap after raise still £100m = 20p
Market cap after lending and new ops £300m = 60p
This is regardless of share dilution (if options taken up)
Seems pretty simple to me. Why all the calculations and theories? So much nonsense.