Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Hi forbes. Short answer is no. The £3 per share will be paid out of cash held by the company - the payment date for that was announced today after the vote - 30 December 2021. The share price has fallen today by a similar amount because the "ex" date was today (i.e. anyone buying after today is excluded from that payment).
You can still sell your shares if you wish, and will still get the £3 per share cash payment, as I understand it, provided you owned the shares today. If you don't want to sell, the plan is for there to be further cash payments (and corresponding reductions in the share price) over the next two years - you can sell at any point during that time, same as normal.
So your choice is probably to sell up now to get the cash in one lump, or hold on and get it in dribs and drabs, hoping to get slightly more in the long term. The new investment managers have said most of the disposals of assets are likely to happen in 2023.
Bear in mind I am not an expert, just giving my understanding. Good luck!
again forgive my stupidity - does this 300p per share thing mean that all our shares are sold automatically on 15th Dec for 300p?!
thank you @blahblahdoh - really kind explanation - thank you for your time. Unfortunately I didn't see it 'til now and regret not selling! Damn.
Many thanks for the clarification, BlaBlaBla. Net result, I’ve bitten the bullet and sold out. What a mess this ‘management’ have created.
Selling offers a quick and simple exit if you don't have the time or energy to engage with Gresham House's spiteful, illogical and unnecessary attack on small shareholders. If you sell now you will be getting less than the theoretical value of the assets. The actual value, though, is highly debatable due to the overhang created by Gresham's proposed two year deadline for disposal of assets, i.e. effectively a forced sale or "fire sale" situation.
It is also worth noting that Gresham have proved less than reliable over calculating the NAV: https://quoteddata.com/2021/11/gresham-house-strategic-announces-nav-overstatement-2/
The wind up is still subject to a vote (13th Dec), but seems inevitable due to the distinctly odd behaviour of anonymous institutions who, for unexplained reasons, have somehow been induced to back Gresham's selfish, inferior proposals. The reason this is strange is that it appears to be against their own financial interests? Former GHS chair David Potter recommends voting against these proposals: https://portfolio-adviser.com/ex-gresham-house-strategic-chair-details-conflicts-of-interest-at-trust-in-open-letter-to-shareholders/
Perhaps the regulators ought to investigate how and why institutions were induced to vote against their own financial interests? A small anonymous group imposing something detrimental on themselves, as well as on the majority of shareholders seems unusual, to say the least.
If you "stick" then you will probably be stuck with greedy Gresham's wind-up proposals, assuming they are passed. To any reasonable person they are ridiculously complicated, but can perhaps be simplified into 3 main parts: 1. quick return of cash via the "B share scheme" - essentially this would give shareholders £3 per share payable later this month, 2. The tender offer - this seems to be a way of offering shareholders a choice over holding onto all their shares or surrendering part of them now in order to release more cash quickly - as I understand it the number of shares actually liquidated will be proportional depending on the overall total number tendered, i.e. you won't know exactly how many you are selling until the process completes, it will be a proportion of those you tendered, and the price will be slightly below the calculated NAV at the time, 3. the liquidation of all the remaining assets by various means including eliminating reserves and disposing of holdings, all to be returned to shareholders as cash at unspecified date(s) within the next two years.
Please appreciate that this is a simplification and is merely my lumbering understanding - feel free to correct or improve it - I would guess that most small shareholders have even less of a clue than I do about this woeful abomination foisted on them by Gresham. Investment trust holders deserve better treatment.
I agree with you Forbes. I was under the impression that a tender offer would show what share price you would get if you accepted? Would a wise holder clarify the position for us mortals?
Am a little confused as to what's happening - should I quickly sell my shares or just keep them? If the fund is winding up does this mean value will fall quickly?