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Agreed 4corners. Buy into an allocation in a company with billions of shares issued. Then when the inevitable consolidation is announced, if you’re very lucky you’re back to your original holding but at a greater cost. Not for me! I’m writing this off.
you have decided to throw good money after bad?
Have taken all mine plus subscribed for a whole lot more.
So, a place marker for my allocated shares has dropped into my account. I just need to decide whether I'm going to take them up on it or not!
What are everyones thoughts on taking up their allocations? Or, perhaps some are planning to buy more!
very low volume and SP being held in range. Well expected more the same today.
It may be aberforth are (in part) funding their OO participation by selling their legacy shares at a premium to the OO price.
Still doesn't explain the prints in last two days of over 100million shares. Guessing Castro is out as well. Also should be seeing who the new shareholders are, if they are not shady middle eastern funds or investors affiliated with SF or Man Capital
Aberforth reduce to zero :)
Some serious prints today....did all the existing investors sell out?shares in circulation is only 350m, unless SF lend their shares to their friends for a quick short. But then, who is buying?
10-Jun-21 17:06:40 3.41 3,950,000 Buy* 3.30 3.52 134.70k O
10-Jun-21 16:41:56 3.156 6,000,000 Sell* 3.30 3.52 189.36k O
55m+ shares traded today - not much in $ terms, but this is sizeable part of pre-capital increase free float
MMs will move the price to create liquidity, it is still effectively demand and supply that drives the SP. Also both a Rights Issue and Open offer ussually mean that you need to own shares to benifet, although with a rights issue you can sell on those rights rather than taking them up yourself.
So for every share you hold on the Record-Date, you are entitled to buy 1.9 shares at the same price as the placing shares although holders can apply for as many as they like but will only be guaranteed 1.9 shares for every share held.
The reason, in my opinion, that private investors are getting such a generous allowance is that at the minute, PI's own only 22% of the Company (dispensation granted till later this year), and there is a requirement for at least 25% of shares to be held by Private Investors - looks like a good deal for PI's whether buying in the open market or in the Open Offer.
All IMO
MMs will move the price to create liquidity, it is still effectively demand and supply that drives the SP. Also both a Rights Issue and Open offer ussually mean that you need to own shares to benifet, although with a rights issue you can sell on those rights rather than taking them uk yourself.
So for every share you hold on the Record-Date, you are entitled to buy 1.9 shares at the same price as the placing shares although holders can apply for as many as they like but will only be guaranteed 1.9 shares for every share held.
The reason, in my opinion, that private investors are getting such a generous allowance is that at the minute, PI's own only 22% of the Company (dispensation granted till later this year), and there is a requirement for at least 25% of shares to be held by Private Investors - looks like a good deal for PI's whether buying in the open market or in the Open Offer.
All IMO
Strange thing is, this is effectively an open offer, not a rights issue. So why on earth have the shares fallen so far? The whole value of an OO over an RI is you have to own the shares to benefit from the discount. Potentially (and I’m happy to be corrected) this is a ridiculous anomaly and the MM’s have sort of fecked it up.
fact of the matter, worth more than 4p for sure.
4C - aye, but of that 31m is 18m new cash - which gives 13m for what was only days ago an oversold 25M...
"for the ones who asked what happens if price goes below 3p" - the answer is stop achoring. same happened with SAGA and boom, well above. RR. too.
@bigsmoke - marketcap is GBP 31m since the stock is trading ex.
For the ones who asked what happens if price goes below 3p, existing investors who intend to participate in the raise should buy it from the market and skip the open offer. Institutional investors have already covered the issue at 3p, so the raise is happening
Yet things are unequal. The debt should be considered reduced and the financials improved considerably. Not to mention the market outlook has improved and POO at 72 bucks. Ebitda 50m , fair value probably 5-6p for now, post issue.
Market cap was £25m , we get agreement over £18m fresh issue proceeds, and market cap is £11m. All things being equal surely we must be 30-40% oversold? The pause at 4p yesterday morning was probably right. The sell down thereafter was greed.
@4Corners - epic, your "Lord Rubberstamp" is about the only instance of that exact phrase on the interplanetary interwebs.
Yes, shareholders knew a raise was in front of them, just not at 50%+ discount to market price!!!! I would think the price matters, especially given the announcement that the 371m ‘placing’ shares (the non SF&Co. portion of the 666m new shares) have been lapped up by institutional investors. Why not raise at 1p then? Or 10p? Yes, par value is just for accounting purpose, but I don’t think they needed to price this at 3p! Sinister motive behind this? Time will tell.
I guess you don’t appreciate my humour when I said ‘billions of shares’; anyways I thought it was funny there were issuing 700m shares to raise…….GBP 20m
The timing of the shareholder meet to approve the deal on 24 June……wow! “Guys…..thanks for putting in 3p/share. Should we go ahead and issue these shares?” Plus they made the announcement and conveniently placed the date of record two days prior, so that no one could buy and block the raise.Imagine if the trades of today had happened prior to record day – 40m shares traded today, and counting. That is a big chunk of existing freefloat. Sneaky bastards on the board without a doubt.
Did you read the document? Interestingly SeaFox is listed as a competitor. Remember last year when they said they are not competitors? Another interesting point is that vessels are valued at $500m - isn't there a case for someone to push for liquidation when mcap is $25m and debt is $400m?
I recommend to VOTE AGAINST THE DEAL as it seems they may not have enough votes without Horizon Energy
The placing will still certainly go ahead, the open offer might get scrapped as investors could then just buy on the open market.
I don't see what the fuss is all about?? Shareholders knew there was going to be a $25m capital raise!! It really doesn't matter at what share price the new shares are offered at.....as long as you have the spare capital to subscribe for your allocated portion. Let's just be glad it's only $25m which they are raising and not the original $75m (which would triple the cash call). If you don't have the spare capital to subscribe, then, well yes, you get diluted.
Re: comment below that there will now be billions of shares in issue, no, there will only be 1,016m at completion. Only 665.9m new shares are being issued. The 370.7m mentioned as part of the Placing is just the underwritten bit to make up the difference (if needed) not taken up under the Open Offer.
Re: the comment this does nothing for the debt and is just for additional liquidity. Erm, no, this is all about the debt. Read the document. The money being raised will be used to incrementally reduce debt.
Oh, and all the talk in the past on this board about having to place at par value or higher (10p) was misguided, as I said at the time. Par value is a meaningless accounting figure - can companies can easily reorganise the shares to issue new shares at whatever price they can. As now very clearly exemplified.