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DJMTrading91
If Redwood do wish to acquire other lenders and loan books surely they'll need to dilute the company even further.
If they buy good quality loan books (which are rarely for sale as the junk is usually sold) this could be a good long term play but no quick increase that anyone is suggesting.
It seems like people are clutching at straws as to why this could be a multi bagger but people never think the whole ideas through.
Metrobank market cap today is £214m, not sure it's even worth 25% of Metrobank let alone multiple times the value.
You could even go as far as saying £50m equity swap is a bad deal, but that would assume Mode is worth something in the first place. We're being thrown a lifeline is what I think and we should be grateful for whatever we get.
Hope I'm wrong as I'm holding a decent amount of these, but think realism is required rather than optimism with this one.
Complex deal completed in 'critical time frame'
When other banks run away from the complex, we embrace it.
To find out our team completed this particularly complicated case, visit us at: bit.ly/3x0dAgb
R8 currently has a market valuation of just over £2 million. The reverse takeover is expected to diversify Redwood Bank into a full-service bank by enabling it to acquire other lenders and loan books.
DJMtrading91, you say "they both need the deal equally as much for different reasons".
I disagree R8/Mode need the deal and Redwood want the deal. If the deal falls through R8 will be wound up.
There is a huge different between wanting and needing something, hence why Redwood should be in the driving seat for any negotiations.
Crober23, agreed cost and time in listing has a value. I think this is the reason that Redwood will give up a small % of their equity on the basis that they will save cost and time.
With regard to the crypto licence, Redwood have not made any representations that it will be used. For all we know it licence may have expired or be sold, if they make use of this it is a bonus but I can't see that happening overnight when relisted.
They both need the deal equally as much for different reasons imo
Costs/time involved in listings have value along with the license mode have which redwood do not
I would be happy to get my money back unscathed; chances of 2 or 3x price on relist are unrealistic for the reason s Juniormining notes.
Think rereading the last few rns and given the stake JR has here compared to Redwood i would think its going to be more favorable than you expect, they were talking about 50mil redwood and if that happens and we get a 2.5mil share then we will rise as redwood broke 500million on asset loans and are profitable award winning / growing. i personally think we will get at least 2/3x current values back if your in at suspended price
must remember a lot of large corporate / jr mates bought into mode when it was 70/80million...... rich don't like losing money
redwood isn't owned mainly buy the rich.. as is here
I also think we need to look at this from a negotiation point of view:
1. Redwood are a bank that is surviving with or without a public listing, they want Mode to buy in exchange for no cash (just equity) as it is a cheap vehicle to get publicly listed. What are the consequences of the deal falling through, they don't get listed.
2. Mode are a failing business on the verge of liquidation, they want to buy Redwood to continue survival also so Jonathon Rowland saves a bit of face. What is the consequence of the deal not going through, no more Mode.
Now if you were either side of the table for the negotiation which party is in the stronger position to make demands. The only dynamic that changes this is Jonathon Rowland has a large share holding in each company, but not enough to make the decisions on his own.
Robinsond013, I expect it will be exactly that, then on the day of opening the market will decide which direction it travels.
Anything more than 2.25p means a bad deal for Redwood, don't think Redwood would sign off on a bad deal as they could just pay the extra money to get listed themselves.
Yes meant structure as in how much will be left to original holders
Do you expect our return to be more than the 2.25 p it is currently I know it’s only guess work
Crober33, if you mean what is the share structure going to look like going forward. I'd imagine it may be a very last minute (just before listing) announcement so investors don't have time to analyse it too much. Jonathon Rowland seems to be a real slippery character when it comes to things like this.
Crober33, " what % are mode/r8 going to hold in Redwood" Mode are going to hold 100% of Redwood.
Surely we should know this? while the paperwork gets completed what % are mode/r8 going to hold in Redwood!!?
Just hurry up.. :)
... :(
“ Redwood Bank’s parent company, Redwood Financial Partners Ltd (RFPL), had signed Heads of Terms for the reverse takeover of R8 Capital Investments plc (R8), a company listed on the London Stock Exchange, in 2024. Kennedy is keen to be involved in these changes, planned for this year.”
Hopefully this is another positive
https://bestadvice.co.uk/redwood-bank-appoints-coo/amp/
20p would do nicely
Hopefully the next update will give some firmer timetable of expected milestones in the process.
It was 4 months between the updates received, so another 4 months will be getting close to the proposed target completion, although that date slipped almost 2 months over the period between those previous updates.
I would expect the shares to relist prior to completion once a formalised deal is agreed, but not expecting any change until 'late summer' as a vague RNS might word it.
I have a Spain trip planned for mid-August which usually means news will land when i am most likely to miss it.
It has been a long wait, but still hopeful of recouping some of my losses long written off here.
gla
The asset is the license and already fca approved ......
The issue with their assets going up 10X is they have no assets. 10X zero is still zero.
Do we think this will be suspended until near end August or will they open up earlier ?
If only we weren't suspended