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Magoo... yes you are right I didn't see the detail of the last raise within the previous shareholder circular. Apologies you are right given that.
Yes DShox, my interpretation was that it wouldn’t look to acquire an already listed company, but bring to market a company who doesn’t necessarily want the complications that come with an IPO. Hence this would then become the holding company ...
The company already raised £3.1m and the whole point of a SPAC, not navigate cumbersome disclosure rules, is not to define a specific target, to have no commercial operations and hold funds in trust, with the view to rapidly undertake an acquisition of a much larger private vehicle seeking to go public.
I've no idea what the fcu#k is going on here, but the very fact that Raglan are now involved and possible vehicle for OO assets???????. I have taken a punt with 2million share at .31p...good luck guys but this is definitely the maddest punt I've ever made!!!!
Deepjoy - you are behind the curve I’m afraid - it’s re-defined Now awaiting license !
Magoo. My understanding is that a cash shell company cannot raise capital from the market in these circs without re-defining its nature of business and issusing a prospectus first to outline the transition of the business from a building company, etc, beforehand. It can, however use any existing assets (CASH) on the balance sheet arising out of the sale of the previous traded company to make aquisitions of another PLC or list what is in effect a private company into AIM via that route. There is a difference as new market participants have no idea what the prospectus is, whereas any existing share holders know all there is to know from the RNS'. How much cash does it currently have is the question?
The point is that they cannot raise market capital without re-defining the business.. so to say it trades as a SPAC is factually incorrect as it is listed as a shell company whose previous business has ceased.
Deepjoy - it’s a Spac
Following Completion, the Company has been designated as a Cash Shell pursuant to AIM Rule 15. As such, the Company must make an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules or be re-admitted to trading on AIM as an investing company under the AIM Rules (which requires the raising of at least £6 million) within six months failing which trading in the Company's shares on AIM will be suspended pursuant to Rule 40 of the AIM Rules. Admission to trading on AIM would be cancelled six months from the date of suspension, should the reason for the suspension not have been rectified.
Following Completion, the Company has been designated as a Cash Shell pursuant to AIM Rule 15. As such, the Company must make an acquisition or acquisitions which constitute a reverse takeover under Rule 14 of the AIM Rules or be re-admitted to trading on AIM as an investing company under the AIM Rules (which requires the raising of at least £6 million) within six months failing which trading in the Company's shares on AIM will be suspended pursuant to Rule 40 of the AIM Rules. Admission to trading on AIM would be cancelled six months from the date of suspension, should the reason for the suspension not have been rectified.
It is the intention of the board to commence the process of identifying suitable acquisition targets immediately.
If the name change to SPAC UK PLC is not a big enough clue for you then I'm speechless
This is not a SPAC it is a shell as defined by market rules so look it up... and you're ramp is misleading and, on current market rules simply false..
Say the share price gets to 5p with the investments made they then dilute the shares say it goes to 3p a share but then the money they raised goes into a immediate growing investment then the sp would benefit and 24 hours later be at 8p. Spac companies are very exciting and in the early days the Interest is gonna put these up with cannabis companies. Then say December this year when companies like mogp are at 500p there will be a crash like never before. Spac companies = enormous short term growth but then crash.
For investors this is a genuine im getting rich in 6 months scheme.
0.3 a share now here but anyone who can see the hype behind this new spac mini era knows that it will be stupidly higher.
You just need to know when to get out as a spac company can fall from 500p to 5p in a hour.
From here as long as you don't sell its a amount of money being returned, just be careful you don't get caught on the bubble pop which i imagine will be as early as December this year.
Until then enjoy hefty profits
The renaming to spac uk plc is key word genius and watch how many overseas investors go spac that must be the main one.
Marketing geniuses
Max.. This is not a SPAC it is a shell company. Two things can happen, either they raise capital (6m) by issuing a prospectus for share holders / investors as a revised company listed as a SPAC, OR, they can taken over by another company for a notional sum of the companies assets (cash) and maybe some other level of incentive (warrants etc). The company doesn't raise funds to be taken over all that happens is that the BOD accept the terms. That is my understanding of the position and if people are interested a good example is bidstack from 2017 if you look at that process.
I am fairly confident that MOGP wont be "buying" the spin offs, at least not with cash. Shares will be issued in MOGP to be given to ORPH shareholders in exchange for the spin off. This will create dilution in MOGP, but MOGP will immediately be worth £200m+ so the SP wont necessarily crash. Speculative punts in MOGP are based on there being a net gain for the existing shell, so despite any major (and likely inevitable) dilution, the SP still rises.
I expect dilution later (post spin off) to raise cash, whoever will provide the finance.
I for one am not too concerned if a 50 fold dilution from today ends up resulting in a 1p share price. It will mean a gain from today's prices.
I also expect FOMO to take over as, in the case of immutex, the assets could be hot property and thus the value of the overall MCAP may exceed the net assets value of the spin off.
Any would be investors need to acknowledge that this is a speculative punt. As trader mentioned, there are many unknowns, but CF certainly knows something, and enough to buy 5%
Thanks for your thoughts Max
Thanks Dingodog.
Also a good point about OO only a shell a while back.
I wonder if CF will become more involved in MOGP in the future?
As the way I see it:
A) There will not be a raise at these price
B) As part of a reverse take over there will be significant underlying assets or business backed into #MOGP to underpin the the transaction and as a result, #MGOP will see a significant increase in value.
C) with new government rules that will encourage SPACSthis like other SPACS will have a significant increase in value in the market because many businesses both in UK and Abroad will search SPACS out as it has many financial advantages.
D) this company is already listed and will again attract a much larger market
E) Look at the recent TR-1's there is a lot of money coming into what would otherwise be a cash she'll.
Also, look at the new director's and this tells me that #ORPH is either only part of the picture or not part of the picture, but if it is there will be a significant partner and they will likely put up the money, so if there was to be dilution, it will be to sticky hands and would likely be a very Mr/Mrs Big and as such will attract more money in due to the partnership and/or the underlying asset value!
So, anyone posting doubts seems to be a subtle deramp and cross ramp that won't have the same potential as MOGP IMO, but as everything this is a punt, but at these prices it is. Steal nd is likely to have a sharp reuse on share price.
I think the main reason people are making speculative punts in MOGP is that CF (via investment co) has invested to acquire 5% of MOGP.
Dilution is inevitable, but dilution isnt always bad. If the shares in issue quadruple but the MCAP 5 bags (for example) then the ground floor MOGP buyers still gain.
A lot of the buying here is following CF taking a position and the expectation (hope) that he wouldnt do so at a detriment to his own wealth
Hi Trader.
That is one of the things baffling me. When the shares from MOGP are handed over to shareholders of Orphan - this will be surely after the fund raising and subsequent dilution ! So by holding Orphan shares you have the benefit of Orphan, the subsequent free shares in MOGP BUT at a share price that reflects the new company and after any dilution.
But what is confusing me is that Orphan will then get paid the ( lower) diluted share in the free 1-1!
first time SPAC virgin here, i cant be the only one.
I'm slightly confused about who pays and when the share dilution kicks in ?
Am I correct in thinking that IF say Immutex was spun out of Orph, reversed into MOGP - then MOGP need to rasie money / dilute shareholding here....so to pay ORPH for the Immutex offering in shares? If so, BEFORE this could happen then MOGP will have to raise a humongous amount of money on the market, to raise say £40 million??? quid to a) pay for the 1 for 1 shares being provided to all Orph shareholders PLUS enough money they can use a s working capital to take Immutex to its next stage.
Therefore, todays shares in circulation in MOGP could be diluted massively.
So if at that time the MOGP share price has risen to 1p ( random guess) it will then be diluted heavily back to somewhere far below 1p.
I'm pretty sure this is not how it is suppose to work . What are the mechanics of a sp rise, vs the dilution in a shell that has just taken on a business for £££ amount.