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If you do have extra funds which you do not need access to and have some allowance left in your Cash and Stocks ISA, then add to this before the 5th April Deadline, then from 6th April you get another £20,000 to be able to add to, as long as Rushi Sunak doesn't throw a spanner in the works with his Budget.
Thanks for info Irontagz. I'm actually quite happy for the price to stay like this for another 6 months. Allows me to top up on the cheap before the price explosion which is defo coming. got over 300k shares at below 3p so early retirement once this realises its potential. GLA
Here is my take on what is a possible scenario....
In 2022, Glaxo plans to split into two companies. The first is “‘New GSK’, a biopharma company with an R&D approach focused on science related to the immune system, the use of genetics, and new technologies“. The second company should be a world leader in consumer healthcare.
The Bio Pharma company will no doubt be looking at a number of bolt on acquisitions along the way which could make MGC a very attractive target for a company like GSK. DYOR but this would be a dream come true!
My comment was to Hodl Hodl’s original question which was - “What happens if a company you own shares in gets taken over, do you get the opportunity to have shares in the new company or do you just get bought out?.”
General question- general answer ! .... only trying to help. Rather than express a view.
(Regardless of whether a company is listed elsewhere the theory states it is incredibly rare that a newly floated company will get taken over in the short term- check yourself if believe incorrect)
Mgc Pharma ltd will either be a success or it won’t and if it is going to be a success why would a shareholder want it to be taken over in a couple of months or a even a year for a small multiple of today’s price rather than 20 times today’s price in two years time. I do own shares and know this is a long term hold. There have been some good posts on this share bulletin board.
The economic/ financial theory would state that talk about this company being taken over in the short term as just fantasy. No one would takeover a company that has recently floated (even if floated elsewhere) in the short term and a responsible board of a company would not even consider it (it virtually never happens in the short term because the company has just raised loads of finance from the share issue- so why would they sell ?- they decide to hold out and grow the business/ grow the market) and make their shares be worth 20 or 30 times their issue price. Like Rightmove or Next. Hopefully that happens !
For all shareholders I hope they have a great products in growing markets.
As has been said elsewhere on this board and shown across numerous other AIM shares (and celebrated by the shareholders of those companies) shares within this price range (newly floated companies) are not for the short term they are to put in the draw and forget about them for a few years. If the correct companies have been picked a few years down the road it is like all the Christmases have come at once.
Cannabis stocks are a new marketplace
There will be winners and losers and a few taken out
This is not a short term play
It’s a 2 -5 year play
Give it at least a year before you decide
If it’s good in 6 months at 20p upward it’s an absolute steal at 5p
If you thinking about investing , add a small position
I’ve done that and will be adding more
I’ve done plenty of research and continuing to learn more about this nascent industry
The future is bright once accepted by the mainstream
Eventually governments and policy makers are going to come on board - think of the potential tax revenues
As a sector I’m a believer
As far as MGC I’m a big believer , it’s money I can afford to lose , I don’t need it immediately so it’s in and I will be buying more as soon as I can
Good luck and please DYOR
Lots of companies were listed years ago and were doing nothing since last year when pandemic started and all of the sudden those pharmaceutical companies started booming.
Now it is time for CBD stocks which is coming into light and in near future many of them will be ready to launch their products all over the world with better cure than current treatments available for that disease(i.e. cancer or brain tumour!).
We have already done phaseII and got a really good size contract for artemic(40000 units/quarter).
What not to like?? Unless someone is on sidelines and wishes to take this down! LOL.
MGC pharma has been listed in Australia since like forever! Go check their AUS listing chart.
(Spotted a mistake / key information missing....)
**It is normally a couple of years down the road before a floated company would be considered for take over. (Although it may not happen at all)
have a good week all
It is all linked to the shape value is way below its true value but because of the financial position of the company at the time the offer is made a companies’ Board of directors can still feel the presented offer should be considered and in some cases accepted.
Alternatively a well performing business may receive a take over offer from either another business or from a majority shareholder to take total ownership (like what happened with Sky TV) and the share offer will be at a premium (the extent of this is governed by expected future earnings etc (normal company appraisal). The shareholders receive a cash payment for the value of their shares (at the takeover price on the agreed date). The other option is the shareholders receive a number of shares in the new company (again the stronger the company the more shares in the joined company the investor will receive)
It is incredibly rare for a newly floated company to be taken over given
-there are costs of floating the company on the stock market
-the issuing of shares has been done to serve a purpose ( for a variety of reasons which could be investment/ developing the company/ cash flow etc) and not to provide a method for the company to be taken over in the short term.
- given the number of newly floated companies that do not survive long term any competitior would be more likely to have a wait and see attitude (rather than buying a newly floated company within the first year or so)
-that any presented offer is linked to whatever the price is at that time the Board and all shareholders (regardless of holding) of a recently floated company would want the share price to go up an awful lot before any takeover offer arrives (regardless of who it is from) . For a penny share they would want the price to be in the £s not the pence before any takeover offer comes in given the magnitude of a normal takeover is less than 200% of its current price. (I am sure there is plenty of data on what premium is normally offered within a takeover offer)
It is normally a couple of years down the road before a floated company is taken over. By which time for the shareholders who got into this share early the share price will be suitably rewarded. Hopefully some of the above is helpful/ of use.
It's a bit of a cat and mouse game, the offer made by the company wanting to take over can be deemed as undervalued by the take over target if there is more than one bidder involved. Bit like ebay.
Thanks :)
It can be a cash offer and a cash plus shares offer
Depends on the deal
I think investors get a chance to take up their chosen option
Newbie question
What happens if a company you own shares in gets a tale over, do you get the opportunity to have shares in the new company or do you just get bought out?.