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Merchantbanker
I think the problem re the pre emption rights stems back to last year. The company delayed releasing final results because basically they were not signed off.(someone correct me if I am wrong ) subsequently they had to rush through a small placing to bolster the balance sheet. A very small selection of holders were asked to take these up. Which they did. So in summary I think that's why they need approval to issue the extra shares now.
Im of the same opinion as you. Lets get the placing out of the way and wait for all the positive news flow, but I,ll have a bet with you that some past institution will start to build a stake again.
Its a shame that Omega have done some fantastic things and they really are moving forward, despite the fact that it's taking longer than we all hoped for, they are getting no credit for it. Funding of the level of this placing and the plan for the use of those funds should have been such a positive thing, but dark forces have taken over for their own benefit.
Instead of talking about the UK RTC and being part of something outstanding, along with other fantastic opportunities, people can't see past the current share price.
Agree MB, it's a clusterfck but it is what it is, sign off and move on, with a bit of a bitter taste!
The best thing for us is just to get it voted through let the books balance and then wait for the news flow and sentiment to turn.
We will be fine, it's just not a very positive stage at the moment.
The market wont be able to ignore whats coming and once the placing is completed there's nothing holding it back.
I have already written. I urge others to do likewise.
Yeah I will. We should all write to the FCA. Complacency means they get away with it. If they get fined they might stop doing it.
Merchantbanker
A couple of thoughts.
Maybe the company will pull the open offer assigned to Pi investors if the price falls further. Or better still reset the price lower.
Another thought is the price may have been manipulated at this level to facilitate a takeover or collaboration with a large pharma.
Whatever happens I m hoping that they come up with something to rerate the share price back up
Waste of time complaining. If all the shares were under pre-emption rights and not requiring approval i dont think we would be here as the shares would all have hit the market on 25th of June, book balanced, before the design freeze and India RNS.
I'm still not sure why they wern't all covered in pre-emption rights, i did try work it out and have asked if anyone can help. The worst part is these pre-emption rights are supposed to protect shareholders but becasue of the way the market's allowed to operate it causes uncertainty and quite often leads to short term damage.
Anyone going to raise a complaint?
Anyone telling you it isnt corrupt either has something to hide or is wrong. It's easy money for them and it's win win. If you can buy or sell something and then dictate the price that you want to sell or buy back, you make money every time. That's why these companies have been around so long and why PI's lose money. I have to say i expected it to be a little more challenging for them, but its been an easy job with some of the communications published and the delivery of tests taking longer than we expected
Thanks for the Cornhill example MB.I think the reason the firm was censured will be very conducive for a complaint. There is an assumption that they are working in the shareholders and the company interest. Wanting to make a quick profit out of nothing is nothing to do with showing integrity to their role. I notice that Finnbar's sp has increased nearly 10% today and yesterday.
Take it all on the chin, beyond our control. All eyes on Fridays meeting and beyond.
There is no way the share offer will not get voted through, onwards and upwards very soon.
Proprietary trading is not exempt. How is this market making activity? It's cool MB I'm sure it's all v complex. I am tempted to raise it anyway because it looks and feels entirely corrupt to me as a retail investor.
Market Makers have to provide a 30 day exemption notice before short according to this :
Notify us to use exemption
You must notify the relevant competent authority – in the UK this is the FCA – that you are intending to use the exemption 30 days before you intend to do so.
When notifying us that your firm intends to use this exemption regarding a financial instrument, you must use our forms (see below) and provide certain evidence.
To notify us, please send the relevant forms and further information to ssrmarketmaker@fca.org.uk.
We will contact you before the 30-day period has expired to confirm whether we will prohibit the use of the exemption or not.
https://www.fca.org.uk/markets/short-selling/exemptions-requirements
Forward selling is shorting. Below are the rules. Note the exemptions, they dont need to disclose it.
https://www.fca.org.uk/markets/short-selling/notification-and-disclosure-net-short-positions
Oh yeah I do know about forward selling. Not technically the same as shorting but agreed, same impact. Still worth reporting. The FCA are meant to be looking at the cowboy brokers on Aim. They need to separate roles as mms and brokers as has been noted.
Everyone knows that they forward sell placing stock.
Read this. An example of forward sold shares that were voted against.
https://www.fieldfisher.com/en/insights/forward-selling-of-placing-shares-leads-to-public-censure-and-fine
12m shares sold at say 55p average bought back at 40p placing is £1.8m profit. If they forward sold these shares, the placing got voted down and design freeze and India approval took it to £1, they would have to buy back on the market which would make a £6.6m loss.
IMHO this is why so much effort is going into driving negative sentiment, driving the shareprice down as this hedges the risk of the placing being voted down as they could be bought back on the open market profitably anyway. Proof in the pudding will be if it starts to head north shortly (maybe up to 2 weeks maybe friday afternoon) after the resolutions are passed.
Merchant Banker... The brokers issued the speeding ticket when the sp arrived at 91p..and have shorted the share since that day... quite obvious ... and so convenient for them
Mb, how do you know they have got a short on? They aren't on the short tracker? We should report the broker if they are shorting their own share?
Roll on next week, this should all be put to bed by then.
Ethio, I get that you're frustrated. It's not great, the PR is poor, the Sky news outcomes (both of them) were the pits etc. But let's support this share, not trash it. What are you trying to do? Scare a new investor like me into thinking this is a lost cause and I might as well sell up and bail out? That's what you and others may likely do with messages/themes like this. Why drive this the wrong way? For the sake of your own under-water situation, whatever it is, don't just push it down. ODX is OK, sorry it will take time.
Musy - what the price is anticipating is that 60% of the funsdraise, however unlikely, could be voted down leaving them with a 12m share short they cant fill. Its nothing to do with ODX and everything to do with balancing the books.
I’m not considering selling at these prices. At 37p it’s not too far from what’s been achieved in previous years (35p in 2009 & 30p in 2014) without taking into account any of the recent developments as well as what is forecast.
Surely at this price it’s anticipating the worst possible outcomes from everything.
Smokingjoe - agree. You certainly shouldn't be allowed to be a market maker on a stock that you are the nomad/broker for.
This will be the last placing Omega will need.
Its about time Omega decided to give finncap the boat.. they are not doing the company any favours..and should be reported to the FCA...they are shorting the share while everyone has been blaming the institutional Investors