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Don't get how this is worth £22m, except valued higher for tax purposes being a vct ?
Best to focus on real business rather than financial manoeuvres.
Obviously this is an attempt to put value into the market .
It should boost the price.
Interesting move.
Its is an interesting move...the rns refers to quick exit a couple of times. I can see soh selling something soon and if he gets the right value then a special divi i would hope.
Maybe it is purely strategic but something in the background is prompting this would be my guess.
So I thought I might be faced with this conundrum. Stick or twist. Obv will get some divi shares but really like the Probiotix side of Opti. Do I subscribe for shares in IPO or hope Opti rises to reflect. Would appreciate thoughts.
An interesting conundrum indeed. Some people will point to Open Orphan and the collapse of its share price once it span out Poolbeg in a similar move. However, that was a very different situation, Open Orphan shares had already got ahead of themselves and had priced in this float which had been well touted, whilst this has come out of the blue from Optibiotix Health whose share price is already ridiculously depressed so can only see the combined value of the in-specie div and Opti being higher. And of course, when sweetbiotix launch news for the retained pre-biotix side of the house finally drops......
Bit puzzled, any clarification would be helpful.
Will optibiotix now own approx 90% of the Probiotix spin off £2.5 million to raise from £22.5 million mentioned in the RNS?
I wonder if part of the story is SOH's frustration with the (largely dysfunctional) AIM market?
Current OPTI Valuation: ~£26M (and majority of that value is from SBTX), so if we exclude SBTX and cash, receivables etc rest of OPTI is probably only valued at£7m at moment, which is massively undervalued.
New Company Probiotix Health: £22.5m
New shareholders will get ~£2.5m of new company
Existing OPTI Shareholders will get: 35% - 37%
OPTI will keep 46% - 48%
And new shareholders around 13% - 18%
So if we say new share-holders get 15%, that means as a current OPTI share-holder we will retain 85% of shares:
37% we will get directly in shares (with lock-in period etc)
48% will still be owed by Opti.
So, you will still own 85% of the company either via the in-specie div or by your stake in OPTI, and if the new company hold’s it’s valuation in future, we would own about ~£19m of new company.
So what is currently worth around £3m within opti (if we exclude value of SBTX, and other divisions in OPTI, you may value it differently though), by separating out Probiotix Health, we’ve increased value by £16m, so 6x what the market is currently valuing it at.
Please note, these figures are rough estimates and someone with more knowledge will be able to give better info.
I must say, I do much more prefer the way this is being split compared to how SBTX was done, as it ensures existing OPTI shareholders get shares in Probiotix Health directly (so you don’t need to buy separately if you don’t want), and OPTI still down a big chuck also. I really wished they had done that with SBTX as well.
Think the market sees this as “no transformational news on the horizon, let’s do a bit of financial engineering”.
Still think at the current level this is undervalued. Would like to know from soh what the proceeds will be used for.
This seems an unnecessarily complex & opaque scheme, dreamt up by a broker whose main focus is on the fat fee they'll receive. SOH says "ProBiotix now wants to accelerate commercial progress by securing funding". It could have done that whilst remaining within Opti, simply by selling down a bit more of the SBTX holding. If the main intention of this scheme was to enhance shareholder value, how does SOH explain the 7.25% DROP in Opti's share price since this morning's RNS?
Adyan9200 - I take your point about unlocking value. And at first glance this scheme seems a better approach than SBTX's spin off (since which, Opti's share price has generally only moved one way - DOWN). But if it's such a cunning plan, why has the market reacted so negatively, marking Opti down over 7% at the time of writing?
So we get some shares of the probiotix spin off free or we have to purchase through an advisor? Whats the in specie dividend about?
Perhaps it's still digesting the full implications. Share price currently just over 3% down. Still hardly a ringing endorsement though, is it?
Andrew7 - my understanding is that existing Opti shareholders on the register at 25 March 2022 will automatically receive Dividend Shares. IN ADDITION, they can apply by 23 March to buy further shares under the placing and subscription scheme and will be given priority in their capacity as existing Opti shareholders. But it all sounds rather complex. And who'd even heard of the Aquis Exchange before?
lord, hardly massive sells and probably just elrico getting shot of his holding as he told us he would
AquaeSulis01 - I agree, best to see how things settle. However, it doesn't take massive sells (or buys) to move the share price significantly, as Opti is fairly illiquid,
160k trade now showing. Presume sell?
lordloadsoflolly - As this is AIM, it's the wild west regarding share price.
I'm hoping that the share price will start rising as the news spreads and the closer we get to 25 March deadline, we just have to wait and see. I can see there was a massive buy at 31.25p, so hopefully it'll start ticking up.
I asked HL whether aquis shares could be held in an ISA and SIPP. They are saying ISA is OK but not a SIPP. Is this correct? I have no experience of Aquis
nick1978 - this article implies SIPPs & ISAs both OK (for A J Bell investors at least, though I'm not with them myself): hTTps://www.ftadviser.com/investments/2021/04/08/aj-bell-adds-aquis-stock-exchange-to-platform/
Nick,
Speaking from experience with ORPH/POLB, the ProBiotix shares will likely be classed as restricted shares until any such lock-in period has lapsed. If the in-specie is via an asset already in an ISA, your in-specie will also be tucked away in the same ISA/SIPP.
AJ Bell PLC (LON:AJB) has added stocks listed on the Aquis Stock Exchange (LON:AQX) to its online trading platform.
AQSE has approximately 90 listed growth companies, which can now be bought or sold through AJ Bell Youinvest and through a financial adviser via AJ Bell Investcentre or be traded online via AJ Bell’s ISAs, SIPPs and Dealing/ General investment accounts.
I'm with both HL and AJBell and tried getting a quote for Adnams PLC.
The HL website specifically tells me it's ISA or standard dealing account only. You can't add it to a SIPP.
AJBell seems to be allowing me do it in my SIPP, but it's out of hours now, so I obviously couldn't actually get a quote.
Fwiw they're £89 to buy!
Favourable market response, 10% rise in share price today (admittedly from a low price) on a healthy volume of circa 1M shares.
Yes anon that's what I was told by HL, not allowed in a SIPP. Poolbeg as mentioned earlier is on aim so not comparable. Thought soh said Probiotix would be Nasdaq. Quite a comedown IMO