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"(save that fractions of a Newco Ordinary Share will not be issued)."
Better start rounding up those oddsies in your holdings. lol
Can't get half a share, regardless of how it's divided. :)
Hope I am not missing something here but ...
In respect of whether the divie ex-specie is 1-for-1 or otherwise - does it really matter?
The entity being distributed could have its shares distributed
1 for 1 Orph share
or
100 for 1 Orph share
or
1 mn shares for each 1 orph share for that matter
or
1 share for every 100 Orph shares etc
But how does this change the MV of the entity being distributed?
The MV remains the same - has not changed.
So it's like a cake being cut into 1 mn pieces of 1 trillion pieces - it's still 1 cake no matter how u cut it up.
So the issue is like consolidation of stock or stock split / no matter how u dish it out - u still get the same ownership of the company on pro-rata basis with all other shareholders.
Hi earache,
All above my paygrade I'm afraid. I'll just wait and see what turns up.
Didn't understand this bit in particular, though :
.." If we and CF / ORPH are allotted our in specie one-for-one prior to any reverse split then a 1:12 split of the >1bn IPO headroom would take us over 50% and retain control. .."
I thought we were spinning this out and would lose control. That was kinda the point, surely (at least from the pov of the people buying in and funding the spin-off to a hopefully successful outcome) ?
We need to know how many shares will be required to float newco based on the NOMAD’s valuation/anticipated take up before we can ascertain the ratio (i.e. 1:2, 1:4 etc.).
.."CF said the in specie divi would be on a one for one basis, ie., one share in the new company for every share you held in ORPH. .."
Share unit for share unit makes no sense - share %age for share %age, which is also ' 1 for 1' does.
Not every spin-off will want or need 666m shares, which is the only way your interpretation works.
Giving me 0.1% of newco to match my (imaginary) 0.1% in ORPH does.
IMO
Hi Bear666
So what value would you ascribe to HVO-001 ?
Personally, I can't at the moment.
Nearer to the spin-off we might have a clearer idea of what value to place on the new company... at which point I would expect ORPHs share price to have risen to reflect this. So any decrease in share price will come from this point - not todays value (IMHO)
However that will be a buying opportunity
Many are buying so as to benefit from a spin-off or two and the cash surplus payment pro-rata to their holdings. When executed the share price should adjust even if there is no value on the books imho.
BLVN made a special dividend payment around JAN 19 of 15p and the share price dropped by a similar amount.
You get nothing for free..
dyor
True - I was trying to get an idea by looking at EKF Diagnostics and the Renalytix spin out that they did (CF keeps referring to this) but I could'nt find the details - interestingly that spin-out went to 1 billion dollars within 18 months - I would'nt mind that happening here.
The number of shares is irrelevant without knowing the value of them.
I wonder how many free shares ORPH holders will get in the new spun-out company - could it be something like for every 5 shares you have in ORPH you get 1 in the new company?