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Well looks like these shares will have to go under the bed for now not going to lose to much sleep as they will come back fingers crossed and burnt lol.
Bang on Big. I'm as amazed as you! This market just doesn't make any sense at all atm
Absolutely - I wouldn't be buying over the coming days as this will retrace once all those new shares are dumped on the market and the SP finds its new equilibrium.
This will be heading sub 20p.
I can’t believe what I have just read in the last RNS, the BOD are really taking the p##s out of existing shareholders here imo .............
(Assuming no other new ordinary shares are issued between now and AIM admission) ........ Geez, talk about rub salt in the wounds !
This entire fund raise stinks imo. If you notice Rob Pitcher and Mike Foster have purchased £50k worth each, Keith Edelman £25k and Will Tuffy £7k ..........
Rev didn’t need to raise funds imo as days previously they had secured additional finance support from NatWest.
This has been designed, imo, to benefit the BOD and the brokers, not the company or the existing shareholders.
Shareholders turned down an offer for the company of £2.00 some time ago I believe when the BOD wanted it accepted .......... Looks like today the BOD have had the last laugh.
I expect this will now become a fund raising company lining the pockets of the brokers, did you notice their fees for this raise £1.2 million. ........ Nice work if you can get it, and I’m sure it won’t be long before they recommend another raise to the Rev BOD so more ‘fees’ can be charged.
I am amazed how well the SP has held today. Clearly some haven’t done the math here.
Crazy isn't it... I just sold most of my remaining shares now, just have a tiny holding left.
Company mkt cap at close yesterday was 50m shares x 34.5p so about £17m
Today's indicative mkt cap(taking into account new shares) is 125m shares x 29.5p so about £37m
WOW! I don't think people who are buying at these levels understand what they are doing.
Like Big says a £37m mkt cap as of now equates to a share price yesterday of 74p
I'm flabbergasted people are buying and that it's not down to 20p.
We are truly in a huge asset bubble now... it's quite scary actually!
Good analysis Bigbaddaz - huge dilution for existing shareholders and feel for those who bought in on the recent rise.
I bought in at 15p after lockdown was introduced and that now doesn't look good value in the near term. Took profits after the recent rise and sold more today after today's dilution annoucement. Keeping the a small holding for long term sentiment as I do like the brand.
Revs will recover long term but don't expect the SP to anywhere the same levels pre COVID.
That's a very good and thought provoking post Big.
I misread the RNS r.e number of new shares :(
Mmmmm got me thinking now... might sell the remainder of my holding and just move on. only have 50k shares left
Unfortunately Millionaire you may not have fully calculated the dilution here. There will be approx 125’017’495 shares in issue, as opposed to 50’000’000 pre the fund raise.
40-50p a share post fund raise is equivalent to a MCap of £50-62.5 million.
A MCap £50-62.5 Million pre this raise would have resulted in the SP being £1-£1.25 ................ It has been a while since Rev’s SP traded at £1 and above, and that was in a pre covid world, the new norm is going to look a lot different for a period of time, not for ever, but certainly for the foreseeable future.
A 40p SP yesterday, £20 million MCap, is unfortunately now equivalent to 16p a share
A 50p SP yesterday, £25 million MCap, is unfortunately now equivalent to 20p a share
Rev were trading 35p yesterday, £17.5 million MCap, now equivalent to 14p a share
I like the restaurant / bar sector presently as I believe there will be some good opportunities. However Existing shareholders have been turned over by the BOD here imo, and then rub their noses in it by stating the main move to Aim is because raising future funds is quicker and easier, disgusting action by the Rev Board imo.
I agree LP.
Looks bad on the surface but when you look at the bigger picture it’s actually a fair enough move.
Guys not good for those that cane in above 25p ish but with insolvency and uncertainty over, long term this looks like RBD will survive in a sector that’s going to be bombed out..This is beginning to like like an excellent long term hold to me...I am excited about the future for RBG..as I believe their cash position and ability to generate good trading cash flow when all units are open , is long term going to boost the SP...Not good if you are a trader!!!!!.LP
I guess even with the dilution (not ideal :/) it puts Revs in a now v sound financial position.
I think 40-50p is still firmly on the cards here which still puts the mkt cap way below where it was at its peak but with a much better balance sheet now.
Like you said AL their will be plenty of pent up demand when they re-open and I’m sure they’ll become cash generative again in no time.
I’m sticking with it as still think there’s good money to be made here especially now the insolvency risk has completely gone.