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I believe you are correct. He will not make money.
However the broad thrust is also correct in that LR has mitigated quite nicely and has a position to go to with Novacyt.
Stas hi , I never go cross board usually, but I have a question re what you were sent . Is there a typo , it doesn't make sense to me.
It starts with the offer being 0.55 , then proceeds to say LR's average is .52 so he will make money blah blah. However the offer is .522 , therefore he won't make any money , perhaps a miniscule loss or gain. So the premise he makes money whilst shafting shareholders isn't correct.
I Perhaps I am misunderstanding something....
I am talking purely about the article/ thing you were sent and not in any way passing any form of judgement on prior shenanigans .
Mirror image of what's happening here. Chembio with no money and forced into the sale with shareholders trying to hold out. Still all went through as the alternative was nothing. Same as will probably happen here no doubt.
Sure stas 20 ....shareholders got shafted..management didn't ...
Hi Gizmo, rather than me needing to read the whole history of Chembio as I'm sure there is a part that is pertinent to your point, could you please just enlighten me?
Worth noting their selling behaviour as a mechanism to drive the SP down to a point .00522 was considered a good option!!!
I will certainly be following them in future
Forgive my ignorance here. I bought in way back in 2015. And doubled down again at raising. Couple of questions.
I use HL for my investing. How do we go about apposite the takeover. And secondly with regards to the Taiwan sale. Is us as shareholders won't see any of that correct?
Hi stas 20 ....read chembio history and there is your answer ...sorry ๐
Dav 23m still 1x Revs
1p would be more palatable after TF .0070 maybe??
Don't forget effectively they are paying around ยฃ23M total Inc the TF pay off.
I guess it's the opening offer and they must have known this would be the reaction. So maybe they have kept a bit in reserve to up the price.
Stas, thanks for that, confirms what most are thinking. Not sure Ncyt will up it though, well not enough to get the hounds off. Many not happy, but unless they stump up the cash then will they just let it go bump. Needs another bid from somewhere.
davand, just had this emailed to me,
"on the surface of it a 0.55p share bid for yourgene (ygen) by novacyt (ncyt) looks like a mercy killing, a good result in bad circumstances and a deal that should be done and dusted. but is it?
ceo lynn rees bought most of his shares at 0.3p in the last placing and his average purchase price is 0.52p. rees is thus one of the very few people who will make money out of the novacyt cash offer. and, as a bonus for him, i am told that whilst most yourgene plc staff will get the tickety tack, rees has been rewarded for steering through this deal with a very well paid senior job at novacyt, notwithstanding the value destruction he has driven at yourgene.
it is not just staff facing a black bin bag and a p45 in due course who are ****ed off with rees. i understand that a number of institutional and hnw investors are also unhappy enough that they will vote against the proposal raising the very real possibility that it will fail to get the 75% support that it needs to get to go ahead.
the word is that the dissenters might support a bid but it needs to be at a higher price. will novacyt blink? it is unknown. without a bid the shares would probably fallback from 0.475p but there does appear a good chance that novacyt will have to sweeten the deal to appease not its gopher rees but his angry shareholders."
While I truly hope there is a better offer which is closer to fair value I am not convinced any such offer will materialise
Lyn Rees has proven to be completely devoid of honesty and integrity and Andrew Lesser was brought in to observe, digest and conduct an independent autopsy on YGEN prior to expiry
The buying levels seem to have slowed down and not sure if thats due to NCYT backers reaching what they need or the opposers reaching what they need?
What I will suggest is a someone mentioned there has been a reference to NIPT later in the year and no doubt that has all been strategically held back to reduce the "Fight to keep the lights on" rear-guard action
Hope Andy Lessers independent status means his findings are available to any counter offer business and that his independence can identify true value in his report as Il believe most would buy a second hand car off Arthur Daily before Lyn Rees not alone a former 100m MCap business!!!
If a bit of great news hits in the very near term. Would this lot rns it? A big order for Ranger or similar. Would they try and keep it quiet so as not to upset proceedings? As we know they're economical with the truth in the past.
No, you will be paid out in cash the value of the shares as identified in the final buyout price, current 0.522 per share you hold but we're hopeful of another higher offer from a competing party, nothing guaranteed of course.
So if I hold ygen shares and ncyt will the ygen shares simply be absorbed into the ncyt shares?
You watch the flood of rns post takeover after sooo long a period of radio silence.
I remember it vividly!
You can look back and pick many moments from the shareholders presentations/communications (remember those?!) which in the current situation begger belief.
The capital markets day last year for example and the section dedicated to M&A activity - talking of 8 to 10 times revenue and larger companies being pressured to use up cash that they have. Hereโs the clip for anyone wanting to put themselves through it:
https://www.youtube.com/embed/L9gYafeBET0
Skip to around 17mins20secs for the m&a section.
Slow hand clap for the Lyn and the board.
You would've thought that Rees had possibly sounded out all the obvious potential suitors before settling on Ncyt. All hush hush and off the record of course.
I remember reading that. That's part of the reason why I averaged down. Probably came from lying Lyn.
Stas,..21st December rns.. Capital raising.
I would like to keep some sort of investment in the ygen core (Nipt, ranger) which can obviously be done through Novacyt - but that looks like another potential wealth destroyer with the legal issues they are going through.
I definitely will not be buying any ncyt at this stage - if it goes through then Iโll likely take some shares.
Lets hope talk of an improved offer or another bidder comes to fruition- realistically how much higher could Novacyt go?
"advancing ongoing discussions regarding a potential strategic investment from a leading organisation in Yourgene's sector."
Where have you got that from Davand?