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Kvt, An excellent post, thanks. I would just add that sometimes a shell can adopt a new name as a fairly temporary measure, so we can't be sure how permanent the name "Acorn Growth" is going to be.
P.S. Thanks Polly and MUAS for your nice comments.
Thanks Polly. It comes over as a little cryptic, but reading between the lines I sense that the new directors are being lined up. The fallback has been a bit disappointing and frustrating, but with the right news last month's highs could be easily exceeded. At 13.125p this looks like a very attractive point to top-up. 'A watched pot never boils' though, so I think I will take a break from watching for a while!
MUAS your patience is admirable and my belief is that it would have all paid off in not too long from now. I have no doubt that the 66m shares will be subscribed for, just a little more patience and Im sure things will be beyond our expectations. Also I contacted Mr. Goodfellow regarding the stepping down of existing directors and this was his response: "Good morning If you have not seen an RNS stating that we have stepped down, one could assume that we are still on the Board. For the time being. That may change however , as per the AGM statement. Best regards Charles Goodfellow" I leave this to experienced heads like Kvt, Hedgehog, YB and others to give us their views.
Hi kvt123, Excellent post you and polly1965 are correct its not Scare Tactics as I implied , drop as you rightly say seems to be too promote an interest in buying the stock, maybe PIs see this as one for the bottom drawer hence the sells. I have been in ACO for two years now and will remain as this in my opinion has fantastic potential. Baby steps first as always as new BOD have only just put there feet under the desks. Once again thanks for an excellent insight.
way I'm looking at this is, ACO is looking to raise £10m @ 15p with the issuance of some 66m shares. Now, the existing shares are pretty much all accounted for, so any instituation looking to acquire a reasonable sized holding can only do so through the latest offer, as can already be seen with the take up of £600,000 worth that we know about so far. At some point, a notification will be made to the market of whom has subscribed and as the SP is below 15p, it stands to reason that the SP will move up to the offer price. Of course, the $6m dollar question is, what opportunity will entice investors to buy the offered stock? What strikes me as odd is the name change. There are two generally accepted meanings of a RTO. http://www.investopedia.com/terms/r/reversetakeover.asp Firstly and most widely accepted definition - "A reverse takeover (RTO) is a type of merger that private companies use to become publicly traded without resorting to an initial public offering (IPO). Initially, the private company buys enough shares to control a publicly traded company. The private company's shareholder then uses its shares in the private company to exchange for shares in the public company. At this point, the private company has effectively become a publicly traded company. An RTO is also known as a reverse merger or a reverse IPO." And secondly, the alternative definition - "A reverse takeover can also refer to an instance where a smaller company takes over a larger one. It is so named due to the fact that it is the lesser expected arrangement of the traditional takeover of a smaller business by a larger one." Now looking at Gulf Energy's website, they are in the process of undertaking an IPO to become a Plc...which is probably the reason for their interest in ACO as a clean Plc shell, so the first definition [quoted above] of a RTO applies in that instance. Now the main reason Gulf want to float is that they have a vast licence that they can't currently afford to exploit and are looking to raise investor capital by floating. Imho, we will see the first definition of a RTO taking place here. The acquirer (incoming private company) wanted the capital fundraise provision (latest share offer (66m shares for £10m)) agreed before continuing. The subscription shares represented 53.62% of the issued stock giving the acquirer a controlling, majority interest, hence the resignation of the existing BoD. So working on this premise, why bother with a name change? Normally, the acquirer is an established private company who would, of course, already have a company name i.e. Gulf Energy. So I think it is likely that the new investors (Heartwell et al) are planning to launch a new enterprise with substantial institutional investors whilst retaining the name Acorn Growth Plc. Enterprises that spring to mind might be Property or Infrastructure Investment/Portfolio manage
Hi, glad you are still on board you always give a good perspective on ACO matters and long may that continue.
Hi Polly & MAUS, I'm still here...watching and waiting. Will consider a top up if the SP erosion continues but would like to see some meat on the bones before increasing my exposure. Without any news there is little to talk about unfortunately, as for the SP... a combination of investor boredom, impatients
Thanks for reply and allaying Aussie fears, also agree with you with regard to Hedgehogs insight, also Kvt123 was a regular poster during RTO but hasn't expressed a view for a while. Was going to say Hedgehog100 was an "old wily fox" but he maybe upset over old and fox with his pseudo being an Hedgehog ! Right that's me for today going for a lunchtime swim and sauna ! p.s Polly1965 how did you know my date of birth your post timed at 1.2.55 which is my DOB ( Scary like the tactics at the moment) HAND everyone
Thank you MUAS. I don't think there is much to worry about on the Australia end because the directors are changing and so too, i imagine would the connection to Australia in due course. They'd be crazy to leave the FTSE main market. Interesting you say scare tactics. Scare tactics from who and to deter investors for what reason?? Im eagerly awaiting a response from Hedgehog too as he always presents us with wonderful insight.
Hello Polly1965, Old Fashioned Scare Tactics .My only concern with this Company is that they are Australian Biased will they leave these Shores to trade on another Index only time will tell. Would be very interested with Hedgehog100s thoughts or anyone with regard to continual drop.
Hello Polly1965, Old Fashioned Scare Tactics .My only concern with this Company is that they are Australian Biased will they leave these Shores to trade on another Index only time will tell. Would be very interested with Hedgehog100s thoughts or anyone with regard to continual drop.
What is with the unusual drop? Any explanation other than pound drop?
https://beta.companieshouse.gov.uk/company/07892904/filing-history
The drop could be due to Weak Pound and Exchange Rate low, saying that one big Trade this Morning so someone has their ear to the Door, still Fantastic Potential here if you can stick it out ! which I intend to do so.
Means the pie is bigger, one has to hope the slices aren't thinner.
all looks very positive. Tempted to top up but already have a substantial holding. Not long now.
Exciting stuff! Things are moving rapidly, and we could be looking at something quite enormous here. Polly and others, I am more positive than ever. P.S. Thanks Kvt - a fairly obvious thread title, but sometimes the obvious things are the best, and if this isn't a 'potential oak' then nothing is.
Yes, clearly a fundraising of this size is pretty ambitious for a cash shell and new money will need a strong enticement to invest at this level + I can't believe TB would have punted for £10m unless he knew he could get it away. Imho, this fundraise will be for capital required by the incoming entity for project development, product launch etc..
You would imagine that we will get regular updates from now on. They must have a strategy in mind and investment targets once the necessary level of funds are in place.
Okay, if I'm interpreting this correctly, the three resolutions set out in the share subscription Rns, namely- Completion of the Subscriptions is conditional upon: ����� evidence satisfactory to the investors as to the passage of resolutions at a general meeting of the Company to authorise the allotment and issue of the Subscription Shares; ����� evidence satisfactory to the investors of a prospectus relating to the issue of the Subscription Shares having been approved by the FCA; and ����� aggregate subscription monies being received by of not less than �2,477,666.70 (such sum having been deposited prior to exchange of the subscription agreements). have now been fulfilled. This paves the way for the resignation of the existing BoD and the nonination of a new Board by the new investors. Yesterdays Rns, makes provision for a fundraising of circa £10m at 0.15p. One would normally expect the SP to retreat to 0.15p, however, early indicators would suggest that the Mm's have other ideas...gla
You and Doc were very right!
You and Doc were very right!
Seems to me that everything is proceeding as planned and on schedule... Ps. Like the new thread title Hh100..
Hedgehog, There seems to be quite a bit of selling considering the resolutions have all passed. Now the name has changed can we safely say the exchange has taken place? Also the issuance of 100million shares clearly means there must be a project ready for an RTO. What is your take on what has been happening?