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Good to get an update. Mixed update but mainly positive. I wonder if they will delist based on last comment. One to leave away .
This will further accelerate Federated's valuable recurring revenue model into 2021. Federated expects its revenue to grow by over 500% in 2021, Federated has sufficient cash to fund its growth into 2022. Allied Minds currently owns 36.61% of Federated
Possible delisting is bad news.
The rest of the RNS Is surely just waffle we have had before?
Perhaps Crystal had advance warning and so they reduced? Could be ploy to get share price to drop and then will be low ball tender offer to tempt minorities?
If prospered delisting without an offer be prepared for a fight.
If the majority of shareholders do support de-listing, the minority have few options. The Listing Rules contemplate that the UKLA may refuse to cancel a listing if the correct procedures are not followed, but they do not prescribe for the UKLA any role in assessing the merits of the proposal or in protecting the interests of any particular group of shareholders. It is known, however, that in some circumstances the FSA, in its capacity as financial services regulator, may not allow a company to de-list its shares where it considers that the minority are being treated unfairly.
Future change to the Listing Rules
In its consultation paper, 'Reviewing the Listing Regime', published on 8 October 2003 (after the LSE's consultation on Rule 39 had closed), the FSA stated that some time in the summer of next year it intends to introduce a new rule which will require a company proposing to cancel its listing on the Official List to obtain the consent of its shareholders. Details of the exact rule changes have not yet been published.
“If the majority of shareholders do support de-listing, the minority have few options. The Listing Rules contemplate that the UKLA may refuse to cancel a listing if the correct procedures are not followed, but they do not prescribe for the UKLA any role in assessing the merits of the proposal or in protecting the interests of any particular group of shareholders. It is known, however, that in some circumstances the FSA, in its capacity as financial services regulator, may not allow a company to de-list its shares where it considers that the minority are being treated unfairly.
Future change to the Listing Rules
In its consultation paper, 'Reviewing the Listing Regime', published on 8 October 2003 (after the LSE's consultation on Rule 39 had closed), the FSA stated that some time in the summer of next year it intends to introduce a new rule which will require a company proposing to cancel its listing on the Official List to obtain the consent of its shareholders. Details of the exact rule changes have not yet been published. “
"Since June 2019, the Allied Minds Board of Directors (the "Board") evolved and by March 2020 the current Board was in place. Since that time, the Board has performed an assessment of the portfolio and continues to critically monitor the progress and development of each of the companies in the portfolio."
The above sounds to me like it is Crystal Amber that are pushing for the delisting and not the BOD.
What does delisting mean to us shareholders. Doesn’t sound good
Let’s see if a buy out offer emerges. If we assume that the investments will ultimately come good then surely the listing cost is small change in the long term? So talking about a delisting could persuade some to take cash now as opposed to having an unlisted investment. Unlisted means a virtual lock in as although the shares could be traded on the OTC (where it’s matched bargain trading only) it would be difficult to buy and sell shares.
From the RNS :-
"The Group's net cash position of $24.6 million as at 31 December 2020 combined with the significant cost rationalisation actions taken by the Board ensures that Allied Minds is well placed to deliver and realise the intrinsic value of the portfolio for its shareholders in the years ahead. For 2021, annual headquarter operating costs are projected to be $5.75 million, below previously provided guidance. Of this amount, $2.6 million is for recurring management expenses and $3.15 million is a result of the Company's public listing. The Board recognises the significant cost of being a listed company and remains focused on how such costs could be reduced."
The listing cost is $3.15 million on the LSE main market. If we switched to AIM that must surely be cheaper.
Obvious the 9 month delay to Spin Memory is disappointing. However, we do have $24.6 million and the portfolio companies otherwise do appear to be progressing although they are a few years from a good exit position.
Looks like the BoD dont know what they're doing. Sell up and invest in something more reliable.