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If this RTO goes through will allow Extruded Pharmaceuticals a listing where it can raise more capital. Basically what you can expect here is fundraise after fundraise (DILUTION) to support a lifestyle company and a gravy train for certain directors at your expense. Better get a return of capital and put into your own money into your own chosen share rather than get this lot to do it for you. Do you really want a company take our cash and put into their experimental research? VOTE NO TO RTO
You could just sell the shares though. You're not forced to be in long term.
The main concern is will it hold that deal level for the short term. You've got to say it's likely to move lower quite quickly. So cash would be better. However, 3 weeks to trade the shares, god knows how long to get the cash.
RNS out re RTO and it is even worse than I predicted.
The Board of AMC must think that AMC shareholders are Cretins to think they can pull the wool over shareholders eyes bu carrying out a 1 for 160 share consolidation and then issue £5.5m of new shares to acquire EPL that Companies House records shows a balance sheet as at 31 December 2022 with negative net of £631,653.
A negative balance sheet from an accounting perspective is a liability rather than assets so we are issuing 2.75 as many shares that are already in existence to purchase a liability.
In one of my previous posts I predicted they would they would double the number of shares in issue 1.393 bn shares to 2.786 bn shares which reduces the cash value per share for AMC shareholders by 50%.
However the deal is much worse than my wildest dreams as there will be a maximum of 32,678,150 new shares which is equivalent to 5,228,504,000 old shares so 5.225bn v the 2.786bn I precicted.
AMC is issuing 23,939,986 news shares although my calculations arrive at 23,972,698
We end up with 26.64% of the total amount of shares in issue and the owners of EPL end up with 73.36% for what is a company with negative net assets of £631,653.
Our share of the remaining cash in the company is being diluted by 73.36% and we are buying a company with no assets and a low chance of their novel drug delivery system coming good!
ManuelDexterity suggested that shareholders should vote in favour of the RTO no matter what the deal is however AMC shareholders surely cannot be that desperate and be lacking in sufficient accounting acumen that they would approve such a deal.
As the saying goes “A fool and their money are easily parted!”
A clear demonstration of all that is wrong with the AIM market!
AGE
Reposted correcting typo spelling mistakes as I hate sloppiness!
RNS out re RTO and it is even worse than I predicted.
The Board of AMC must think that AMC shareholders are Cretins to think they can pull the wool over shareholders eyes by carrying out a 1 for 160 share consolidation and then issue £5.5m of new shares to acquire EPL that Companies House records shows a balance sheet as at 31 December 2022 with negative net of £631,653.
A negative balance sheet from an accounting perspective is a liability rather than assets so we are issuing 2.75 as many shares that are already in existence to purchase a liability.
In one of my previous posts I predicted they would they would double the number of shares in issue 1.393 bn shares to 2.786 bn shares which reduces the cash value per share for AMC shareholders by 50%.
However the deal is much worse than my wildest dreams as there will be a maximum of 32,678,150 new shares which is equivalent to 5,228,504,000 old shares so 5.225bn v the 2.786bn I predicted.
AMC is issuing 23,939,986 news shares although my calculations arrive at 23,972,698
We end up with 26.64% of the total amount of shares in issue and the owners of EPL end up with 73.36% for what is a company with negative net assets of £631,653.
Our share of the remaining cash in the company is being diluted by 73.36% and we are buying a company with no assets and a low chance of their novel drug delivery system coming good!
ManuelDexterity suggested that shareholders should vote in favour of the RTO no matter what the deal is however AMC shareholders surely cannot be that desperate and be lacking in sufficient accounting acumen that they would approve such a deal.
As the saying goes “A fool and their money are easily parted!”
A clear demonstration of all that is wrong with the AIM market!
AGE
This fool will be glad to see an end to this fiasco by the last day in May.minus 73.36% is better than more months of rubbish from the likes of you and most likely 100% of sweet fa after they have drained the pot for all they can.
All the best I’m gone from here.
MD
ManuelDexterity I think you are adopting a shoot the messenger philosophy.
Make sure you shut the door on your way out!
AGE
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This fool will be glad to see an end to this fiasco by the last day in May.minus 73.36% is better than more months of rubbish from the likes of you and most likely 100% of sweet fa after they have drained the pot for all they can.
All the best I’m gone from here.
MD
There are two choices ....Accept the offer and get the option to recover some of your investment back or refuse the offer and get nothing back. Its that simple !
I tend to agree, unfortunately. Worth noting when considering the value, that all these new shares are going to the new directors. It makes a big difference, they are not free float shares.
ChessMaster did you read the document on AMC's website?
It states the following:
In the event that the Resolutions are not approved by Shareholders, the Acquisition and other Proposals will not occur. It is expected that the Company’s AIM listing will be cancelled with immediate effect resulting in Shareholders owning shares in an unlisted company. In such circumstances, the Directors would first settle all outstanding liabilities of the Company (including the abort costs of this transaction), and then seek to authorise a winding up of the Company, with any outstanding capital being returned to Shareholders.
AGE
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There are two choices ....Accept the offer and get the option to recover some of your investment back or refuse the offer and get nothing back. Its that simple !
If the Board of AMC are able to demonstrate that it is a good deal for AMC shareholders then I would vote for it but based purely on EPL's last set of accounts I would definitely not vote for it.
Where as the costs for the patents in EPL's accounts as they should be disclosed in intangible fixed assets as the technology has been assigned to EPL?
Basically the product is a bit of plastic that is inserted into the brain when the tumour is removed and it then releases the drug as the blood brain barrier prevents drugs from getting from the blood stream and into the brain.
I have learned from past mistakes in buying AIM shares that you should take what AIM Board members tell you with a pinch of salt.
There will be a lots of caveats in the RTO document such as the 23 pence is an estimate and it cannot be guaranteed.
It will be interesting to see which firms have been involved in producing the RTO document and no doubt it will say the valuations are based upon assumptions that have been provided by the Board's of AMC and EPL!
Has any one been able to find the RTO document on AMC's website as there will be around 100 pages of information that our group can look at to see how the AMC Board arrived at a theoretical price per share of 23 pence which equates to 0.14375 pence in old money.
AGE
Do you really trust the board to wind this up in a timely manner, though? I bet they would drag it out as long as they could and you'll end up with less and just have to wait longer for it.
23p would be good, but you're right, it'll be lower than that.
Dojistar have you managed to find the RTO document on the AMC website?
I cannot find it!
You would have thought that RNS would have included a link that you can click on that takes you directly to the document but I suppose that is asking too much for AIM Boards to arrange that and yet is the obvious thing to do!
It is not a good indicator of efficiency in that on the day the RNS comes out we have to keep looking at the AMC website to check to see if it has been loaded up.
Do you notice below that they stated
(including the abort costs of this transaction)
They must mean abortive costs rather abort costs.
These costs need to be paid by AMC whether the RTO goes ahead or not!
AGE
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Do you really trust the board to wind this up in a timely manner, though? I bet they would drag it out as long as they could and you'll end up with less and just have to wait longer for it.
23p would be good, but you're right, it'll be lower than that.
Https://amurminerals.com/content/wp-content/uploads/Proposed-Reverse-Takeover-Admission-Document.pdf
Has anyone noticed that the documentation for CRISM Therapeautics Corporation has an authorised share amount 16bn shares of no par value?
That gives plenty of scope to issue more shares as the existing AMC shares issued is 1,392,872,315 reduced to 8,705,452 for the 160 for 1 share consolidation and the document states:
Number of New Ordinary Shares in issue upon Admission, following the Share Consolidation and Bonus Share Issue and Consideration Share issue 32,678,150
So potential to go from 32,678,150 to 16,000,000,000 this allows an increase in the maximum amount of shares to increase by a 489.62 times that if the RTO goes ahead!
Good to see that someone from AMC or it's PR firm is monitoring the LSE forum closely as goneawol just provided a link!
Hats off the PR firm as very efficient for once!
Could this sudden level of efficiency be due to the fact the Board want shareholders to vote in favour and then once approved go back to the usual habit of not responding to shareholders messages.
goneawal how about asking Robin Young to issue tax guidance re the implications of the Board;s decision to approve the payment of the special dividend!
AGE
They certainly make it sound like the cash position won't be as great as everyone thinks. You have to take in account the very high admin costs and rto costs since that final results figure. It'll be a lot lower now. Good question for the Q and A, how much cash do you have now?
.......and how much could be returned after liabilities and abort costs? I think figure that might disappoint quite a few.
Has any one had a look at the RTO document?
EPL's turnover for the year ended 31 March 2023 is £5,503 with a loss after taxation of £338,534.
Yes, £5,503 is worth of the Sterling equivalent of just 8 days of Robin Young's annual salary.
Strange that the annual accounts at Companies House are for the year ending 31 December 2023 yet the accounts in the RTO document are for the year ended 31 March 2023?
What happened during the period April 2023 to December 2023 to say the results and balance sheet are not disclosed.
This RTO reminds me of the Dragons Den TV series when deluded entrepreneurs enter the den and they tell the dragons they are seeking an investment of £550,000 for 10% share of their business.
When the entrepreneurs have given their presentation the dragons start asking questions such as what is your turnover for the last and year and what was your gross and net profits?
Could you imagine if the Board of EPL went into the den and told the dragons the turnover was £5,503 and they made a loss after tax of £338,534 and we value EPL at £5.5m for a bit of plastic that can be inserted into a brain.
Once the dragons got over the shock of such a ludicrous valuation would all fall off of their chairs and so would Charles Ponzi if he was still alive with an uncontrollable fit of laughter.
After they had managed to pull themselves together after laughing for 5 minutes non stop they would tell them they are not going to invest but they know some highly qualified geologists who have a few million money to burn!
AGE
The Board of AMC have a fiduciary duty to act in the best interests of all shareholders and not just themselves!
£5,503 turnover. Damn. Loses of £338,534? Those could double if the new man takes the same salary as Robin. Cash will all be gone in 18 months and they will do a placing. Better vote NO and get a return of capital. Put your return in GSK a proper pharmaceutical company. This company that produces this plastic instrument is not going to cut it. One product company. They should have just sold the IP. They want a listing in order to obtain more capital as they know they will need it. This is a poor RTO. VOTE NO
On page 92 of RTO document costs include R&D of £255,540 for 2023 and £107,767 so a total of £363,307 so amazing that a group of high qualified geologists believe that that deserves a valuation of £5.5m?
My goodness me what was Theranos valuation at its peak?
It was $9 bn and now worthless!
As the saying goes "The markets know the price of everything but they do not know the value of anything!
AGE
Would the 53 members of the AMC shareholders share action group email me as I would be very interested to hear your thoughts on the RTO now that the documentation has been published!
AGE