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I believe anybody with an average of 0.15 or below should be in profit on day of transition
A lot does really depend on how this new company will trade initially. If it hold around the 20p mark, then that's decent enough. Given that only the old amc shares will be tradable and there's no placing overhang, it is possible. There might limited stock available for a while.
The only reason I prefer that option is that I don't trust the management, particularly when it comes to returning cash. I'm surprised many still do have enough faith to go for that option, after the year we've had.
BS8765 I would I be interested to hear how you arrived at an average 0.15p when the RTO document says 23 pence.
You certainly do not have an eye of detail as you should have written 0.15p in old money rather than 0.15p!
A share price of 23 pence is a rise of 56% compared to the effective consolidated share price when the shares were suspended and the question has to be asked why would a share price rise by 56% on a technology that is based upon a piece of plastic.
There is a well known saying and that is "It is strange how extremely wealthy individuals are driven to the City of London by their chauffeur while sitting in the back of their Bentley in order to seek financial advice from investment bankers and NOMAD's who travel to work by the tube!"
There is no specific information included in the RTO document to substantiate how a share price of 23 pence was arrived at e.g. price earnings multiples and that is because there are no earnings and just turnover of £45k for the 9 months ending 31 December 2023 and a gross profit of £37k but a net loss of £75.
You have to ask yourself the question why would the Directors of AMC and EPL form Crism Thereapeutics which allows a maximum share capital of 16bn shares of no par value did they not think that any shareholders would have the intelligence to read all of the documentation that is on the AMC website.
If the RTO and prospects for the technology were as good as detailed in the RTO document then there would be no need to have a maximum share capital of 16 bn shares.
16bn after the 1 for 160 share consolidation certainly allows for massive share dilution as that increases the total amount of shares compared to that at the flotation by 489 times!
AGE
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I believe anybody with an average of 0.15 or below should be in profit on day of transition
“An eye for detail” I meant to type in case an investment banker pulls me up on that while travelling on the tube to the City of London!
The new shares could trade at a premium in the first months if the story interests investors and is well promoted.
Voting For is certainly the better option, they won't need to raise capital at the beginning so there's no downside from dilution and there's a reasonable chance the shares could trade at a premium.
Just Voted through IG....and I voted For !
Am going to see if i can get a response to some questions prior to voting
TheChessMaster please provide some reasons as to why a share would trade at a premium when the RTO Company has hardly any turnover and has only ever made losses.
Why would AMC's Board broker a deal where AMC shareholders end up paying £5.5m to own just 26.74% of the new company when we already own 100% of a company that is a cash shell and the cash should have been returned to shareholders?
They will not need to raise capital as they are going to spend our cash on a venture they may or may not be successful.
I cannot see how voting "For" is the better option as if we vote "Against" then we will receive 100% of what ever cash is left in the company.
If we vote For then our cash we will be diluted by 73.26% and we will have to wait many years to wait and see if the drug delivery system is going to be approved.
I think shareholders have to use the Dragons Den system for evaluating if they should vote For or Against and they should ask themselves the following questions :
How many of these pieces of plastic can they sell
How much would they sell each of them for as it is after all just a piece of plastic
Are there any other companies creating new devices or drugs for the treatment of cancer
How have those companies performed in terms of creating value for shareholders and has the share price increased or decreased?
For example I bought shares in ValiRx in January 2018 and there have been share consolidations and my re-based purchase price per share is 557 pence and the bid price at the current bid price is 3p so I have lost 99.4614% of my money.
If you look at the ValiRx website you will see the following information:
ValiRx accelerates the development of treatments in cancer and women’s health to improve patient lives. We provide the scientific, financial and commercial framework to enable the rapid translation of innovative science into clinical development.
Have a look at the AIM Pharma sector!
Shareholders should look at page 22 of 32 of the experts report which is on page 68 of the RTO document which says:
7.3 Intellectual property risk EPL’s success will depend, at least in part, on being able to protect its intellectual property rights as well as to operate without infringing on other company’s property rights. We have not identified any issues but have not reviewed the patent estate in detail and legal opinion is provided elsewhere
Key words are but have not reviewed!
Shareholders should read all of the risks included in the RTO document!
AGE
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The new shares could trade at a premium in the first months if the story interests investors and is well promoted.
Voting For is certainly the better option, they won't need to raise capital at the beginning so there's no downside from dilution and there's a reasonable
Crazytowner you did not answer my question from yesterday which was did you get a reply to your excellent email to AMC and the NOMAD.
If you did not get a reply to an email you sent 2 weeks ago then why would you receive a reply to your questions?
AGE
More Chance of winning the lottery 10 times than getting a response CT.
Agniessearner; I trust you are not so naive as to not understand how start up pharna stocks with no revenue & little cash can often trade at a significant premiums to cash.
There are endless examples of pharma stocks trading at very large premiums to cash as investors speculate on the companies prospects.
And it's not just Pharmas, many small companies trade at massive premiums based on little more than hope, be they miners, oil & gas or whatever.
Amur itself was once valued at over £200million so small start up companies don't need earnings & P/Es to trade at premiums.
It all depends on whether or not investors like the companies prospects as to whether the shares trade at a premium or not.
The float will be tight to begin with and even modest buying will increase the value.
One would expect some promotion to catch investors attention and with a small mkt cp and tight float the shares could move north quickly and this would then attract more attention and higher prices until the first capital raise but that would be 6 to 12 months down the line and possibly accompanied by positive news.
But regardless of the meduim-longer term potential of the Pharma, it should offer holders the option to cash in the remainder of their investment a few months after the initial rise of the Pharma at a better than rate that what a final dividend would be and that's saying there would be a final dividend, of which, there is no certainty and even if there was, it would be years down the line and been heavily dipped into by Young and Co as they pretended to search for another opportunity.
Agniessearner; Look at Avct for example !
Mkt Cpt £120 mln, £24million loss last year.
Start up Pharmas aren't about earnings & P/Es.
Most, if not all, other start up Pharmas will be similar in that they have little to no revenue/profits/p/e and little cash but ones with good potential will have premium shareprices.
The fact they never reply to emails just underlines the risks with trusting them with returning cash. They'll do it in their own time. Also the costs of returning cash are very much unknown. How much is this abort cost thing they've agreed to? £50? £500k? I don't know. Probably a stupid amount knowing them!
Age,
I was not expecting a direct reply to my emails, however, i was hoping that they would cause the board to provide clarity should the RTO be rejected, of which they have stated they will wind the company up and distribute the remaining cash.
So i will now be asking about winding up timeframes, anticipated cost, RTO abortive cost and required staff to do so as there is the possibility that there will be nothing left should the process take 18 months.
My question to you is this, what have you done? What are you going to do with the shareholder action group? As i have not seen any pro-active ideas.
Personally, I think you should contact AMC & the Nomad stating that number of shares within your Action Group and that they will all be voting no due to how poor the deal is :
- Share % retained by AMC shareholders is too low.
- Total share issue authority is too high (19bn)
- If only 750k is required for trials (per linkedIn) what will other 1.3m be used for
Use the action group to get a better deal, I will add my 27m shares to support this.
TheChessMaster I must congratulate you on such a well thought out message.
If ever you decide to change careers then you are ideally suited to working in either Public Relations or Corporate Finance as you have such away with words that you could convince Eskimos to buy ice blocks from you when they could just cut them for free!
I am certainly not naive, that I do not know that pharma stocks can trade at a substantial premium but they do so for compelling reasons.
Please provide some compelling reasons apart from the RTO Company has developed a bit of plastic that is inserted into the brain.
The balance of rewards are vastly weighted towards of the owners of EPL when we have the cash that they need and they have developed a bit of plastic.
If they would have developed a promising cancer drug then that would be a different situation altogether!
If they had such a great drug delivery system then a large Pharma would have acquired them and they would not of waited for the AMC shareholders to provide their cash for us to be diluted by 73.26%.
I am going to vote against the RTO!
AGE
“ 16bn after the 1 for 160 share consolidation certainly allows for massive share dilution”
It’s 16bn before consolidation. They expect to have 100m authorised shares.
Age,
The value is not in using the delivery method to deliver treatment to the brain as the cases are far to few to make any money from.
The value is all the other parts of the body that it could be used.
From what I can see, going with the brain solution fast tracks the trial process.
(i know absolutely nothing about pharma and found yesterdays document really hard going)
CrazyTowner you did not answer my question yet again but from your response it is logical to deduce that you did not
receive a response.
You stated that you did not expect to receive a direct reply which is strange as it is common courtesy for CEO's to respond to emails as good manners maketh a man!
With your 27m shares the group would have 54 members with a combined total holding of 145,010,770 shares which is 10.4109% of the total shares in issue.
Do you honestly think the Board of AMC cares what their shareholders think as if they did then they would not have gone ahead with the RTO without seeking shareholders views.
Instead of that Robin Young went ahead with an RTO and incurred huge costs relative to the amount of cash that remains in the company.
It has been 11 months since the special dividend was paid and then we end up fining that the Board have agreed to a valuation of £5.5m for EPL.
I offered to let you become the leader of the group and you did not take it up the offer yet you have a very large number of shares compared to other shareholders and our group would be more effective with you in it.
email via gneissifyoucangetit@gmail.com so that we can discuss a plan of action.
AGE
AGE
Craztowner the drug delivery system they have developed is to overcome the blood brain barrier as the barrier restricts the passage of pathogens, the diffusion of solutes in the blood, and large or hydrophilic molecules into the cerebrospinal fluid and cancer fighting drugs.
My Father died of a brain tumor so I know quite a bit about this subject. however one must not let sentiment overcome rational thought as AMC shareholders motivation is to get back the remaining cash that is in the company rather than investing in a company for altruistic reasons.
I note your comment below, is this included in the document? if so what page is it on as the blood brain issue means that the drug delivery system is needed to overcome that issue but not needed for other parts of the body.
"The value is all the other parts of the body that it could be used."
AGE
It is 16 bn after the share consolidation so 160 X 16 bn shares!
AGE
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“ 16bn after the 1 for 160 share consolidation certainly allows for massive share dilution”
It’s 16bn before consolidation. They expect to have 100m authorised shares.
A few things for sure; there will be a very few votes cast on this RTO & once this is delisted ( if NOs win) you will not hear a word from RY for years, no correspondence, nothing !
I'm sure RYs got his fingers crossed 🤞 that the NOs win so he can spend the remainder of the cash at his leisure over a period of years and shareholders cannot do a thing about it, they won't even be able to contact him as the company no correspondence with shareholders policy will be even easier to enforce once delisted, not that anyone has ever received a reply when they were listed but it will be even more difficult once delisted.
I'm not sure some posters understand the ramifications here once the company is delisted.
Anyone thinking they will get the remainder of the cash is totally deluded.
Once delisted, that's effectively Game Over with just the small matter for RY of squandering the remaining few million, which, I'm sure he will have no problem doing over a 3 to 5 year period.
Authorised Shares The Company is authorised to issue 16,000,000,000 shares with no par value.
The Company may issue fractional Shares.
Go to investor info on the AMC website then press on AIM 26 rule and the memorandum and articles of association of Crism Therapeutics on the right hand side.
16 bn shares tells you all you need to know as such a large authorised share capital allows for placements to favoured financial institutions who then forward sell shares which has the effect of massively diluting retail shareholders
Cornhill Capital Limited has been publicly censored and fined for breaches of the London Stock Exchange Rules in connection with the forward selling of placing shares Cornhill Capital Limited has been publicly censored by the Disciplinary Committee of the London Stock Exchange. It was also fined £300,000, discounted for early settlement to £210,000.
The censure relates to breaches of the Rules of the London Stock Exchange between April 2015 and July 2015, when Cornhill was the placing agent for a placing of shares by for New World Oil and Gas Plc ("New World"), an AIM company. The placing was conditional on shareholder approval at a general meeting to be held on 19 May 2015. Following the placing announcement, Cornhill forward sold, on behalf of its underlying customers, a significant quantity of placing shares for settlement on 20 May 2015. These sales were on Exchange and were unconditional, so Cornhill became wholly reliant on the placing being approved by New World shareholders in order to settle its position. However, the New World shareholders did not approve the placing.
AGE
TheChessMaster have you never heard of legal action!
AGE
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A few things for sure; there will be a very few votes cast on this RTO & once this is delisted ( if NOs win) you will not hear a word from RY for years, no correspondence, nothing !
I'm sure RYs got his fingers crossed 🤞 that the NOs win so he can spend the remainder of the cash at his leisure over a period of years and shareholders cannot do a thing about it, they won't even be able to contact him as the company no correspondence with shareholders policy will be even easier to enforce once delisted, not that anyone has ever received a reply when they were listed but it will be even more difficult once delisted.
I'm not sure some posters understand the ramifications here once the company is delisted.
Anyone thinking they will get the remainder of the cash is totally deluded.
Once delisted, that's effectively Game Over with just the small matter for RY of squandering the remaining few million, which, I'm sure he will have no problem doing over a 3 to 5 year period.
See below we get 1 new share for every 160 AMC shares that we own
The Crism M&A states
The Company is authorised to issue 16,000,000,000 shares with no par value."
As we get 1 new share for every existing 160 AMC shares and they are able to issue a maximum 16bn new shares then that equates to 160 X 16bn old AMC shares which is 2,560,000,000,000 shares
goneawaol your understanding of a a maximum of 100m shares is different to my understanding.
Coincidentally 16bn shares is divisible by 160 which is why you arrived at 100m
Do you agree with my calculations?
Proposed Share Consolidation The Company's current issued share capital consists of 1,392,872,315 Existing Ordinary Shares. The Directors consider that the number of Existing Ordinary Shares in issue is higher than would generally be expected for a company of its size on AIM and the Directors believe that this could negatively affect investors’ perception of the Company. The Directors believe therefore that it is in the best interests of the Company for there to be a 1:160 share consolidation to reduce the number of ordinary shares in issue and increase the share price with a view to decreasing the spread between the bid and offer prices. Under the Share Consolidation, holders of Existing Ordinary Shares will receive 1 New Ordinary Share for every 160 Existing Ordinary Shares and so in proportion to the number of Existing Ordinary Shares held on the Record Date.
AGE
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“ 16bn after the 1 for 160 share consolidation certainly allows for massive share dilution”
It’s 16bn before consolidation. They expect to have 100m authorised shares.