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not until they have reliable business prospects, at the moment they have only debt and negative equity, nobody in right might will underwrite this..
and by the way let's not forget about FCA approvals, it's a very long chain of very high uncertainity/volatility and resistance on every step of it, without any possibility for a shortcut.
likelihood of getting to the end of it .. well, chances are quite obvious..
So it’s ruinous dilution of sp and shareholders holdings unless they take part in Ri that’s IF they can get it past the court and shareholder vote or insolvency AND to cap the day off the CFO has either rage quit rather than have his name attached to it or been shown the door for coming up with it in the first place. All the while JPM and Bybrooks are waiting in the wings to take up the almost certainly discounted subscription almost certainly with some kind of warrants attached to sweeten the deal as this will end up with over 9 billion shares issued which at that level will likely get consolidated at a later date
since insolvency has been mentioned and de facto equity is negative (perhaps with some provision reserves) - creditors interests prevail and shareholders don't have any real power anymore despite nominally holding voting rights. It's legal duty of BoD to act in interest of creditors, there's personal liability if this rule is violated up to jail sentence.
Still needs to get past the court and a shareholder vote yet.
the only explanation which makes sense is they want to put it down in writing that no matter what the shareholders will suffer.
Yes, and how much are they wanting to raise and was there virtually no option but to get ri of existing shareholders for an entirely new bunch? Why on earth pay back the bond holders early....it wasn't to save interest as claimed....lying scumbags.
Free kick.
It’s “at least” 19/1 that’s the minimum best case scenario what they are basing their best case on is what I’d like to know!
Sorry about typos...shouldn't type in the bath......just trying to de-stress ??
I once asked a question here and got riddled, I will ask it again.....how do you announce a 19:1 dilution without stating a price? If Amigo did it tomorrow do we assume it will be 95% of today's price? Or if it somehow rises to 30p and then its announced will it be 95% of that,? Whenever it happens I presume for existing pi's it's all about how long you risk holding before you bail out. Obviously, every pi would bale out on the rise to 30p so it would achieve anything like that...whatever, my plan of holding long term fecal eventual £1 sp has gone...but why not wait till the sp improves to, say, 30p and then announce a 30% dilution..presumably it would raise the same cash? I can only assume that the strategy is get rid if existing shareholders and start with installations and the like buying in at 1p.
The other route Bryn is having another Subsidiary of amigo holdings plc with no bad history
Do ya think he's stepping down because of today?
RNS out....someone is excited.
Rns out
What would they achieve by doing that other than sending amigo down the “wind down” route !! How is that better ?
@calamari the Q is not "getting wiped out", it has already happened. Last year AMGO announced equity raise and the SP plummeted from 14p to 6p and after todays rns it reduced further to 3p. Don't forget one thing, it's subject to shareholder approval. Hopefully, large stake holders will vote against the new scheme.
Guess what calamari…the shareholders won’t vote in favour of 19-1! Go down the managed wind down. The robbing cretins get less money. My shares are in Amigo Holdings PLC…they have more than amigo loans registered don’t you worry about that!
I don’t understand comments , so as existing shareholders if 5% equity is law….you still Havant explained the value of the raise? I want facts and not opinions. 19:1 at what price ? It makes so much difference to the Mcap and value of buiness so it’s rather important
it has just crashed the SP by almost 50% and the way forward with the RI is clear as mud. "The New Business Scheme will require the Company to issue at least 19 new shares for every existing share in the Company." Meaning purely required by the new business scheme which is not a financial necessity. Unbelievable
Can someone please explain
How can you call the ratio of a share dilution at a minimum of 19:1
? Surely you calculate the amount you need to raise by the price you raise at. That is what gives you the ratio.
Saying 19:1 means absolutely nothing on its own?