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So technically it is true but AJBELL have had mine sitting in my ISA since last May…not sure what’s going on there to be honest but they are there no doubt about that.
If it’s true that the Nov 21 warrant shares can’t be held in an ISA then I won’t subscribe to the placing. I think I’ll just buy double my subscription number on the open market at 22p now and be done with it. I’d like to keep all my holdings within my ISA for simplicity.
BMB5DJO - HL have communicated this in an FAQ:
What are the terms of the warrants?
You can pay to convert each warrant into an ordinary share. The price you’d pay is called the ‘exercise price’ and is 30p per warrant.
The warrants are exercisable at the end of March, June, September and December each year up until 8 December 2023.
The warrants will not be tradeable and cannot be held within an ISA. We’ll write to you with further details on the warrants once they are on your account.
Holdings of warrants will be rounded down to the nearest whole number.
Thanks Flundra and Lakesidetrader for the HL information. Do you happen to know if there's a specific process from moving the warrants from an ISA into a Fund and Share account, or is it taken care of behind the scenes?
If your ANIC shares are in your HL ISA, the warrants will automatically go into your F&S a/c because they're ineligible for an ISA.
If you hold your Agronomics shares in a HL ISA, you can elect to hold the Warrants in a HL Fund and Share account.
Basically, yes. For every 28 shares you own you have 1 "open offer entitlement" to buy 1 new share at 23p with a warrant attached.
Is 28:1 meaning that for every 28 shares you own you are allocated the option of 1 warrant/share at 23p?
I've applied in my HL SIPP. Looks like you can hold the warrants in your SIPP (but not in an ISA though). 28:1 isn't very generous imo, and I've applied for an excess too, but that might be scaled back. It's a no brainer to take up the rights imo, and this is a fill yer boots situation imo.
The only real concern is the very small possibility of the share price not going back over 23p in the next 2 years. I'd suggest sell at 23p and then sit on the "free" warrants, if anyone is concerned, or wants to be uber-cautious.
Thanks Gonsan for a detailed reply.
Much clearer now.
Best wishes
HM
I am checking with HL whether I can hold the warrants through them. I will only take up the rights if I get the warrants.
I'm just pleased HL customers are being offered the right to participate this time. Well done ANIC for listening, recognizing you got it wrong last time and correcting for this time.
@idg69 - thanks. You think it's worth buying even at those numbers (i.e. 300 shares)?
And yes, I think the price is 30p.
Just to clarify, you can buy X number of shares at 23 now. Apart from the shares you get, you also get X “warrants” which are rights to buy more shares in 2022 at 30.
You can later decide to exercise those rights or not
Hello Harshadmehta,
ANIC is issuing more shares to raise more capital and being able to buy bigger stakes in the companies it invests on.
Because you own some shares, they offer you, through your broker, the possibility of buying a number proportional to what you own.
They are priced at 23, and if you buy them you will have the right to buy again shares in 2022 at 30. This means ANIC thinks the share price will be higher so 30 will be an attractive price.
HL is letting you know, soon they will send you a message explaining it and in the website you will have the opportunity to accept or reject the offer, through the “actions” buttons.
If you accept, you will have to have the funds in cash available in your account by the date HL tells you to. Then they will buy the shares on your behalf without needing to do anything else.
I hope this helps you
I am a novice and ignorant about this.
Please someone help me understand what has happened and why HL is saying something like open offers entitlement?
Thanks,
Best wishes
HM
Might be worth buying through the subscription at 23p now for the future rights to the November 21 warrant shares at a later date. Can anyone confirm the November 21 warrant price. I thought they were about 30p - does that sound right? If this goes up past 40p next year and you have an option to buy more at 30p that would be a nice position to be in wouldn’t you agree.
I have a measly 300 shares which I can buy. At 23p that works out to be 69 GBP, which will actually cost me 73 GBP (Degiro fee). Probably not worth the hassle!
I've now heard from HL that they'll send details by the end of the week, with a deadline for clients to instruct them by 16 Dec.
Nothing from HL yet
Same here, but my broker is waiving the trading costs and commission, which would still leave a buyer worse off. I'm not buying anymore though as I'm happy with my current holding.
Unless it’s worth buying in now, at a slightly higher price, for the warrants to exercise at a later date?
My broker offered to buy at 23p but only until 13/12/21 - what’s the point when the share price is already lower?