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Reasons for placing:
· approximately £3m for investment to support the launch of the Beeks Private Cloud offering;
· approximately £1m for the repayment of the Group's RCF facility; and
· up to approximately £1m for additional working capital, including for the evaluation of M&A opportunities.>
This company is preparing for more growth, particularly due to the launch of Beeks Private Cloud, expected to launch later this year. Would hope, indeed expect this placing to be oversubscribed. Looking forward to a rns confirming that tomorrow.
fdh.
Oversubscribed. Founder Gordon McArthur, offered to sell some of his shares if so. They, 434,783, have been snapped up as well.
Beeks are likely to be investing in equipment for the Private Cloud launch, which might well qualify for tax relief @130%.
fdh all looking pretty good here isn't it? BKS appear to be on a much more solid foundation now but the hit has only worked out at c. 2.5% which is impressive. The only slight niggle I have is companies paying out a dividend then asking for more cash for working capital, makes absolutely no sense to me. I know it's only a tiny amount but nevertheless, why give cash away then ask for it back? Probably just me lol. All in all though, solid news & I will look to add to my relatively small investment here.
Krusty, I agree about the divi's . I dipped out for a few weeks as was not keen on them funding the divi's from debt. In some ways the argument is the same with the burden now being shifted to the fundraise.
It is the downside of investing in companies whose CEO's are major share holders and have a vested interest in paying a divi. However, there are also lots of advantages in these companies so on balance I generally view it as a positive when buying in to a company.
I have come back into Bks now. With no debt, some money for their product launch and for further acquisitions it looks a good bet for the next year.
to be honest men I think that was just do get Mr McArthur a few quid.
He owns half the company.. that small dividend payout would have netted him ballpark £50k
No harm in that, makes sense.
All systems go..!
I've just read the Alliance News report, annoyed with the wording of it. The report makes it look as if the company is desperate for money, as the CEO bails out. Not a good look to PIs. For me the mm decided from opening that the price would be falling today. As an intended long term holder, downward movements over a few days don't bother me.
Will be interested though, to discover if the placing went to one party. In which case we will be getting an rns. Does the mm have a large order for more shares and needs to shake out smaller holders? If so, perhaps the CEO is aware of their interest. Their possible involvement in Beeks requiring the CEO to reduce holding below 50%. Was noteworthy how the new shares to be issued plus the shares sold by Gordon McArthur managed to push his holding below this mark. This is not a conspiracy, the company is on the up, analysts will have taken notice and made their predictions, time to become a major shareholder. Just a thought, doesn't make it true. If you have a different idea of what's going on let us know.
Regarding the dividend, it was offered last year, take it away now and it looks bad. As suggested the CEO is probably happy to get his slice of the pie, he has actually earned it.
Today's rns indicates that Octopus Investments Nominees Limited were the party who did snap up all of the shares available. I know Octopus from energy supply, who are part of the group. Looking at their website, Octopus Investments have some VCT funds, including one in Aim companies expected to grow. The Nominees in the title, however, suggests that perhaps we don't know the actual owner of these shares. That said it could be this fund. Does anybody have an informed idea?
fdh they've added over 6.5 million shares (c.£80m) so unlikely to be an accumulation of PI investments. The VCT fund sounds a much more likely option to me. It's often difficult to follow the money unfortunately, there's just not enough transparency to be able to see where the investment has been made. It might be feasible to track the appropriate funds and see if they flag an increase in % holdings of BKS. That's all I can suggest? Whatever it is, it's good news for the SP going forward.
# (c.£8m)
Just to add, according to the HL website, the top 10 holdings of Octopus AIM VCT include Learning Technologies, GB Group, Breedon Group, Ergomed & Ixico. There's no mention of BKS. Total assets of £192m, so you'd expect the BKS investment to appear here now if that's what it is. There's always a lag between share purchases and updated holdings, so I'll keep an eye on it. K
km, I found a rns dated 31 July 2019 regarding holdings in the company (BREE) - Octopus Investment Nominees Limited. Obviously they must use the nomenclature to hide the ultimate destination of the shares. Likely though that the purchase is at least partially for this fund. Do HL have details of any other Octopus funds?
Not that I can find, or at least nothing relevant to this thread. I think you've given the answer though, use of a nomenclature to hide the shareholding. I've just looked back on HL, still nothing about BKS in the top 10 holdings of the Octopus AIM VCT.