Scancell founder says the company is ready to commercialise novel medicines to counteract cancer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi shareminator - yes, it is simply a swap of shares for the pro-rata net cash ownership represented by each share. Shares tendered will be cancelled by the company. The market value of the company afterwards will be the combined value of its non-cash assets and whatever cash is left after it pays everyone who wants to exit. As you say, assuming that the cash position is sufficient, future costs are negligible, etc., value per share will increase according to the increase in each remaining share's proportional ownership of the non-cash asset value (if this value is materially different to zero).
Good evening, thanks for replying. I agree the odds are there will be a trading company after the Tender Offer is complete. From what I understand the shares bought back will be kept by the company so the market value will remain intact. It looks to be simply swap of cash in the bank for shares. A smaller free float might in fact attract certain types of investors. Looks to be safe at this level providing the cash position is sufficient for future activities, atb
Hi Sherminator. Nice points. Note 7.2: the CEO and CFO "have confirmed that they do not intend to participate in the Tender Offer." I think this significantly reduces the likelihood of everybody else tendering, the company being wound up, and the cash available for distribution being reduced. The shareholder base is quite diversified and so I'd consider it likely that there will still be a decent number of non-Director shareholders after this tender offer. I wouldn't be entirely sure about the company's continued listing on AIM. This is something of a dilemma because presumably if 90% of shares were tendered, the company could no longer justify paying the AIM fees. But by taking the risk of not tendering, shareholders increase the probability that the risk will be worth taking. They also increase their proportional share of the non-cash assets, which some people might still think are worth something (I have no idea). I quadrupled up on this in the afternoon. Seems like a worthwhile risk arb trade. DYOR as always.
SpanishJohn / asclyius - According to the fine print there are a number of outcomes to this. One is that "If 100 per cent. of Shareholders elect to tender their Ordinary Shares the Directors will seek the winding-up of the Company, in which case the cash available for distribution will be reduced by approximately US$296,768 (which represents the Directors estimate of the reasonable liquidation costs that would be incurred by the Company (including in Philippines)." All other options see the company continue to trade on AIM, hold the Hinoba-an Project, the Basay Project exploration licence and its interest in the Taysan Project (through Crazy Horse) and have cash resources reflecting the pro rata number of Shareholders who do not accept the Tender Offer in respect of their Ordinary Shares. This means there will be cash available to the Company. It does seem like a good offer to those wanting their cash back . Interesting to see 'The Significant Shareholders' initiated this move having made clear their position on reducing the discount to value. A pity this doesn't happen more often! "the Board is of the opinion that by making the Tender Offer to allow all Shareholders, including the Significant Shareholders, the opportunity of electing to receive cash, the Shareholders that remain will be the ones who wish the Company to proceed with pursuing acquisition opportunities presented to the Company that may have the potential to realise further Shareholder value."
the_Shareminator: I'm sorry but I don't know what is going on behind the scenes. I don't know very much about this company. The RNS this morning made sense to me, including their rationale to return the cash balance to shareholders pro-rata, given the huge discount expressed by the prior share price. I'm engaging in risk arbitrage. It's beyond me whether their assets have any value. But the assets do look to be highly speculative, assets for which the market has no appetite at the moment. Given the very weak prior share price, it sounds fair to offer to return surplus cash to shareholders. Nobody will be forced to sell their shares.
So they've struck a deal to sell an asset, buying out some shareholders at 3.79p , and the rest is revealed after the sell out, ie the deal is revealed that enhances to Mcap further ??
asclypius - I understand CDC are seeking some form of JV / offtake but this seems like a premature decision to buy back share capital given what we know. Why are they reducing their cash position, given their cautious message last month. No doubt the Hinoba-an Copper Project is an excellent asset although the chances of finding prospective buyers or joint venture partners is according to the company "highly uncertain given the current distressed market conditions" Several Chinese mining companies and 90 odd Canadian and Australian junior and mid-sized mining companies, as well as several Philippine mining companies all refused to participate. The territorial dispute in the South China Sea between China and the Philippines seems to be the main factor. I don't see any value in Basay Copper Project, especially given the company are now attributing zero value. Only last month CDC said they wanted to keep expenditure down and preserve the cash balance of $14.3 million. Given todays update they must surely have struck a deal. The question is what is going on behind the scenes? What has changed in the space of a month? Interesting time for holders, gla
Basically, if you hold on 22nd November you will be able to sell for 3.79 pence, so any purchase below 3.79p is an instant profit.
If everybody takes up the offer, they estimate that the remaining cash will be sufficient to cover the costs of winding up the company, which is what they end to do in that scenario. I have opened a long position in this today.
Am I reading this right? $14.3 million cash at 30th September 2013. Today's announcement is the purchase of £8.7m ($14m) leaving roughly £100-150m cash at the end of this month?
Cheers fellas,all the best to you also
Do what you feel comfortable doing ! Think why you invested & whats best for you. Sometimes RNS takes a few days to digest . Best of luck cemoto
I knew something good would come here. A return of cash and they still have a large asset to sell on.
Surely Hinoba/Basay will become feasable and the remaining few will then have a greater share in this potentially large asset? Sure there will be less cash, but at least two of the bod is staying put so that should be a good sign? So you reckon they could double?
If you go there will be trouble. If you go there will be double www.youtube.com/watch?v=xMaE6toi4mk‎ Sorry couldn't resist lol
RNS....3.79p is some rise, but should I stay or should I go?
RNS Number : 6976R Copper Development Corporation 30 October 2013 Not for release, publication or distribution, directly or indirectly, in whole or in part, in or into Australia, New Zealand, the Republic of Ireland, South Africa, Canada, Japan or any other jurisdiction where the mailing of this announcement or the Circular, or the making of the Tender Offer into such jurisdiction would constitute a violation of the laws of such jurisdiction. For Immediate Release 29 October 2013 Copper Development Corporation ("CDC" or the "Company") TENDER OFFER The Board of CDC announces that it has today published a Circular to Shareholders setting out the terms and conditions of a tender offer by the Company to redeem and cancel some or all of its issued Ordinary Shares (the "Tender Offer") and instructions on how Shareholders may participate in the Tender Offer, should they wish to do so. Pursuant to the Tender Offer, the Company has set out in the Circular the terms on which it will acquire up to 230,410,169 Ordinary Shares at a proposed price of US$0.061 or 3.79 pence (indicative and subject to adjustment) per Ordinary Share. A copy of the Circular will shortly be available at the Company's website - www.copperdevelopmentcorp.com
1.2mill buy earlier on and half a mill before that......
You may be right, cash value is circa 4p a share here so nothing to lose on a buy in, any hint of resolution of issues or asset sale/development would take this up 10 x
Nice to see some upward movement...news coming I wonder??
whacky world of AIM, but buy while the price is low...
Am I reading this correctly. £2500s worth of trades and the share price is down 7%. ???? B
our friend is back 30-Sep-13 11:36:00 2.68 1,250,000 Buy* 2.55 2.70 33.50k O