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And my reply to the FCA..... extract.
“Thank you for looking into this, you asked if I should bring to you any further information that comes to my attention. Please can you also consider the following.
# On RNS No 6667Q box 1b ‘non UK issuer’ was not ticked. This means that the issuer had two trading days under the DTR to notify the market. They took 10 calendar days. I did not realise the significance of this box at the time and thought 4 days was appropriate as it was an international address but it is clear two trading days apply.
# Please can you also look at RNS No 0062R. Notified to the market on the 25/6/2020 that Acacia reduced their holding from 8.99% in 4D Pharma to zero % on the 24/6/2020. In this instance they were able to notify the market within the timescales so why didn’t they do so with RNS 6667Q.
# The second RNS 0062R came out after I had contacted you. My concern is now that delaying the first RNS enabled Acacia to get a higher price when selling the rest of their stock in 4D Pharma. Obviously without looking at the trades I cannot prove that but the failure to notify the market within the regulated timescales gives one serious concerns that a breach of trading regulations may have also taken place and that the delay wether intentional or not enabled Acacia to secure a higher price for the remaining sales.
I would appreciate you taking these additional concerns into consideration.”
Now one sees the second holdings RNS what do you think the chances are that some of those 8.99% of trades took part during the delayed notification of the first RNS or did they indeed clear out 8.99% of stock in two days.
Obviously it’s all conjecture but the delay is factual and that gives rise to a legitimate cause for concern which is in the public interest so I have no problem posting it. Had they followed the rules then there would be no issue. ATB.
Trek
Well done Trek. As you say, one for the little people :)
For your next trick can we get the FCA to insist that share tardes are notified at actual price, rather than either side of the mid price.
Transparency should rule.
I must say I am surprised to have got a reply and it’s very detailed. An extract is below, fair play to the FCA for taking a little investors concerns seriously. It may come to nothing but a point has been made....
“Thank you for your submission dated 23.06.2020 regarding Acacia Research Corporation’s major shareholding notification made in 4D Pharma Plc (the Company), an issuer whose shares are admitted to trading on the AIM market of the London Stock Exchange. We have noted your concerns around Acacia Research Corporation’s notification sent to the Company on 20.06.2020 after it reduced its shareholdings in the Company on 10.06.2020 from 10.81% to 8.99%.
This matter has been received by the Market Integrity Unit in the Market Oversight Directorate (MO) of the FCA. Our team is responsible among other things for monitoring compliance with major shareholding notification requirements under the Disclosure Guidance and Transparency Rules Chapter 5.
We are currently reviewing this matter with a view to determining whether it is appropriate for us to exercise any of our statutory powers. As part of such reviews we may use the information gathering powers available to us to seek further information from the subjects of the enquiry and reach out to other agencies as appropriate.
Once we have completed our review, we will consider whether it is appropriate for the FCA to launch a formal investigation via its Enforcement Division, whether some other form of intervention is required or whether the case should be closed with no action. In particular, an important part of our consideration is the potential seriousness of the misconduct....”
Etc...
ATB to the little people!
Trek