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The company will be worth £10m more after placing… as they will have £10m in the bank. So of course your share will drop in value for the interim. Question is will £10m additional funds generate future value. Have the wait and see.
This is whats going to happen.
A rumour of huge sales will circulate at wich point the iis will sell them db will release a rns stating the rumour to be nonsense (bit like the india one!!)
Hi Blox,
Thank you for your post, and no offence taken.
Firstly, I am not trying to urge any GDR Investor to buy into the Open Offer.
Since the Placing/Open Offer was announced, I have posted just 9 Posts, and this Post is my 10th Post. Of these 10 posts, and by and large my posts have been in response to Posters on this subject. I have not started the thread of any of my posts, and have simply replied with my strategy and my reasons why, just as I am replying to you now.
Mcmanus on the other hand has posted in excess of 100 Posts over this same period.
Mcmanus slaughters, anyone who dares to Post anything positive about GDR, using terrible name calling, and has even told Posters to stop posting there, as he puts it - 'deluded posts' .
I understand the dilution you mention, and believe we are where we are, and I believe the OO will go through.
Therefore I intend to watch our SP over the next few days, with the view of taking up my/our full OO allowance, and average down.
I wish every GDR Shareholder the very best, in what ever decision they make.
Bigal you said we was going to make 75 million profit just from pcr, you are the king of delusion
Your strategy is just post BS and when called out on it say you are going fishing
Well said BigAl67,
Good luck next week and onwards.
This is what I'm thinking at the moment in terms of share price, considering that not much has changed on the news front except the placing itself and sentiment...
Before the placing there were 63m shares in issue and a fairly solid 40p share price giving a £25m mcap.
After the placing there will be 87m shares in issue, so with the share price at 25p this gives a £21.75m mcap + extra £5.5 cash. So based on that the shareprice should reasonably be 31p (giving mcap of 21.75m + 5.5m = £27.25m)
After both placing and open offer there will be 105m shares in issue, which at the current 25p shareprice gives a mcap of £26m + an extra £10m cash. So you can reasonably say our mcap then should be 36m which equates to a 34p shareprice.
So assuming the fundraise goes through successfully then my very crude calculations mean the new 40p will be 36p in terms of value. Then from there, with 105m shares in issue a shareprice of 60p will give genedrive a mcap of £63m (which it previously would have had at £1 when 63m shares were in issue). Of course this doesn't take into consideration psychology, but gives an idea where the shareprice might go on positive AIHL or POC news. 50p is a nice round number and a good target for starters... which would give an mcap of about £50m (which we would have reached at 80p before the dilution and did so fairly recently).
Considering the launch of both products should be in the next 2-6 weeks I'm feeling pretty confident we'll get back up to 50p at least, particularly if there are orders.
*the new 40p will be 34p in terms of value.
We can still turn 75 million profit , with our only sale to note being to BC lol….
Bigal has more chance getting laid than GDR hitting £75m profit lol. Like i said the fishes have eaten the last of his brains
Hi bigAl67: Thanks for your reply although I must admit that I'm more puzzled than ever having read it. My point is completely unrelated to positive or negative posts (or indeed, the number of such posts that anyone has made,) so I'm not sure why you would mention that, or name particular individuals? I just can't understand why (if you understand the dilution factor as you have stated,) that you would say that you and your wife intend to 'take advantage of the discounted, QUANTITY-RESTRICTED, shares in the OO' when that would further dilute and devalue your current shares when you could equally well buy, AN UNRESTRICTED number, at virtually the same price, on the open market and avoid creating further dilution/devaluation of your current holding? Maybe it's me that's missing something? Or maybe I'm just not explaining myself properly? I note that you said you are not trying to urge investors to buy into the OO but you did write, " I sincerely hope the 25p Open Offer is taken up." That to me certainly sounds like you are advocating that it would be A GOOD THING? If not then surely you would have written " I sincerely hope nobody takes up the 25p Open Offer." So the thing I don't get is - when the open market price is virtually the same as the Open Offer price and you could buy as many shares as your heart desires - why would you think the Open Offer was worth taking up when it will result in dilution and devaluation and the quantity you are allowed to buy would be restricted? Can you explain why you would go down that route when you could buy 100 for every 7 you hold on the open market, at the same price, and without the resultant dilution? I'm not saying anyone should or should not take up the OO as it is each individual's decision but I am querying why anyone WOULD take it up when it would dilute and devalue his/her holding?
Another clearly written explanation from Blox. Thank you.