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@socialist Thanks for the information, but for balance just need to point out that the recent AGM provided approval to the BoD the ABILITY to issue a further 620m shares. Remember GUN is an investment company and its primary source of raising new cash for further investments is via its existing shareholders and/or new investors by issuing new shares to raise the necessary cash.
For me an investment is GUN is simply do you or do you not trust to BoDs judgement in finding and securing new investments at decent rates with manageable risk and then identifying a path to an exit and monetisation at attractive returns?
We know Peter Ruse is currently hunting for a Copper investment as he has told us so and both Low6 and Rogue Baron are planning to IPO in the next few weeks. What he cannot control is timing of exit/monetisation and when something juicy may darken his door. Pre-approval of issuance up to 620m new shares gives him that optionality and firepower. No one likes dilution, but as long as he does it AND delivers increased shareholder value in short order then I am okay with that.
ATB APR
Thanks for your input SocialistB..
I shall have a good read of your posts
Part 3
(hopefully we will never end up on 6 BILLION again)
Part 2
For the latest AGM (earlier this week) they proposed, and have been allowed to issue up to 620,000,000 new ordinary shares of 0.085 pence or approximately 154% of the current issued ordinary share capital of the Company.
Resolution 4 – Directors’ Authority to Allot Shares
EVO - Notice of AGM 2016 (final) (gunsynd.com)
After yesterday’s announcement of the warrants exercise for 5,128,176 ordinary shares, there will on or around the 15th of March 2021 be 409,219,576 ordinary shares in circulation.
To this you can add more then 67- 72 million options and warrants that are expiring on various dates up until some day 29-7-2023
You can find the info on page 41- 42
Gunsynd plc Annual Report and Accounts for the year ended 31 July 2020
So we could potentially end up having more then 1 BILLION shares in issue, before the next AGM.
409,219,576 ordinary shares in circulation.
67 - 72 million options and warrants.
Proposed 620,000,000 new ordinary shares
If all warrants and options are exercised we are likely to end up with 1,096,219,576 to 1,101,219,576 BILLION shares, maybe slightly more.
If Gunsynd ends up with over 1 BILLION shares again, I find it more difficult to argue that we will one day get a bumper payout from divesting our investments.
But what annoys me the most of all, is the disregard for old LTH’s who have slowly build a significant stake in the company. They can only sit on the sideline and watch their % shrink, not being invited to the option and warrants/discounted share issue party.
But why do they even consider diluting us old LTH’s into oblivion once again within a year?
I think the answer lies here:
From page 7:
“Gunsynd continues to look at investments in line with its investment policy. Such investment(s) if undertaken may or may not lead to a reverse takeover. “
Gunsynd plc Annual Report and Accounts for the year ended 31 July 2020
You can find out more about a reverse takeover here:
Reverse Takeover (RTO) Definition (investopedia.com)
Just to back up my statement about being diluted into oblivion once again within a year:
At 31 July 2019, 6,334,275,841 shares was issued in Gunsynd
Then at some point there was a Share Split
Share Consolidation (1 for 85) 74,520,893
Issue of new ordinary shares on 5 June 2020 74,520,893
Issue of new ordinary shares on 1 July 2020 17,786,799 15
Issue of new ordinary shares on 6 July 2020 71,538,462 61
Issue of new ordinary shares on 7 July 2020 16,000,000
At 31 July 2020 254,367,047
Page 36
Gunsynd plc Annual Report and Accounts for the year ended 31 July 2020
(and soon we will have a minimum of 409,219,576 ordinary shares in circulation)
My recommendation is that you make a game plan for investing in this share with some exit point, when and where to take profit, otherwise you might very well end up be disappointed, as we are once again headed towards more then 1 BILLION shares in issue.
(hopefully w
Part 1
I choose to see the RNS as good, but unfortunately there are other things to be worried about, when it comes to Gunsynd.
Aprogerson summerised yesterday’s RNS very well with the following points:
“
> No new shares or cash raise
> IPO date = 12-Mar-2021
> Total shares at IPO = 86,185,934 Ordinary Shares
POST ADMISSION
Ryan Dolder 9,353,685 10.85%
Gunsynd plc 24,543,563 28.48%
Janon Costley 5,411,209 6.28%
“
The above numbers adds up to 39,308,457 million shares or 45.6089%
To the POST ADMISSION above I would like to add the 36,247,500 that Human Brands hold in Rogue Baron as a result of transferring five subsidiaries, namely:
“Shinju Spirits, Inc., Shinju Whiskey LLC, Mazeray Corporation, STI Signature Spirits Group LLC and Legacy Retail Group LLC. The Company also owns a minority stake in the Hong Kong distribution company, Milestone Beverages. Legacy Retail Group LLC owns the Company’s ****tail bar in Washington D.C.; Bin 1301.”
(above sentence can be found here: https://www.aquis.eu/aquis-stock-exchange/for-investors
Combined, all those shares adds up to 75,555,957 million shares
When you subtract that from the 86,185,934 Ordinary Shares after the IPO, there is 10,629,977 shares that are unaccounted for.
I assume those 10 million+ shares are held by other investors. I do not think it is possible that they are held in treasury as the Rogue Baron prospectus states that the remaining 54.39% are in public hands.
So if it is the intention of the BOD of Rogue Baron to just get listed in the first place and then prove up the business and why it is an attractive investment at a significantly higher valuation, then I wish them the best of luck.
I would not mind that, as I do not find a listing at 7-8 pence attractive from our point of view.
The 36,247,500 million shares allocated to Human Brands was converted at a price of 7.8 pence.
Gunsynd plc Annual Report and Accounts for the year ended 31 July 2020
But going through the prospectus, it sounds like the BOD have other plans:
“The Company has built a structure, and will continue to grow a structure, which the Directors believe is advantageous and attractive from a buyout standpoint. There have been a number of mergers and acquisitions in the beverage industry in recent years which have had significant values (in the hundreds of millions and sometimes billions of US dollars).”
I am particularly glad that they are not issuing shares ad libitum in Rogue Baron, as it would water down the payout to Gunsynd.
AND I SO WISH, I COULD SAY THE SAME ABOUT GUNSYND.
Unfortunately the BOD are at it again.
Watering down existing shareholders.