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I am taking the view there will be a vote on debt for equity. This would seem a related party transaction as far as Smith Mxc and Smith IDE is concerned. I wonder the extent to which that may have implications.
Can’t discuss, because above my pay grade, and they will anyway take due notice of any legalities that may arise.
Maybe not related party but conflict of interests - anyway, you know what I mean.
Thanks - some people think they can post what they want on a BB thread but the truth is you cannot - as once in a while the company might read the thread or a post might get reported. Anyway I just hope the conversion price is higher than the current share price!!
Lots to digest but I read it was IDE repaying back 70% of the total outstanding MXC debt in exchange for 16.4 million shares at 89.2p post 1 for 100 consolidation? I guess that’s not too bad a deal in current financial markets? They will hold 89% of the share issue but not make a takeover? Can’t think of any other companies which should a large shareholder - what’s their end game??
Thanks for providing a summary. The RNS was slightly convoluted for this time in the morning. I think their end game -as promised to MXC shareholders - is a full return of their money invested. I'm not sure what that equates to but significant increase to where they will stand post reorganisation.
Just to correct that they will hold 83.9% post conversion - strange that the other two large CLN holders don’t what to convert but they either want better terms or are willing to wait another year or so to see if results continue to improve?
Mxc largely ‘took the risk’ and provided most cash when the banks were, I think, on IDE’s backs. Hailed as progress for shareholders - no outside lender causing problems.
They’ve sought dispensations before from making an offer, from memory.
Whether in the planning or not, they finish up pretty much owning the company. But say they won’t take it private (yet) I sort of expected they would at some stage.
As a larger by comparison Mxc shareholder, I have no reason to complain. Wheeler dealers. I think I feel it’s a fair result for IDE, too, as do a few buyers just now.
Mxc a ‘mysterious’ crew though. No doubt in my mind their end game is to mastermind a sale of some sort, Mxc ( and us ) take a hopeful up to 40% premium, and partners and concert party take their rewards through Mxc, when Smith and partner Weaver retire, and close down Mxc as they said they are working towards.
You’d think Kestrel maybe feeling a bit raw having converted at 2.5p. But they’ve supported Mxc before, and seemed close.
I wonder about that. I don’t think they’ll have acted without an idea of what the future held. But I don’t know, obviously.
I missed the talk of consolidation... and also the rebrand to Tialis.
I think that's not a bad idea. A clean start.
Does anyone know if you say have 70 shares, do they consolidate by rounding up or do you lose out?
I think you lose your 70*0.892 = 62.44p - sorry
Bottom line. “Furthermore, any Shareholder who holds fewer than 100 Existing Ordinary Shares as at the Record Date will cease to be a Shareholder. The minimum threshold to receive New Ordinary Shares will be 100 Existing Ordinary Shares.”
Once this lot is done thoughts must go to how Mxc will exit to advantage with their 83% shareholding. They have said they have no ‘current’ intentions of taking IDE private. Their other investments, excluding the stake in Cloudcoco are private ones.
They have given themselves a limited ( though could be extended ) time in which to wind up Mxc, and take their lifetimes profits.
I should say my thoughts take me nowhere on that. They’re an unpredictable outfit, but can be relied upon to put the Mxc partners and concert party first.
I only have 30 odd shares, so I don't get hit too hard. However multiple that over all shareholders that's a nice little earner.
I remain as I was. I have lost a lot of money on this buying in first at 30p a share, and it's done. It's not like I'm sitting there debating vs sell or stay - I have ease at least that I'll just wait and see if I can get any return.
I do hope with this new brand they invest in it.