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I'm not an experienced investor but thinking about buying in here. Can anyone clarify me this 1 for 6 offer. I'm reading it as, if I buy in by close of business today at current share price (say 31p) then I will be eligible for 1 extra share for every 6 I hold by the end of the month so 16% increase on my holding for free if the share price continues to stay at the same price going forward . If it falls by 16% I get into loss territory and if it rises then skies the limit.
From what I'm reading it seems to be a boom or bust company. Last accounts for July 2020 to me read as 45 million pounds of assets and 20 million liabilities. Some are saying this company is going bust and others are saying it's the start of a profit making organization. What to do :)
Any thoughts guys?
Yes, you need to study this issue carefully.
Narada
Record Date for the Open Offer - 6.00p.m. on 30 April 2021
you wont be getting anything for "free"
Don't be bamboozled by record dates. They go ex-entitlement tomorrow, meaning any shares bought today qualify for the open offer.
Narada, youll get given the opportunity to buy more shares at 30p on the basis of a minimum entitelemnt of 1 existing share per 6 you hold at close today. You don't get them for free. They want your money.
Poleaxe
Record Date for the Open Offer - 6.00p.m. on 30 April 2021
" They go ex-entitlement tomorrow, meaning any shares bought today qualify for the open offer."
err no...it means that you have to SETTLE anything from the T+2 by end of today ....because if you haven't ..(even if you bought before 6pm last friday.) .you wont get the offer..
The cut off date was last Friday ..... you dont buy them today and get in on the offer
sorry
Pokerchips, I've no desire for a protracted re-run of the RR. debacle.
The ex date is all that matters to PIs with nominee accounts. The record date is used for the allocation of provisional entitlement letters to certificated holders. Holders who sell between the record date and ex-date should forward these to the buyer.
What do you suppose the "ex-entitlement" date means?
You cannot decree retrospectively that shares bought prior to the open offer announcement don't qualify. That would be trading in a false market.
Thanks for your time in clarifying this for me guys. Appreciated. Best of luck with this for you all going forward.
Poleaxe
There is no false market...if you don't settle your trade then do don't get the offer...simple as that.. because the trade will be scrubbed from the record date....as it is invalid if not settled...
If you sell between record date and ex-date...that wont matter .... there is no record being taken after record date....
When you make a share purchase your broker is contracted to pay for them...they pay the middleman for the trade and then they take the cost from you.....
You as a private investor may have cash on your account...but not everyone is dealing with cash account...
The broker has to pay insurance cost to make sure they can cover the cost of paying for every trade
...where if you have a settlement account you can cover with your broker later..the trade has a settlement date ..Trade + 2 days
Ex-Entitlement means that you have to have settled your trade by then..or ..your broker wont forward you the offer ....you haven't settled and paid for the trade outstanding !!
A friend of mine used to work at a broker...he told me it all..
but sure..we all hear different things from different people...sure
Pokerchips, I fear you're over-thinking the issue! As I said, I don't want another protracted thread about this. Educating some RR. holders was such an uphill struggle.
For whatever reason, companies still word rights issues and open offers in a way that seems to mislead a lot of inexperienced PIs. Occasionally they are forced to clarify, as occurred with the Atlas Mara open offer some time ago.
https://markets.ft.com/data/announce/detail?dockey=1323-13325764-3F10R9RQPHKL9OI557N41BRCD0
Note how they also describe the Record Date of 8 August as the "Mailing Date" for entitlements.
Note how the ex-entitlement date is 11 August and how they've clarified that close of trading on 10 August is the time by which shareholders need to own shares in Atlas Mara in order to participate in the Placing and Open Offer.
"6.00 p.m. on 30 April 2021 being the latest time by which transfers of Existing Ordinary Shares must be received for registration by the Company in order to allow transferees to be recognised as Qualifying Shareholders "
Any shares purchased after that date will not be able to participate in the offer. I don't think I have ever known an open offer where the offer was announced and the record date was set for a later date.
If they only commence trading ex-entitlement from tomorrow how does it not follow they traded cum-entitlement today?
FWIW I bought a few shares today in my nominee account. I fully expect to be able to particpate in the open offer, not that it's very attractive at this level.
Poleaxe,
I guess it is all down to how you define " ex-entitlement "
I personally do think you are not agreeing on what "ex-entitlement" actually means ..which is fine..each to their own ideas..
I think it means the date by which you have to fulfil all the requirements for obtaining the offer
If you buy today..you will not have fulfilled all the requirements ....you wont be on the record for a start....
All you have done is agreed to buy the shares and maybe your broker has taken payment for them , but the process of putting you on the record hasn't completed yet ..and by the time it does..it will be too late
Pokerchips, I bought day. I saw the trades go through the market.
All that matters to the vast majority of folk these days is the ex date. Back in the days of certificated shares a couple of times I sold between record date and ex-date and was required to return the allotment letters to my broker, in order that the entitlement could be forwarded to the buyer. It's spelt out on the documents you receive.
With dividends the ex-date is usually a Thursday and the record date a the Friday. That's a convenience for T+2 settlement and means there isn't the hassle of market claims. I'm sure it would be more convenient if open offers and rights issues were done the same way, with the record date the date after the ex date, but this would disadvantage certificate holders who wouldn't receive their allotment letters through the post in time for the ex date.
For most investors this is probably just a geeky technicality but as a trader it's important to understand the significance of ex dates (and the insignificance of record dates).
" Pokerchips, I bought day. I saw the trades go through the market."
Poleaxe
yes...but what you have seen isn't the whole story...the entire process of the trade doesn't actually complete the moment you buy or sell ..even if the trade is recognised and published ....
It is like if I sell a house and someone buys it...the estate agent will say it is sold and pronounce the "trade" in their website ......but that doesn't mean the entire process has completed
Pokerchips, I don't need to be on the record. That's an administration date for mailing allocation letters. By your argument you'd need to have bought on or before last Wednesday in order to be on the record and qualify for the open offer . That's not correct.
Did you read this clarificantion from Atlas Mara over their open offer, presumably when they were hassled by confused PIs?
https://markets.ft.com/data/announce/detail?dockey=1323-13325764-3F10R9RQPHKL9OI557N41BRCD0
With the lack of a take up RNS I presume Cenkos has failed to convince the II's to give more bonus money!!! JW seems to be a clever guy but his stupidity proceeds him! AIMHO
Just to add to my disappointment, A chairman's sole role is to oversee the BOD, The lack of his investment is noted and the agreement to the bonuses is noted but what is he actually doing regarding value for money etc? I predict an imminent resignation.
My thoughts exactly, those things are usually done and dusted in a few hours!
Maybe if JW was putting his hand in his own pocket there might be a more enthusiastic response!
"The bookbuild is expected to close on 4 May 2021. A further announcement will be made in due course"
Doesn't suggest the result will be known today, just that it will close on 4th May, likely an RNS tomorrow morning with the result.
You maybe surprised Tango
Bubble2021- I Really hope I am surprised, but if they needed £4m for a £26M contract how much do they need for a £200m contract? Still going to hold but not holding back my anger at the recent discount to the SP.
Tango I recently made a significant top up to my SIPP after recent contract news (my decision my risk). Like you i’m holding but ****ed off.
I completely understand these feelings.
I'm assuming that the Board were banking on some bigger news to have driven the SP higher by the next raise, I was certainly hoping it'd have been on something 60p+ rather than where we are.
Perhaps foresight would have meant they'd gone for enough on the last round given how over-subscribed that was.
Suspect it'll be successful but will add to sales pressure over the next few months and therefore restrain growth.
Fingers crossed for a positive ML decision sometime by the autumn and good news on the LOI in July.
Cheers
TheEast
I'd have expected there to have been a confirmation of completion of the first placing by now. Discussions about ex dates are all a bit academic if the first admission doesn't happen on Friday?