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Evening all, rather than read a lot of speculation about the shares in Ricca Resources, I thought I would just message HL - see below. I’ll let you know what response I get.
Cheers, Ash
“Hi, I hold IRR shares in both my ISA and SIPP. Following yesterday’s RNS and an interview on Proactive Investors with the CEO Vincent Mascolo, I understand that, subject to shareholder approval, I will receive 1 for 8 IRR shares in Ricca Resources Ltd, a new unlisted company, and can subscribe for the same number of shares at 0.10AUD per share in addition. It is then a possibility that there will be an IPO next year on the ASX.
Please would you advise what my options are to ensure I receive my allocation and can subscribe for the additional entitlement, given that I cannot hold and trade unlisted shares in an ISA or SIPP or shares listed on the ASX through the HL platform.
Many thanks”
I've mailed HL with something similar Ash. Hopefully one of us will get a response we can share on here.
Please do share detailed reply from HL. I hold substantive IRR in ISAs and JISAs in HL. Unwanted complications tbh, but ASX sounds promising. ATM sounds like I might enact 3 new II accounts and hold the Ricca in there. Albeit they wont be tax wrapped.
Other option is to just move all JISAs and ISAs to II, but I'm wary of charges, lots of different funds and shares held. In the meantime any ideas appreciated.
Morning all, response from HL below. I assume, if the corporate action is before any ASX listing, that would be ok, just not afterwards.
Cheers, Ash
“It's our understanding that whilst Ricca will be listed on the Australian market, there will also be a Crest Depositary Interests version. As this version settles in CREST (the UK-based Central Securities Depository that holds UK equities and UK gilts) we should be able to hold it on our platform. We will write to clients when we have more information and will be able to confirm definitively the options available. We believe this is due to complete January 2022.
You wouldn't, however, be able to participate in any corporate actions or IPOs of overseas stocks such as Ricca.”
Follow up question:
“Hi, if the offer to subscribe for the additional shares takes place before the ASX listing, would that be possible or does that depend on where the new company Ricca Resources, is incorporated.
Thanks“
Quick search confirms Ricca Resources Limited was incorporated in Australia on 19th October - not going to be simple, I feel.
Cheers, Ash
https://www.australiacheck.com/business/53617729521/ricca-resources-limited
I'm sorry but that's poor from HL.
They confirm that Ricca settles via CREST, which is idea.
Why then, are they not able to offer the rights issue, the fully paid shares of which should also settle via CREST?
IPOs can be a bit different but again shouldn't be that big of an issue. All HL would need to do is contact the broker leading it and arrange delivery of shares into their CREST account (in lieu of the monetary consideration).
It's a cowboy service in my view to offer to take on the in-specie distribution and nothing else.
If people are serious about holding IronRidge as an investment in the coming months then other brokers should be considered. Once you have moved you have moved, you can deal in other ASX listed securities.
There was a good post yesterday, possibly from Appletree concerning the rules.
Sometimes a right issue is only open to those living in the country in which the shares are listed, HL might not have a say in it. No contact from ii regarding any of this yet.
Hi Bozi, yeah not great. Just had confirmation from HL that it will not be possible to participate in the right issue. I just wonder, if they realise the value of funds that could be moved to get round this issue - millions at a guess!
Then again, I suppose each individual has to weigh up the value of the lost profit opportunity vs the hassle. For me it’s about £3.4K, assuming an IPO price of 0.20 AUD, but in the long run, that could be a lot more.
Oh well, time to ponder and research alternative providers.
Cheers, Ash
Hi Ash. So HL have said we cant participate in the rights issue, but can they still hold the free shares we get until RICCA actually lists?
So we get 1 share in the new company for every 8 we currently hold of IRR, plus we get to double our holdings at a discounted rate. HL will allow us to get the free shares but not buy any of the discounted ones, Is that correct? Is that for any shares held in an ISA and SIPP?
Hi Ehseem, yes that’s correct. Just the 1 for 8 in-specie distribution, but not the discounted rights issue. This applies to all HL accounts because Ricca is listed in Australia.
Cheers, Ash
Looks like I will have to move my shareholding from HL then as that's 70k shares I cant buy at the discounted rate. Not really what I want to be doing but why should we lose out on the benefit, I've been holding here for 6 years, want to maximise my returns.
Are their any concessions between moving a single stock between HL and II like a bed and ISA, or do you have to sell and buy back taking double hit on full spread.
Hi swest, no idea yet how it would work. I assume you have to transfer your whole ISA or SIPP.
When I transferred SIPP funds from Co-funds to HL last year, everything was supposed to be sold at prices within 3 days of the request date, before the cash was transferred. Co-funds tried to tuck me up by using a different date and I had to get help from HL to confirm the date they sent the request. Ended up getting another £4K from Co-funds! I then reinvested the funds in the HL SIPP.
Doesn’t necessarily work in this scenario.
Sorry, if that doesn’t help much.
Cheers, Ash
Thanks for coming back. I'm undecided the best option atm, see what unfolds.
Think i will build up my position in irr an get more shares in ricca in 1/8 conversion
An take my ricca shares in a certificate to a boker that deals in asx shares
I'm the same. The only issue I can see is that outside HL is outside tax wrapper for me, which I will have to accept. Not end of world, Atlantic/ ALL remain wrapped.