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Brh up 15 per cent and they are doing testing a covid product, theres nothing priced in here for the covid and other pathogens product
I havnt i think its on Monday il find out if any has been given, I highly doubt it
L2-don't we find out next week? are you saying you got excess shares?
Anyone else got excess shares?
Let's remember the cash raise is directly caused by the failure in the aroc contract, it's a pity "Managing cash and financial profile" was not consider ed in signing contracts with companies they knew were uncreditworthy building up over 10m in wip. Last month they confirmed at results they didn't need any cash, it really shows they don't have control here.
Agree the agreement with funders backing the 10m provides certainty, but at this discount level of desperation. A differential apportionment to the 10/3 would be preferable to reward existing shareholders, or an agreement to scale back the 10 by 2m should there be demand elsewhere.
Anyone posting the latest ST missive also needs to provide the same form 2 years ago, also his brilliant analysis of the cashflow at globo.
Skid
re your last sentence it's not true that small shareholder have been shafted. The reality is that the £10 mill is a firm commitment , KMK will have talked to those buyers and have at least an informal assurance more probably a promise that they will cough up the £10mill . The offer to small shareholder is by it's nature les predictable , had some taken fright , sold and driven down the SP to 14p would you really but more at 15p?
The company needs as far as possible to protect the SP and this package demonstrably has done that . It suggests that finance and accounting are now better manged than in the recent past and that augurs well for the future. As i regularly state ,managing the cash and financial profile is almost more crucial than doing the research and development.
viable - No problem Just don't want you to get your hopes up, at worst spend the money in your bank account having assumed this gain is in the bank. As I say a few disappointed investors next week.
I expect the base offer to be taken up 80-90%, this would leave £300-600 k between a hell of a lot of people who have applied for multiples of their basic.
They should have done a 5m / 8m split rather than a 10m / 3m to give existing shareholders a greater share, small shareholders always shafted.
Skid, OK I'll drop it entirely. I was merely reporting what has happened. The working principles are known to me, the cash has gone, and I acknowledged a reversal could easily follow in the morning. 'nuf said on the matter.
Viable. Unfortunately you are 100% incorrect.
Read the circular, the results of the open offer are on 1st march. They cannot issue shares without shareholder approval.
As I say, a lot of very, very disappointed shareholders next week.
sic
!hash! - not "has"
@ 17:36 = With respect to all great(er) minds please note I have already, i.e. tonight, received my full requested allocation. It's reflected in the valuation @ 15p but makes it clear that they can not be traded at present. Perhaps I should have shelled out a lot more cash. Hindsight and all that. However, tomorrow morning I could well be advised that a mistake has been made.
I believe this is going to be a great stock provided management do not make a has of their global reach and have all patent protections in place.
viable
They ALWAYS take the money for the full allocation. Next, they decide how to distribute any ‘spare’ shares. You THEN get allocated some (or all, or none) extra shares and EVENTUALLY any excess money is returned to your account.
OR
As I understand it - unless a mistake has been made - it is absolutely done and dusted that my full application has been accepted for processing on 01/03. In effect my trading balance is already earmarked for execution and nothing else . . . barring an amended instruction.
These are the entries I have:
Existing shares - KROMEK GROUP PLC ORD GBP0.01 (KMK)
1 in 17 allocation - KROMEK GROUP PLC NEW ORD GBP0.01 SUB SHS CL (137A)
Total applied for (1 in 17 + excess) - KROMEK GROUP PLC NEW ORD GBP0.01 EXCESS APP (137G)
Neil, I think you need to read back to yourself what you written - just nonsense.
If they did nothing with the cash and just stuck it in a treasury account the company would have 13m more assets, and it would be an element in the company's valuation.
I'm with iWeb
Nei, which platform is it thanks, anyone with ig?
Neil..WADR I think your assumptions are a little simplistic . The fact of an additional £13mill in cash however deployed adds to the companies liquidity position . Most company failures are not product failure or market share , they are as a result of poor cash management . the old adage "sales are vanity profit is sanity but cash is king" still applies
Interestingly, I've just had a look at my trading account and previously there was an entry for KMK for the existing shares I already held. Then after the 15th Feb another entry appeared for my entitlement (1 in 17) shares. Then this morning yet another entry has appeared showing ALL the shares I applied for. These last 2 entries are not tradable shares.
I don't think the extra cash can be counted in the "company value" calculations. It's generally the number of shares x share price. Therefore, if the No. of shares goes up then the SP must come down to maintain the same value. The extra cash can easily get wasted or misused.
They will have 16% more shares but they'll also have £13k extra cash.
I'm as bullish as anyone here but i can't help but recognize many will have applied for excess shares happy to sell for quick 20%+ if they can get it. Expecting a dip when they hit the market , then big buyers will show their hand and we will motor on to 30p+ GL ALL
"some contracts in the bag"
Keeping an open mind on SP immediately after OO etc. My opinion will change very quickly if there are repeated buys of, say, ~100k before 01/03. We are likely to know direction of travel by 4pm tomorrow.
The key points at which the SP might drop in an OO situation are :
First on the Ex- entitlement date (15 feb) , ie the time at which future buyers lose the right to the additional cheaper shares and
Second the admission date for the new shares (2 Mar)because of the possibility of holder turning a quick profit.
The first date passed with no noticeable impact on the SP and, as the "new" shares will constitute only about 20% of the increase total and the price difference is going to be only a few pence I don't think there will be mass selling.
perhaps a little wobble on the morning of the second but soon recovered . .The recent stability of the SP is a very good sign.
I can't really see how you add an extra 16% of shares with no reduction in the share price. I do agree that they may well have some contracts in the bag and that over time the share price may well increase but I would almost certainly anticipate a short term drop in the share price.