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Looking at the AIM rulebook again, the difference is possibly that GUSC was a conversion (dead company re-badged as IC) whereas LME is a proper from-scratch IC. The rules are 18mo (with extensions approved by shareholders) for latter like LME, whereas for a re-badged IC they get a 12 month period and no comment about SH-approved extension.
Do you understand why GUSC got suspended then, since they'd made an investment and it was actually bigger than the Chronix one? Was there another reason?
Here's the GUSC RNS when it got suspended for breaching the 18 mo rule: "Wed, 9th Sep 2015 07:00 GUSCIO PLC - Suspension of trading on AIM PR Newswire London, September 8 9 September 2015 Guscio PLC ("Guscio" or the "Company") Suspension of trading in Guscio shares on AIM Following the Company becoming an Investing Company (as defined in the AIM Rules for Companies (the "AIM Rules")) on 8 September 2014 and as a result of the Company having not yet made an acquisition, or acquisitions, which constitute a reverse takeover under the AIM Rules or otherwise having implemented its Investing Policy by 8 September 2015, the Company's ordinary shares will be suspended from trading on AIM with effect from 7.30 a.m. today ("Suspension"). If the Company's Investing Policy has not been implemented within six months of Suspension, then admission of the Company's ordinary shares to trading on AIM will be cancelled. As set out in the Company’s announcement on 11 August 2015, Guscio has been actively looking for complementary acquisition and investment targets in the educational technology sector with a view to making further investments in accordance with the Investing Policy. While the Company has undertaken a significant amount of due diligence and negotiations are advanced on a number of potential investments, there is no guarantee that a transaction will be completed. Were the Company to complete an acquisition, or acquisitions, which constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy, Suspension would be lifted and the Company’s ordinary shares would commence trading again. The Board hopes to be able to make an announcement shortly regarding a potential transaction which is currently in the course of negotiations."
OK here's an example of what can happen with these Investing Companies. It's not clear to me what "implementing its investment policy" means in concrete terms, but from other AIM examples I would say that a single investment ($500k in Chronix) ain't going to be sufficient. Take GUSC as an example. It was a rebadged investment company as opposed to a de novo one, but the rules are the same. Since becoming an IC it has made one substantive investment (~ £500k in Sportdata) but doesn't have a portfolio of investments as yet. What happened next is that the 18 months ran out and GUSC got suspended from AIM. It now has another 6 months to do an RTO or more investments or else it'll be booted off AIM entirely. I can't say I'm that comfortable seeing a wall of sells suddenly appearing here after six months of zero trading, at a point which is just a couple of weeks away from the critical rule 8 deadline. Coincidence?
Again from Bloomberg. 71 year old lawyer. "Mr. Peter Harry Jay has been Company Secretary of Cape Resources Plc since April 2010. Mr. Jay serves as a Consultant of Beachcroft LLP. He serves as Secretary at Mountfield Group Plc. Mr. Jay was a Partner of Beachcroft LLP from 2003 to April 2007. As a lawyer, he specialises in acting for AIM and PLUS Market companies and in addition works with companies to facilitate their admission to these markets. He was a Partner in Ingledew Brown Bennison & Garrett from 1974 to 1985, when he left to become a founding partner of Stein Swede Jay & Bibring. He was Senior Partner of Stein Swede Jay & Bibring from 1989 to 1992 and in that capacity was responsible for undertaking a number of mergers and acquisitions for the practice. He has extensive experience of advising both public and private companies and has held a number of directorships including Sportingbet plc (where he was a founding director) and Top Ten Holdings plc. He serves as the Executive Chairman of Mountfield Group Plc. He serves as the Chairman of the Board of Bridge BioResearch PLC. Mr. Jay serves as the Non-Executive Chairman of the Board of Interactive Publishing plc and Holdings plc. He served as the Chairman of YCO Group plc (YCO-Deuxmil plc) from September 29, 2008 to March 2011. He has been Non-executive Director of Cape Resources Plc since April 7, 2010. He serves as a Director of Mountfield Land Limited, Meze LLP, Zeme Limited and Beachcroft LLP. He served as Director of YCO Group plc (Deuxmil Marine plc) from August 30, 2006 to June 2011. He served as a Director of Distinctive Leisure Plc until February 20, 2006; Global Corporate Finance Limited until June 25, 2007, Yellow Cat Uranium Plc until May 15, 2008; Beach Secretaries Limited until July 14, 2009 and Croft Nominees Limited until July 14, 2009. He served as a Director of Balcombes Limited until November 1983 and Subhost Limited until December 1994. He qualified as a Solicitor in 1970."
From his biopic on Bloomberg he seems to be a generic financier type, ex dealer from Milan exchange. "Mr. Guido Contesso has been the Chief Executive Officer of Limitless Earth plc since May 15, 2015 and has been its Executive Chairman since July 2015. Mr. Contesso is the Founder and Managing Partner of EBW (East Bridge West) Capital UK, an FCA (AR) regulated UK advisory company. In this position, he is focused on business development of Fund solutions and Private Equity business for institutional investors. He served as Executive Officer of Barclays Capital. Mr. Contesso has over 24 year's financial experience in Banking and Asset Management having started his career as a dealer in the Milan Stock Exchange in 1992. He then went on to become a Portfolio manager in Rominvest Luxembourg Fund, then working as a trader at Capitalia (now Unicredit Bank) Capital Markets. He has spent 15 years in London in charge of origination, distribution and product design for investments for UBS AG, Barclays Bank and Deutsche Bank AG. He has been Director of Limitless Earth plc since March 4, 2015. He serves as a Director of Vesta Positive LLP, Apus Sequestration LLP, Omega Design and Build Partners No.19 LLP and EBW Capital LimitedSupply Your Life Limited."
The question about the seller is very valid to ask because there is an orderly market clause in the admission document (V, 10.8) whereby not only do WA agree to a12 month lock-in (now expired) but have an additional agreement not to sell after then except with the agreement of Cairn as Nomad and GIS. There's been no directors' dealings RNSes to date - which means that WA still held the shares until White's departure from the BOD. However, I suspect that after he left the board all agreements are void - he doesn't need to disclose any sales as a Director 'cos he isn't one any more, and WA may take the line that the agreement with Cairn/GIS was only while White was a director of LME. I'm not too bothered about White selling, it's relatively common for directors to sell up once they leave (indeed quite sensible that they make a clean break).
I may have missed this in my initial trawl thru the RNSes and documents, so if anyone can point me to it then please yell. This is an Investing Company as per AIM Rule 8. It raised the obligatory £3m and then has 18 months to "substantially implement it investment policy". (Rule 8 copied out below). Question - they've invested ~10% of that initial £3m in Chronix. Is that enough to comply with Rule 8? Usually (cf your standard David Lenigas company) there is some RNS statement that the company has substantially implemented its investment policy as per Rule 8. Has anyone seen a statement from LME to this effect? By my calculations the 18 month period runs out end of next week or thereabouts. -------- "Investing companies 8. Where the applicant is an investing company, a condition of its admission is that it raises a minimum of £3 million in cash via an equity fundraising on, or immediately before, admission. An investing company must state and follow an investing policy. An investing company must seek the prior consent of its shareholders in a general meeting for any material change to its investing policy. Where an investing company has not substantially implemented its investing policy within eighteen months of admission, it should seek the consent of its shareholders for its investing policy at its next annual general meeting and on an annual basis"
£2.7m cash as of 1/1/15 ("Limitless Earth plc is a proactive investing company that focuses on making investments in and assisting companies which exhibit the potential to generate returns through capital appreciation. As at 31 January 2015, Limitless had cash reserves of approximately £2.7 million. Limitless invests in small companies where there are clear catalysts for value appreciation and the companies are operating in sectors exhibiting long term growth linked to demographic change. Examples of such sectors include cleantech, life sciences, nanotech, medtech, recycling, and new internet opportunities.") Then knock of $500k for the investment in Chronix in Oct 2015, plus a year of plc costs (say £150k) so current cash at year end will be somewhere closer to £2.25m That is therefore 3.45p per share cash (i.e. it's trading at roughly the cash position and ignores the chronix investment).
$69m how many multiples of that will Chronix be valued at when 'second opinion' is rolled out world wide?
The Board is focused on making sure it makes the right investment in the right sector at the right time. It has looked carefully at more than twenty investment opportunities and has, following the period end, made its first investment. During the second half of the financial year, the Board expects to make further investments and it continues to review a number of investment opportunities. Yes it is good to know they aren't just jumping on the first IPO to come along and are concentrating on solid long term high return opportunities through extensive DD. Our investment values Chronix at $69m for essential and unique cancer testing that should save health givers millions and patients stress and the pain of unesacary surgery.
Nah he stepped down as ceo months ago, just a company evolving as its investment strategy solidifies and the best men come in to do the job. From the look of all their Bios they are busy peeps with their own specialities. White seems more health foods and real estate/ leisure. Current CEO more of a money man so that made sense for him to step up. As for the new director, mergers, buy outs ???? who knows but we know they are looking at many ops in the near term. Sure all will be relieved and anyone waiting will pay a premium.
The buy of the year!
a premium over ask, could be ready :)
Git buying these !! I wonder why :))
Been trying to buy electronically for over 20 minutes with TD, even tried reducing the order to £250, Nothing.
Do a little research folks. This could be an early Christmas present. Read the RNS, read it again. Then buy.
Overhang gone ??
;-)
a small position, looks ready for a rise :)
We go drop overdone nice buy to get ball rolling:-)
Bargin cash alone is 4.5p a share...plus investment + potential !
Comments welcome ?!
Ideas why the fall??