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Surely we should know this? while the paperwork gets completed what % are mode/r8 going to hold in Redwood!!?
Crober33, " what % are mode/r8 going to hold in Redwood" Mode are going to hold 100% of Redwood.
Crober33, if you mean what is the share structure going to look like going forward. I'd imagine it may be a very last minute (just before listing) announcement so investors don't have time to analyse it too much. Jonathon Rowland seems to be a real slippery character when it comes to things like this.
Do you expect our return to be more than the 2.25 p it is currently I know it’s only guess work
Yes meant structure as in how much will be left to original holders
Robinsond013, I expect it will be exactly that, then on the day of opening the market will decide which direction it travels.
Anything more than 2.25p means a bad deal for Redwood, don't think Redwood would sign off on a bad deal as they could just pay the extra money to get listed themselves.
I also think we need to look at this from a negotiation point of view:
1. Redwood are a bank that is surviving with or without a public listing, they want Mode to buy in exchange for no cash (just equity) as it is a cheap vehicle to get publicly listed. What are the consequences of the deal falling through, they don't get listed.
2. Mode are a failing business on the verge of liquidation, they want to buy Redwood to continue survival also so Jonathon Rowland saves a bit of face. What is the consequence of the deal not going through, no more Mode.
Now if you were either side of the table for the negotiation which party is in the stronger position to make demands. The only dynamic that changes this is Jonathon Rowland has a large share holding in each company, but not enough to make the decisions on his own.
Think rereading the last few rns and given the stake JR has here compared to Redwood i would think its going to be more favorable than you expect, they were talking about 50mil redwood and if that happens and we get a 2.5mil share then we will rise as redwood broke 500million on asset loans and are profitable award winning / growing. i personally think we will get at least 2/3x current values back if your in at suspended price
must remember a lot of large corporate / jr mates bought into mode when it was 70/80million...... rich don't like losing money
redwood isn't owned mainly buy the rich.. as is here
I would be happy to get my money back unscathed; chances of 2 or 3x price on relist are unrealistic for the reason s Juniormining notes.
Costs/time involved in listings have value along with the license mode have which redwood do not
They both need the deal equally as much for different reasons imo
Crober23, agreed cost and time in listing has a value. I think this is the reason that Redwood will give up a small % of their equity on the basis that they will save cost and time.
With regard to the crypto licence, Redwood have not made any representations that it will be used. For all we know it licence may have expired or be sold, if they make use of this it is a bonus but I can't see that happening overnight when relisted.
DJMtrading91, you say "they both need the deal equally as much for different reasons".
I disagree R8/Mode need the deal and Redwood want the deal. If the deal falls through R8 will be wound up.
There is a huge different between wanting and needing something, hence why Redwood should be in the driving seat for any negotiations.
R8 currently has a market valuation of just over £2 million. The reverse takeover is expected to diversify Redwood Bank into a full-service bank by enabling it to acquire other lenders and loan books.
DJMTrading91
If Redwood do wish to acquire other lenders and loan books surely they'll need to dilute the company even further.
If they buy good quality loan books (which are rarely for sale as the junk is usually sold) this could be a good long term play but no quick increase that anyone is suggesting.
It seems like people are clutching at straws as to why this could be a multi bagger but people never think the whole ideas through.
Metrobank market cap today is £214m, not sure it's even worth 25% of Metrobank let alone multiple times the value.
You could even go as far as saying £50m equity swap is a bad deal, but that would assume Mode is worth something in the first place. We're being thrown a lifeline is what I think and we should be grateful for whatever we get.
Hope I'm wrong as I'm holding a decent amount of these, but think realism is required rather than optimism with this one.
So what do you think will happen, if you didnt think it was going to be positive why did you not sell prior to suspension as we all thought it was going to be a RTO with redwood by the comments, just don't know why anyone would hold into suspension if they don't think it would be a benefit in doing so?
Good question that
As I recall, the proposed transaction was announced (i.e. confirmed) an hour or so after suspension
And for the record, everything that JM has posted on this makes perfect sense and seems based on facts and numbers; the wildly optimistic valuations on re-list seem to be backed by nothing other then wishful thinking.
We all knew the RTO was going to happen why hold if you didn't see a benefit in one? simple
Crober33, there were posts on here about companies house papers being signed by a mergers and acquisitions solicitor. The feeling on this forum was that they would be bought for the crypto licence, which if they were I'd have expected them to be bought for circa £5m.
Not once was a rumour of a reverse takeover mentioned, not once was Redwood Bank mentioned. It sounds like you predicted it but did not care to share it, any thoughts on the lottery numbers this week?
Buda_, the wishful thinking may make us some money yet. When it's relisted if there is enough blind optimism we may have a quick pump and dump scenario.
I'm trying to workout if people actually believe the 20p per share valuation that's been mentioned a few times on here or if they are just trying to pump and dump.
Trading off the rumours and volatility of the last suspension I've managed to be up about 300% on this investment. One thing that is guaranteed is when it re-opens it will definitely be a volatile share again.
You are totally wrong and there was hints all the time regards the rto. Twitter rto liked by redwood. Redwood appointing a member onto mode etc
Agreed on all of that. As stated before, I'll be happy to see my investment back.. anything after that is a bonus
There were rumours, and some dot joining went on, but the confirmation only came the day of suspension. Until that time we were all gambling on an RTO into something being the outcome - that's why I held and presume it's why others did.