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Silly question buy do we just come out of suspension at the new value (obviously diluted etc etc)? Or is there a share holder vote on the proposal? New ground for me all of this
Imagine there is a vote but the people that need to hold enough shares to pass it
My view is that we will need to see further clarity on the funding raise by Mode via an RNS before we come out of suspension. This would likely lay out the placing to existing shareholders and the share dilution via new shareholders. Then once they have the cash another RNS will confirm terms with Redwood.
I am interested to see the terms of any open offer weighed up vs the size of new capital coming in (I imagine most will be new capital so they have certainty).
I hope for all that we get a boost that's long deserved
This is what I see happening and you can play around with these numbers as much as you like to get different outcomes.
Current Market Cap is £2.32m and current share price is 2.2pence which means there is circa 105million shares already in existence.
RNS says purchase will be at least £50m that to means more than £50m and less than £100m so lets take the average at £75m.
Yes they could just issue more shares and give them to Redwood but then Redwood would be in no better position than now so I think they'll do a placing for a value identical to the purchase price. So they may issue say circa 3.5billion ne shares at 2.2p.
Quite common with placings they off the shares at a discount of say 20% so it may be more like 4.5billion new shares.
You'd like to think the placing shares are offered to the share holders, so if you had £1k worth of shares you'd be given the opportunity to buy circa £30k to £35k of new shares.
Then once the purchase goes through redwood bank would have another £75m cash on their balance sheet and the million dollar question is what would they be worth. Lets say for arguments sake £200m this would see a share price of less than 6p due to all the new shares in existence , so I think the share price could go up 100% to 200% max.
To get the maximum benefit of this we'd have to take them up on the placing.
I've got over 400,000 of these shares so could never fully take up a placing of the levels above as I'd need to stick in £350k but I'd happily stick in £100k if the above scenario was offered.
Hope we dont see your forecast I want it to relist at least 10p on relisting then take a small amount out and let the rest ride
It's all speculation. No one truly knows what will happen. I do think anyone will a average at 2p will do well
The funny thing is most folk will still be massively under even at 10p
I first entered at 70p and averaged down to 1.3p for a grand total of £3k.
When the suspension was lifted I sold at 2.4p and bought back at 1.6p and repeated this cycle until I had £11,200 worth of shares.
I bought back in for 2.6p so feel pretty comfortable.
This isn't going to be easy money, the new share holders will do better than the old shareholder, so we'll have to put our money where our mouth is.
So you don't think anyone around 2p will do well? I think the raise will be higher than 2p personally
If you bought at 2p I'd predict a single or double bagger. Which some would consider good but I don't personally for the stress and risk that there was with this one.
But if you get given the option to buy more in a placement you could get a good return on buying more.
Personally I'm already all in here. Got a average around 1.2p and held, too scared to trade and miss a spike as it was far too volatile
I am more interested in how long it takes tbh
“ Getting listed through reverse takeover can be done within weeks only. It helps the company’s management in saving time as well as effort.”
Will be intresting to see how long it takes too..
“ OUR MISSION
To become the UK’s best, go to, specialist business bank, working tirelessly to provide our SME customers with simple, clear products and fast decisions that allow their businesses to grow”
I like the sounds of this though
Suspence is killing me but excited at the same time,hope we arent kept waiting to long on what's going to happen here,could be absolutely massive increase on coming out of suspension 10p plus would do me vary nicely
Has to be November latest surely and would be nice if all long term holders go something decent back on their massive losses a lot of big backers and corporate backers that will not be happy losing loads, maybe if they get a decent part back they will invest more, 20-25p think most LTH would be relatively happy and i would be over the moon (average down along the way)
The big corporate backers won't lose loads as they will hoover up whatever is offered to them for share placements. It will be the retail investors that cannot afford to take up share placements that lose out.
I think differently , the raise will happen higher than current sp and current share holders will get a limited option as this will be aimed more at larger backers rather than traders
The majority of investors are large backers already and the minority traders.
So what are the objectives:
1. Business want's to raise capital, this happens regardless of offering shares at a premium or discount.
2. Jonathon Rowland and his friends which have their foot in both camps want to retain their wealth.
If it is offered at a premium, the moment the price increases the majority of retail investors sell up and the share price dives so on paper objective 2 is not filled.
If they offer the shares at a discount the majority of retail investors won't have the balls to put their money where their mouth is and then Jonathon Rowland and his mates hoover up the slack which maintains the share price. Creates them wealth (on paper) and the majority of retail investors see less growth even possible reduced growth from where they are now.
I think he will want the backing of the existing investors as he knows they are good for it and it will therefore be offered to everyone at the same deal.
I think your totally wrong but it's just our opinion.
The new people he will want to bring to redwood bank I don't believe will mainly be in mode presently and the retails holders don't hold enough shares to cause massive upsets in my opinion. I think we will get a nice premium and that small % of retail traders and holders will sell up but would be amazed if the average trader has a large sum at all now.
I don't think they will want the existing holders but will hand a little hand shake which he benefits from instantly also
I don't know if you've ever looked at this
https://www.r8plc.com/investors/significant-shareholders
All of the significant shareholders are listed on the website.
JR Spac 1 is owned by Jonathon Rowland
I'd assume the 16% with Hargreaves Lansdowne are retail investors.
HSDL Nominees is Halifax share dealing which I'd assume are retail investors @ 13%
I don't know who Aurora Nominees are who hold 9%
Interactive Investor are retail investors @ 8%
Lawshare Nominees are AJ Bell which I'd assume are retail investors @ 4%
J P Morgan Securities are retail investors @ 3%
I don't know who Tulham LLC are @ 3%
Goldman Sachs are retail investors at 3%
I'd think at least 47% of the investors are retail based on the information out there.