The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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So would I 1Mozi but whoever posted it seems unable to provide any evidence...
My take on the SPAC is that the company will need to raise significant amounts of cash to buy a company OR issue a load of shares to "give" to the acquired company shareholders. Something needs to be given in exchange for an acquired company, either cash raised by a placing or a "share for share" issue. This will result in dilution for MOGP, i cant see any way around it.
The potential gain here is that the net result is an increase in share price.
An example i can find online is Nikola's SPAC (TESLA rival). A cash shell merged with a business worth billions. The share price "only" 7 bagged, despite a shell immediately becoming worth many many billions (20 or 30 billion!). The growth is SP is brilliant, but it does not reflect the growth in MCAP.
So, imo, the MCAP of MOGP will increase massively upon the takeover, but the SP wont, at least not as much.
It isnt as simple, imo, as the SP mirroring multiple gain in the MCAP.
I dont have much experience with SPACs so i am happy to be corrected
Thanks for that explanation, but surely the people putting up the £300 million would want 99.9% of the new company value?
Simple terms you get alot more wealthy off the big price increases that come with every new investor that joins, then you wake up to a price where the decimal point changes 2 places to the right as they announce the company they have taken over.
You make money all the way, every investor the price goes up , there's still more investors to be announced don't forget, thats only 16 % so far
Magoo is now an investor in MOGP is no longer a punt - 'if you swim with the sharks, one of two things happen, you'll get eaten or you'll become a shark' I'm following the eductaed and the money - I invested in SOLG years ago and didn't jump on the first rise and had to sit for many years at 2p ish, I jumped off a few months back at 34p ish this money is now in here GLA
How will it benefit existing shareholders.
The company does not raise money by diluting shares so the share price is protected from fund raising events.
So when a big investor buys 5% of mogp through the company itself the share price goes up more.
Then mogp does a reverse takeover , say the company that gets taken over is worth 300 million mcap then our new share price will reflect a 300 million mcap.
Why is spac so attractive, quite simply a 0.30 share can immediately be a 200p share.
Hope that helps a bit
Huge spread today I think they do not want people buying
I'd like to know where the Cannabis co. idea has sprung from? I can't find any mention of I except in this chat.
I suggest you do some research on a SPAC RTO and why they're so attractive
So how will that benefit us as already shareholders?
Spac companies raise money and the reverse takeover of the cannabis company will cost alot of wonga
I still don't understand where the upside is for existing shareholders, surely anyone who takes over or invests into the company will result in a massive share issue. Anyone actually got a clue what's going on here. Why don't the existing management team just hold onto all the shares if there is potential upside in the near term???
LSE SHOWING10% up
Lowry are you confirming I smell or you can see the trade amount that triggered the rns price monitoring
Yelnirb
Great point. The patient ones always get rewarded while those jumping in and out of stocks sometimes get shafted big time when a positive RNS lands and they can’t buy FA LOL
Yes
I wouldn't listen that idiot. He was ramping CBX one week and days later after it nosedived was shooting it down to the ground. Not a chance I would take any of his advice. I'd rather stick my money on a 3 legged horse
Not 1 person answering me , do I smell ??
Has no 1 got access to after hour trades ? Someone has brought alot at above sale price just after the market closed. I can only see trades up to 4.29pm
A good day in the office
To trigger the rns monitoring
Does anyone have access to after hours trading, I wana know how much they brought at what price to trigger it after hours
Experience tells me that an individual does not have to be an intellectual or a business mastermind in order to be successful..............surrounding yourself with those kinds of individuals is often the key!
No idea, although I did read something slightly different on Fool....and we may a something more but it's still a complete mystery to me...I'll leave the thinking to the big investors and just hang on to their coat tails...
Surely you would be classed as an investor and not a founder?