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Great RNS
I agree, and it would be a great comeback from the bod. I said ages ago there wouldn’t be a ceo appointed as it wasn’t needed. The company was forced into changes that ironically is helping now and put them a year in front of what other people are going through now. I can’t see a downside other than getting over the short term dilution and extra funding. Very low overheads and a brilliant franchise model.
I think I will top up too if theres a dip. Although I dont wanna see them being bought out but see them prosper... would be like the ultimate comeback ; )
If there is a dip over the next few weeks I will increase my holding. I still think the company has the potential to be bought out. Low mcap and easily transferable.
and so as TKtowers said ...will leave us in debt of £19.5 million with Gordon Brothers Brands repayable over 4 years
Also we have the pensions defecit to pay.
Providing the international sales remain as it is and grow as we recover think we are in a good position.
Not sure we will see 35p by summer, seems abit optimistic, we need a few postive quartly results, lets break this 15p barrier first.
Been seeing a majority of sells ahead of moving to AIM or to the end of the tax year so not sure how it will go in the next couple weeks. Rishi Sunak had people spooked before the budget, think theres another “tax day” anouncment due on the 23rd.
This will be gone(CULS)
the £13.5 million convertible unsecured loans issued pursuant to the Shareholder Loans;
Then we will have this place which is fine all financials sorted and in place.
Looking forward to the SP rise. ·
£19.5 million loan secured with Gordon Brothers Brands LLC ("GBB"); proceeds will be used to repay outstanding amounts due under the Group's revolving credit facility.
Pearls, are you sure about debt free? I’m sure it was in a rns that we have swapped the £13.5m for shares but have now taken a new loan out for £19.5m at 12% for 4 years
From what I understand, we are moving to AIM as part of the agreement struck with creditors to take equity for their debt. Essentially once we move to AIM tomorrow, most of the debt is gone, albeit there are then more shares. But those shares are held by what should be long term holders who are agreeing to the swap because of the anticipated growth in the shares once the deal goes through, so ordinary shareholders should experience no dilution.
In many ways it is similar to Premier Oil [PMO] which is doing a similar but larger deal, that deal goes through at the end of March and is beginning to electrify the shares.
Here, I'm hoping that once it is basically debt free, it will be revalued reflecting that it is now largely an internet only operation, plus the Boots JV. I do not feel the current share price values these two aspects of the company, rather it is still valued as if it was under heavy debt, having financial issues, and still operating a UK store base. From tomorrow that should all start changing but of course if does depend on the marketmakers taking notice, and revaluing the shares. I guess they will go on a beauty drive around the various city institutions from tomorrow onwards to drum up support and interest in the new company's status.
I think it should be very positive for us going forward, and expect the shares to rally to around 35p by early summer.
We need a bit of excitement here. I do think there is potential for the sp to do well here but I wouldn’t be surprised to see 11/12p again at some point.
Should be an interesting day tomorrow...
I think a lot could depend on how Lombard/Blake decide to offload their new 10p shares. From memory in a rns, their warrant/share conversion also happens tomorrow. Big selling will hold the sp down.
The CULS conversion was due on 31st January and converted £13.5M of debt into equity. So I believe this increase in enterprise value partially offsets the dilution from of the increase in the number of shares. The price was 10 pence a share plus the warrants Tktowers mentions. I think these can be exercised at 12pence.
I therefore believe the transfer to AIM due tomorrow shouldn't affect the SP as the current price is based on all the known factors as above.
After the CULS conversion 84.75% of the shares were reported as being in institutional or large shareholder's hands, which whilst giving me confidence also means some could be sellers in the short-term.
Moving to AIM might bring in new PIs or make the share more liquid.
I have been in since 3p but traded some here and there. Please do your own research as I am probably talking nonsense! It's a long time since I was actively involved in company financing.
Good luck all for tomorrow.
R
Don’t forget the 14 million of warrants being issued to the holders of the culs
So if I understand correctly
Prior to Nov 2019 there was 341 million shares in issue
From Nov 2019 this increased to 374million
After culs agreement debt converted into enquity this will further increase to 563milliom shares in issue
So current share holders are being diluted by aprox 33.9% which would take the current average share price of 14.5p down to 9.5p if there were to be a revaluation/correction.
Is that correct ?
I dunno, does certainly look like its being manipulated, been observing the trades for the past week. Some mornings have been stagnent with no trades in the early morning.. then you see a flurry of these small trades come in which can kickstart some activity with bigger buys and sells
If you look at only the historical graph you’d be blind to it, but observe the actual trades for a period of time it does seem that way. Dont see these small trades on other stocks im invested in
Best probably just to look at the days total buys vs sells
Algorithms?.. doubt more sinister..
I’ve never understood the very small trades we see with MTC. Is it an attempt to maniplulate the share activity and share price??
Maybe the Boots tie up has been factored in, I am sure I read somewhere that Asda won baby retailer of the year?.. so have the grocers gained market share?..
This looks like a repeat of Premier Oil. On closer inspection, the refinancing being done and the move to AIM whilst leading to a larger amount of shares in issue, should lead to dilution for us ordinary shareholders as the new shares are conversions of debt and are not allowed to be sold for some time, so we should have new larger shareholders on board who are hopefully very supportive of what the Board are doing combined with a world recovery and increased use of the internet to buy Mothercare goods. Also, I do think the Boots tie up just has not been properly priced in yet by the market. This has surely got to be worth proper money?
Right found the answer, trading on AIM expected around 12th March
Anyone know the date we are moving to AIM ? Im sure I read it was close to the end of next month sometime
Also have they anounced the date when new shares are issued? What percentage is this gonna lead to current shareholders being diluted?
I remember Hornby quite a few years back, they certainly went through some hard business times and changes.
Based on Hornby moving to AIM.
AIM's advantages for smaller companies include simpler regulatory requirements and reduced on-going costs. Key to Hornby was the flexibility around equity fundraising. Hornby's strategy to deliver improved shareholder value includes cost cutting and potentially raising further equity. Hornby stated in its shareholder circular that it was unable to raise sufficient funds on the Main Market without publishing a prospectus, which it could not afford to do. On AIM, it was able to issue placing shares representing approximately 28 per cent. of its issued share capital without a prospectus. Under UK tax legislation there are other incentives for listing on AIM including the potential to raise money under the Enterprise Investment Scheme (which is not available for a Main Market listing), relief from inheritance tax for investors holding shares in certain types of AIM listed companies, the ability for venture capital trusts to invest in certain AIM listed companies, corporate venturing reliefs and the abolition in 2014 of stamp duty on transfer of shares listed on AIM.
Everything proposed will get signed off. I personally think the extra share dilution, extended borrowing and movement to aim could hold the sp short term without news. But potentially the future looks good.
What do people think about the forthcoming general meeting to consider resolutions? Is this good or bad news?