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There has been quite a bit of discussion about the proposed 10 for 1 share consolidation. If nothing else it has caused confusion. Below is an extract from a Times article today about a similar exercise at Saga;
'Nobody’s fooled
Bruised shareholders in Saga have two weeks before they need to make a decision on the insurance-to-cruises group’s emergency capital-raising. One silly distraction announced yesterday will do nothing to reassure them. This is the decision to consolidate the shares. Investors, whatever they decide, will get one new share in place of every existing fifteen they hold currently.
Is there any measure more pointless than a share consolidation, or more likely to suggest that management have no real ideas for sorting out their mess and are resorting to this cheapest of conjuring tricks to give the illusion of progress?
James Quin, the finance director, at least had the decency to sound a bit shamefaced as he tried to explain why time and money was being wasted on this. Apparently, penny shares are more volatile and present a “psychological hurdle” to some people, he said. Royal Bank of Scotland, which now goes by the name of Natwest, went for this ruse a few years ago, conducting a one-for-ten consolidation. Long-term shareholders, who bought into the company before the banking crisis at £5 or so, know perfectly well that the shares today are, in old money, an embarrassing 10.4p, not the 104p on the screen.'
Mr Underhill.
Tend to agree with your on consolidation particularly with respect to of 'penny' shares. Logically it does not make sense but a 5p share consolidated 10 to 1 should settle around 50p. However there is a phycological effect here where a 5p share can appear good value yet the same share consolidated to 50p looks expensive. Doesn't make sense I know but the stock market is not always logical.
I understand why they are doing it but why will investors lose out? The consolidation of 2 companies that are ideally situated to progress the opportunities going forward makes perfect sense to me.. the investors have also made a substantial percentage increase so far on both MWG and SKIN SP so not sure what will affect us?
A clearer explanation than mine. Think it was needed!
For every 10 we get 1 NEW (post 10-1 SKIN consolidation) share.
Exactly!
I agree in principle that it is a good business decision to merge the two companies; however if the consolidation goes through (which is likely) my experience is that investors will lose out. I am not a ramper or de-ramper I only seek the truth - I can say no more.
GLA
extract from rns:" If the Share Consolidation is approved, the Modern Water Shareholders will instead be entitled to receive:
for every 10 Modern Water Shares 1 New Integumen Share"
You need to re-read the RNS. It’s a 1 for 1 deal and all being well the new group will consolidate 10-1 which will make it more attractive to fund managers and IIs.
As a fairly large MWG holder it doesn’t matter to me if it goes through and the share prices are at 3p and parity. The point is IMo both PLCs are undervalued given the potential and tech and MWG is being turned around and will continue under the new leadership and group. I imagine MWG might need more cash in the not too distant but who knows as their costs are lower. Either way and although only the beginning the turn around at MWG seems good and the tie up makes sense to me. A good deal for all.
you guys should re-read the rns for your own well being. The decision on consolidation will be taken next Tuesday and ratified at skin's agm then the "merger" will take place - it won't be a one for one it will be 10mwg shares for 1 new integumen. Integumen are offering 4.05 pence for current MWG shares so following consolidation and aquisition one new integumen share should be worth 40.5 pence but that will not last and many investors will lose money. This is my forecast having seen this happen many times in the past 95% of which never reach their equal value.
Ha, one can hope and I’d change it to retired by 43. That said it would still be by 40 albeit that wasn’t the intention when I stopped work!
Maybe change to retire by43 (with a wee bit of luck)
When I started posting here I was younger than 40 but am now 42 and as it happens quit a job I’d been in for 14 years with some cash rather then equity I was due if I stayed (a small private business) just before my 40th b’day, bizarrely that’s how it panned out.
I may or may not go back to work but I’m less bored than I was when I used to have a day working from home in my old job and found that tricky.
Anyway, I’ve managed to do well (on paper) in SKIN MWG AVCT SNG and MIRI in particular so I hope to not work again!
I try hope and expect the takeover to go through and as well as the interim RNS, takeover news we should have news on the real-time prototype as this is expected end of the Q. A lot to look forward to I believe.
I hold both SKIN and MWG and am very happy with the deal.
GB was quoted as saying something along the lines of "we are happier to have a small slice of a large pie than the whole of a small pie".
In acquiring MWG that small slice just got significantly larger imo.
Hi Retireby40, I like your name. Is it an aspiration or an achievement? Or is that too personal a question?
2.3p goodbuy in price as no concrete news about anything.
Here's some information about the body that will be giving the £50m funding...
https://www.nihr.ac.uk/documents/artificial-intelligence-in-health-and-care-award-2020-guidance-for-phase-4/24006#The_AI_in_Health_and_Care_Award
Through the Phase 4 AI Award, the AAC Delivery Team will identify medium stage AI technologies that have market authorisation but insufficient evidence to merit large-scale commissioning or deployment (Figure 2). Award amounts are uncapped, awards are per technology, with an indicative budget of £5-10m in the first year. Applicants for Phase 4 apply through the AI Award Call for Applications.
The AAC Delivery Team will facilitate initial systems adoption of the AI technologies into the NHS and evaluate the AI technology within clinical or operational pathways to determine efficacy or accuracy, and clinical and economic impact. Phase 4 will support the development, testing and evaluation of suitable AI technology in health and social care by:
Selecting and funding promising products: Working with leading experts across the NHS to identify innovations that are of value to stakeholders and align with our strategic aims (as outlined in the NHS Long Term Plan). A themed-approach may be taken where more than one supplier of an AI technology exists: in this instance multiple suppliers of the technology may be awarded a grant and supported by the AI Award to develop, for example suppliers of a screening AI technology. Key areas of focus include:
i. Diagnosis;
ii. Screening;
iii. Decision support and;
iv. Improving system efficiency.
Providing implementation support: Working with AHSNs, our existing partners in the regions, as well as with leading experts and specialists such as CIOs and CCIOs we will identify NHS or social care sites that are ready for adoption of the selected AI products. Funding and support will be provided to a handful of sites per technology to support local testing, removing barriers to adoption and facilitating changes in clinical pathways where appropriate, including:
v. Funding for staff in adopting sites to undertake the training and change management required for implementation of these technologies;
vi. Support on project set up, programme management and procurement from the AAC Delivery Team;
vii.Specialist support from NHSX’s AI Lab SWAT team in areas such as information governance and interoperability.
Developing a plan for long-term sustainability: The AAC Delivery Team will support the development, testing and evaluation of innovative commercial models and reimbursement mechanisms that:
viii. Incentivise initial uptake of the innovation;
ix. Capture the efficiencies associated with adoption of the innovation and;
x. Are cost-neutral over a number of years, but not necessarily in-year.
These approaches will be trialled as part of the AI Award, preparing the reimbursement system to accommodate and incentivise use of these products and other innovations.
From advfn -
Both PLCs look undervalued and I’d argue SKIN even more so. The MWG and its BoD and need to look after their shareholders and think it a good deal. I hold more MWG than SKIN and am happy with the deal. They’ve worked closely for 6 months or so and the synergies are obvious and seemingly stronger together.
If the real-time solution works for COVID and other pathogens/contaminants it is massive and remember the driving force is SKIN and AI. MWG and its superb units are a route to market and there are other cos out there SKIN could partner but I guess that’s taken off the table is the takeover happens so they can dominate.
so i take it were going to bounce between 3 and 3.3-3.4 until the 15 sept then?
shouldnt you guys be talking about the covid detection that we are deleloping and not some membrane division that doesnt make any money? look at avacta to see what happens to a stock at the moment when you develop something related to covid
Surely it is right to have some explanation of the membrane division's future as part of this deal? Although I support the deal generally, I might vote by 0.3% against the deal if the membrane division is ignored. I don't see why a subsequent sale (probably raising the current market value of MWG) should be shared with existing SKIN shareholders - although I'm also an investor in SKIN.
It's clear from the offer document, that under Section 11 "Modern Water current trading and prospects", there is no mention of the Membrane Division, the focus is all on the Monitoring Division. It's the Monitoring Division that has a good fit with Integumen and not Membranes. I wonder where the industry partners of the Membrane Division sit in all this, will the Membrane Division be sold to one of them or indeed another party after the take-over (if it goes ahead)?
Hi Finance Muser,
Perhaps the fairest way for the MWG board to deal with this is to negotiate with the SKIN board that if the membrane division is sold in the next 2-3 years, the proceeds of that sale will go to original MWG shareholders, or perhaps a portion above a certain amount.
However, I don't want it to be sold. Unless I am missing a trick here, I think this division will be worth a lot in the future with the need for desalination plants growing with continued population growth. I don't think it is a matter of being too small - partnering is the answer as someone else mentions - and I don't think it should be treated as the poor relation to monitoring. I would also like an explanation of what happened to Gibraltar. GB said in one message (forgive the paraphrasing) it was the past and therefore not of concern. I do not agree with that attitude, although am very grateful that GB moved when he did and shall also be putting my shares behind the merger.
But I would very much like an honest appraisal of what happened to the Gibraltar contract.
can you tell GB that if he provides free beer he has my vote!!!....:-)
GLA LTH!
I don’t think we should assume that will be sold as it’s generating income and they’re going the partnership route so don’t need to spend as much money.
As far as getting it on the cheap getting 1 new group share seems fair enough to me and given the AI potential with real-time monitoring and much more there’s an argument to say SKIN is also undervalued so MWG is getting a decent deal. Definitely stronger together and I’ll be voting for the deal.