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You have to be a real moron to care about market cap in a company where the share price is below 1p. The company is cheap, load up and see if it 10 bags or 100 bags in time.
Yes it's just a wheeze to allow them more flex. It only effect nominal value, no effect whatsoever on the shares worth. Hoping they need this additional flex in order to take product to market :)
Windsor conveniently only arrived here yesterday Nigel50.....go figure
Octp, to add, this is stated in supporting notes, have NO plans to increase the number of shares apart from the normal employee share options.
The post from Windsor, laughable. Utter nonsense.
Ahhh. Understood. That makes sense. Thanks.
Does this help. This is the way i see it...
It's a purely a procedural process allowing the Company to reduce the nominal value of its shares from 1p to 0.1p WITHOUT diluting existing shareholders as the Companies Act prohibits companies from issuing shares at below the nominal value.
It'll have ZERO impact on shareholders - no new ordinary shares are being issued.
The reason for it is to allow the company to take advantage of the general authority to issue new shares (up to 20% of share capital only) it's requesting at the AGM - that means the Company is able to be more agile as and when it wants to raise some cash.
This is all subject to a shareholder vote at the AGM so is entirely in shareholder control.
There's no impact on existing warrants currently issued by the company, which have a 5p/share exercise price.
There's nothing fishy going on!
Amy more thoughts or questions please send to me and i can try and pass on to the BOD if thats helps?
david burton.tms@gmail.com
You can gloss it up all you like, but your virtually having a 90% haircut .
I've just read the entire prospectus the strange part is if the SP is above 1p than they can do a offering which as I believe correctly they have enough money to march and with results on the first phase soon to be published, why don't they at least give it to march to see if the SP goes above a penny before they do this reorganisation route.
I believe they may have approach various investments groups but been unsuccessful in raising funds.
They are now asking shareholders to lose 90% of their remaining investment.
The deferred shares are deemed worthless and although they mention .9p a share they effectively are being used as cash on hand and the deferred shares will be used as Remaining shares in the future to raise additional funds.
Bottom line is they are taking 90% of the market cap
I'm grateful for the explanation, but still have questions. Some of the resolutions being voted on suggest (to my untrained eye) to grant the directors more power over the deferred shares than I would be comfortable with.
I'm very happy there's knowledgeable people here who don't mind sharing their expertise - thank you :)
There are 960m ordinary shares with a nominal face value of 1p. The proposal is to reclassify the nominal shares as 960m at 0.1p nominal face value and to create 960m new deferred shares at 0.9p face value. To be more precise:
960,415,644 Redenominated Ordinary Shares each with a nominal value of 0.1 pence
960,415,644 Deferred Shares each with a nominal value of 0.9 pence.
subject to the passing of resolutions 8, 9 and 13.
If this happens then the Deferred shares can be reissued as new ordinary shares up to a value of £320.138.55. (Basically, the company can then issue new issues shares to raise new capital if needed.)
Your shareholding remains the same, only the face nominal value has changed from 1p to 0.1p, (not the market price of the shares) and the company has authorisation to raise capital up to the value representing one third of the Company’s issued Redenominated Ordinary Shares at that time, whether it be rights issue or whatever other means.
Q&A regarding capital restructure
https://www.oxcantech.com/userfiles/files/FAQs%20for%20Investors%20on%20Capital%20Reorganisation.pdf
I haven't read the small print admittedly. But it's bizarre that the proposal is you lose 90% of your investment. Normally to raise funds they do a offering at a reduced price of the SP.
The M.C at present is £8.6 million so they are planning on taking 7.74 million of that for funds .
They are basically telegraphing that your security will be slashed 90% and I'm baffled as to why they're isn't a stampede out the door, with potentially saving 90% of your remaining investment?
Agreed. Which is why I'm hoping to be shot down on my interpretation of things, as it is completely insane!
So if they are going to reduce your investment by 90% effectively on the 28th September. Wouldn't the sensible thing to do is sell now and buy back after the reorganisation.
Seems to me they're should be a stampede out the door to not lose 90% of your investment
Right. So, my reading of it is that they take your shares and split them in two - with one being valued at 0.1p, and the other being valued at 0.9p.
They then wave a magic wand and turn the value of your 0.9p share into nothing.
The company's share value is then 0.1p. Market cap has then gone from around £9m to £900k (which ties in with the blurb in resolution 10 about issuing up to 66% of the issued share capital, or around £600k).
By all means shoot me down in flames, but this is how I read it.
Is it likely that there would be any announcement that might impact on the share price before a vote on the resolution that values the shares at around 1p?
Well, lets hope we get positive phase 1 results before the vote
Yeah. I don't pretend to be an expert on this, but I've read the document several times now, and that's the conclusion I've reached. I'd welcome any contrary opinions.
in fact it looks as though they are taking 90% of the security,as the deferred share and making it worthless and just to add insult to injury you lose any voting right.
**** take comes to mind .😭🤣
Patient feel mislead by pledge of cannabis on NHS.
At least Oxford is going the right route here.
I think the problem here is getting the word out, once it comes available
They've basically taken 10% of the value of your security and issued a secondary share and they've made them shares valueless.
Subject to of course to the mandatory vote that shareholders agree.
Looks like they want to raise some money and instead of going the normal route of a offering and dilution they just reduce the value of your investment and take 10% of the value of the company to raise capital.
Bizarre but obviously they (management ) must have a huge amount of holding to not want to do a offering.
Risk is they could be a sell off that will really dent the SP .
Can someone explain, in simple terms, what the 'Capital Re-organisation' means to the average shareholder?
QUOTE>>>>>
Oxford Cannabinoid Tech Holdings Plc has announced details of a capital reorganisation, which means there is a proposed significant change to a company or groups structure.
Under the terms of the capital reorganisation, your account will be credited with 1 new ordinary share of GBP0.1 and 1 deferred share of GBP0.9, in exchange for each existing ordinary share of GBP1.00.
The deferred shares will have very limited rights and will be effectively valueless. As such they will not be credited to your account.
The subdivision is subject to shareholder approval at a meeting to be held on 28 September 2023.
To view the announcement in full
https://data.fca.org.uk/artefacts/NSM/Portal/NI-000082052/NI-000082052.pdf
END QUOTE
Time to starting getting a decent position. Phase 1 results very close. Expect 3p minimum on success
#OCTP 🧪💊🩺🧬🔬🌱
Oxford Cannabinoid Technologies
Medicinal cannabis company, developing products for areas such as irritable bowel syndrome and cancer induced pain, in a market worth $bn’s.
* Programme 1 medical trial results due imminently
* Company will be taking their findings to the FDA for further US approval
* Gearing up for new compound patent application that is believed to perform better than THC
* Already have an exclusive library of approx 14 cannabinoid patents with 500 derivatives
* Listed on both the LSE and OTC
* Main investors include Imperial Brands who own Blu vapes and Snoop Dogg through Casa Verde, who invest heavily in the cannabinoid sector
* New joiners to the company include:
- Dr Tim Corn as Chief medical officer (Ex Jazz and a cancer pain expert who has successfully developed and sold a number of listed companies); and
- Dr Paul Farquhar-Smith as External Advisor (leads the only cancer pain clinic in the UK, at the Royal Marsden, where Prince William is the President); and
- Rob Bennett as General Counsel (a firm background in high profile mergers and acquisitions).
Oh well. Was hoping yesterday there was some buying however that large sell seems to have put an end to that.