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I also can’t get Eldose Babu out of my mind. I wouldn’t be surprised if he and his family feature here with an offer for the company. As we know Eldose was aggressively buying in December taking his shareholding to 17%, paying 5p a share. We learn this week that another family member has also been buying and holds 1.7%. I am of the opinion this was strategic buying in December, I refuse to believe an investor of this magnitude buys up 17% of a company on a whim. Time is on our side. This is going to get interesting imo
'better for us'
guess that depends on when you bought, and if you took place in the last placing at 20p, becasue it def wouldnt be good for you then. i know the directors bought a lot at 20p.
Really interesting one Bigdaz.
Any serious buyer would be snapping up shares at these prices as it gives them clout at the vote.
The new investors have a fab deal 80% of enlarged company for £10m.
They see value but the bank is forcing them to go through sale process.
Disadvantage of sale is no creditors restructuring which is fundamental to cost reduction
My outside bet is Youngs etc provide the £10m for 49% of company on the same terms as the three shareholders they have tapped up now but better for us ?
Stone gate are struggling with their debt, can’t see them buying
Would I like that...
Probably a 10 bagger from opening price though.
Agree with this. unfortunately Revolution are a necessity in the drinks industry for big brands like Diageo and Brown Forman to thrive in despite the mainstream/bland offering, so imo will never go under as too many jobs in hospitality are on the line.
Many acquisitions happening everywhere now in the trade. My guess would be Stonegate or Mitchell and Butlers putting an offer in. Stonegate already own Be At One which is almost the same style of business so would make sense to me.
I'm spectating on this one but could be a nice trade in there over the 6 months when summertime trading is in full swing.
Seems undervalued to me though. GLA
Can we have the 100p that was previously accepted by the company and turned down by the greedy shareholders please?
It isn’t particulate clear. However, the rights issue may never happen. . If there is a buyer and we are not holding we will miss out. I am confident we will receive an offer for the company, I therefore am choosing to hold.. I noticed Young & Co took a holding recently. They purchased City Group in December. They have enough finance behind them, and Rev Bars is currently cheap imo.
Ah, got you. yeah, that would be a good one to know!
those that took the risk buying at 1.2/1.4 can be rewarded without losing out.
the theory makes sense.
Rise despite large fund raise
How come ?
Yes Ian but the record date is 9th April.
So if you sell now the rights are still with you.
So I sell 80,000 today. I retain the right to buy 70000 shares at 1p.
If it hits 2p I think I would consider selling but would love to confirm by understanding is right
Sorry, got that backwards, for every 8 your own, you will be eligible for another 7, but you need to be a holder.
Someone said its a 7 for 8 raise, so you need to be a holder of x / 7, to be eligible to get the extra 1.
The open offer record date is 9th April.
Does that mean if I sell today for say 1.6p ( it's going up). I still get to buy again at 1p if it looks worth it ?
Seems to be a restrictive clause preventing anyone building a stake.
0.5p I bet . Pays the bosses another 6 months
We all know its not great for existing shareholders if this goes through but its not the worst outcome. The new shares could have been issued at 2p or 3p and still would have given the new shareholders lots of skin in the game. Without totally wiping us out.
For us existing holders, really we have to hope that this gives us time for a buyer to come in. Again got to think £30-40m now and the new owners do the fat cutting then they can turn it around for a big win still.
Lets us hope!
Thanks Banbury
Don't think Babu sold any. It's a family member with additional position. Names in declarations are different.
No Ian
£2.5m from investors 7 for 8 rights at 1p
£10m from new investors.
Bank is supportive but wants them to explore sale options.
The interesting thing is Babu who brought in heavily before Xmas up to 17% has in the last few weeks ( since it was bombed out) gone to 1.5%. Clearly he's done a deal presumably with the big three so they can swing the shareholder vote to restructuring.
Anyone genuinely interested in buying the Co might need to mop up the shares. Probably a win win as they come with rights.
I'm actually expecting this to rise to closer to 2p. Famous last words !!
Also, am i reading it correctly? they are looking to raise £20m? 10.5 from a placing, and 9.5 from investors?
must be a hell of a placing considering the share price in in the toilet. last one was 20p, feel sorry for those guys caught in that.
"No offer of BOD or CEO trimming there very high pay packages. Very disappointing."
yeah, i agree, however the key investors stumping up 9.5mil must be ok with it, else im sure that would have been one of their demands in order to provide funds.
I'm hoping for a buyer.
Giving away 85% of company for £10m seems very dilutive to me. Albeit dilution is cut by participating in rights issue.
No offer of BOD or CEO trimming there very high pay packages. Very disappointing.
And more importantly people's jobs
As an alternative to the potential Restructuring Plan, the Company has today launched the Formal Sale Process, to explore whether a sale of the Company will provide a more beneficial outcome for stakeholders than the Restructuring Plan. In addition, the Company is exploring whether a sale of one or more of the Company's subsidiaries, or the business and assets of one or more of the Company's subsidiaries, including the Plan Company, will provide a more beneficial outcome for stakeholders than the Restructuring Plan (the "M&A Process").
Highlights
· Proposed Fundraising to raise up to £10.5 million via a Firm Placing and Subscription and up to approximately £2.0 million via the Placing and Open Offer.
· Cornerstone investments of £9.5 million, being £3.0 million from Luke Johnson, £3.0 million from Robus SCSp, SICAV-FIAR - Robus Recovery Fund II ("Robus") and £3.5 million from three key existing shareholders.
Wow! Another shorter that's yitting themselves...
I think we all know the score here...anyway I congratulate you on your copy and paste skills from Sandyman's link...well done!