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Bermuda
Thanks. Yes I wondered if there was any upside/value to holding a delisted stock. Most holders run a mile and consider the shares worthless. I suppose you have to hold them until the private company engineers a buyout or something similar - which could be a years long wait. And I don't suppose you have much say in the whole ongoing process if more funds are needed and other backers come in....its not really my game. AIM is for small investors. Taking chunks of private companies is more for venture capital type investors and funds- I would have thought.
Moniman, Mine is mainstream. It's held in a SIPP. I just spoke to someone and they seemed very sure it will still be held/can still be held and appear in the SIPP. But as it's important I asked if they can send an email to clarify, which they've agreed to do. So I think they going to double check for me. I'll let you know what they say. Guess it might vary from provider to provider though.
Do mainstream brokers like HSBC allow unlisted companies to be held? Do you know about SIPPs as surely they cannot be moved out as easily?
Moniman,
They're held in an ISA and that will obviously not be possible once Redx delist. At that time they'll be automatically moved from my ISA account to my share dealing account and I will have to pay full CGT if they come good.
One assumes yours are not in SIPP or ISA?
Xviolet,
Sorry have only just seen the question to me in your 9.13 post - yes I will continue to hold. When it comes to AIM stocks I only really invest in the biotech/medtech sector so it's interesting to read your comment regarding other companies delisting. All I can say is that whilst I'm taking a punt on Redx, I certainly wouldn't make the same decision on every stock that I hold/have held.
One assumes companies like Barclays and HSBC will just dump the stock? If so the management of REDX should be thrown in jail as a bunch of con artists, AIM is definitely turning into the Wild West? Russia probably has tighter rules than the UK stock exchange 🤔?
Yes, so what does that mean for shareholders who hold these in SIPP and ISA accounts?
Bit of buying now and i can sell my holding in one hit which is the first time all day ! This should start rising a little ! Still a shocking day !!
“The plan to delist from AIM is disappointing but, in our view, understandable. The shares have failed to reflect the value inherent in the business and, importantly, the future potential. As we have stated in previous notes, Redx has a solid track record of delivery, with six molecules in the clinic and four major partnering deals over the past five years.”
“Data for lead ROCK asset Zelasudil for IPF (idiopathic pulmonary fibrosis), which are a key catalyst for Redx, continue to be expected during H124. Redx also continues to execute on business development opportunities within its pipeline, with a third deal signed with Jazz; further deal(s) could be catalysed once RXC004 data become available in H124.”
“Thus, we have increased our NPV target to £386m (99.00 pence per share) which comprises of the company’s current cash balance, incorporation of the game-changing and highly significant Jazz KRAS deal, and slightly de-risking RXC008 result in an increased valuation. The £8m ($10m) upfront from Jazz extends the cash runway into 2025, well beyond key H124 value inflection points (Phase II Zelasudil and RXC004 data).”
SM1 VIEW
Thus, despite its huge potential, Redx’s market cap stands at a mere £24 million, representing a glaring undervaluation of gargantuan proportions; and one that is unlikely to be missed by the £5.8bn-capped Jazz Pharmaceuticals (NASDAQ: Jazz).
AIMHO.
.
So what will Barclays and HSBC do with your ISA and SIPP holdings in a few weeks time?
So
As a private outfit, with a couple more preclinical drugs, they'd probably want upwards of 1 billion for this, currently. Seen less well stocked sell for 2 billion USD in better times.
It's a damning AIM valuation and WELL out of kilter. There'd be an immediate re-evaluation as a private company.
If i had the money, nerve, patience, and understanding of how the delisting will work, (im somewhat comfortated (if you can call it comfort) that there will be a trading facility, and the remaining 84% of private eqity investors will want to see good retuns) i would probably buy some more,.. As it is, im down 75% so will hold.
Moniman,
I read this morning from various sources that private shares like this can be held in a SIPP. However, it depends on the provider. The matching order facility may mean that even the mainstream providers allow them to be hold. Worse case scenario I see is I'll need to move to another SIPP provider.
I dont know how it will work with redx"s matched bargain facility, but on asset match, there is an auction every three months, you offer your shares for a certain price, and a buyer offers to buy at a certain price, if the demand is high enough, and you havnt asked for too high a price, then you will be able to sellthe selling price is taken on the average offer price on the last day of the auction, for example, if one buyer wants 10 thousand shares, there's 5 sellers with 2500 shares each, 1 is asking 9p, three are asking 10p, 1 is asking 11p, the 10p"s will go through, and the 9p will get 10p too, the 11p will be frozen out
It's interesting with both SIPP and ISA. Surely the brokers will just cancel your holdings once the become ineligible to hold in the SIPP and ISA? The money will just vanish into an abyss as the brokers won't be able to sell them as there is no market for private investors it seems from today statement? JMO
It's not a scam. A scam would be the IIs bagging another 6 per cent or so via a placing and then forcing a compulsory buy out, before delisting, as they have inside information.
This outfit IMO should be NASDAQ listed and could ultimately be.
If you have the stomach to hold, the Company has made clear that they will accommodate existing LTHs, so that's fair for those wishing to wait for relisting/selling/dividends etc.
Holding in SIPP etc should be doable, but you may need to transfer the holding another broker.
Some will be topping up today. Private limited obviously has downsides, but if you can buy into a Co. With 1.8 billion in milestone deals, sitting at a current valuation of a comparative bag of crisps, then that will suit some wishing to remain for a longer period.
DYOR.
So why have shareholders been unable to sell their shares then? I would keep mine but the company seems intent on making them untradeable for private investors, irrespective of how large their holdings are it appears? JMO
Another Theranos another Elizabeth Holmes’s ? despicable another of my Aim shares mugged me off
Why have shareholders been unable to sell their shares then? I would keep mine but the company seems intent on making them untr
The company is making arrangement for a matched bargain facility, you will still be able to trade your shares, and if the company beleives that going private is the way forward, then the remaining private investors could do well, i was in fasjet when they went private, and was able to sell on asset match with no loss.
Th 84% institutional investors will be protected as they obviously have been involved with the decision to delist it seems? Unfortunately it looks like the 16% private investors will have their shares confiscated for nought so it appears. Why were Polar and others given inside information to the detriment of other shareholders if that's what is occuring? JMO
Well she just screwed you over good and proper there mate...
Wouldn't buy a used car from the CEO....
So 60 to 70% down...
In a word greed...hard lessons all round...
The board should be prosecuted. FCA should get involved