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Exactly - if we're all well aware of and understand any negatives, in my view, it strengthens the positives.
My concern was that if someone were to acquire Woodford's total share in RENE that it would be a cheap route to a takeover. Going on from that I raised the possibility that RENE might issue more shares to defend against this.
. However, PC01's recent post regarding Schroders acquisition of WPCT may have put that worry to bed.
I am a committed holder of this share but I do try to be objective which sometimes involves playing the devil's advocate .
davidpqz - in response to your comment - it's a case of are you half full or half empty towards RENE right now - if one can use that analogy ?
Two key Non-Exec Directors buy stock - the Non-Exec Chairman Barriman buys 80,000 in one go at £2.25 - cost £180,000.
The vibes within RENE right now must be buzzing and look what was announced today and we already know the RP trials are going well. Share dealings are based as much on sentiment as on solid facts and that in total is why I said last week that I felt RENE had turned the corner (the corner being the SP of then £1.35).
dactions, Apologies for the delay. The directors own just 2% of the issued shares so I don't see how that supports your argument.
"Dilution on the cards" - NO
No - that time has past given their stated cash position and the the extra from Fosun. It's also important to understand the Staff and Directors positions. It was only in April that substantial options were given not just to OH but a wide number the base price was £2.22 and I think could only be exercised when the sp is double the base price.
Moreover a day or so later the Non-Executive Directors bought in actual stock (something as a LTH I don't recall seeing before) at £2.25 / £2.28 particularly two key Directors John Berriman purchasing 80,000 and Prof. Sir Chris Evans who now owns 254,605 - I can't see them standing idly by and watch this company fail.
I feel confident the market dynamics have turned a corner.
It says in the RNS, "No trading in the stock - voting control interest over stock transferred to new manager". However if you need something to worry about try this one. W's holding in RENE in aggregate was just below the level at which he would have had to make a compulsory takeover bid for the company. It is quite likely that a big pharma co. will try to acquire them. One way to prevent them from taking over the company is to issue more shares. And we know that RENE will require further capital for the next trials and from past experience RENE goes for broke when they raise capital. Dilution could be on the cards.
Can't believe I've got back in, this company will be the death of me. On the positive side I've bought three quarters of my previous holding at half the price so the downside is less I guess.
GLA, I have no idea if this is a stupid idea or not. I think multibagging is further away and the surgical issues will slow down time to market, but at this valuation, it is too good to miss with the IP they have. A takeover is much more probable now I think.
When i read about it earlier this week it was described as simply a name change.
Pleased i bought some more at 125. The recovery in sp has been quicker than I thought and at this rate it should re rate to above £2 with luck.
Think I've got it - this is simply record keeping as part of WIM being replaced by 2 new IMs; Blackrock & Park Hill (see link below). Perhaps Link is fronting this by name, but Blackrock & Park Hill are the ones deciding how & when to sell the assets.
So in conclusion, no RENE stock has been sold on the market, and no change in beneficial owner (it's still owned by WEIF).
https://www.thisismoney.co.uk/money/markets/article-7580743/Savers-frozen-second-Woodford-fund-charging-fees.html
I'm not sure that's true. Link have always been the ACD of Woodford Equity Income Fund (WEIF). Nothing has changed in this regard.
Woodford IM, however, have been replaced as investment manager, by Link, on WEIF.
That's probably not helped with the RNS, that I am still puzzling over, but the above is true!
Thanks PC01, much appreciated.
Yes I think I can. WEI (Equity income) is closing down. So those shares that were held in WEI have been transferred from WEI into the company that is doing the run-off aka Link Fund Solutions. The other 1/2 of the Woodford stake is held in Patient Capital (WPCT) which is looking for a new manager to replace Woodford himself but is not, at this moment, being wound down. So the 50% stake in Link Fund is very much alive and for sale. The 50% in WPCT is likely to remain there whilst a new fund manager is hired and who then decides what he wants to do with the stock.
For colour I misread first time the RNS and also bought a small amount but would appear that not for the first time in my life, I was a tad premature!
Link saw the future and decided it was in their best interest to leave it well alone?
Nope, sorry, still don't understand.
Can anyone explain what that RNS means in plain English, including how/why whatever has happened has only happened to half of Woodford's holding, not all of it?
https://www.reuters.com/article/us-woodford-invs-suspension-link/after-woodford-fund-suspension-focus-turns-to-its-stewards-idUSKCN1TI1NW (17 June 2019)
LONDON (Reuters) - The suspension of Neil Woodford’s flagship fund has put the focus on a little known firm tasked with ensuring his investors were being looked after properly. While Woodford, one of Britain’s highest profile money managers, picked the companies in which the LF Woodford Equity Income Fund invested, the fund’s governance was overseen by a company with a much lower profile — Link Fund Solutions.
Link acts as Woodford’s Authorised Corporate Director (ACD) and is the fund’s legal owner. In the prospectus for the suspended fund, Link lists a group of six directors led by its Chief Executive, Christopher Addenbrooke.
ACDs are meant to ensure fund managers stick to their investment mandates and follow the rules. They usually attract little scrutiny, but Woodford’s fall from grace has raised questions about whether they are fit for purpose.
One key question is whether ACDs — hired by the investment manager — challenge fund managers’ decisions robustly enough.
“The ACD’s role is very much behind the scenes from most retail investors’ perspective, but is nonetheless crucial - they play a major part in ensuring that the fund complies with the FCA’s rules,” said Richard Small, a financial services partner at Addleshaw Goddard.
"Britain’s regulator, the Financial Conduct Authority (FCA), has said it was looking into the circumstances surrounding Woodford’s fund suspension and the listing of some of its assets on an exchange in offshore dependency Guernsey - a move Link would have needed to approve. I would expect that the FCA will take a hard look at Link’s role in this affair,” Small said.
They are a private Company and have no requirement to disclose.
https://www.linkassetservices.com/who-we-are/our-story
Yes, I think you could be right. It looks like Link Fund Solutions have taken Woodford's holdings in Arix, Eve Sleep and a number of other companies over the last few days too.
So who are they and what's going on?
Woodford had a major stake in similar Biotec - Synairgen - it's sp has also suffered as a consequence. That too was sold (?) on 15th like RENE and this afternnon an RNS as been issued that Link Fund Solutions Ltd had obtained a 19.5% stake - presumably the Woodford holding.
So, is it Linik that now has RENE ?
It might be if we actually understood what the RNS means, for definite.
Why is everything smoke and mirrors on AIM FFS?!
I have concluded that it is a paper exercise and although Woodford has gone,
whoever manages the holding still needs to find a buyer at some point.
If it was an unrelated fund they would have bought the shares and therefore
they would have been traded.
It wasn't the good news I thought initially, but it isn't bad news either.
As a LTH - please don't accuse me of ramping - but I think this is the time for a top-up.
'No trading in the stock - voting control interest over stock transferred to new manager'
I took this literally, that the holding has been transferred to another Investment Fund whose manager is happy to hold.
Downward pressure until Woody out.
Could do with some great news here ... not just decent
Wish I had noticed that.
May only be related to his dismissal and we still have the 32% overhang.
Hoping it is a transfer to a fund with no Woodford connection.
If it is the former, why not notify a complete transfer.