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I believe these stocks only qualify for SIPP status if the company itself is dual listed. On delisting, you still own the shares, and you can request a transfer back to AIM once they re-list in June- but it is not a given that they will. Therfore, my question/concern is whether the ISA I have (with interactive Investor) also automatically converts the shares to the ASX once the suspension is lifted? Does any one know, or have the same worry ?
Not mentioned in the communique draft I was sent. I guess they might, but more likely you would have to request the shares to be converted - but honestly don't know. I suppose my main concern was that my share ownership was preserved, and accessible.
TBE
And if the new 'renamed' company is listed again on AIM in June/July, will AJ Bell migrate your shares back?
Final comment from me (then I can go back to being a Watcher).
I can see no reason why these ASX shares cannot be held in ISAs or SIPPs. Some providers don't let you, but it's fine with HMRC. With AJ Bell, it seems only to mean you can't trade them online - only by telephone, which I'll live with.
Cheers
TBE
Further to TITM's post, I have now had this from AJ Bell, being a draft of what they are proposing to send to clients;
?Further to our previous communication, we have received an update regarding the Red Emperor Resources delisting event.
The listing of Red Emperor Resources will continue on the Australian Securities Exchange and is not affected by the cancellation. Your shares will be converted to the Australian share register and will be tradeable once the suspension is lifted on the Australian Securities Exchange.
You can expect your accounts to be credited upon receipt.?
No mention of being unable to hold in SIPPs or ISAs (where mine are), but I guess if necessary, it would just be a case of opening a trading account to house them (?). Not too fussed re tax implications - when you've paid 45p for some of them, the chances of the consolidated shares reaching 45 x 7.14 = £3.21 are, well .....
My average is actually a tad below 4p, but if the new shares ever get near 30p, I'd be delighted to exit before profit. :-)
TBE
Nice one TITM - that's more than I've been able to glean from AJ Bell.
not that the half mill of shares I have are now worth that much .......
TBE
I am sorry but I am unable to comment on how IG would handle this.
TITM
TITM I hold an account with LSE who told me about the share certificate and also with IG and IG do trade Australian stocks so could I swap them to IG ???
Hi - 50% in a SIPP (AJ Bell) 50 % in an ISA interactive Inv.
Hi,
out of curiosity who is your broker?
If they send you a share certificate, it becomes the same as any other investment in a non-listed company. Unlisted shares are usually illiquid and it may prove difficult to trade them.
If they were in a SIPP, there will be further issues as unlisted shares are not SIPP eligible so you want to speak with your broker.
If they were in an ISA, I believe they will lose their tax-free status but don't quote me on this.
TITM
Yes, and they will send a clarification update at some point as yesterday's afternoon update was not mentioning the conversion to ASX.
TITM
Hi my broker said they are sending out a share certificate so any advice on what I can or should do with that ?? thanks in advance
HI TITM nice job...did they give you that in a secure message ie in writing ? Cheers
Afternoon,
I have been liaising with AJBell Corporate action team and they have now confirmed that they will be moving all
clients on the platform across to the new listing automatically.
So no action is needed from us and they will convert the LSE:RMP into ASX:RMP.
Thanks
TITM
Once the suspension is lifted, will we have the opportunity to transfer the AIM shares to the ASX exchange if we don't want to sell ?
Sale Opportunity
You’ll be able to sell the shares once the Australian suspension is lifted and the transfer to HSBC is complete, which is likely to take a number of weeks, although we’ll work to ensure it is concluded as quickly as possible.
We recognise the charges detailed above are considerably higher than those for selling the existing shares. We’ll therefore offer you a chance to take part in a bulk sale facility, in which we’ll waive the three charges detailed above. We’ll write to you shortly after the transfer to HSBC has been completed, outlining full details of this sale option.
Nothing here is a recommendation. If you have any questions please contact us here.
Yours sincerely
Charlie Balmer
Corporate Actions
Red Emperor Resources NL- Consolidation and Delisting
Your holding of****** Shares held within your Stocks & Shares ISA
Red Emperor Resources NL shares are currently listed on both the Alternative Investment Market (‘AIM’) in the UK and the Australian Stock Exchange. At present the shares are suspended from trading on both exchanges so they can’t be traded. The company has announced it is going to cancel the AIM listing on 19 May 2021 and just retain its Australian one.
Conversion to Australian shares
We’ll automatically convert your current holding into the Australian shares so you can sell them when the Australian suspension is lifted.
To do this we’ll need to transfer the shares to our global custodian (HSBC) – we’ll do this from 14 May. The shares will continue to show in your Hargreaves Lansdown portfolio, but as the underlying custodian will be HSBC, or a sub-custodian of HSBC, there are certain implications you should be aware of:
We’ll only allow sale instructions and you’ll be unable to buy more of these shares.
You’ll only be able to sell your shares over the phone by calling our Dealers on 0117 980 9800. We’ll convert the proceeds from Australian Dollars into Sterling, subject to the prevailing exchange rate at that time and our standard currency conversion fees.
The following three charges will be applied to a sale:
Our telephone commission of 1% of the proceeds, subject to a minimum of £20 and a maximum of £50.
Our Australian Broker (DBS Vickers) will charge you 0.35% of the proceeds subject to a minimum of AUD200 (approximately £112 at present)
HSBC will charge you a transaction fee of £15.
The shares will be held with our third party custodian, HSBC, who may in turn hold the shares through a sub-custodian in the home country of the investment. The settlement, legal or regulatory requirements that apply to the shares may differ from those applicable in the UK. Your investment may not benefit from the same protections in the event of the insolvency of the third party that may apply under UK law. A more detailed explanation of these additional risks is provided in section A25 of our terms & conditions, which are available at hl.co.uk/terms-and-conditions
The company has proposed a 14 for 100 consolidation, effective around 8 June 2021. Any shares you own at this time will therefore be replaced on a 14 for 100 basis. The company will also be changing name to Future Metals NL.
Sale Opportunity
You’ll be able to sell the shares once the Australian suspension is lifted and the transfer to HSBC is complete, which is likely to take a number of weeks, although we’ll work to ensure it is concluded as quickly as possible.
We recognise the charges detailed above are considerably higher than those for selling the existing shares. We’ll therefore offer you a chance to take part in a bulk sale facility, in which we’ll waive the three charges detailed abov
Candid that is my understanding also.
But why is this not in black and white as I can see Bandy pulling a fast one
I’ve not been contacted by my broker, my understanding is that in order to facilitate the reverse takeover the shares need to be delisted on AIM while they conclude the deal on ASX.
So following the consolidation, name change, capital raising and deal closing they will trade on ASX and then the company will seek re-admission for trading on AIM (Likely in July). Rules allow shares to be held in an ISA if they are ASX listed and also if they are dual-listed so I don’t see any issue with that, unless there is something different here?
My nominee broker wrote to me advising that my shares would be re-registered to me as they could not hold them in the account.
Hi all I hold these shares in a nominee account, do I need to sell prior to the deadline, or can I just leave them in situ at moment and hope they re list and they will still be in my account? New to all this so just trying to find out what to do! Thanks
If they can't be converted and held as Oz in ISA, then they would not be ISA eligible and would need to be transfered to a dealing account within 30 days.
If they relist at a later date, they could be ISA eligible again but it would require to use a new ISA allowance (current tax year), they would not be part of the previous years' allowance.
I hold quite a few unlisted shares and I have no issue with them as they are part of my overall strategy. The reason I derisked my RMP was to protect my ISA allowance built over the years...
TITM
Ok, ITIM, thnx for that. But then if they relist on AIM end of July, and become Dual Listed again, then they (the shares) can be transferred back into the ISA/SIPP (I have 1/2 in each). ?
Presumably, there won't be any tax liable unless sold ( whilst in a dealing accout during the interim that is.)
What is the process for transferring? and I see that AJ Bell only deal Australian on the phone and min 10K- do you see that as an issue ?
So if the Oz shares can't be kept in ISA, whatever ISA tax free value would be lost as the shares would have to be transfered to your standard dealing account.
My understanding is that you can convert them;however, it is unclear whether the Oz shares can be kept into your SIPP or ISA.