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I don’t see it happening at all, unless
Scenario 1 : the remaining book is somehow sold for enough to clear the debts and leave a surplus,
or scenario 2, they wind down a subsidiary that holds a large chunk the debt and liabilities, deciding to not bail it out with funds from the PLC holding company, but instead wind down the plc distributing cash to shareholders.
Stranger things have happened.
Out of interest if the board planned on an extraordinary dividend what are peoples expectations? I would love 10p+ personally. Purely speculative and a bit of fun but personally it seems a good option for them to keep old and new shareholders onside. Thanks
Thanks itsagame
Having read all those Risk Factors attached to the sale of Accredited, think I’ll pass on that offer plus not a fan of legacy portfolio’s that can deteriorate with age !
Upwards pressure. My just under ££££ buy was reported as a sell.
Don’t overthink it :)
A special dividend is one that’s paid as a one off, which is fairly common following an irregular / one off disposal of assets that nets cash profits.
Where as a normal dividend is paid from cash flow regularly / once twice a year
Eg seed last week, they got surplus cash in from an asset sale, handed out a dividend, it was a one off, not a regular repeating dividend, it was a “special dividend”
Not had any reply to my emails from last week yet.
Would make sense as the only way to move money equally to the 80% of II who may or may not decide whether to fund an ongoing business or not with said proceeds.
Just 200 shares ?
Hardly seems worth it (08.24am)
Maybe relates to this sentence ?
The Board of R&Q continues to evaluate any and all options to realise value from its legacy insurance business for the benefit of all its stakeholders, including its shareholders, whether that be through the ongoing trading of that business or through alternative strategic options.
Not sire what a special dividend means sorry??
Anyone else know plz ?
L
Agree with news
Seen an email of someone who has spoken to mgmt
With asset sale and de leveraging they are considering a large special dividend "significantly larger than the current market capitalisation '
What big news are you referring to?
Just BUY before the herds arrive; it's as simple as who's willing to wait for the news for a big reward.
I'm filling the boots.
The chart looks!
I'm sure lots of people will be topping up their holding ahead of the next news. I have made a small top up with spare funds. Bring on the bounce!
Waiting for next company update.
$300m nav originally quoted at $170m net available proceeds
If only $65m net available proceeds, and ignoring millions that will likely be used to pay debt down, $300m - $105m = £150m NAV.
£150m nav available to write down some asset values.
Plus $30m JV sale which we were told made the JV transaction profitable from the original $7m invested.
Let’s see the numbers, and why the majority of holders have held from £1-2,
2p is par value, any refinance below requires a restructuring, any raise requires shareholder vote.
Adding another 100k under 2p looks incredibly bargain basement. Anyone selling at these levels will regret it once the sale is done. It's impossible to buy large chunks!
News of the sale is due soon. In my view the recent appointments were very positive and the current market value is daft. I have invested here because I see potential for a significant rise in the value of my investment.
The same as I saw it when I invested and added at 2p
Laura
How do you see this!
Chart looks terrible now
It’s going to be tight no doubt, lots of the remaining net asset value will be tied up in collateral which will be secured against the debt, and will be released over time to pay down said debts.
the plan was to use 50m of the asset sale proceeds as working capital, this is in addition to the net available cash proceeds of $65-110m.
Again at 5-7% interest plus libour - 10-12% debt, the company will be better off paying down as much debt as possible, or atleast hedge these costs by depositing the cash in short term government bills at 5+% which would give them access to the capital if required leaving the 6% interest difference as a fee for this ability, which is cheap compared to tapping the market again at later date.
Just a matter of balancing the books as well as possible, and potentially selling the remaining book if an opportunistic sale comes which would leave the deleveraged company running off its fee based model, and that’s where the actual time and work will be needed, they will have to earn their living, not rely on deposits.
Also it clearly ststate'ONGÒING COMMITTMENTS"
Following closing of the Sale, the Board still intends to use the Available Net Cash Proceeds to facilitate a de-leveraging of R&Q while retaining liquidity and working capital for R&Q's ongoing commitments
Oops..am on the wrong board, apologies
Agreed..only this is NOT AIM 🤷♂️
Surely the recent appointment of 2 NEDs that specialise in the restructure of businesses shows where the company is going. My sympathy goes to all the LTHs that are under water as I am on another AIM company but at these prices I personally feel that with the steps taken the future is looking bright. Let’s hope so for all. Have a nice weekend.