The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi DrZ - section 5.1.2 of https://www.handbook.fca.org.uk/handbook/DTR/5/1.html says
"A person must notify the issuer of the percentage of its voting rights he holds as shareholder or holds or is deemed to hold through his direct or indirect holding of financial instruments falling within DTR 5.3.1R (1) (or a combination of such holdings) if the percentage of those voting rights:
(1)
reaches, exceeds or falls below 3%, 4%, 5%, 6%, 7%, 8%, 9%, 10% and each 1% threshold thereafter up to 100% (or in the case of a non-UK issuer on the basis of thresholds at 5%, 10%, 15%, 20%, 25%, 30%, 50% and 75%) as a result of an acquisition or disposal of shares or financial instruments falling within DTR 5.3.1 R; or
(2)
reaches, exceeds or falls below an applicable threshold in (1) as a result of events changing the breakdown of voting rights and on the basis of information disclosed by the issuer in accordance with DTR 5.6.1 Rand DTR 5.6.1A R;
and in the case of an issuer which is not incorporated in the United Kingdom a notification under (2) must be made on the basis of equivalent events and disclosed information."
If they don't issue a TR1 then at least we'll know they've got less than 3%.
Why is there so much whining we now know RF have 2.9m of shares every one just needs to sit tight and wait for news I hold 410k shares and an average of 56p so yes im down like a lot of us. why don't you all put your efforts in to the positives as if you can't just sell up and move on. RF will do wot ever they want let them stop working about them
Elcap if that were the case, then from the initial 2 million deposit we received off them, we would have only owed them 90 odd thousand. They were given 1.9 million shares at a price of £1.02 for the first deposit, roughly £1930000 value at issue price. The selling price is being recorded and I believe its the selling price that reduces the debt, otherwise we would not have to keep issuing new shares.
In my humble opinion of course.
RF don't care about upcoming news they will dump as fast as the volume traded allows, anyone else notice the MMs switched places before the close.
If they have been gifted/ given 2,900,000 shares doesn't this take them above the 3% disclosure level (or is it 5% for aim).
A TR1 would have to be issued confirming total shares held with further disclosures for every 1% change until such point they go under 3%.
I couldn't verify disclosure levels for aim.
Any confirmation from anyone regarding AIM disclosure levels would be appreciated.
KR
ZA
This is the problem with loan shark.
They just keep coming back for more.
RF is not going anywhere just yet.
Aber if they waited till £1 they could only sell £800k worth as that is all Sareum owe them. Any shares they have over that, they have to sell with Sareum guidance, and Sareum would receive 95% of the sale value of the extra shares.
Balance owed to RF is reduced by the price they get the shares at (10p for this lot), it is irrelevant what they sell them for.
If they sell them all and then the price drops to 7p, however many share they take at 7p will be how much what SAR owe them is reduced by.
It is irrelevant as to whether they sell then at 7p or 70p. It is only the monetary value equivalent for the no. of share issued to them at whatever price they are issued.
We need to pay them off asap in my opinion.
I think we would be beter off paying them in full in cash and having another WRAP.
Elcap
Looking at it from RF's perspective I think they have two options now :
1 - Hold onto the 2.9M shares + whatever remains + all of their warrants till a SP of £1 (say) ; Then sell and they get 2.9M+ Warrants value .. but not the £800K as this will be satisfied by the share sale at £1 ... so approx £4M on a £2.3M outlay
2 - Option 2 would be to keep selling to recoup their original stake ... BUT herein lies their dilemma ... If they sell the 2.9M at 10p (say) = 290K, SAR then owe them 800-290 = approx £1/2 Million ... so lets say SAR then use the extra money from the shareholder placing (800K) pay off RF ..... RF then have really only made probably 100K in admin charges etc
So do they take 100K or hope for 2M ?
If they keep selling then my mindset switches to the darker side and other ulterior reasons behind their actions !!! and unfortunately I do not feel confident about the BOD at the moment because their comms channels still appear closed
Hopefully we will find out tomorrow but its time for the BOD to show some support for the shareholders now who have helped them out of a dark place which they put us all into due to incompetent management of the situation
Hello Mathsprof but RF have to come back to Sareum and say we have sold that lot of shares you gave us at 10p. However we sold them at 13p so the 800k owed is actually less by 87k. So sareum may well say here's another lot at 10p but if things are going well RF will sell at the higher price and that will be shown to be reducing the balance by more than 10p a share.
I don't believe that there is no check on the sell price RF get.
Makes you wonder does anyone ever check the details before they sign.
It's a stacked deck, no doubt about it.
Sorry Gunner but if PH are still there at the next AGM and we are still in the same state then not only PH to go but the BOD need to be reshuffled also !!!!
Just to add I’ve added plenty of shares over the last week as even a crash test dummy couldn’t fail to make money by buying at 10p. 😀👍
''unless their intention is to drive the company into the ground which doesn’t make sense''.
maybe not for rf but can the same be said for 'real ****' also!? 🤔🤨
TraderMatt - not any more. The issue price is the lower of the placing price and whatever else.
Which means they may make a lot of money!
I presume if RF have 3% or more then they'll have to submit a TR1 to that effect.
Certainly some interesting scenarios, but don't RF get issued the the shares at the 5 day VWAP? Which is currently 11.49p?
£800K and the £330K issued Friday means we're probably only halfway through RF's selling debacle. But the upward trend recently does help, particularly as you mention Andy, some of the forward selling could be RF clearing the shares at a good price, because the demand is there.
Big question the next few days is how will this impact the SP? Interesting to see if this share issue to RF was timed for any particular reason.... i.e. they have 16 months to clear the debt, so why the rush? Do RF have the ability to demand the max issue each time they finish a tranche?
Yes, it's a pity we still have the chieving tunts with us. Take your pick as to whom I am referring.
It almost seems as if some people have a licence to print money while the rest of us supply the press, the ink and the paper in endless supply.
Just say F@ck you RF and F@ck you Peel Hunt if we still have them as brokers at the next AGM I hope the board point the peel hunts out so the shareholders can ask questions
GLA
Hello all. Interesting that the late trade yesterday of 1.475M shares is roughly half of what was issued to RF 2.9M shares. If it was them selling half of the new shares issued it won’t take long to hack through the last 1.5M unless of course RF were party to the placing. ??!! In which case they may be sat on many millions more sad as it to say. One thing is for sure is our Bod made an almighty balls up when they took on RF rather than looking to faithful shareholders. Will they have learned a lesson?? Hopefully, but they seem to have a penchant for poor decision making and governance throughout history. It really needs a hard faced business person to see this through with TM given terrarium leave, as couldn’t see him having the skills for garden leave. !!
Hey ho, let’s hope for the best as even a blind squirrel can find the occasional nut. 🤣🤣. Gla. Andy.
David - there was a placing fee of 4.5%, and an implementation fee of £50k when the facility was set up.
The RNS didn't say who was getting these.
I have no doubt that the dark arts were in force by RF and PH driving the SP down, it made no sense, unless they were trying to acquire SAR. It is however fortunate that they didn’t succeed, the majority of shares are in sticky mits now and I hope it stays that way.
GLA
Can I check what other options were available to SAR to repay RF ?
Does anyone know whether the introduction of Sareum to Riverfort attracted a commission payment of any magnitude. If so, has it been disclosed and which party, if any, benefited from such an introduction. I accept that a commission may not have been paid but introducers, underwriters etc all receive some payment for their work. That’s how it usually works in finance
Still it is worth RF holding newly allocated shares at least until the next update unless their intention is to drive the company into the ground which doesn’t make sense.