Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Why would you buy @ .0050 and sell .0052 with the risk of not going through v strange if you ask me.
Who says it's for him? Also he might know something we don't and hopefully a counter offer incoming? Many things at play ATM.
I have reviewed all the forms announced over the last few days.
I may be trying to play the detective and making deductions that are wrong but I would speculate that those who are buying since the acquisition was announced are either trying to block the deal and/or are expecting a higher bid.
There are five significant shareholders who have purchase since Monday and who now hold 16% of the share capital. It’s not far to 25% from there. Heck I own 0.3% and I will be voting against.
There is still a lot to play for here and a little hope…
Slich, so what happens to the sp if it doesn't go through. You'll end up with nothing.
I'm hoping it's a higher bid. Can't see any point blocking unless it's followed by a better outcome.
Think everyone is hoping for a higher bid. They've significantly discouraged that however via the irrevocable undertakings. This effectively bars new bidders unless they are willing to pay 10% over the existing offer, as anything lower couldn't get 75% of votes.
Fingers crossed
I would expect any new bid to be above 10% in any case. So directors and BGF can about turn and go with highest bidder. Anyway, all pie in the sky until anything happens.
I disagree.
I think YGEN could survive independently with good management and an injection of around £2m-3m cash. As a patronising know it all you'd probably say at what cost, but I'd put it in more money at 0.3 again and the NCYT bid shows the possible return, which would be even higher in a year's time if the Board got it right.
And our beloved Board even says the same on p.15 of Monday's announcement (for what it's worth!) - it would have to be without LR of course and would require some quick fixes but could be done.
Slich. Not a problem. All have our opinions. So you think another placing is in order at 0.003p?
Do you really believe it will be at that price?
Slich, whilst I don't disagree with you - what's wrong with taking 0.522p and then riding it under Novacyt?
I wonder if LR will have the time to squeeze in another Investor Meet before the company ceases to exist?
It would likely be an all-ticket affair, well attended by many shareholders who have remained with the company from the off but are left holding the residue value.
He could impart the depth of his business acumen, assisted with the alchemy of turning a 97% share price destruction into an unmitigated success. For one only.
He would no doubt be willing to explain to all eager listeners how you can steer a ship onto rocks and destroy it, but then launch a lifeboat-for-one to secure your own safety and survival.
What a piece of work.
Agreed if I was given the opportunity to throw another £20 or £30k into this at a reasonable placement value on the proviso that we get a decent board, which of course means LR isn't allowed anywhere near it, I'd be up for it. Who else would be on those terms?
Lol Natdan when I read your post I couldn't help but think to compare LR with Captain Francesco Schettino! one and the same attitude, just to remind you
The captain of the Italian cruise ship Costa Concordia has been found guilty of manslaughter and sentenced to 16 years in prison.
Captain Francesco Schettino was on the bridge when the ship hit rocks and sank in 2012, killing 32 people.
He was accused of taking the liner too close to the shore and then abandoning ship with passengers and crew still on board.
"Slich, whilst I don't disagree with you - what's wrong with taking 0.522p and then riding it under Novacyt?"
lol, because your 0.522p aint buying you just YGEN under the guise of Novacyt, you will place that massively undervalued cash you receive into NCYT and then only receive around 30% of the value input as an investment into YGEN's tech, the rest you have had to invest in NCYT (which you may or may not had done in the past) as a penalty for staying with YGEN.
Personally, I'm surprised that after being conned out of a £ million here you aren't taking the meagre 0.522 and blowing it on a taffy hating hitman, bet you'd get more satisfaction than putting it in NCYT.
Just joking of course before I'm accused of veiled threats, hehe!
LOL re hitman!
I guess we think slightly differently on this one. I have, sadly, had to rebase my expectation ie accepted my £m loss, and I reassess how best to recoup my existing YGEN holding value going forward. As below:
> YGEN (without funding) - may chug along and in time, if it survives, will receive a takeover at higher than 0.522p
> YGEN (with funding) - will more likely realise its potential and we have a chance of 5-10x today's value
Do I like 0.522p offer level? No. But better than it being delisted, another big diluted raise (if it can be pulled off) or worse, going bust.
Then I turn to Novacyt - because you are right, I am "forced" to invest in Novacyt if I want to ride YGEN. Market cap today circa £30m with a cash pile of £87m. Problems are cash burning business as they pivot away from Covid and legal dispute. On balance, it's an added risk v reward play I am prepared to take.
That's it really.
Davand
Yes MHC has been a drag lately to be fair. The market’s brutal at the moment but hope Your goes it alone in my opinion.
The management played a blinder at shareholders expense but this ain’t first time it’s happened.
AIM companies all have risk.
PS: It's not rocket science that YGEN valuation is so low due to its funding issue. With continued going concern uncertainty and lack of funds to grow, YGEN will not get a re-rating.
With YGEN absorbed into Novacyt, the business valuation should get an immediate re-rating. YGEN business will represent c. 75% of enlarged group. So, Novacyt will enjoy that re-rating. I expect when deal is completed, Novacyt will rise simply from an expectation of YGEN growth - let's watch if this transpires, all things being equal.
Cost synergies will be executed. Growth can be accelerated by cross selling across installed labs on both sides. Negotiations with larger players adopting Ranger can be done at better terms with capital behind it.
So, no, I don't like the 0.522p offer level. But I like the opportunity significantly improve on that by buying Novacyt at these levels.
I'm also in favour of investing in Ncyt because with cash injection and muscle power of ncyt Yourgene with flourish especially our ranger tech. Yourgene and Ncyt both need each other - Yourgene for its funding and Ncyt to grow it's revenue else their cash will deplete overtime.
But the question is if this will happen or not. With some much shares changing hands on daily basis - we can't rule out another offer from either an IIs or a big gaint who wants Ranger tech. Only time will tell!!
Just need the dispute settling first for me!
Yes, the danger would be loading up with Novacyte only for another buyer to appear. then Novacyte loses premium before you can act. Sods law as I now think there is a chance of getting another bid. A chance at least!
I feel it’s a high probability another bidder with turn up considering this lowball offer and what Yourgene can deliver if properly capitalised. Let’s see if this happens or not !!
I wonder who this is, and might they be interested?
advancing ongoing discussions regarding a potential strategic investment from a leading organisation in Yourgene's sector.
"advancing ongoing discussions regarding a potential strategic investment from a leading organisation in Yourgene's sector."
Where have you got that from Davand?
I would like to keep some sort of investment in the ygen core (Nipt, ranger) which can obviously be done through Novacyt - but that looks like another potential wealth destroyer with the legal issues they are going through.
I definitely will not be buying any ncyt at this stage - if it goes through then I’ll likely take some shares.
Lets hope talk of an improved offer or another bidder comes to fruition- realistically how much higher could Novacyt go?
Stas,..21st December rns.. Capital raising.