The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Breathtaking poor governance during this fundraise is matched in magnitude only by sondrels woeful management of finances.
By leading us down the garden path before pulling the rug last minute on shareholders by delisting, means this price reaction was inevitable.
This is a total masterclass from ROX on how to take a company private on the cheap by wiping out existing hareholders. If it didn't lose me a lot of money I'd almost admire it.
Couldn't agree with more with your points 404 and Dave.
I'd also add this is a textbook example of how not to do a capital raise. I was quite happy to participate before todays RNS. But who is now going to subscirbe for more shares at a 60% premium for a security that will now be untradable for who knows how long, a decade plus, if they ever re list.
Talk about snatching defeat from the jaws of victory with this announcement.
If the government want to encourage more people to participate in capital markets to boost UK valuations, then companies that wipe 90% of shareholder value away within 18 months, and run, need to find it much harder to list here
Either crooks or imbeciles. How can you be moments away from getting a successful fundraise away at 10p, then pull the rug from under investors and delist saying its not worth it. Pathetic
Are any of you guys participating in the fundraise? A 3p ish discount to current price does not seem to me particularly attractive
Sadly i keep my videndum shares in my freetrade account, which confirmed they do not support any rights issues/open offers.
I didn't realise just how limited they are, and disappointed that I cannot take up my entitlements. That info may help any other naive freetrade users like myself.
Anyway my question is if anyone can help, has the dilution already occurred ? If it has I won't bother to sell.
But having read the timeline it looks like the new shares aren't admitted until dec 8th, so it would be in my interest to just sell and avoid the dilution.
I hope we dont see 8.50. My belief of a defensive sector, a PE of around 8 and a historically growing dividend now around 4%, how much cheaper can this really go?
I'd say hilton foods profit warning is the reason for the drop
Very happy to buy at 22. Dropped past covid lows. Business struggling to cope with demand, but I'm confident this turns around. Encouraged to see they are still investing for the future. And if I'm wrong, as taverham says, I would expect someone takes them out.
Wonder how Steve whitehead is feeling. I mean im sure he's got plenty of money, but nobody wants to see a few million go up in smoke...Can't now believe he let 8 million go for 1.22. It was that which made me wobble.
Good point IK, I had no idea that was the size of the short. This has the potential to go fairly big now.
I'm not selling but I'm also not buying.
I think the business is fairly good, but dire management.
I'm finding it hard to belive that a man as well connected in the city as whitehead, an ex high flying barclays investment banker, and board member of a multi billion company, couldn't refinance a loan and got a margin call.
He's sold 8 million at 1.22, and the lack of buys from anyone else, means as depressing as it is for me, this is probably fair value right now.
Surely surely you try anything to put a floor under this. An update on the chair, spin offs, strategy
or director buys, or even an intention of some buybacks.
When unilever hit the buffers over their GSK nonsense, management quickly communicated an update to their strategy. They didnt wait for the SP to drop 80 odd% or for their official trading update.
All weve had is whitehead sold 8 million quids worth at 1.22.
This is excruciating.
Think Steve called this write selling millions at 1.22.
If I don't see any director buys or news in the next week or so, I'll have to put this to experience and dump. Cant even sell any on a spike,this has plummeted on any sort of time frame you choose to use. The main lesson for me to take into the future is you have to really research management as much as the fundamentals. These guys are just so bad.
Never lost as much money as I have on this share, and that includes being in airlines during the pandemic!
IK,
I agree with asking questions and being frustrated. Terry Smith who holds unilever has spent the last couple weeks ****ging off their management, but hasn't sold.
This board has overseen the destruction of 85% of shareholders value. I'd worry about anyone who wasn't disillusioned with this level of management.
I'm holding as selling at this level (even with the board selling/not buying) imo would be wrong as it seems undervalued, and im already well down.
If I'm trying to stay positive, which is hard, then there are some potential catalysts coming up to drive this forward, so long as management doesn't mess that up as well.
Kallu i'm genuinely impressed with your call on this and boohoo, youve been spot on. Selling is relentless.
I'm running on fumes with this share, im down shed loads. cant even get a spike to sell some into.
Id say im now stranded into a very, very long term hold with the constant prospect of complete capitulation. Fed up with management, some even selling their shares at this level. At the minute the whole show seems about as credible as ten downing street.
Decent advice HH
I would with the SP at 1.30
Been desperate for an upswing to ditch these. Looks like ones incoming. Absolutely haemorrhaged cash ever since I bought them. Now I'm thinking maybe I'll just half them. There's a good business here, but the city despises this company and management hardly make it any better.
I used the same buy logic at 250, 200 and 150.
At least 120 seems to be holding, for now. I presume at some point MM will just take this all back for 2 pounds which should offer some sort of floor, I hope.
Have to agree Goldy.
To lose 85% of your value in just a year, I'm not sure the average person in the street could have done any worse than this board. The city saw what was going on far earlier, I should have listened. Was arrogance to think I knew better than Blackrock.
Was hoping for a small bounce to try and exit. Hope 130 wasn't it :/
well done to the guys that called this, can think of Kallumama. Your call was spot on, and i got this completely wrong. Thought £2 was decent value. Hopefully ill get to sell these into a mini - bounce, although the sell off has been utterly relentless for months. Think the lesson for the short term is unprofitable companies; you don't want to be anywhere near these with inflation ratcheting up.
As a side comment, so disanointed with management. Getting your mum to make phone calls, conspiracy theories and not giving the city the information it needs over ingenuity and spin offs..it just destroys shareholders. Cant believe how badly managed this all is