Hi all9 Sep 2020 13:59
I am going to try and explain, from the RNS’s and AZ comments. about what has happened over these past few months, institutional investment and why AZ still owns the same number of shares.
AIMHO and in plain english
29th July RNS, shares from 1AF2 was used as security on a loan.
We know from AZ that 1AF2 is a special investment vechicle part of the Ochestra Group. but it is a seperate entity within the group.
28th August Ochestra Group aquires 1,630,000,000 @0.6756, so call it £11m.
it has always bothered me where the money came from as in July AZ needed a secure loan
From the whitewash paper the rules are clear, AZ would have to declare any other options or holdings he has access to, in any form.
theory is, this £11mill is the institutional investment both the 8th of September RNS’s refer to and AZ comments on Partnership. Remember AZ comments in Sundays interview “lots of interest from institutions. One institutional Partnership” The 8th of Sept RNS proves that comment as it shows the transfer of shares.
so how does shares transferred to the institution not effect AZ’s holding in the register?
The institution buys equity to the tune of £11mill… but in 1AF2, which only purpose is to hold a certain amount of shares. So AZ owns 1AF2 as its part of the group so owns the shares within. only now he is joint owner with the investing company
it is more likely a separate entity was created just for this Orchestra Group/ institutional investor partnership, but i am using that for clarity only
this is why from the 8th sept RNS its say hey transferred the stock to the institutional investor but in the other 8th RNS AZ share holding remains intact because it never left the Group of companies.
what did AZ get out of this. roughly over £4mill cash as we know the value of the shares that was transferred to the institution/ partnership…So AZ has his capital for expansion, still has his shares although deluted through 1FA2 partnership agreement what ever that may be.
hopefully I am correct, as ever willing to be proved wrong and IMHO
in between all that.. Chairman buys £1.5mill worth and MOU
haven’t sat down with a calculator though and no intention to either