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The lady on the board did say that they read the chat rooms so the allegations will have been noted.
I was on the zoom call and it was made absolutely clear that they do not have the funding and are finding it "extremely challenging".
Surely the raise is doomed as not all interest will result in actual cash when push comes to shove. I want Amigo to succeed but this horse is trailing far behind and the race is almost over. Where is Max Zorin's cane when you need it?
The justification of the (at least) 19/1 dilution was that it was standard business practice for the owners/shareholders of an insolvent company to only retain 5% of the business once a deal with creditors had been done.
So the other 95% will be new shares from the RI, the fact that the it may be mostly the same shareholders if they take up their first dibs on the new shares makes the logic fall down, as they can benefit more than 5%.
IMO the £100 punt will have much better chance (and only a slightly reduced potential return) by waiting until after the RI.
For example, a 2.5p share price and a (x19) RI @0.5p mean you can come in and average at 0.6p. This would pin the post RI price to under 1p as there will be plenty seeking a quick profit as it hopefully rises above 0.6, at this point I would happily pay up to 1p a share.
This is not, IMO, a positive RNS as the RI looks doomed without a big II to underwrite it. Expressions of interest are below the required level and only a percentage of these will turn in to firm commitments. The ship is sinking and time is running out, the pilot scheme update is akin to the deck chairs being lined up.
I was on the conference call on the 16th and the vibe was grim. There is no reverse psychology here, it is cards on the table preparing us for another RNS saying “shares suspended, we tried our best, company to be wound down”.
Yes correct other than the main reason given for II hesitancy were potential changes to the regulatory environment although not knowing the FCA fine will obviously not help.
Also in the call:
Note that it is 45 million that now needs to be raised not 40.
They have contacted over a 100 II’s with only minority offers in terms of underwriting received.
Someone pulled out of talks last week, thus the proverbial hitting the fan this morning.
On the call as well and not optimistic at all, they have asked all investors they can think of and they are not up for it due the potentially changing regulatory environment.
Largey, yes I agree. I will definitely be in on the RI as worth the risk it on the balance of probability in my opinion.
£180M is just the maths of a 19:1 RI at 2p, the point being that this is clearly more than is required so if Amigo needs is less than half then we are talking about a RI SP under 1p. Such and attractive price would be hopefully underwritten by a big investor.
The value is potentially in the new shares. Those expecting the SP to be even at current levels post the RI face disappointment as the 95% new shares would be quickly sold should a quick multi-bag be available.
The SP should peak for the day of the RI register, yes it could be 14p +. So in my opinion that is a day either to be in or out, depending if you want to put more of your hard earned cash in.
Well a 2p 19:1 RI raises £180M, thus the current SP.
Surely there is no legal alternative to the 19:1 RI. This has been agreed to reduce the original ownership of an insolvent company to just 5%. I believe the value here is the opportunity to buy in the the 95% new company at the discounted RI price.
In terms is limit orders I am half out at 10p, I am anticipating this will jump ahead of the RI but once the register day is passed the price will be pinned closer to the RI price of say 2p. No point holding too many unless you can afford the whole of the discounted x19 ones.
Apologies for the terrible typing!
The 19:1 rights issue raises far too much at 5p - more than one of the big boys will underwrite ; thus I expect RU the price to be under 2p so down expect any big upward turns soon.
The 19-1 dilution is to keep the judge happy so the current shareholders only retain 5% of the original insolvent company so I would say that is set in stone.
Via iWeb I offered all of my shares so was pleasantly surprised when 99.7% were accepted, although the tiny amount left does look a bit silly on my portfolio as might just cover a tank of diesel.
No cash yet from iWeb but they did say they were working on the calculation (surely not that difficult) and they say they have ten days to sort.
To put it another way the 300 million to be raised from new shares and debt equates to 63p a share. So it would be no surprise if 40p per share is the rights issue. The number and price will be whatever can be fully underwritten as a discount on the share price at the time, for example:
The right to buy 8 shares per 1 owned for 5p, 4 for 10p, 2 for 20p etc.