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The holding with which Mercuria is going to emerge is extremely concerning. A holding greater than 25% is a significant figure for a shareholder stake. It gives them the power to block a special resolution and, while most decisions of shareholders are passed on a simple majority, special resolutions require 75% or more of the votes. Accordingly, the value attached to a 25.01% holding in any share valuation is a lot higher than that for a 24.99% holding for that very reason.
it seems obvious to me that the best way to protect the company and its shareholders would have been for BOD to have insisted that Mercuria's stake must be below 25% and stay that way for at least a 2/3 year period.
Mitch's failure to do that is a mystery and, whatever he says, the company is at risk with such a large minority being held by one shareholder. In the presentation, Mitch mentioned that the company has experience of dealing with large minorities, referring specifically to the 18% holding that exited a couple of years ago. But there is a world of difference between an 18% and a 25% holding!
Summed up nicely Tony.
Variable figures and statements depending on whether you want to buy or sell.
Mitch did a lot better and I am more comforted by the explanation of how soon the tax losses could be used plus the fact that tax advisers have carried out extensive due diligence. However, I don't believe that this deal is the answer as too much (everything) will be tied up with UK assets and I'd like to see some geographical diversification.
So its a thumbs down still from me.
After today we can all vote as we see fit. HL has a Shareholders' meetings tab where shareholders can vote. Other platforms will have similar arrangements so there is no need to pool our resources - we just need to endure we all vote. Not voting or abstaining won't help.
Looking forward to the next hour or so. Mitch has a hell of a lot of work to do.
GLA
Thanks mikee, I hadn't noticed that before but have now cast my vote
I have just sent this to HL
"Hi, I have a total of xxxx shares in 4D Pharma (xxxx in my ISA & xxxx in my Fund/Share account).
As you will no doubt be aware, the company is currently in Administration and that there is a General meeting on 16 January to consider proposals for it to exit Administration. I was hoping that, by now, you would have consulted with shareholders as to how they would like to cast their vote and if you do not engage with shareholders to seek their voting intentions before 16 January, I request that you cast my votes as follows and confirm that my instructions have been followed:
Resolution 1 FOR
Resolution 2 FOR
Thank You & Kind Regards
Barry Addison"
Please feel free to copy wording if you wish to contact HL or, indeed, any other platform
From Serica
We want as many shareholders as possible to submit questions ahead of tomorrow's Investor Meets presentation at 2pm so though the deadline has passed, you can submit questions to questions@serica-energy.com - CEO Mitch Flegg looks forward to addressing as many of them as possible
The presentation will be interesting and vital to Mitch if he is to have any chance of getting PI support for the deal.
"Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation". Less than a couple of hours to prepare our pre-submitted questions, which will have more chance of being answered than those raised in the meeting
When do schools re-open so that some of these kiddies can get back to classes and leave serious posters and investors to discuss in respectful terms the qualities or not of the company in which they hold (or may wish to hold) shares.
There doesn't appear to be any interest from KIST PI's on the forum (apart from me). If they were enthusiastic surely some would have made some observations by now.
Maybe they think we've got what we deserve after the SQZ BOD blew them off.
INFOR re the tax loss note I mentioned this a few days ago (repeated below). It certainly does need a really full explanation to shareholders about how and when we could possibly use the tax losses.
""I've just posted a quote from Tailwind's Dec 21 accounts on Twitter that "£12.9m of tax losses cannot be classified as an asset as the company does not "consider it to be probable that future taxable profits will be available to be utilised against". We now have a total of £2.6B of them and they will take years to use unless, of course, Starmer steals them before they can be utilised!""
It's really impressive the way that shareholders have carried out due diligence on here in trying to understand the deal and the reasoning for our BOD to be supporting it. The fact that there is a Limited Liability Partnership at the top of the structure doesn't make it easy to find out who the members (partners) are or who has the ultimate controlling interest.
Interesting days ahead guys.
Would be great to see the company back on the market, albeit with existing shareholders heavily diluted but at least we'd be back and, since most of us would have written off our investment, it means we would start off 2023 showing a profit!
The other interesting is that we might find a bid materialising within a few months since the RNS indicated that there were potential bidders around who carried out "extensive due diligence and negotiation (including between the respective parties' legal advisers)" but "all of the bids were withdrawn due to a number of reasons including timing, strategic ?t and complexity of the transaction surrounding administration". It's the last few words that I found most interesting Once the dust has settled, who knows.
GLA and a very happy and (hopefully) Prosperous New Year
Thanks David. I always look at the TMS 12 to follow lists each year and was delighted to see HELD on there this time (plus a few others I hold as well). Just hope 2023 gives us some of the profits that were taken from us all in 2022.
GLA