Member Info for Batfasted

Hi Rox
You say that the clever City people tried to hide the dilution. However the facts relating to dilution were set out in the prospectus as repeated below. The figures provided in the prospectus are correct and differ from those that you posted. I am not trying to be argumentative but only to help with the facts.

Dilution
If a Qualifying Shareholder who is not a Placee does not take up any of his or her Open Offer Entitlement, such Qualifying Shareholder’s holding, as a percentage of the Enlarged Share Capital, will be diluted by 46.4% as a result of the Capital Raising.
If a Qualifying Shareholder who is not a Placee takes up his or her Open Offer Entitlements in full, such Qualifying Shareholder’s holding, as a percentage of the Enlarged Share Capital, will be diluted by 16.6% as a result of the Firm Placing.

I think we are are all aware that there was dilution of our original holdings. This is an obvious consequence of a share placing. The fact that the placee paid over the odds for a large slice of the Company was a benefit to the Company and should be also a benefit to other shareholders IMHO. They own a smaller proportion of the pie (dilution) but the pie is bigger by virtue of the £140m capital raised.

Sorry Rox. I didn’t realise that was how the figures were derived. In that case could the equivalent old share price be calculated as:
(MCap - 140m) / 1.122B

I am very grateful for everybody’s input but wish to propose a different point of view.
In my opinion the figure in column A should be calculated as:
Column A = (Column D + £140M) / (140M shares).
This would give a post consolidation SP that is £1 higher than in the table.

Without this amendment it would represent that the additional shares were acquired for nothing whereas the whole object was to “raise capital”. Ie to raise the MCap.

Pianista. Thank you very much for your posts. Yes I absolutely agree that we should all make a few quid from here.

TheFarEnd is correct IMHO in dispelling the myth that the offer price was related to 15 x 33 = 495. I am grateful for his intervention which makes me (and probably many others) understand this much better. However I think that Pianista is also correct in saying that the £140m (£1 per share) should also play a part in this analysis. So I am taking from this that the offer price was equivalent to between £2.66 and £3.66 per share (not £4.95) based on today’s consolidated shares. There are all sorts of other factors that one could consider but some are imponderable.

Everybody is under water. It doesn’t matter unless you sell.

Hi Pianista
Thank you. As usual a very good and informative post by you.
Wasn’t there a large sell by SLA that caused a glut of shares to be on the market? Could it be this that is causing the depressed price?

Hi Pokerchips
My account is up to date now with consolidated shares and I can trade. The broker must have been very pessimistic this morning when he said it could take 10 working days. I have submitted two substantial purchases and those are the last purchases from me until I see the very large profits coming soon.

Pokerchips
Yes. My broker is saying can buy the post-consolidation stock but cannot sell stock because pre-consolidation stock is cancelled and they are waiting the custodian to supply new consolidated stock. He said it is not a simple electronic transaction. I can’t really see why it couldn’t be simple in this day and age.

Hi Pokerchips
Reference your post about inability to buy or sell.
Interactive Investor have told me this morning that the new shares have to be credited to my account before I am able to sell but I can buy immediately without a problem. The old shares have been cancelled. My problem is that my shareholding value is currently nil. They say that they have to receive new shares from the custodian and this can take up to 10 working days but usually will happen within a couple of days.

Toneman
Have you seen this article? Obviously I don’t know the source of the information or it’s veracity but it does appear to suggest vaccinations starting in November.
https://www.theweek.co.uk/108321/leaked-nhs-documents-reveal-plan-for-coronavirus-vaccinations-to-begin-november

It is ludicrous to suggest that an intelligent billionaire would pay £100M with the intention of scuppering his own business. Shorty appears to be trying to dissemble facts. In my humble opinion, the simple fact is that the shares are presently severely under-valued due to a glut of shares on the market. Once these are bought up and/or some good news is received then the SP should improve substantially. All in my opinion.

What is SB?

Successfully bought this morning through Interactive Investor. First attempt had to reduce the quantity but then bought in 2 tranches.

Slow & Marcus
I agree with you both. I can’t understand why anybody would pay more tomorrow at 12P than they can pay today at 11.4P. Stamp duty is only 0.06P and dealing costs negligible for a decent size of transaction.

Slownsteady
Thank you. I have spoke to the stock broker and changed my election and I bought them at 11.5P instead.

if I buy shares today at 11.5P and so have no funds, will the offer lapse or will I be forced to by the 12P shares that I have been granted under the offer and accepted?

Marcus. I agree with you. I wasn’t expecting 27P in two weeks but it should be achieved over the longer term. If investors think too much about the short term they will be out-manoeuvred by smarter investors who are looking at the long-term prospects.

Hi TheFarEnd
The Capital Raising process is precisely for the purpose of adding £150M to the balance sheet.
The share price is likely to increase following the conclusion of this and then multiplied by 15 when the consolidation takes place. My reasonable estimate is 27P is fair pre-consolidation and 375P post-consolidation. Otherwise why all the takeover interest?

Jed.
No. I think you have to also pay for the new shares on 25th.