Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
They did not have to list in the uk to sell in the Uk. They could previously sell globally I presume (like other international companies)
Welcome any insight people happy to share.
Thanks
Anyone know why this company listed on the Uk market ? Given the australia shares have not moved much since 2012 (2p) and are now at 8p. Seemed to have peaked at 12p (why not just do a rights issue on the Australian market ?) -
To be honest I did not do much research before I bought in at 5. (Watched it go up to 8 before buying in on the retrace) Although comfortable given it seems a very traded share and cannabis is growing market. Hopeful it is significantly more in a few years. I am happy to own and hold for number of years if needs be but would be great if anyone could help with the above.
I am aware that anyone’s comments on a bulletin board do not impact the share price- I am just hopefully someone is able to fill in some of the blanks (also others who view the board my find it helpful)
Thanks
Could it be the money raised in the last fund raising has been spent on R&D or working capital for orders that have received ( I know a lot of money was raised last time). ?
(I also now think on reflection that the recent price pattern from the breakout that seemed to start at the end of last year seems to be a bit like what happened just before previous rights issues - the one where I think the issued shares were something like 16p. - can’t remember what it was though)
hopeful that it is just a matter of time before the wider consensus towards the company changes
My comment was to Hodl Hodl’s original question which was - “What happens if a company you own shares in gets taken over, do you get the opportunity to have shares in the new company or do you just get bought out?.”
General question- general answer ! .... only trying to help. Rather than express a view.
(Regardless of whether a company is listed elsewhere the theory states it is incredibly rare that a newly floated company will get taken over in the short term- check yourself if believe incorrect)
Mgc Pharma ltd will either be a success or it won’t and if it is going to be a success why would a shareholder want it to be taken over in a couple of months or a even a year for a small multiple of today’s price rather than 20 times today’s price in two years time. I do own shares and know this is a long term hold. There have been some good posts on this share bulletin board.
The economic/ financial theory would state that talk about this company being taken over in the short term as just fantasy. No one would takeover a company that has recently floated (even if floated elsewhere) in the short term and a responsible board of a company would not even consider it (it virtually never happens in the short term because the company has just raised loads of finance from the share issue- so why would they sell ?- they decide to hold out and grow the business/ grow the market) and make their shares be worth 20 or 30 times their issue price. Like Rightmove or Next. Hopefully that happens !
For all shareholders I hope they have a great products in growing markets.
As has been said elsewhere on this board and shown across numerous other AIM shares (and celebrated by the shareholders of those companies) shares within this price range (newly floated companies) are not for the short term they are to put in the draw and forget about them for a few years. If the correct companies have been picked a few years down the road it is like all the Christmases have come at once.
(Spotted a mistake / key information missing....)
**It is normally a couple of years down the road before a floated company would be considered for take over. (Although it may not happen at all)
have a good week all
It is all linked to the shape value is way below its true value but because of the financial position of the company at the time the offer is made a companies’ Board of directors can still feel the presented offer should be considered and in some cases accepted.
Alternatively a well performing business may receive a take over offer from either another business or from a majority shareholder to take total ownership (like what happened with Sky TV) and the share offer will be at a premium (the extent of this is governed by expected future earnings etc (normal company appraisal). The shareholders receive a cash payment for the value of their shares (at the takeover price on the agreed date). The other option is the shareholders receive a number of shares in the new company (again the stronger the company the more shares in the joined company the investor will receive)
It is incredibly rare for a newly floated company to be taken over given
-there are costs of floating the company on the stock market
-the issuing of shares has been done to serve a purpose ( for a variety of reasons which could be investment/ developing the company/ cash flow etc) and not to provide a method for the company to be taken over in the short term.
- given the number of newly floated companies that do not survive long term any competitior would be more likely to have a wait and see attitude (rather than buying a newly floated company within the first year or so)
-that any presented offer is linked to whatever the price is at that time the Board and all shareholders (regardless of holding) of a recently floated company would want the share price to go up an awful lot before any takeover offer arrives (regardless of who it is from) . For a penny share they would want the price to be in the £s not the pence before any takeover offer comes in given the magnitude of a normal takeover is less than 200% of its current price. (I am sure there is plenty of data on what premium is normally offered within a takeover offer)
It is normally a couple of years down the road before a floated company is taken over. By which time for the shareholders who got into this share early the share price will be suitably rewarded. Hopefully some of the above is helpful/ of use.
Hi all,
Is anyone able to explain why the transaction can’t go through promptly as they normally do given the large number of shares that it states have been traded today ? (I could understand it there was a low volume of traded shares).
I am also am unable to get a confirmed price when placing an order to buy today. I am on ii.
Appreciate any insight. Thanks. .
Appreciate any information.