Member Info for Billyboy2fromiii

Dropside,

No worries. Do you mind me asking which Nominee you used?

BB2.

Hi Chirpy,

Because, it appears, Keras did not go XC until 21st rather than 20th, which would means selling on the 20th passes the Calidus shares to the buyer on the 20th. I have had several very lengthy conversations with HL Corporate Actions Team who are 100% adamant that Keras did not go XC until 21st. I have NOT yet confirmed this with LSE which I will do tomorrow. However, I must say that HL seem very knowledgeable regarding the XC process whereas another well known platform that I contacted, asked me what a XC date actually was!!! HL have directly told me that they will NOT be giving me "my" Calidus shares as they now belong to the purchaser that bought my Keras shares on 20th. They have also told me that other Nominees that are stating the Record Date only, will be in for a shock as the Market Maker that bought any Keras shares on the 20th will be "asking" for their resulting Calidus shares from that transaction. HL have told me that the RNS on Friday only confirmed the Record Date, which was never is question. It did not state the XC date which is the date that the LSE will use in allocating Calidus shares.

As stated earlier, I do not personally know if the Calidus demerger was legally classed as a capitalisation event, but Keras shares are definitely now trading on HL as XC, which suggests the LSE regard it as a capitalisation event. What I do know, is that i cannot personally find any reference to the XC date on the original "prospectus" nor any RNS issued by Keras regarding the demerger. The only date that I can find is the Record Date.

Chirpy, do you mind me asking if it is correct that you sold 10m on Wednesday? if so, which Nominee did you use?

By the way, I was the guy sat next to you at the presentation in London.

BB2.

Pablo,

Yes, I sold 2.3m Keras on Wednesday as was going to use proceeds to buy more Calidus shares. I have other exposure in Africa and wanted, rightly or wrongly, to increase my exposure to gold. Have held Keras for approx 4 years.

From your comments, I see that you are potentially personally affected also?

BB2.

Hi Dropside,

I fully agree that it is important not to confuse XC and XD. The reason for my post was to highlight that there appears to be a stated procedure and importantly a stated timetable for a stock going XD. So far, I have not been able to find such a procedure nor a timetable for a stock going XC. If there is no such procedure and timetable, it begs the question exactly who is responsible for setting the relevant timetable for a stock to go XC.

So far my research has showed, the only example that I have found of a stock going XC is RBS in 2008 whereby the Record Date was stated as Friday 12 September 2008 and the Ex Capitalisation date was stated as Monday 15th September 2008. This is interesting in that the XC date appears to have been the next working day after the Record Date. This would mean that any purchaser on the next working day following the RBS Record Date would NOT have been entitled to the RBS Capitalisation rights. This , it seems obvious, is what KRS intended and expected to happen.

The other thing I have noticed is that the Keras/Calidus transaction is quoted as being..........

"Demerger of holding in Calidus Resources Limited by way of Capital Reduction"...............

One technical question (which I do not know the technical answer) is whether this transaction is actually regarded as a "capitalisation" as far as the LSE are concerned?

More questions than answers, I'm afraid.

I have a phone number for the London Stock Exchange Stock Situations Team whom I will contact tomorrow should things not become clearer in the morning.

BB2.

PC,

There appears to be a procedure for XD.....

The basic principle:
Record date should normally be a Friday, therefore with standard settlement of T+2, the associated Ex date
falls one business day earlier. If a dividend is to be made ex, the dividend must be declared via a PIP or
notified to the Exchange at least six business days before the proposed record date, otherwise the exdividend date may be deferred until the following week.
Dividends which fall outside these guidelines must be discussed and agreed in advance with the Stock
Situations Team on +44 (0)20 7797 1579 or 1920 or e-mail ssn@lseg.com .....

Still looking for XC.

BB2

Mog,

That is exactly what HL are saying. They are also suggesting that other Nominees who are still stating that the the Record Date is "the date" will get a shock when Mr Market Maker "asks" for his Calidus shares in relation the Keras purchases made on 20th. I can see why they say this as I rang up one well known platform that has been quoted on here and when I asked the question, their answer was "what is an XC date"

From what I have read, the "prospectus" did not mention an XC date, just the Record Date, as per subsequent RNS's. So, the questions appear to be, did the transaction require an XC date and if so, why was it set for 21st rather than 20th and who set it?

Regards, BB2.

Pablo,

Thank you for contacting both CEO's. You are quite correct that it is no use just stating what their intention was. My understanding based upon lengthy phone calls with HL is that, as it stands, their intention will not currently happen for anyone that sold on the 20th.

This issue is not, in my opinion, limited to sellers that used HL. Although other Nominees have stated the Record Date of 19th is "the date", the Market Makers who purchased the Keras shares on 20th using any other platform, will want "their" Calidus shares as officially it appears Keras did not go XC until 21st.

This could get very messy next week if sellers that used HL do not receive "their" Calidus shares and then the Market Makers that used different platforms want "their" Calidus shares for shares purchased on the 20th.

As far as I see it, there are two possible positive outcomes. Firstly, the legal process that went through the Courts on 19th regarding the transaction did not actually require a XC date. Secondly, LSE change the XC date to 20th rather than 21st.

Regards, BB2

Hi,

Looks like there is a correction transaction at a marginally higher price than previously published.

BB2.

Hi,

It may be wise for anyone that sold Keras shares via HL on Wed 20th contacts their Corporate Action team (must be the Corporate Action team rather than dealing desk etc) and asks the question.

It may also be wise for any other sellers on the 20th via another Nominee to ask that Nominee's Corporate Action team the question.

BB2.

Hi Pablo,

I have spoken to HL Corporate Action team again and they say today's RNS changes nothing!!! It only reconfirms the Record Date which was never in question.

For the record, I have held Keras for approx 4 years. I decided to sell on Wed morning after the long wait for the Calidus shares to sorted. My reason for selling was that I am already over exposed in Africa (JLP and HUM) and wanted to increase my exposure to gold. I was going to use the sale proceeds to initially buy more Calidus shares and then revisit Keras once in production.

For obvious reasons, it is best that I do not comment on this further until (hopefully) it is sorted out.

Regards, BB2.

Thank you for contacting them both to raise the issue.

Wait for RNS later then.

BB2.

Hi Pablo,

Did Russell or Dave actually mention the actual XC date rather than just talking about the record date during your discussions? This appears to be the issue here, certainly according to HL.

Just checked on HL, and Keras are currently trading "ex capitalisation", as you would expect. I have looked on LSE to try to identify what date Keras actually went XC so see if this agrees with what HL are saying (or if they are telling me the wrong date). However, I can only find date that shares are due to go XD/XC rather than historic dates.

I emailed RL last night and gave him the name and number of the person in the Corporate Actions team that has provided the info.

Regards, BB2.

hI,

From the look of it, I really do not think this is a HL error. They seem to be acting correctly. The problem appears to be that, according to HL, the Keras shares went XC today rather than yesterday. If that is correct, then it looks like it is an LSE error or a Keras error.

Clarification needed tomorrow, for sure. However, if HL are correct and Keras went XC last night/this am then it may be difficult/impossible to rewind/rectify??

Regards, BB2.

Pablo,

Email sent.

BB2.

Pablo,

If it is any help for Russell, I have the name and contact number for who I have been dealing with at HL. I have also spoken to SP Angel who were going to contact RL and/or the legal team at Keras.

BB2

Bassguy,

I appreciate that I am a "new visitor" but I have held Keras for 4 years without posting. I sat next to Chirpy at the investors night in London and met a few of the others on here that night.

I am only stating what I have been told by HL after spending an hour on the phone today.

Regards,

BB2.

Chirpy,

Unfortunately, on the information that I have, that is correct.

If not, please explain how Bassguy has been allocated Calidus share for the Keras shares that he purchased yesterday (after the record date but beforE the XC date) ???

Regards,

BB2.

Pablo,

HL have said to ask the Company and the broker if they understand the LSE rules regarding going XC. They are saying it does not matter regarding the record date, it is the XC date that determines who "keeps" the Calidus shares. According to them, the only way this is incorrect is if there should NOT have actually been a XC date set in relation to the transaction. However, the LSE data shows that there has been a XC date set which was last night/this morning. They have said it would be extremely unlikely for there not be be an XC date for a "demerger" and that currently Keras show as XC , which again they say was last night/this morning and NOT 6pm on 19th.

BB2

BB2

Pablo,

This is directly off the LSE website......

XC - Ex Capitalisation: Trading is "ex" capitalisation on this stock...............

That is exactly what HL are saying has happened to the Keras shares and they say it only went XC at close yesterday/start trading today. If you google LSE and search Keras and look at "special conditions" it shows Keras are trading XC. HL are 100% adamant that they will distribure the Calidus shares to holder as at LAST NIGHT and NOT as at 6pm on 19th.

BB2.

Pablo,

There is a difference between "
entitled to receive" and "entitled to receive and keep". Holders at 6pm receive the entitlement to the shares but holders at close on 20th are entitled to keep the shares. That is how HL explained it!

BB2.