Thoughts on the RNS p1 of 216 Dec 2022 08:46
I have waited in vain to see what people made of the RNS.
There was a lot that could be inferred from it that is worthy of comment.
Historically, TLOU shot themselves in the foot imho when we issued a bunch of shares to a set of UK trusted investors at a discount price. The price was buoyant at over 5p , we were offered shares at an appropriate price, and given a reward of options at 4.4p or 8c on a sixth of the number we bought from the placement. We had 2 years in which to accept the options at what everyone believed was a bargain price, and in 2 years the price would be significantly higer than 5p.
We all know that the price usually drops to the placement price when new shares are on an open offer. With hindsight , I could have sold all of mine at 5p+ down to 4.4p , and used that money to buy new shares with the options! Why didn't I? Because there is something called "over subscribed" and there is a severe risk of not being offered the full quota, or any at all!
With my luck, I'd have come unstuck and it is why I hold virtually every share in TLOU I have bought. I am always hopeful of the price taking off unexpectedly , and if I day traded , I'd do it on that day no doubt!
Tlou discounted the price to 3.5p but excluded any options in that offer to gratefully raise working capital almost overnight from the UK saving the expense in money and time of a full placement.
The following 2 years were hell instead of a boom time - effing Covid! Idotic investors dropped the price to 3.5p and below for no good reason and Covid continued that trend to 1.5p and our option price fell by the wayside!
Sine the one-of deal was repeated three times to raise working capital and satisfy the buyer's wishes to increase their holdings. The pension fund and the Doc gave 3.5p per share , way above market rate.
Thanks to both. continued........
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