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gary it isn't greed it's vanity ...involves months of high level talks in plush offices , just think of the stories directors will have boasting to their neighbours about their work ...truth is , it's always men making these stupid decisions with balls and bull**** bigger than their brains . off hand i can't think of one massively over leveraged acquisition that wasn't a disaster from a shareholders wealth perspective

Well wigwammer ..a decision not dissimilar to this one in terms of recklessness can be found with Saga...you probably know them as a cruise organiser for coffin Dodgers , they booked cruises through various large cruise operators and pocketed the mark up on the marketing of them ..they had a few smaller ships of their own

Their new CEO at the time , a Royal Navy Man who liked big boats ..bought not one, but TWO massive and I mean massive cruise ships at a capital cost of £1 billion ...all funded by debt ...inevitably they couldn't fund the debt , company had to turn to share holders to stump up the extra cash to service the debt ( they still owe around £800 million today ), even after the shareholder bailout ) but as normal the CEO left with a large payout ..shareholders got stuffed ..the CEO did though get lots of photo opportunities to have photos of himself at the wheels of two massive cruise ships for his children and grandchildren to cherish , so it wasn't all bad news !

At this moment in time though , given that the number of shares in issue were divided by 20 then at this interim stage I believe simply that the share price should be 20 times more than it was yesterday ...

20 x 40.3 pence = £ 8.06

Current price = £7.86

Theoretical loss 2.5% using yesterday's value as a benchmark

I might be totally wrong about this .. here's hopin needs to mark my homework !

Key numbers to check are market value and number of share in issue

Yesterday close of play there were

467 million shares

£187 million market cap

£0.40 share price

Whether or not you are up or down in real terms should I think in some way be construed from a factor of this value ..

Bottom line though is to see how much your total holding of shares were worth yesterday versus how much they are worth today ,( including the theoretical value of any rights attached to them )

Here's hopin will probably be the best one to calculate that ..

I wouldn't rule out either an offer for the company , or a proposed rights issue to provide the extra sources of growth capital required , plus that required to reduce leverage ...watch this space ...dividend announcements already well overdue ...something must be afoot

The silence from the company is deafening ...what the hell is going on ..the dividend should be paid this Friday if what they have previously promised is true , so what has gone wrong ..

If it's bad news , this share will tank ...the longer it goes on without any form of communication , the worse things appear to be ..

I agree Here's hopin that it's an opportunity for the brave , given that I have lost money twice on this share at different times though , I am not sure I am that brave.

I think you have done well Josey to have come out at break even ..like I said, my view on whether to buy or not changes by the day , by the hour sometimes , which probably means , I should stay on the sidelines , and risk missing out . Problem is , I haven't yet come to terms with that stance , and the fear of missing out still exists , even though I have had two previous experiences of buyer remorse , but seller relief when I got out , and the price nosedived immediately afterwards.

I will continue reading the posts on here and keep an open mind for now I think ..of course tomorrow , I might see it differently

Is anybody else feeling that level of uncertainty too ?

Hi Josey , you and I have spoke on a few occasions in the past and I value what you have to say , but this share has lost 50% of its value in the past 6 weeks alone ..are you not angry about that ?

Also the ex rights price of £1.97 is an aspiration ..what they actually go for when they are offered to all potential shareholders will be a decision for the markets , not the company , so I am not sure it would be a wise move to exercise your rights so quickly ..bearing in mind , that unless I am mistaken and I can be , if you don't exercise your rights , they will be sold off on your behalf and receive the proceeds of the sale directly by Synthomer , when they are eventually sold

I sometimes get tempted to buy at this price but then hesitate , and in the meantime the price falls by another 2 pence , which at the current price is nearly 5%. My only reason for buying is in the hope that a bid will be made for the company from wherever ...I don't really see a survival route on their own , I think they have left it too late for that .of course , I might be wrong , so again it's a case of F.Y.O.O. but those are my thoughts, for what they are worth

I have been away for a couple of days, there was actually a disguised and subtle suggestion that I picked up on , at one of their previous presentations ( can't remember which one ) that clearing debt was a main priority and they were looking at a number of options , which included the disposal of certain non core operations as well as exploring other options ..rights issue not specifically mentioned but the wording didn't rule it out either

In Synthomers case , The proposed rights issue has now been activated however , the circumstances aren't dissimilar to a company ( called Brammer ) a few years ago , where after a rights issue had been proposed , an offer was made to take the company private ..which shareholders voted to accept in order to mitigate some of their losses . The rights issue never took place

I wouldn't write off the possibility of that happening with Synthomer, which might be the reason for the delay in publishing the interim accounts .

Left field suggestion I know , but you can't rule it out.

I previously stated that I wouldn't consider investing in Synthomer at any price ..I am though considering investing in some shares at the current price as a punt on the future .. this has though been an unlucky share for me in the past , where I have lost money , so I am reluctant to make that decision

I agree Wigwammer , for a share that has lost over 90% of its share value over the last two years , and if that wasn't enough, with a further shareholder bail out on top of that , it's immoral that she should get any increase at all ..seems to run in UK companies , mediocre directors at best , underperforming yet still getting bumper payouts

There needs to be more effective shareholder oversight what our system produced is vastly paid wet behind the ears ex public school boys representing us , if you could call it that , when they are more than likely arranging another date with Madame Sin to get their bottoms spanked .

Pathetic really ..but there you have it

And of course if I do want to buy into this rights issue malarkey , then I can buy the shares first thing to oreoe at a 25% discount ..so am I now tempted ? Answers on a postage stamp addressed to Hopey Dopey .

What we do know of course is that 25% of the current market cap was wiped out by the mere mention of a rights issue ...

Of course if you are Hopey Dopey that's a good thing ....

As you can see , the message is distorted by the editing of the site when it's posted but hopefully you can decipher the numbers

Hey Hopey Dopey ...here are the maths

Net. Market. Enterprise.

Assets. Capital. Value

( £ Bn ). ( £ Bn ). ( £ Bn )

30/6/22. 1.1. 1.0. 2.0.

31/12/22. 1.0. 0.6. 1.6

30/6/23. 0.9. 0.3. 1.1

These figures can be verified using publicly held information

After the £280 m fundraising event , then the net assets will increase by £280 million to £1.2 billion

We have no idea what the market cap will be , because it will be the markets who decide how much more the company is worth following the fund raise ..

What we do know , all other things remaining equal is that net debt will fall to £ 0.5 bn ..so whatever the market decides is the capital value then you can add the £0.5 billion net debt onto this to arrive at the enterprise value

If after the rights issue the market cap doesn't rise by at least £280 million then shareholders have lost out ...that isn't an opinion , that's a fact ..again all other things remaining equal

My opinion is that the market value won't increase by at least £280 million ...but it is only my opinion

I have nothing more to say , please move on ..

FFS here's hopin .. I have heard it all now .. so give me extra money on the grounds that the cake will taste nicer :)))))

Why would you give anyone extra money to reduce their debts when it was them who incurred the debt in the first place.

Throw away your calculator and use a bit of common sense

The better option for ALL shareholders might be heavily discounted takeover by a 3rd party ...

Here's hopin...whichever spin you might want to put on this , it's still a shareholder bail out

Like ordinary shares , the value of ex rights are only what people are prepared to pay for them

It might be better for example NOT to participate in the rights issue , and buy the extra shares later at a better price , if like me, you think the share price will fall

Ok here's hopin....listen , pretty soon you are going to be stumping up as much as you have already got invested , and your SLICE of the cake is not going to increase one iota....you don't have to be a financial wizard to understand that ..

I can understand where you are coming from Kg..I think the key point as you say is how much you could get back for your rights if you opted not to purchase the extra shares , and the real value is likely to be less than the theoretical value but by how much is anybodys guess

I suppose in simple terms , the 2 methods of raising an amount of capital which matches the amount of existing capital is either to :

1. Ask somebody who has already paid 60 p for a crumb of cake to stump up another 60p to eat it

2. Or alternatively , order them to cut their crumb in half, and give that half back to the company to allow them to sell that half crumb for 60 p also , and hope that some idiot buys it

Of course you could also have sold your shares today and opted for an easy life ... but at a 25% loss

It says it all really

Wigwammer and Josey Wales ..bang on the money when you said ( PRIOR to the half year results ) that there would be a new debt raise and it had been the prospects of this which had made the share price drop so much and so rapidly.

I agree Here's hopin , it is getting boring and neither is listening to the other and we are both living and arguing on parallel universes .

When the Eastman acquisition was announced on 28 October 2021, the share price was £5.05 ..it could have paid for the full acquisition with an additional 200 million shares on the grounds of it being an investment in the future growth of the company ., and it would then be carrying no debt even after the acquisition

That would have been a good rights issue

Yesterday the share price was 60p and the rights issue announced today just covers 25 % of the debt . that smells of desperation ..

Yes , I know I can be accused on using the benefit of hindsight , but the directors are very highly paid people, so it wouldn't have been expecting too much of them to be capable of using a little foresight .

After reading all of the contributions from the site which have all had their merit . .I won't be investing in Synthomer at any price

Good luck and M.Y.O.M.U