The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Could it be that Novum (the recent places) have given an understanding that they will subscribe to the Excess Application Facility and take up additional Open Offer Shares? This would allow nuog to raise the required funds regardless.
SBP you are incorrect every single shareholder does not. need to participate to sell out. The open offer clearly states participants “may also request additional Open Offer Shares through the Excess Application Facility.” I can request all 83.3million shares myself and I might do it the share price is significantly higher than 0.3p - wouldn’t you?
There are 2 possibilities imo 1) The company don’t need the money and have reduced cash burn rate significantly through formation of SPV and such like that will allow separate project financing without dilution 2) Price sensitive (positive) news will be announced that will increase sp and provide incentive for existing holders to buy in. Anything otherwise and I will be scratching my head about why the company has decided on recent sequence of events.
May see some directors buy in meantime or this will just get ramped up on thin air but one things for sure, the market will make this open offer into an opportunity. IMO
Interesting timed ahead! There appears to be no incentive for existing shareholders to participate in this open offer BUT last applications are to be received by 2 May so there is time yet for the share price to rise... revealing an opportunity. I can only imagine that news is due in this scenario. GL
Wookie, your scenario is plausible imo but unlikely. At what point do I really care much about potentially adding 6% of my holdings at 0.3p? When the share price is 1p (not really) , 2p+ (maybe). What is the timeframe for open offer? I wouldn’t say it could be more then 1 month, probably less. Is it likely to rise to 2p in coming weeks? I don’t think so. Would the bod have planned for this “reward” scheme? I doubt it. The scenario you present is unlikely to have any material impact on the average investor and therefore has not gained much interest on this bb. None the less hope you are right and the sp rises to 2p in the next few weeks ;)
Apologies, just re read the rns stating “placing would be limited to 25% of the current issued share capital and would include, in addition, an open offer of an equivalent amount.“
Will it be at 0.3p for 25% of existing holdings?
Gunthorpe, you ask who would buy now? The 0.3p option is for existing shareholders only so right now this looks like an attractive price for new investors. There is no mention of further placing after this.
Just that you have been lurking here a while and I don’t think you’re invested. Also what your saying is absurd.. do you really think it been a clever game orchestrated to draw investors in?
Deleted are you invested here? How much?
Marbur if they wanted a placement they would have had one by now. Something is holding them back.. what is it? Time will tell. Good luck to you.
Not much sell off by volume but looking at movement of sp, quite possible a few have sold out and driven the price down on low liquidity. Everyday there is no news of placement is a good day. This will come good, I’m sure of it.
Is that I don’t have any more funds to throw at this. Happy to wait for news and see no evidence to justify the sell off. Hope there has not been a leak though and I am aware there could be a placement coming. Having said that why now? Why have the co refused placement in recent past? Surely they must have a reason for this? Been holding for a while and intend to keep every last one of my shares. Ignore the noise.
GS was appointed almost 2 months ago and in that time we have seen released news about further partnerships and collaborations. I strongly suggest that if cash was an issue it would be looked at with priority over the review/reporting of recent progress. If such funding was rejected on the basis of pending board changes, I suggest that the list of offers would be recorded and within the first few weeks of GS coming in board, contact would be made to secure funding with the best offer.
Only £5k to add. Haven’t sold any although in hindsight maybe I should have. Can’t get them all right but I’m sure this is over sold at the moment. Good luck lth and hope this comes good soon.
Some good questions seadog and fair counter Ivor. I don’t know whether the next rns will be one that reveals significant and tangible progress but one thing is for sure, the bod have been maintaining silence for some time and if not to release a great rns then why? Why haven’t they promised hollow intentions in a podcast and “kick the can further”? Sp seems to be holding well so the market is happy to wait, for now.
Hope it’s true but unlikely that information would be public.
Our resident, newly formed insider has suggested good news will come soon and has assured that he will be happier by the agm. Mustn’t forget that it might just be in his interest to make such a suggestion. How much cash remains in the bank? Surely we are due a placing and the only question for me is which will come first, the deal or the placing. I am confident a deal will strike and there a many well researched members that agree but I’m not certain about when. I know which way round I would prefer these events. Maybe LT has gone quiet to preserve the truth from coming out. My impression is that he has a conscience and maybe can’t bare to defend this company until the bad news is out of the way. Silence speaks volumes. I have been contemplating whether to derisk here but have decided against. The risk of missing the boat is far too great and there are too many signals that suggest a deal will come before the placing. Time will tell.
Already pointed out to Wobwat previously that heresay or “info from trusted source” should not be presented in bb as facts. I much prefer sitting here in silence whilst waiting for real news which is why I try not to msg much. I expect any hype from hereon will be questioned more thoroughly and have less impact on sp volatility. Anything else and we are just playing into their hands (again). Here’s hoping.