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I re-read the interim statement, which showed the rate of burn. Without new funding the company would run out of cash. It is close to doing so and hence the interim funding deal.
The company needs $80m to fund developments which should have been easily achieved when the market cap was £60m, but now with he market cap at just £25m, raising $80m of debt is more difficult. Add to that the SVB and Credit Swiss disasters, which are on top of the liquidity squeeze for smaller companies and you start to see the scale of the problem. The directors cornered themselves by saying so confidently they would not need any more equity fund raises and they would do the next stages via debt funding. It is time to declare force majeure and say sorry but we need more equity as otherwise we cannot negotiate a fair deal with the funders in the current circumstances.
By the way, is there more than one potential funder or have we got ourselves in the position where we are negotiating with a single provider?
I have seen this before with Sirius Mining, who all their eggs in one basket.
Just topped up my holding with a speculative buy at 523p.
Big write up in IC this week. https://www.investorschronicle.co.uk/news/2023/03/15/a-4d-lesson-in-early-stage-investing/
Who is going to the meeting in London?
Do we have enough votes to defeat this proposal?
You cab buy at 31p and get 32.5p if the takeover is approved. Lack of arbs suggest it work get the votes.
I have received this information from Wentworth about their shareholder base.
Wentworth has approximately 750 shareholders who hold certificated shares, the majority of whom are individual holders and a further 150 shareholders who hold via nominee in CREST. There will also be many more who hold their shares through execution platforms, for example Hargreaves Lansdown hold 7.7m shares.
FROM THE ABOVE I CONCLUDE....Hargreaves hold 7.7 million shares = about 4%. Since Hargreaves have about 40% market share of the platforms market, so if that % applies to Wentworth, that would suggest individual investors own about 10% of Wentworth, (plus the holders in certificated form and Crest of about 900 people).
If individuals own an average of £10k worth of Wentworth the nominee accounts would represent 770 investors; if Av is £5k, then 1500 shareholders.
As the Special Resolution requires 75% of those voting to vote in favour, the role of Hargreaves and other nominees in this task over is crucial. Has anyone requested the register of interests, as this would be worth looking at to see who holds the shares via nominees and for contacting them to vote?
I have emailed and sent linked in message to the Chairman saying we think he should negotiate a higher offer.
Offer doc says documentation for the court hearing for the scheme of arrangement will be sent out in January. I do not know what the long stop date is, nor the current level of acceptances. (25% on Dec 6). Does anyone else know?
Can you give me a ring please on 07712793114? Be good to catch up. I have added my shares to your spreadsheet.
I wrote to the Chair Tim Bush suggesting he seek a higher offer and he has replied to me as follows.
Thank you for your email. As to your request that we ask M&P for a higher offer, it should be noted that the board has already successfully negotiated a material increase to the value of M&P’s original offer. In addition, in case of interest, please find attached a letter that the board has recently sent to a group of Wentworth shareholders which provides a summary of the rationale for recommending the M&P offer. Kind regards Tim
https://www.sharesoc.org/wp-content/uploads/2023/01/221230-Wentworth-Response-to-Shareholder-Letter-vf-003_Redacted.pdf
they go thru as sells as the buying price is less than the mid market of the spread being offered. It is the way the system works.
If the story is as good as it looks then the investor relations people should have lined up a few Instituional investors ready to invest at the right price. Clearly the price moves today, show that the management forgot this basic step. [Or in the alternate the story promulgated does not have legs.]
The announcement at 07.00 today was clear and straightforward. I bought on the back of it. The subsequent share price decline is worrisome.
I bought in at 2p and topped up in the recent placing at 5p, so will forgive management for one mistake, but this needs to be sorted. As the old saying goes, in the short term the share price reflects the balance of buyers and sellers. In the long term the share price reflects the value of the business, eg the NPV of future cash flows.
Do you think some investors got the good news before the RNS announcement? That would be market abuse, surely?
The offer Document answers this on page 27 - Settlement. You invest 66p now and get 67.5P back within 14 days of the offer becoming or being declared unconditional, plus the Zinnwald shares worth about 4p when I last looked. So c 5% return for 1 month of investing - so long as the Mexicans play ball. Can the Takeover panel extend the timetable past the year end? Is there a put up or shut up date? I am looking at the docs to try and find this out.
to Mrsbu . The information you require in in the offer document and the terms and conditions you signed when you agreed your contract with your platform.
Well done you for buying some at 29.4p. The best I have been offered is 30p. Selling shares at 30p to your mates does not seem like a sound business plan to me. Especially after a raft of rampish RNS's which has seen the share price move from 23p to 34p.
I told them to do a Primary Bid offer too, but they do not listen!
Still trading on a huge discount to NAV and I hold and looking to top up on any weakness in SP.
67.5p
2 of 2. continuing the previous post
10. If Ganfeng acquire >75% of the shares, they can apply to the AIM to delist the shares. If Ganfeng do this, it will mean that Ganfeng will have a rump of shareholders who cannot sell their shares, unless special arrangements are made. There can be no guarantee that “nice” arrangement will be made. Ganfeng may however wish to avoid having a rump of disaffected minority shareholders. Ganfeng will have to respect the minority shareholding rights of UK companies as laid out in the UK Companies Act.
11. If Ganfeng acquire between 50% and 75% of the shares, they will have to continue the listing of the shares and have to follow stock market rules in respect of UK listing requirements and the respect to minority shareholding rights of quoted companies.
I think there is a bit of misunderstanding on this and other boards and some of it is confusing. It would useful if all agree the position re the takeover offer and consequences. The simplest way I can explain it is as follows.
1. Ganfeng have made a takeover offer in the form of a contractual offer for shares.
2. The offer is conditional on Ganfeng getting acceptances from more than 50% of shareholders (i.e. in terms of numbers of shares).
3. Once Ganfeng have more than 50% of shares, they have control of the company.
4. There is no vote for or against the takeover. Shareholders simply choose to accept the offer, or do nothing.
5. If a shareholder does nothing, then they retain their shares, unless Ganfeng acquire 90% of the shares, in which case they can “Squeze-out” the remaining shareholders. This means they can force the remaining <10% to sell their shares to Ganfeng.
6. Shareholder is a complex thing in UK law. If you hold your “shares’ via a platform, the shares will actually in UK law be owned by the nominee company of the platform and not by you. You will have rights over these shares as laid down in the terms and conditions of the contract you agreed to when you signed up with the platform.
7. The terms and conditions of the various platforms differ. I cannot generalise what each platform will do nor what its terms and conditions will say.
8. Interactive investor, for example which is the platform I know best, will follow clients requests, so if you tell them to not accept the Gangfeng offer they will not, in respect of your shares. If no instruction is given, they will take such action as they in their “reasonable discretion determine”, but it is unclear what action they will take. I will write to them, lay out the facts and ask them.
9. Hargreaves Lansdown have told us that “We do not write to clients until we have the full details of the corporate action including dates. Up until point the issue is effectively rumour. Once clear announcements have been made to the stock exchange, we write to holders with the details of any corporate action and then facilitate voting for those who wish to do so. It is for self-select investors to do their own research and decide the best course of action for their circumstances and proceed accordingly. As their broker we will act on their instructions, should they decide to take action.” If this is the case then all those who notify Hargreaves will have their instructions followed. If they give no instruction then Hargreaves will do nothing, and the clients will retain their Bacanora shares. I have written to them to confirm that this is the case.
10. If Ganfeng acquire >75% of the shares, they can apply to the AIM to delist the shares. If Ganfeng do this, it will mean that Ganfeng will have a rump of shareholders who cannot sell their shares, unless special arrangements are made. There can be no guarantee that “nice” arrangement will be made. Ganfeng may wish to ...1 of 2.
Hargreaves have archaic voting processes, so you need to tell them 5 days prior how you want your shares voted, and preferably earlier.
I agree the overhang is still present and influences the facts. No news for the past x weeks and the share price is all over the place.
why no RNS about this news from Tern? Lots of gossip but no info. should shares be suspended when such gossip exists? The RNS that TERN issued was for a price monitoring extension.