MODE name change21 Aug 2023 19:53
I’m fairly new to investing, and I’m not trying to convince anyone to buy or sell.
But it does seem to me that people lost the run of themselves a bit today after the name change RNS.
I did buy more of MODE myself on the heels of the RNS, but only because it looks to me that the company has definite plans and is putting them in place step by step. The change to ‘R8 Capital plc’ is one of those steps.
That didn’t in itself justify a 40% rise.
Some people here hit on the fact that there is a crypto company in Singapore called ‘R8 Capital’ (though it no longer seems to have a website), and suggest that the similarity in names can’t be a coincidence. To me, that’s exactly what it is – there are also other companies called ‘R8 Capital Partners’ (which invests in small firms in Illinois), and ‘R8 Capital’ (a commercial real estate venture capital firm in San Diego).
Others have pointed to ‘R8 Group’, which is a more tenable theory as that was a company which originated as part of the Redwood Bank stable. And then they note that it had Biz Stone (a co-founder of Twitter) as a director, which it did. But they fail to say that ‘R8 Group’ no longer operates.
My own take on the name change is that ‘R8’ is just a formulation which both Jonathan Rowland and Redwood Bank have used in the past. It’s essentially meaningless, but they like it for some reason, and are both using it again now.
Why I bought more on the name change is just because ‘R8 Capital plc’ suggests to me that MODE will really become a part of Redwood Bank, in the same way that ‘R8 Group’ was once a part of Redwood Bank. So, the SP should have risen today more or less as it ended up, but not because MODE is about to become a crypto firm in Singapore, or because it’s about to have Biz Stone as a director. Just because the name change signifies one more link in the chain between MODE and Redwood.
The SP rose hugely then fell back a bit today. It will, I feel, explode but not on the sort of rumours we saw on the board this afternoon. Could happen tomorrow, could happen in 6 months, but the real catalyst will be definitive news of the RTO by Redwood Bank.
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