Institutional Investors impact on Share price22 Mar 2021 10:48
I top sliced some of my long term holding this morning at 81p before the fast fallback because of my concerns that the IIs will be wanting to offload some shares and get some quick & easy profit.
Remember Lombard Odier has approx 20% holding, most of which will have been secured in the 2018 placing of 7p - and I'm expecting some sell-off from them this week, just like the relentless sales ahead of that time that they did when the sp was in the 30 - 40p range. Remember too they now have warrants to subscribe for new shares valued at just 40p.
Also, we have to be aware that the recent Chinese funding by Riverwood allows them to convert their loans at 30p and also buy 2.2m shares at 22p. In total, an additional 9.7 million shares likely to dilute our holdings.
The share price is moving back up again so it's looking OK for the moment, but it's worth bearing in mind that the IIs will also be looking to make a profit and often they're deals can be very lumpy and spoil it for the likes of us private investors.