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does this POS ever go up I wonder, I think CFD and spreadbetters messing this one up a lot of shares in play, few big sellers really regret getting involved with this one, small float shares is the thing to look out for, this MCAP also seems overvalued to me comparative to what the company is worth now
this is typical webis, talk of a ridiculous run up on some kind of news event the move probably happened yesterday, even if the outcome is good for today, the minute the vote is in if I know this share correctly everyone will be trying to exit the door as quickly as possibly and due to the low float this goes below 2p again, until a transformational deal comes across this company will always be more jam tomorrow..
You never know with Web, it has had so many false run ups like the one we saw last Nov, people I think are very prone to getting spiked on this like I did once, its worth trying to understand how the licences are obtained what are the difficulties to competitors gaining access to these as I have no doubt gambling could be the new gold rush in the states, I think at around 8p the market cap will be circa 30million. Which is quite cheap but another question to anyone familiar the SCA-6 draft initially mentions somewhere of a 5million cost for a first licence then a 1 million annual renewal, if Web bypasses the 5m application fee then this could be very interesting, I am not sure what Webs cash position is but I think last time I checked it was not great. GL all
how does anyone think this will open tomorrow? a 12million raise at 0.25p correct me if I am wrong will crater the share price? what is the fair value for this thing? the market cap is already 12million so existing holders stand to be diluted substantially or have I missed something? brgds
Pharma sentiment may pull back once the lockdown situation eases, there could be profit taking across the board, then funds probably move into areas that have been hit recently ie oil, retail, litagation funding like Burford etc
Not necessarily, I have seen link fund solutions being involved here in the past, does anyone know if Woodford still has a holding in this? I would also like to know what percentage is held by institutions, not sure if it high or not.
Agree but it really depends on how long the company will take to resolve the takeover, from the last update 58% was owned but the volume since then has been thin, 13% represents 24.1million shares. Nothing like that has been traded since last update from what I see, so since the first close is tomorrow I believe, and the price is so near in the market I think they will fall far short of what the required level needed (90%) to need full ownership..but we will see, I dont see why someone will want to wait for what could be up to a month to gain .5p when in the market you can sell for 15p. I think I will be hanging on to these and see what happens..
Does anyone know anything about when we might be able to expect an update for the Jazz pharma deal, there should be a milestone payment due once they have an IND status in place. Also I have been looking at the lesser known subsidary of this company REDX anti infectives, I remember reading somewhere they had compounds that deal with pneumonia and antibacterial resistant infections, it is unbelievable they have so much and will be sold for so cheap, do not know why just didnt do a share raise in the market instead of attempting to be bought out on the cheap. Once again I think they will not get to 90% on this, not at 15.5p.
Recent update was mediocre but I think its in line with what the managment want, the trial has been halted for now for their near term drug target, there could be other news in the pipeline but who knows, disappointed but still feel they may be a suprise with this. I am holding with this I do not think they would dillute their own massive stake bought from 11-15p range by announcing a delisting, if they do not get to 90% then being a minority shareholder may have benefits, they may extend the TO offer after the deadline, we will see. GL DYOR
upside should be circa 0.45p/share in short term- couldnt sell 1m though so looks like appetite might have dried up for buys right now- not sure. Either way dont have much here happy to hold and see what might happen..
the spread on here is ridiculous..
This is similar situation with a company called Staffline, once just shy of 30% often people buy on the thought bidder will have to make a bid, but sometimes as Staffline has shown they do not cross that threshold for whatever reason, I believe the highest price paid in the last 12 months for this would be something like 0.45 so that is where his bid might need to be if he wanted to make one. Worth keeping an eye on this, cash shell mcap typical mcap 3m, this is currently 4m, the cash shell status does not give any indication what the incoming RTO could be, if it is good then this can be worth a lot more- things to consider, people involved, any previous tax losses that could be used for new company etc- this is one that looks very interesting. Worth testing dummy buys to see what availability of the stock is like-
Not that I am aware, under takeover rules they have a mandatory offer for 15.5p this means one could wait until the last moment and if the price in the market is lower accept the bid via their broker. Another interesting point I read somewhere that a delisting is a possibility only after 75% of the voting rights are secured. As the offer document was made available after the bidder had 50% this means that the bidder needs independant shareholders majority vote to delist I believe. If the companies intention was to delist they would probably not be looking to buy 75% of the value of the company at 15.5p, also worst case scenario a delist possibility means you still are a shareholder just not on a listed market, as this company clearly values redx I do not mind keeping my holding until such time. Company needs to give 20 days notice to delist also so this will lead up past the offer end date at which point an individual would simply take up the offer to sell. IF a delist was announced as an intention it may be an excellent opportunity to buy more on a share fall as either they will have to honour the 15.5p buyout or the company gets taken private. Interestingly enough I read somewhere that if the bidder buys higher than the offer made in the market the entire offer needs to go through at that price. Someone correct me if I am wrong here, I have had to refresh my knowledge on takeovers over the weekend. As I understand this will be a costly excerise for the bidder if the 90% is not reached, I still think there could be upside here, but we are drawing close to the deadline as the price is so close in the market doesnt make much sense accepting the offer right at this moment..
No as far as I understand and reviewing the corporate action I received if you do nothing you will keep a hold of your shares, unless Redmile achieve 90% acceptance this will then mean your shares will be taken mandatorily at 15.5p. Its a very unsual situation and one I have not been involved with before personally, if the share price drops this creates an almost arbitrage trade for any new buyer at 15.5p by the end of the month, but if they do not buy in the open market or attempt to then they run the risk of not achieving the acceptance rate of 90% which means they company needs to reapproach in a years time. Would be worth calling your broker to get a better picture as this is how I understand the situation to be, whatever it may be I am not accepting the offer unless I have to as do not have a large holding here and would rather hold out to see what may happen..if price goes to 50p then maybe I will be interested!
Well it may very well still go through at 15.5p if investors handover their shares on the cheap, or if they somehow get to 90% through larger institutions, I believe they will provide regular updates as to acceptances nearer the time, as mentioned before this does not look to be a mandatory takeover investors still have the choice to hold on to their shares which may be a very good option dependant on the companies future updates. An interesting strategy now would be for the other bidder to try and buy the remaining shares in the market thus preventing Redmile getting to 90%. Having had a look at the pipeline the company looks promising, there are a number of biotechs with 100million valuations that arent doing anything tangible compared to this company. Its a shame the management went for the short term fix but the existing shareholders hold all the cards here IMO..