RE: We need this7 Jul 2022 18:03
Peakhope, Peakhope...
(1) SYME's OO is akin to a Rights Issue, see https://www.investopedia.com/investing/understanding-rights-issues
.."KEY TAKEAWAYS
A rights issue is one way for a cash-strapped company to raise capital often to pay down debt.
Shareholders can buy new shares at a discount for a certain period.
With a rights issue, because more shares are issued to the market, the stock price is diluted and will likely go down..."
AFAIAA, we still don't know what the entitlement ratio will be , but there will certainly be a lot of shares on offer at the lower of 0.05 and 85% of the VWAP. These shares can indeed be taken up by existing shareholders, which has the effect of quenching any appetite they may have to buy more; effect on s/p ? More supply/ less demand...you tell me.
Alternatively, if they're not /not sufficiently interested/willing, Venus will provide a limited backstop/underwriting.."Any Ordinary Shares not taken up by existing shareholders through the Open Offer will be subscribed by Venus Capital in July 2022, as part of its binding commitment to provide up to GBP 7.5m..."
It's not clear (is it ever ?) whether this backstop covers the mandatory element (£ 3.75m) or the optional element as well (another £ 3.75m, total £ 7.5m).
In case (a), the subscription implies (£3.75 - 1.66 = ) £2.09m worth of new shares @ 0.05p = 4.18 billion taken up by Venus (or , more accurately, its investor group; in case (b) it would imply (£7.5 - 1.66 =) £ 5.84m worth of new shares = 11.68 billion taken up (ditto). Either way, more supply/less demand...
Whether shares are taken up by PI's or by Venus or by a mix of the two, it's clear that there will be at least 10% more shares in circulation (4.18 / 40.8 billion) and potentially as much as 28.6% ( 11.68/40.8 billion).
Other things being equal, that would suggest a post-OO s/p of 0.07p and 0.06p, respectively, BEFORE taking account of the warrants offering additional shares @ 0.065p on a 1-for-2 or 1-for-5 basis.
(2) I see that only abt 10 billion votes were cast at the AGM, did AZ say whether he intended to take part in the OO or not ? And, if not, why not ?
(3) I don't see SYME (TFC maybe) as particularly motivated by 'alleviating poverty'....other than perhaps that of some of its directors : the TAG Group took out £ 40m cash (more than the current market cap !) at the time of the RTO...
(4).."they have been proven to be wrong and the misrepresentation that they churn out COULD [my caps] have cost people £1000s in losses as the frighten them into thinking syme will go bust and the only way out is to sell at a loss - dispicable !!.."
You have this quite the wrong way round : you're talking about potential future gains from not buying, I'm looking at current actual losses from having bought...
(5) Finally, you misinterpret my 'ho hum' : it's a shrug of the shoulders; 'oh , well'; 'there you go'; 'it is what it is' or similar.
HTH
Ho hum
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