RE: Be careful about deriding LTHs in Valirx5 May 2020 14:43
TBB- good, honest post.
Few points though. You have given a good description of a past event in your experience.
However this company and its aim listing was saved by SAG that wanted change. They wanted a new bod and a new direction.
If this vote hadn’t happened the company would be busy, with the assets taken cheaply- whether or not they work.
The placing initially of 3.5p drew a line in the sand. It was of course very dilutory to shareholders however that was the only option available to keep its aim listing. It was that or nothing as the company doesn’t make cash and has no cash. We are then told the cash was used to pay off debts etc and the cash position was still not great. At that point it was obvious a placing would come. I’m not sure why anyone would feel any differently. The share price went up to 22p on the back of 3 things. 1. New BOD. 2. Tr1 buyers taking the stock. 3. Japanese tie in for 301- best news in years.
We have had” longtermers “ claim here the placing would be 2p , 3p etc and the same would happen. History repeating we were told. It was 6p. - a 72% premium to the last placing price, but a discount to market price. I will be very clear of this next point. If a company places shares at higher levels than before we all make money. If they place at lower prices we all lose money and the subsequent dilution is greater.
Which brings me back to my next point. Alleged longtermers seemed very happy warning people from buying shares. They seemed happier being diluted more, and then indeed history would repeat itself. Why would that be? And they appear to be the same shareholders that wanted change. Why would you want change on one hand and then want he company to go bust on the other? I’m not disputed past events. To me, and I’ve looked in for years too that it appeared the bod seemed happy placing at the bottom and taking their salaries. It’s different now. There has been a spike for some non believers to exit. Plus a chance for people to average down in the placing if they see fit which includes warrants. I’m not sure what else shareholders want? You can’t turn the clock back. I would say if you didn’t want the aim listing and all this entails you shouldn’t have voted for change. You Should have let the company go bust and let admin deal with allocation of assets. Then it would be put to bed once and for all
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