George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
I really hope that IG will continue over to nex. I'd much rather continue with the bet rather than get closed out and have to buy the physical stock
Sorry - I mean there was no price being quoted when the delisting took place
TraderFocus - the issue is there was no executable bid/offer being quoted in the market when the suspension took place since the stock was suspended...and there still isn't. But IG must face this issue all the time. When a bet expires on a suspended stock, do they settle the bet at the price before suspension or the price after suspension? I don't know the answer, but I assume it would be post suspension price.
Further to our conversation earlier today, I've spoken with my Corporate Actions team for further clarity on Churchill Mining PLC. They have chased our brokers (HSBC), but unfortunately we've not been given any further information on it. I understand this isn't the update you were hoping for but hopefully there will be some information soon.
Hmm - well I can't find any reference to an 'admission Price in any RNS or in the NEX rules.
Maestro - where is the Admission Price referred to? I can't find it anywhere in any announcement.
I get your point on the NEX admission price. I'll need to read the NEX rules to understand what the legal standing of that price is (I haven't had chance yet, but I've located the Nex Rules for Issuers on line and will review when I get chance.) Even so, I still think IG would argue it's not a 'fair' price
The pre-suspension price isn't 'fair', since that was the price before they lost the hearing on Doc Authenticity. But I agree with you...don't take anything I think as gospel.
It's irrelevant whether IG offer trading on NEX All IG need is a fair reference price to close the bet at. I'm suggesting the only reference price they can point to will be the opening price on nex
A fair price would be the opening price when trading resumes on NEX. This is the only price anyone will be able to trade at
They don't have to do what Corespreds or anyone else does. They are only obligated by their own terms and conditions
Maestro - I thought we'd set you straight yesterday. Clause 29 does not say they have to close the bet at the delisting price.
37p clearly isn't fair, since that was the price before the case was dismissed. You're kidding yourself if you think they will pay that
Ok - so what IG consider to be a fair and reasonable assessment of the value of the instrument does not mean that they will use the last traded price!
Maestro - where does it say that in the IG Agreement?
The IG rules are unclear in what they will do, but the fairest thing they could do is either: 1. Settle the bets at the opening price on NEX if/when it starts trading or 2. Give the underlying shares straight to the speadbet holder (assuming they fully hedged themselves in the first place)
I'm not really sure on whether staying the award is sufficient to keep the company solvent. Even if it is, it remains to be seen how much cash is left in the company and whether this is sufficient to fund an appeal (assuming there are some grounds for appeal)
The company is now insolvent, as they cannot pay the award. So, i think it is inevitable that the company will be placed into Administration. Oxus is limping on in administration because they have a funder who is willing to finance their appeal. I doubt CHL will be in a position to do the same. No chance of seeing anything back here
It's possible (but unlikely) it's for a new lender. I suspect it's more likely to be corporate housekeeping in preparation for placing the company into Members' Voluntary Liquidation.
Did he tell you what the timeframe for appeal was?