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How will the 19:1 work?
Let's assume £300 Mill is needed and there are 475 Mill shares in issue...at 19:1 (that's the minimum AMGO have stated) that's 9.025 billion new shares at 3.3p each. So if you've £10k's worth at present ie. c. 200,000 shares, can we assume that you will need to buy 3.8 Mill new shares at 3.3p = £125, 400 to retain your current percentage share holding....and then what happens when the equity is reduced when AMGO give some of that away to creditors and the lawyers? Obviously, that's far too simplistic so at what price will shares be offered to current share holders? Just can't see how 19:1 works.
Reported previously on this board to be Wolfgan Grabher, 4th largest shareholder with 15.75 Million shares, 3.3% of total. Not sure if that's still the case but I'm still waiting for the invite to the Balls of Steel party at his pad on Lake Geneva.
Currently 475 million shares in issue, so 19:1 results in 9.02 billion shares ....at what price will the Ri be? If Amigo need £300 million then that's.3.3p a share........but then how much of that goes to creditors? ....and what will the SP be after the coffers have been emptied to pay them? Presumably everyone is just waiting for the best time to cash in before the RI is announced....or can someone explain why I should stay long term?
Jimmy, putting aside the fact that many creditors are playing the system and are just after free money with the help of the ambulance chasers, I believe you've been pretty straight with your comments...unlike some that could only see things from one perspective. However, the majority of shareholders that remain have lost fortunes of hard earned savings believing there was a future...most have been diluted massively already as we are no longer anywhere near the 30p sp at the time of the 1st Court hearing. I would have been very happy to see it reach 50p in a reasonable timescale, even longer term....I don't think that was greed. The sp has currently lost 90% since the court hearing so presumably if 19:1 equates to 0.15 p then that's approx 99.5% . Surely the courts would have listened to a 50% or even a 66% reduction in equity value, particularly as the buggers that benefited from this debacle have long since gone, taking the creditors' cash with them .....and that includes Bybrook who unbelievably managed to get out the day before the 19:1 dilution was announced. So why wouldn't the court accept a more reasonable deal now?
Hi Hex.....so you're saying that the sp would likely be 0.34p and that providing you take up your rights then the value of your shares today wouldn't be affected? If the share price then grew to 3.4p over time your new holding would increase tenfold? What would that mean in terms of Amigo’s valuation?
Only those shareholders that requested to receive emails from the Action Group will get updates, they are not officail Amigo Shareholder updates.....not sure there gave been many of them compared to creditor updates!
I recall many shareholders ridiculing the Action Group when it was formed and suggesting it would do more harm than good. Its not an official Group and I believe it only represents 15% of shareholders (or that may be pi's) but it certainly seems to be given some respect by Gary et al.
Maybe the below was the reason for the new dates?
Dear Sir or Madam,
We’re writing to advise you that we’re continuing to have dialogue with Amigo management. We had a meeting with Kate, Gary and Jonathan on Thursday where we were given the opportunity to put forward our proposal, which is currently being assessed by the Amigo management team.
We had a very lengthy meeting, which started at 12pm and went into the late afternoon. We also met the new CFO, toured the offices and met some amazing staff members.
You have probably seen the update from Amigo this morning advising the change of date for the court convening hearing to 8 March 2022:
https://polaris.brighterir.com/public/amigo_loans/news/rns/story/rn99jnw
We can’t add much more than this at this stage but will advise you of any further progress.
Regards,
Amigo Shareholder Action Group
Today's 4.30pm Facebook Q&A is for creditors re SOA2, however, it will be interesting if shareholders join in stating that they won't agree to a 19:1 dilution.....therefore, insolvency and bugger all for creditors is the most likely outcome.
Hoping in the phone call referred to below that GJ will apologise and reverse his decision. ??
Dear Sir or Madam,
Most of you must’ve seen this morning’s RNS:
https://www.investegate.co.uk/amigo-holdings-plc/amgo/scheme-of-arrangement-and-equity-issue-update/202201240700153040Z/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=Amigo+Holdings+PLC%20Alert
This update has come as a complete shock and we’re sure that you'll have a lot of questions to ask Amigo management, we most definitely do.
Amigo have reached out to ask if we want to have a call to speak with management, which we’ve accepted.
Please email your questions to us ASAP, we will collate these and put them to management.
Regards,
Amigo Shareholder Action Group
Yes, and how much are they wanting to raise and was there virtually no option but to get ri of existing shareholders for an entirely new bunch? Why on earth pay back the bond holders early....it wasn't to save interest as claimed....lying scumbags.
I once asked a question here and got riddled, I will ask it again.....how do you announce a 19:1 dilution without stating a price? If Amigo did it tomorrow do we assume it will be 95% of today's price? Or if it somehow rises to 30p and then its announced will it be 95% of that,? Whenever it happens I presume for existing pi's it's all about how long you risk holding before you bail out. Obviously, every pi would bale out on the rise to 30p so it would achieve anything like that...whatever, my plan of holding long term fecal eventual £1 sp has gone...but why not wait till the sp improves to, say, 30p and then announce a 30% dilution..presumably it would raise the same cash? I can only assume that the strategy is get rid if existing shareholders and start with installations and the like buying in at 1p.
Presumably the judge would only not pass the 42p option if the FCA argued strongly in favour of a wind down or insolvency......but if the best option for creditors is achieved why put the company out of business, particularly if it is going to abide by new rules and won'tbe able to afforda similarmistakeagain. So, aren't the level of the fine and the RI of more concern? ...... I just can't understand why everyone wouldn't want the highest return to creditors..... isn't that why SOA 1 was rejected?
Cont......
Based on previously declared holdings, the total number of shares owned by members of the ASAG equate to around 10 per cent of the total equity in Amigo.
Regards,
Amigo Shareholder Action Group
Dear Sir or Madam,
I’m sure you have all read the Scheme of Arrangement Update that was provided yesterday, which can be viewed here.
The update advised that the Independent Customer Committee (ICC) shares the Board's view that the New Business Scheme will provide creditors with greater returns than the Wind-Down Scheme. We were also told that the Board intends to ask creditors to vote on both options, which seems like a good idea to support Amigo’s cases when providing details in court. The options for creditors will be the new business scheme that offers them more money and administration that offers them far less money; we think it’s safe to assume they will vote for the former.
The share price has reacted negatively to the update but nothing has materially changed since we last spoke to the Board. We have been told that the ICC has signed off the Practice Statement Letter that suggests administration is avoided, which is positive news. We have received additional information on the expected equity raise, which may have played a part as Amigo intends to raise £70m in new equity within a year of the sanction of the Scheme by the Court. However there are a lot of hurdles to pass before this is conducted. We feel passing each of these hurdles will be value accretive.
The outcome of the FCA investigation could result in a fine being imposed on Amigo, which is a concern but this has been known for some time. If the FCA are serious about resolving the issues for Amigo’s creditors, we feel they shouldn’t take action to prevent the Scheme from succeeding.
We have had confirmation that the preferred option is contingent on new lending restarting, which is great news. Once the Scheme is sanctioned and lending restarts, the share price may recover somewhat meaning shareholders recover some of their losses. The majority of Amigo’s shareholders are retail, which would make it difficult to raise funds now but with the Scheme getting sanctioned and lending restarting it would make the future of the company clearer and improve confidence. There will be greater chance of the equity raise succeeding especially when the open offer prevents dilution.
We advised previously that a new Scheme needs to be agreed that provides satisfactory compensation, protects the Company from insolvency, protects shareholder equity and doesn’t undermine good governance. We feel that the proposed Scheme ticks all of the boxes at the moment and there is no cause for concern.
The timeline remains unchanged; we still feel the final court hearing to sanction the Scheme will be around May 2022.
We have received a lot of requests to join this group since our last update. We really appreciate your support. If you haven't already done so, please email the following details: Full Name, City, County, No of shares held and Mobile Number. All personal information will be kept private & confidential.