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I must admit - this does smell a bit fishy. Beginning of the week (last week) a lot of buys and the share price traded within a narrow range - Nasdaq 10% above us in real terms (Faron)....then its dropped like a stone yesterday and today on small volumes.....I think there is definitely some kind of manipulation going on here. Ho Hum.... i think someone is trying to get some on the cheap. Realistically Traumakine notes wont be known for a week or so.....and lets be serious Markuu isnt going to say - yes partner is on line is he !? when it happens it will happen....I just think this is similar to the 3 previous drops - for it suddenly to rally. You have to remember the 190p buyers are LOCKED in for 180 days - that means that they cannot sell for that period. However, doesnt look like selling....Wouldnt be surprised to see an RNS before next week personally. GLA
Zheng I agree. With the FDA waiting in the wind.....this could now move very quickly....and a partner...well 8 to 15 pounds is not a far off possibility. Either wayim sure a minimum 300 % is in the offing in the not too distant :))
Dear R
Thank you for your question.
First some background.
As Faron is since 3 December listed on two exchanges, there is now in effect two separate markets for Faron’s share.
These two markets are not fully “interchangeable” as the securities traded on them are not the same: Faron Depositary Interests (DI’s) on London AIM and Faron Ordinary Shares on Nasdaq Helsinki. The DI’s are UK securities issued by Computershare Ltd.
The reason for their existence is: (quote from Faron AIM Admission Document Nov 2015)
“Trading through CREST using Depositary Interests
Shares in non-UK companies cannot be held and transferred directly into the CREST system.
Shareholders who wish to hold and transfer Ordinary Shares in uncertified form may do so pursuant to a Depositary Interest arrangement established by the Company (Faron sic.) in conjunction with Computershare Services PLC.”
In conjunction to the AIM IPO Nov 2015 Faron arranged the issuance of DI’s for the London AIM market. These are traded in London and only there. This arrangement has however caused complications for the (mainly Finnish) holders of Ordinary Shares, as:
“Trading Depositary Interests by holders in Euroclear Finland
Holders of Ordinary Shares (as opposed to DI Holders) will be required to obtain Depositary Interests in order to facilitate the trading and settlement of Ordinary Shares,…” (quote from AIM Admission Document)
The Holders of Ordinary Shares have to make a complicated and costly conversion between DI’s and Ordinary Shares each time they have sold/bough the securities. The avoidance of these costs was one of the reasons for the dual listing.
Now to your question
There are three main reasons for the price difference:
They are two separate securities:
There is conversion cost between these two, and
The DI’s a quoted in Sterling pounds in London while the Ordinary Shares are quoted in euro in Helsinki.
Though we are not actively monitoring the price difference it seems that during the first days of trading the price difference has varied between ca. 3% and ca.12%. It is very likely that this difference will get smaller as both markets find ways to reach an equilibrium. Equally likely there will always be some difference in the prices.
I hope this was helpful.
Kind regards
Yrjö Wichmann
Yrjö E K Wichmann
VP, Funding & IR
Lähettäjä: Rich G
Päiväys: 9. joulukuuta 2019 klo 11.40.49 UTC+2
Vastaanottaja: investor.relations@faron.com
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Tha nasdaq at £330 ish us at 280/300 - with a massive spread. In fact almost like going on thew nasdaq has almost killed off anyone buying? very weird - well lets just wait for the info then. - then hopefully a bit more interest.
OMFG.......I bought these at the last drop....at 1.63. They then carried on down to 142.....for the first time I followed my gut. I had 30£k invested. I was 4k down.....but now back up.....if I'd stayed here....omg my sippy would now be another 14k down......good luck all...I'm so glad I got it right...for once!
Zen that's what I said....3.95 euro is around 3.31.....so our prices are 10% down on the real price?or the price the find are at....how about someone emailing corporate to see why there is some 10% disparity here?