Algos just fill in the colour as to if a trade is priced closer to the bid than the offer price, only a guide plenty of times you can actually buy a stock under the mid price and it gets flagged as a sale instead of a purchase. Not really a bid deal. Nice to see NED buying after options exercise though not sure why you’d want to pay more than the prevailing market price for these. Spend around £1300 more than they needed to
I’m not certain a share consolidation is imminent as they could probably have done it as part of the recent fundraising. In reality the % of the company you still own remains the same. Having said that the most logical time to do a share consolidation could be as a prelude to a US listing, given US manufacturing etc that could be a good move later down the line, company probably have more than their hands full at the moment.
More than likely this is combined holding on behalf of their underlying clients and not an actual Speardex position. It could also be both existing holders or people that took part in the recent fundraising switching underlying shares into a spreadbet, not sure either are much to worry about in any case.
That’s very unlikely as someone posted earlier that retail brokers got about a 25% allocation for what they asked for, primary bid £2m odd, that’s the number for the market to churn through, yes still an awfully lot of shares. Lots of those applying via Primary Bid or retail brokers are going to be existing TRX holders trying to bring their average price down.
IP Group have put in another £2m to maintain their 13% holding, I’m guessing you’ll see a fair few other institutions pop up on the register post the GM. It’s been fairly evident for months that TRX needs to raise a large amount of additional capital and unfortunately it’s come at a price. At least this funding now allows the company to increase capacity so that they can move to breakeven and eventually into profitability. Don’t forget the £14.6m investment gives a potential sales uplift of $36m as phase 1 & 2 get built out.
Perhaps the discount to the last week of trading is high but remember these shares were changing hands for 0.4p odd mid last month. At least now TRX has the potential to get sales up to $50m a year. If they can turn a £5m profit on those numbers and just for ease of numbers put it on a 10 times PE then we have a £50m company. Throw in a 3 times annual turnover figure and you have a much higher number. Plus at least now the Link/Woodford 20% stake will be diluted down assuming they have not invested in this round to a much more manageable 3-4%.
Yes some short term pain for existing shareholders but I’m now more hopeful if you pardon the pun given the current environment that TRX can now off life support and learn to stand on its own two feet.
If you look at the prospectus on IPO some 3 years ago now Mark McVeigh held 1m 4.3% and Jerry Keen 800k 3.4%, directors also had 1m shares between them assuming the 2 former directors haven’t sold out 38% is held by these and the ones mentioned below
Interesting thing here is the volume over 9m shares traded in the last week with only 23.2m in issue that’s 40% of the shares in issue traded