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BTW, does anyone know what happened with Cazenove, did they finally dump all their shares? We've not seen any continuous dumping of share for a while. I can't remember seeing an RNS saying that they had finally gone beneath the 3% barrier however, and I think such a document is mandatory.

Yes, exactly, the market has to catch up with the story, but there is no guarantee that the SP will rise to 0.75p by Friday, and I think it probably won't. The share will trade on Friday morning at whatever price they happen to be. However, so soon before the election, there's a good chance that Ashcroft has some new contracts in the pipeline if the Tories win on 6 May.

Good post !

As you say, time will tell - in general, the news can only be for the good and it shows that Lord Ashcroft has faith in the future of the company - I think I read somewhere that if the Tories win the election, this could mean more contracts for MVW, and of course Ashcroft is involved in both the Tory party and MVW.

I suspect the share price will stay pretty much the same, irrespective of the AGM. All that is happening is that £8m is being pumped into the company and 10.6m new shares are being issued - no guarantee of a sudden share price increase.

The news is out already, which is that some extra shares are going to be issued - this does not necessitate an increase in share price. The share price will open tomorrow morning at the same value that it closes tonight.

As I've said several times before, there is no guarantee that the new shares will be issued at any price, let alone 0.75p. They will start trading at whatever price MVW happens to be trading on that day. However, the fact that Ashcroft (aka Geraldton) prices them at 0.75p, i.e. he expect to get 10.6m shares in return for his £8m cash input indicates that he is optimistic about the future of the company, including anticipating that the shares will one day be worth 0.75p. This is not to say that at the time of issue of the new shares, the MVW share price will suddenly shoot up (or down) to 0.75.

Yes, the new capital injected into the company means that the price of the new shares representing that capital should be 0.75p. However, while the capital injected will be £8m, the price of the new shares will be the market value on the day of issue, i.e. Geraldton stands a chance of its new shares being immediately undervalued.

As I've said before, they new shares will start trading at whatever price the Mavinwood shares are on offer on 12 April, no more no less.

The placing price is 0.75p but the market price will be whatever price the market is at on the day, i.e. if the market price is 0.50p for example then the new shares will lose 33% of their value instantly. The market determines the price of the shares, not the other way round.

Not necessarily - when the extra 1bn+ shares are issued next month, their value will be whatever the market value of MVW happens to be on that day. However, the fact that Geraldon (aka Ashcroft) is happy to give £8m in return for getting 1bn+ shares suggests that he is confident about the future of the company. I think the price of 0.75p was chosen because the share price has been volatile recently and could be volatile up to the time of the extra shares being issued (in April). The price of 0.75 is towards the upper end of this volatilty.

Geraldton (aka Ashcroft) is being generous by pricing the new shares at 0.75p when he could have priced them closer to the current market value. It's a sign that he's confident that the company has a good future. Plus he is putting his money where his mouth is by holding 87% of the share capital. The news can only be good.

Notice how Ashcroft is going through a similar process of shoring up another of his investments in the form of Watford (WFC). It looks as if he is about to underwrite a rights issue worth £7.5m. As a billionaire, Ashcroft has deep pockets.

I can only see this being good for the company - it's not a dilution of shares as such as Geraldton is adding £8m to the assets. Geraldton (=Ashcroft) will own 86.9% of the shares.

See the full RNS here: http://moneyextra.uk-wire.com/cgi-bin/articles/201003190700098294I.html

Since we're all so obsessed with this company, why don't we just re-mortgage our houses, club together and buy it ourselves and get down to running it like a winner !

Yes it just goes to show how undervalued the shares are, even in these difficult times. The biggest riser of all will of course be BCB - I predict £20-£40, but you'll have to wait a few years !

Concerning Cazenove dumping shares, I was under the impression that for any buy or sell which crosses a threshold in either direction of 3% or any whole percentage mark above that it is necessary for there to be a RNS. No RNS has been forthcoming to state that Cazenove has gone beneath the 3% barrier...

A lull after yesterday's storm - I guess investors are waiting to see which direction the price will go in - it's anybody's guess...

Yes, I remember when Carlisle (which merged with CSV to form Impellam on a 1-to-1 basis) was cheap at 120p and rose as high as 190p. Ashcroft doesn't let down his shareholders!