Member Info for johnpwh

Hi Kate
You can sell the rights in the market if you cant afford to take them up. Y=That way you will retain all your current shares but not have to pay for the additional ones. There will be a dramatic drop in the value of your current shares when the shares go ex rights

Deelaar
The 130p figure was just the then current market price to calculate an illustration of the discount %. Forget it now, that doesn't have any relevance. The fixed figure is the 32p that each 'right' will cost, its the only one that matters. That will only change if the S/h meeting rejects this scheme (which it wont, it will be carried by Institutional support, PIs could all vote no and it wouldnt scratch the surface)

Short answer is what anyone will pay for them as its a market.
At 120p SP (now) then theoretically each right is worth:
(3 x 120 + 10 x 32)/ (3 + 10) - 32 = 20.3

Roydon
Nope.
Read a book or look up rights issues on Google. This is a complex subject for most to understand, cant expect people on here to spend ages on replies

DigDeep
If that were true everyone would be buyng
Read an investment book and get some basic understanding

tom
Yes if you buy back before the ex rights date.
Fellow brummie

Get back to £7? I don't normally make predictions but with a struggling business with poor medium term prospects and over 4 times as many shares in issue there isn't an ice cubes hope of the SP getting back to £7 in my lifetime

Good reply mline.
I've read a lot of opinion and interpretations and calculations on here today.
If people are spending thousands, probably tens of thousands of their very hard earned money on equities rather than safely depositing in the Nationwide than please do yourselves a favour and read some basic investment texts. There has been a lot of very dodgy understanding shown on this board today (and previous days)

I'm not really sure what you are asking. If you already hold RR shares in trust (ie within a broker like HL) then you will be contacted by them to see what you want to do with the rights. If you hold the certificate (unlikely these days) then you will be contacted directly by the registrars. You mention HL, I seriously advise you contact them via their messaging service for your peace of mind

Slavo
i don't think anybody knows. On one hand there is massive negative sentiment towards RR, but on another it is a massively important UK company which will not be allowed to fail or fall into foreign control. That does not mean the equity holders have any protection however. It will survive but the ownership structure......? What happens now depends upon Covid as much as anything. Todays announcement stabilises the company financially for the short/ early medium term but outlook depends on regaining RRs equilibrium. At the moment all is squiffy and plates are spinning. Only if the normal life returns can those plates be prevented from occasionally crashing. I wouldn't buy yet, but am watching still with the intention to buy if the way becomes clearer - I do expect it to continue its downwards drift as there is no confidence here (and dividends are a distant memory and prospect)

Hate to point it out but some of RRs unsecured bonds are already 'junk' according to rating agency Moodys!
Good luck to all you holders tomorrow.

Bit alarming if the MC is £2.55 bn and the intention is to raise £2,5 bn with a discounted RI. That would imply a dilution of > 50%.
How about 1 for 1 at £1 to raise £2bn? We shall see in the morning

There is no nailed on gravitational pull between the current share price down to the RI price. I agree it tends to happen to an extent due to sentiment but if a company with fairly valued shares at say 130p (similarities to the current RR share price is purely coincidental!) has a 2 for 3 rights issue @100p then (at least in theory) the value of ALL shares when the 'new' shares are admitted to the market is (3 x 130 + 2 x 100)/ (3 + 2) = 108. Clearly the SP is a market so may be higher or lower than 108 on the date when the 'new' shares are admitted to the market. Between announcement and being admitted to the market the 'new' shares are traded nil paid, so that if someone qualifies for the RI but doesnt want to take up the new shares by paying the 100 p for them can sell their rights. It gets a bit complicated (and the acquisition costs for CGT is even worse!

JOHN. As Steel says you will be eligible if there is a Rights Issue if you buy before it is announced. There are some other forms of equity issues, eg placings, where new shares are allocated to wealthy individuals/ institutions and no existing shareholders have any rights in respect of their existing shareholdings. It does seem like this will be a Rights Issue. Don't be surprised if the RI price is a large discount to the existing SP - it is not necessarily a comment on what the BOD think is a fair price for the existing shares. Hard to explain in a short post but all RIs are offered as a discount to recent SPs, and it all comes out in the maths because of the rights you have to participate in the RI . I would recommend that anyone committing part of their savings to individual shares (as opposed to funds) get themselves a basic investment book that covers fairly basic concepts like RIs, there are many basic questions asked on these boards

Toff this is not a political platform.
The main cause of this plummet is not Brexit, The Brexit vote was completed in June 2016, over 4 years ago when RR share price was 650. The SP climbed over the next 2 years to in excess of £10. In February this year it was back to 650p then fell off a cliff for one reason and one reason alone. Covid decimating air travel for a company who sold engines on a pay by hour basis. Why is it that remainers are so insulting? 'I have nothing but contempt for those who voted in favour'. Well I did for a start so assume you regard me with contempt. I wont lower myself to express the same about you.

Toff
Think you have to also consider the sensitive nature of RR as a defence manufacturer. This may limit the non RI possibilities. No johnny foreigners here!

Dont Newbee!
I know you have heard the cliche'd expression 'don't catch a falling knife' but its true. Until this refinancing issue is sorted then this is just going to.,,,, god only knows what it is going to do! Better to let it hit the bottom and buy on the way up, you may miss the very bottom but probably less than it is now. Probably, because everyone is guessing. I too am looking to get back in........sometime

I don't know this share as well as some here but would BCN really want an asset which is likely to absorb its current cash resources? BCN have cash , but with plant development in Mexico I don't think they can afford to face other calls on that cash. So that means inevitable dilution, but retention of a reasonable share in an asset that at least may well now get developed under the arrangements announced earlier. Unless it goes horribly wrong Mexico seems a low cost environment so has to be the one to focus on - the same cannot be said of Europe with its high wage, highly regulated economies?
As usual I fully welcome correction or different views, but I do not appreciate abuse.

My interpretation of todays RNS' are positive.
It is clear that the main focus is, should be and will be Mexico, which is the best use of managements time. The German operation appears to be a diversion of Managements time, and seemed destined to be given low priority given the funding requirements elsewhere. In short would Germany ever be developed? To spilt off the German operation while retaining a substantial shareholding seems logical - even if dilution of that shareholder occurs as a result of the inevitable fundraising to progress it - at least BCN hopefully get a decent % of something rather than a much higher % of sod all.

From what I see BCN has a healthy net asset position of around about the Market Cap (please feel free to correct me).
Not too concerned at the current depressed price of lithium provided the Lithium BCN is battery grade. 2 things though:
What are posters thoughts about the significant amounts (hundreds of millions?) to build the production plant. Where/ how will it be sourced?
Any thoughts about the lack of recent investment by Directors?