Member Info for Kooba

The 17p estimate of like for like valuation is still there these things don’t change ..there are other factors at work in terms of where the shares are now which have been mentioned..those who subscribed for over 38.5% unable to deal and the fact the buyback has started at a level not commensurate with the pre premium distribution level..it is far higher.

The fact in quantity and that the buyback is paying these levels in indeed supporting the price.

Ngr you sold some to buy back in the teens ..why has it not fallen to the level you expected??

If you sold because of the unchallenged like for like adjustments estimates you read on here then that explains a lot.

Xenon i think you are correct, there is no sensitive event with the actual transaction booking taking place today it is the admin around the event , though it should be a trigger point for any disclosure announcements whether pdmr’s or other. Still think it’s odd immediately after a significant corporate action to be in the market supporting the price but i guess that is what the intension was rather than just tendering for £33m of shares. See how they get on with that but the only way they will get a genuine rerating is more from proving commercial traction than playing the market.

The company has property lease liabilities of over £100k per month…no £10m factory asset I’m afraid. Think this came up before.

They have property plant and equipment assets of £1.3m last interims but that might go up with latest capital expenditure they have mentioned.

Flying high

A reference to 13p is the cash per share following the fully subscribed tender ..if you are quoting me. I made it very clear. Runcorn is a rented property i understand..but they do have plant and equipment worth a few M true.

The balance of the assets are the same as pre the distribution when they were valued at nothing ..so they are now valued at something at current levels.

It rather depends on whether the sellers would wanted 24p and didn’t get everything sold decide to take down for the balance i guess.

Well xenon how could they have bought up to 21m shares today with the share price where it is? It’s clearly not possible…so not correct.

TG2D im unclear what date they need to disclose…i doubt it is at the payment date..the shares will have been sold tomorrow..that is the transaction date and notifications should follow within days of that i would expect…the settlement date when you get the money is not the reference point.

The average daily volume of Nanoco Group PLC shares traded, based on a rolling last 30 days, is 431.8k shares.

The average daily volume of Nanoco Group PLC shares traded, based on a rolling last 30 days, is 431.8k shares.

Source researchtree

In terms of the buyback the amount that can be purchased is relative to the amount being paid. There is authority for an amount but there is also a limit on cash available.

So ..” the company to buy up to 21m shares today” ….is not the case at 21.5p the company could only buy 14m shares in total…to buy 21m shares with £3m would require a purchase price of nearer 14p..which is a bit off the mark right now. Worth watching volumes short term . Also it is unclear when we might find out if any changes in major holdings but should be notified this week i guess we might find out if any oversubscribed and maybe if some below threshold didn’t subscribe at all and there should be official confirmation of PDMR dealings imminently.

Ngr ..the theory the share price was mostly supported by cash ..was not a theory it was demonstrated by months and months of trading at around the cash postion. The cash position post the fully subscribed tender is £26m ( pre on market buyback) with 200m shares outstanding so the cash has fallen to 13p per share. If the market suddenly decides that the organic business is worth more for no obvious reason then the tender a balance sheet event will have given the operational side a rerate..nice work for no news..but I believe that was all part of the plan. Will it work??

I questioned the FD about timing of the buyback relative to the parameters set a GM ..ie a basis around average over 5 trading days after he confirmed that the buyback could start yesterday..i also asked a few very reasonable questions around forecasts in edison and Cavendish approved research ..haven’t heard back. So i see the buyback starts today and will be based around pre settlement averages..dopey imo.

No it doesnt really work like that imo…it is all around the entitlement date and now we know the subscription was more than fully subscribed ( makes a difference as many thought it would not be) then it should be factoring in the ex entitlement..as said not sure if ordinary folks can deal in the balance of their holdings as of yet especially if they over subscribed.

Ngr

They are trading ex the entitlement now ..so the adjustment should be getting factored in..its unclear to me whether folks who participated in the tender are free to deal in the balance of their holding or not..if you have sold up to 69% at 24p you might want to sell more here as an average ?.might be a factor?

Those looking to reinvest do not get the funds sent until the 25th and will need cleared funds to deal. In the meantime more shareholders wanted to sell at 24p than there was capacity so when some are free to deal they might want to sell more XENON..we can all paint pictures. Lets just see what transpires.

I get you ! Price short term might depend on buyback activity..but they are effectively going to be a passive participant it seems mopping up a level of any selling . Might support a bit.

Flying

…if the organic business (currently valued at £0)

This is not true post this exercise at 20p the organic business will be valued at £14m..before it was valued at next to nothing and a some points a discount..still obviously leaves upside if the deliver but is valued a lot more than it was post tender. See where they settle.

So appears if you tendered your whole holding you would sell about 69% of holding at 24p if i read that right?

Oversubscribed then..must think the big boys subscribed fully or subscribed over the 38.5%?

“In total, 160,535,377 Ordinary Shares, being approximately 49.5 per cent. of the Issued Share Capital were validly tendered under the Tender Offer as at 6:00 p.m. on 9 April 2024 (the "Record Date"), meaning that the Tender Offer was oversubscribed. Tenders will therefore be accepted in full from Shareholders who validly tendered a number of Ordinary Shares equal to or less than their Basic Entitlement or those holders of 2,000 Ordinary Shares or less, irrespective of the proportion tendered. Following a scale back exercise, tenders in excess of the Basic Entitlement will be satisfied to the extent of the Basic Entitlement plus approximately 49.6 per cent. of the excess Shares tendered.”

To be fair the mechanism might have suited the larger shareholders consulted but all shareholders ( save the sub 2000 share owners ) have been treated the same and have the same opportunity to participate or not. There maybe some benefit to larger holders if the company start the share buyback immediately as some holders will not be able to deal in their shares or have the money paid out to try to buy back in the market at lower levels. I think from what BT said ..a special dividend would come off the price penny for penny that a major aim here was to get the valuation up through stealth ..since they do not need funding it seems a vanity exercise as much as anything..you want the price up demonstrate commerciality. Anyway lets see if it works, so far yes to a certain extent as the EV has effectively jumped but see what happens in the next week or so.

Just in case..widely dismissed as uneconomic the scale of the market for breakthrough materials means solar is still a viable market…some applications such as EV roofs mean that there is scope for high performance solar materials where the space relative to yield is very important i guess.

https://www.independent.co.uk/tech/solar-panel-record-quantum-renewable-energy-b2526484.html