Demerger information / advise13 Oct 2020 22:04
New to the bb but not a new investor
This is the first time that I've held shares in a company that's going to be demerged with a "market to decide" price and wonder how it will proceed. Firstly I suspect that a possible sale of AccuStem will take place prior to listing which would be fantastic for shareholders and maybe the reason for this unusual listing action.
I like many other investors was attracted to Tiziana by the publicity of StemprintER and the offer of a 1 to1 share which was included in the price and not free, we had no idea what the deemed value of this would be, and when advised it had basically a" 3m " value it was very disappointing to say the least. To add to this, it was a very brave move to then advise that
the share would not be of any liquid value for up to 2 months, which is quite arrogant but also added to my possible sale theory.
When doing research prior to investing, StemprintER could be "valued" at up to £1.20 by HC Wainwright and many others
including this board. This was importantly considered as a short term return on investment and many of the new investors had this in mind, it's also what's currently creating the frenzy of all investors until the 30 October.
Now we arrive at the Effective date of Demerger and the part that I'm not totally sure about (excluding the possible sale)
a) Our non liquid shares are parked until we officially list
b) The Tiziana share price will drop, by how much nobody knows
My request for advice would be
c) The Starting share price which everybody is interested in, it seems that no IPO will be available so who will set the initial share price ? LSE / Investment bank and Tiziana ? how and when will we be informed of this ?
d) How are the vital Institutional Investors etc included in the deal prior to listing without any information ?
e) What do fellow investors think the opening price could / should be ?
I'm sure many on this board would appreciate views comment on this process by many well informed investors that know the process.
I'm just looking at the process of demerger and know perfectly well all the numerous pipeline Tiziana has post demerger,
which will hopefully have a fantastic profitable future ahead for us