The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
CMC - contact their investors and ask them if they would like to take part in the placement - if their investors are interested they sign an NDA and are forbidden to buy or sell shares in the company until rns lands - funds are raised and given to gst - CMC markets get a headstart to forward sell the shares ensuring their investors a profit - then rns lands sometime later when everyone is happy - market finds out sp does what it does.
When you sign the nda you're not allowed to trade until the rns lands. The placement shares are forward sold before they're issued.
Thing to understand is the placement investors are insiders and so it's been packaged to them to get involved.
Well put Billy...
"The motivations for the forward sellers are pretty obvious: they can make an almost* guaranteed profit by selling shares at market prices, when they know that they are going to acquire the shares at below market prices. By selling the shares before they receive them, they are taking no risk that the price might decline after the issue process has completed. The practice also benefits brokers and advisers, who generate fees or commissions from the share issuance"
Hope this helps.
I don't think kat has been trading that long as he doesn't understand the basics about forward selling.
"You can't forward sell 120million shares on a day that trades 73million. and, considering the previous days were: 12mill, 3mill and 9mill... that's just basic maths."
I take it kat believes that shares that have been forward sold even though they haven't been added yet will automatically show up on our volume today?
Is that what you're trying say?
Let me know if wish to discuss your misunderstanding on this matter.
But it has been explained.
Another stupid header from the attention seeker.
"Do a placing without informing the market"
They did inform the market! It doesn't work informing the market first.
"Happy my picnic has better food than boring sandwiches 🥪"
Great if you like dog biscuits.
😉
And you have to sign an agreement that you're an insider and you can't buy or sell any shares or disclose any information until after the rns lands. Not including the placement shares that is.
I have been approached by the listed broker on another listed company to take part in a placement. You don't know what you're talking about kat.
Are you really that dumb?
Yes they can be forwarded sold a few investors or one might have taken the lot
Just to educate you kat - the reason why forward selling is pretty standard - why would an investors give ex amount of money for say 100m shares at say 1p without having the option to forward sell? If what you think we're true the rns lands the sp tanks to below 1p and the placement investors are screwed..
Maybe you get it now.
Exactly...
According to kats view, they're sat on ex amount of shares and nobody wants them despite over £500k buys today and also offering to pay £105k for 10m @ above placing price. Clearly this Says the opposite to kats narrative "Nobody wants these"
Low level trader!!!!
Is kat suffering with cognitive dissonance? Your actions don't match what you're saying.
If there's better elsewhere why are you here all day?
Kat are you stupid?
If they had all these shares available why did they bid 10m higher then placing price?
The placing shares have been forward sold or they wouldn't have been offering 105k for 10m at more than placing price - so who has been buying £500k plus shares so far today? What do they know? We're going to find out.. and it's definitely not switch off time.
*these