Member Info for mathsprof

This is encouraging. Only £220k to go. Given that I expect some of the 3m already sold, this could be nearly the end of RF.

Let's see how many they sold yesterday.

Maybe, but in actual fact RGO are being bought out as a shell company and they will run down their old business as the debts are paid off. It's a cheap way of acquiring an LSE listing.

I would be very surprised if we don't get an RNS tomorrow telling us that RF are getting more shares. I suspect that the current 3m is almost sold.

Caution - we are still only being credited about 9.5p a share, due to the vwap rule, and this will continue to the end of the week (ie it will last for 15 trading days after the price hit 10.25p), so 3m shares pays off around £285k.

It wont take long to clear all £640k.

So I think that accounts for the drop from £800k owed to £640k.

In 4 days between RNSs now 1.7m late trades reported, by my calculations would be worth about £160k off balance (under vwap rule). If this is correct it means the 825k from yesterday has already been taken off the balance. This would make sense, since RF would know how many they were selling yesterday before anyone else!

Blue - the phrase you refer to is only relevant if there has been no subsequent placing. The 10p ceiling only applies to shares issued after this 10p placing.

I do agree though the sums in the RNSs are confusing, and the true cash position is, I suspect, clouded by late reporting and forward selling.

Ben. It doesn't work like that. The price they are paid is determined by the lower of a 10% discount to the vwap of the lowest 4days in the last 15 and 10p (the placing price). So we'll never get more than 10p now for any of these shares.

Forward sold!

So there is nothing that can be done except buy up the cheap shares because when they are gone 16p will be history.

RF have not acquired any of their shares at a fixed price. Only when they sell them is the price determined. Currently under the 4 day vwap rule this is probably around 10p. So they have sold 1.6m shares and £160k has been credited to the balance since the previous rns. There's no way of telling how many more they need to sell or how many of their allocations were gorwsrd sold.

What matters is the total still owing and that was reported as £640k today.

Sorry, late reported trade

I think there's a problem with the time lag of information given.

I can't see how RF can have sold 2.9m shares in the last 4 days, 1.6m perhaps. There was the last reported trade of 1.475m last week. I bet this was part of the 2.9m (forward sold).

What did the £800k in previous RNS include? We don't know.

It's going down rapidly, and could easily be all cleared by the end of the month. Then the SP will be really ready to return to previous sensible levels, in anticipation of P1a results.

Someone else has got there first. RGO is suspended and they are subject to a reverse takeover by an unlisted company.

They intend to wind down current RF business, so I suspect that all that will happen as far as SAR is concerned is that they will continue to sell off to get their money asap.

TraderMatt - not any more. The issue price is the lower of the placing price and whatever else.

Which means they may make a lot of money!

David - there was a placing fee of 4.5%, and an implementation fee of £50k when the facility was set up.

The RNS didn't say who was getting these.

Bluedreamer - it doesn't work like that.

Since the placing price was 10p, SAR will now never get more than 10p for any new sub shares issued. (RF can try to get as much or as little as they think fit.)

Aber's scenario could still happen. However 10p is the maximum that SAR will get: if the SP slumps under 10p they will get less and more than 8m extra shares will be needed.

You are quite correct, Aber.

What I was saying is that the rules are now different for shares issued after the placing.

Instead of making a guaranteed approx 10% gain on anything they sell at any price, they can now (as an alternative) make any profit they can get over 10p. So with the SP at 13.75p and a healthy demand, they should be able to sell gradually for 35% profit instead.

Interesting that RF have been rationed to just 2.9m at present. Anything they get over 10p is all profit!

Expect another 8m shares to follow in due course. I don't think the BOD see any advantage in paying off RF when it can issue copious 10p shares to do so.

It's only 2.9m, and they should be cleared quickly. RF wont want to lower the SP now since its to their advantage to sell at 13.5p or more.

Ie 13m sells in total

So in the last 6 days (since placing RNS) we have had post 1630 large trades of over 3m shares sold, along with a total of around 23m more traded in the same time period,

Likely to be around 10m sells, with probably the majority being RF and placees selling. So we're well on our way to clearing both.

But what about the large sell? Must be well over 1m so will be declared very late.

Bridgedogg1 - I had never really taken notice of clause (a) part 2. Looks like all further shares to be issued to RF can be sold by them at any profit they can get over 10p, and SAR is only credited with 10p.

It makes the calculations easier, and could even give RF an incentive not to lower the SP by indiscriminate selling.

Perhaps the end of them really is in sight!