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Carl, I've said all there is to say about this "dilution". That you and some others don't get it is not my problem. If you think the acceptance of the OO will drive the price into the 40s then wait until then and mop up. But I'm holding, sitting on a tidy profit and happy.
How many times does it have to be explained that this is not a dilution that will effect the share price? It is an injection of capital by Lord Alliance, which will raise the map to offset any effect of the "dilution".
It will only effect the SP, in the short term, if Lord Alliance sells his new shares, assuming the SP remains below 57p until the placement. Longer term it depends on how wisely the extra £100M is spent. I assume people here believe it will be spent wisely or they wouldn't hold Brown stock? (Paying off the net debt seems very wise to me!)
Conversely if the SP rises above 57p then presumably people here will snap up their allocation - but then the question has sorta of answered itself in this scenario.
The salient points are:
1) it is all finalised by the 23rd December
2) moving to the AIM at the request of Lord Allianz, probably for IHT reasons.
3) net debt will be wiped out, with funds left over for growth
4) covid credit facility will be dropped, enabling dividends...
5) fully underwritten at 57p. So not a dilution in practical terms
I see this as a great move.
We passed the first hurdle this week okay. Next, US election Wednesday morning - though I would think Biden victory is already factored in by the market. End of the US-China trade war and a boost globally. Things are looking good already, I think.
Brown is a zero-risk stock with huge upside.
Concur with the general consensus. This isn't a full lock down (people still going to work), and we've been here before. The vaccines are coming along nicely. Light at the end of the tunnel and all that. And as we know, lockdown is killing off Brown's competitors. Perhaps this will dampen the full post-results rise for a few weeks (at most) - but still expect a rise on Tuesday, with more to follow.
N Brown mentioned about 31 minutes in. But worth watching the whole interview, IMO.
https://www.piworld.co.uk/2020/10/23/piworld-interview-an-hour-with-andy-brough-richard-leonard/