Member Info for Medjed

W shaped bottom is in, reversal.

Just kidding! :)

Fft fair enough. I still think it fairly unlikely it will go into admin tomorrow or next week. In 3 months time very likely.

The BOD would look very foolish if just one week after securing a £20m loan facility for a turn around plan they turn around and say nah, lets just go into admin tomorrow.

But anything is possible.

“So, instead of the usual 30-60 days credit, SDRY will now not be getting any new stock unless cash is paid”

And they have access to cash, £20million of it, extended to 2025 (although its not going to last anywhere near that long).

So explain again your reasoning why a lender would extend and increase the loan facility to a company apparently about to go into administration tomorrow?

“ not let it go into admin ?”

Maybe because JD already had trouble finding the cash even for a lowball offer.

Next or a similar giant would easily outbid him out of admin (if anybody wants it that is, lol)

Taverham I think it would have to be a special resolution at a EGM, as it is hand in hand part of an equity raise fully underwritten by him waiving first offer rights to shareholders (I forgot the technical name).

In other companies O have seen this requires a 75% vote for the motion. I could be wrong.

The impatience of retail is unmatched!

It has only been 2 trading days since those nasty RNSs and already most are calling for company to suspend trading and go into admin tomorrow!

Lol!

It only just got a £20m loan facility only £10m of which is planned to be used so far.

It may well go into admin but probably a few months down the line. Patience! :)

True anything could happen tomorrow and there is risk of getting trapped on a permanent downhill slope, but there may also be opportunities to get out at a better price than today or yesterday.

Its a risk and everyone needs to assess their own risk they are willing to take. There’s a risk in selling now, theres a risk in holding, etc etc.

Taverham thanks for that info, that is very worrying.

In this case though I would have though the buy out would have to be made very clear for shareholders to vote for it at a EGM? Normally this kind of resolution requires 75% to pass. I doubt shareholders would vote for if it is in any way unclear value wise or time wise.

If Dunkerton does go for the equity raise as per rns we might be ok (ish). I assume de-list means he takes it private and has to but us out. Otherwise it makes no sense for retail shareholders to hold stock in a delisted company which they can’t trade.

50 shares at a time? Lol

He doesn’t want to make an offer, he wants to get it for dirt cheap. My guess is:

1) underwrite 63m new shares to control 51% & take it private (at 5p that will only cost him 3m, get investors to buy out remaining shareholders)

2) buy it out if admin

Bah1 no worries, what a shambles for a main market company. Utter manipulation!

There was no accident in releasing those 4 rns after cop on Friday. They intended to crash the share price. For what reason we will soon find out.

SDRY isn’t AIM its main market. Which makes it even worse!

Agreed if it goes to admin JD is unlikely to get it, he’ll be easily outbid.

“concluded that a takeover offer from Julian Dunkerton for the Company is unlikely to deliver an outcome for shareholders”

What an outright lie, of course it would have delivered a better outcome for shareholders they would have been bought out at a higher price and wouldn’t give a hoot what happens to the company.

It wouldn’t deliver the outcome for JD because he (or investors) would have had to fork out more cash.

Now they can grab it for cheap from distressed shareholders.

If he goes ahead with it he’s put the shareholders between a rock and a hard place. Take what I’m offering or risk administration or CVA in a few months. Before they were expecting £1+ or at least 79p. Now he’s focused their minds they may bite his arm off for 30p or even 20p?

He only needs to raise around another 63m shares to have a 51% controlling stake. Who knows maybe he won’t even front up the money to buy out the remaining shareholders maybe some other investors he’s been talking to will come in with him to take it private?

It was a really underhand tactic and quite clever. Completely cut-throat. He couldn’t/wouldn’t offer a fair offer price, so he puts the share price into distress with those RNS’s panics the shareholders (remaining ones anyway) to the point they would gladly accept a lowball buyout price to go private and get something back rather than lose everything if its left to go into administration.

If he does go ahead I wonder how much he’ll offer? 30p? 20p?

That’s what I was thinking too, he’ll take all the new shares. But if he wants to take it private won’t he have to buy out all the other shareholders?

Isn’t that how it works?

AJ bell are just repeating the RNS without thinking. 5m extra isn’t even going to touch the sides. If £20m is only going to last 3 months.

A placing from this low market cap is next to useless.

How would new shareholders participate if the company is going private as a part of the same package? Unless he offers them a buy out price substantially higher than the placing price.

The only thing about the equity raise, it’s such a fake plan. He’s saying it will provide the company with much needed cash but it won’t. Let’s say he prints 100mil more shares at a ‘very substantial discount’, at 5p that would raise a pitiful £5m, at 10p only £10m. That will do nothing for the company. They already have a £20m facility and that won’t be enough either.

So it couldn’t be clearer that it is simply a ruse to get the company on the cheap.

Question is how will he sweeten it for shareholders to vote for it?

Assuming he hoes down this route (big if)

Not all of us are emotionally invested here, but its a good caution thanks.

Some of us came in for the offer gamble (not necessarily JD’s), knowing it was a gamble. So far we called it wrong, but its not over yet.

Time to be tactical and gamble a bit more for a better get out price. Or cut your losses. Its still a massive gamble lets see what happens next.

All the best to genuine holders especially long term holders I really hope you get your money back.

My bad, the article I was reading made it sound like full year results. Found a clearer article. Thanks.