The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Afternoon all,
I've now read through the RNS and think I understand some of it. Others might think I'm being unrealistic. They might be right.
Anyway, this is what I think:
I see no contradiction between the proposed consolidation and the proposed subdivision. I think they are two separate parts of the plan. I believe that the consolidation is likely to be similar to the reverse split of 2016 so will have the effect of increasing the share price by reducing the number of shares in issue. The rest of the proposed plan, including the subdivision, seems to me to depend on there being a higher share price than we currently have.
It will not be the first time that AVO has consolidated its share capital. They last did it, with some success, on 1/7/2016 when they did a reverse split of 1 for 25 existing shares. Each share immediately increased in value by 25 times
If they repeated the exercise, using the same consolidation figures, they would end up with 21,702,955 shares worth about 48p each instead of the current 542,573,869 shares worth 1.925p each. The value of each shareholder's holding would remain unchanged. I guess that the increase in the value of each share might have an impact on how the the rest of the proposals in the RNS might be interpreted.
It is excellent news. Quite apart from the fact that AVO should retain control of LIGHT so should be able to bring its plan of democratising proton beam therapy to fruition, it also means that our shares should retain some value, as opposed to facing the risk being valueless. We might even see the value of our shares increase over time, especially if AVO becomes the proton beam therapy's version of, say, Microsoft.
Good question. Obviously, AVO is liable for the rent but if they haven't got the cash, perhaps no one is.
However, considering the many £millions that the Howard de Waldon Estate has spent on converting the buildings for AVO's use, they might be prepared to wait for their rent until AVO can afford to pay it.
I'm assuming that The Howard de Waldon Estate spent the money because they want AVO to succeed.
AVO have a 50 year lease on two adjoining houses in Harley Street. The two houses have been converted to adapt them for AVO's needs as a proton beam therapy treatment clinic. The conversions have been carried out by the landlords, the Howard de Walden Estate, at their own expense. The Howard de Walden Estate owns most , perhaps all, of Harley Street, together with a large chunk of Marylebone.
Hardman weren't independent. AVO paid them for their services. It meant that everything Hardman said was AVO's version of the facts.
There's nothing any of us can do about it, except wait and see what happens next. I've decided to remain hopeful until we're told that AVO has gone into administration.
IWantThatOne.
Your suggestion that the BoD put their own money in reminded me of a what happened in my local city years ago when the bus and coach industry was denationalised and broken up. A group of middle managers in the local section of it put themselves up to the hilt in debt - remortgages, bank loans, etc - to buy their local bit. They knew their industry, knew exactly what they were doing, had the courage to do it and are now all very rich men. They were the opposite of the BoD of AVO who should know what they've got but don't seem to have the courage to do anything about it.
AVO should have been a resounding success but could never be because it had an incompetent BoD who have been several paces behind events for the last ten years.
They regularly acted idiotically, for example, winning several Chinese contracts on the basis that LIGHT was ready to go as long ago as 2016. The contracts were signed in a highly publicised ceremony attended by the Chinese leader and the British PM, David Cameron It was highly embarrassing when all the contracts were cancelled. AVO had to pay back a large chunk of money they had received from their Chinese agents. There have been other strange incidents over the years.
They got away with everything because of LIGHT
AVO will start getting an income from the sales of LIGHT much sooner than that. However, the development of LIGHT will continue for many decades to come. In fact, it may never end as newer and better versions are produced. It's the nature of science.
It's typical of some of AVO's difficult to understand announcements, but quite mild when compared to some of AVOs odd actions in the past. If it wasn't for LIGHT, the actions and announcements of the BoD would probably put me off investing in AVO.