Like you I held on Ofex. As to reinstating the Dividend I feel we are very much in a Growth stage. We have cash to draw down for further acquisitions, which will increase debt in the near term. In that case I would happily continue to forgo a Dividend to see reducing debt and increasing profit.
Since the Suspension Notice in September 2016 we have had three announcements up to March this year. In the last six weeks we have had nine. It is hard to believe there is not a potential deal in the offing. I have located a new private Company listed with Companies House, which may indicate the target. However, apart from being wrong, I will say no more on a public forum, to avoid causing any issues to Highway Capital at this critical stage.
Regardless of a possible Trading Update, results are due in June. Here we are with almost half the current Market Cap in cash. Steps taken last year to permit payment of a Dividend. A few investments reaching maturity.
Resolution 13 if passed will allow the Directors to put aside the requirement to offer new shares, up to 52 million to existing shareholders. This authority to be valid until the next AGM. If they were to execute an RTO this would be a necessary step.
That's my take on this. Hoping they have a target in sight. All this frantic activity suggests that they do.
I agree insufficient cash was raised and current SP is aggravating this. However Journalists are cheap and two a penny. Good Software Developers are scarce and expensive. Daily Mash integrated with their existing business should generate economies of scale. That said I think it will be a slow climb back to IPO SP with a strong possibility of Dilution en route. I've put these in the bottom draw and concentrating on other investments.
Looking at recent trades it is fair to say there is very little confidence. Their last Trading Update in November states that trading is in line with expectations. That statement being made since they drew on £1.9 million unsecured loan note. It certainly suggests that the results will be reasonable. Personally I am not tempted by the weak SP rather see the results on Tuesday first.
Thank you I see it now £1,043,701. No indication as to whether this is merely preparatory or they already have a deal in sight. I'd like to think the latter, hence all the activity. Reversing the loan to Mylux and writing off a £10.725 investment.
Knowlesi sadly I agree with you that the sp is far more likely to continue it's downward trend. Fortunately I exited several years ago and nothing I have seen of late leads me to consider buying at this time. Plenty of other opportunities out there, most of my shares are going up, not something that can often be said of Scancell of late.