Member Info for Poleaxe

Deadline can be extended

Will BLND replace DARK in the FTSE 100 next week? Should know later today.

Broker downgrades apparently, including UBS "buy" to "sell". I've not seen them personally but the sell orders in the opening auction (which led to an extension) suggest it's true.

Come on guys. Whatever happened to quality ramping? Kids of today eh!

So why didn't the company consider a larger open offer to raise, say, £12m?

Instead the independent directors opted for the placing, which guarantees JD control of the company.

Was the open offer ever a serious option, or was it just there to give the impression of giving ordinary shareholders an opportunity to participate?

The equity raise was tilted in favour of the JD placing as opposed to the open offer for several reasons:-

1) The placing raised more money

The placing raised £10m gross. The open offer would have raised £6.86m gross. However, after costs of £1.95m (why so much?) the placing raised £8.05m net but the open offer would have only raised £4.915m net.

2) Shareholders were urged to vote to also agree to the placing, even if they wanted the open offer. There was a threat that not doing so could lead to the company going into administration. This helped ensure the company could say it had sufficient shareholder mandate for the placing.

3) JD wanted control of the company

In the case of the placing, JD ends up with 75.8% of the company, effectively giving him control. With the open offer he agreed to underwrite the issue, meaning he'd buy any shares not taken up by other holders. Potentially this could have given him up to 90.7% of the company for £6.86m, if no shares were taken up by other holders. However, this would be a risk and if there had been sufficient take-up by other holders he might have ended up with less than the desired 75% for control of the company.

Also, before then -all you longs banking on a bounce will have to close (unless you want to hold an unlisted company).

The final day will be like watching rats in a barrel!

Superdry will be removed from the FTSE Russell indices from the open Monday 24 June 2024.

Possibly this might add a bit of volume to today's closing auction, although I can't imagine index funds holding now.

But can enlighten us on the significance of 0.1% being indirect voting rights and 7.5% being swaps?

Would you be able to enlighten us on the significance of 0.1% being indirect voting rights and 7.5% being swaps?

How do you know "There is an army of shorts out there on this"? Why do you think so many people would want be short?

Apart from you penny parcel punters, I don't see there's enough liquidity for serious traders. I think most shorts would have entered much higher up and they'd be out by out by now and moved on. Traders aren't interested in the final few per cent and don't mind leaving a little something for the next man.

Still, I guess it gives you someone to blame, when the trade doesn't go your way.

Sorry, I mistook you for an astute penny parcel punter.

Rick123, what are you doing here? Shouldn't you be ramping ARCM?

Ah yes, there's a difference between buying to invest as a delisted company and a quick in and out trade before then. I dare say they'll be some good price swings but with limited liquidity, so not huge real gains to be made.

As you say, companies often do rise just before delisting, substantially in the case of REDX. I'm not sure why but perhaps this is because of the last shorts being called in and there being few sellers left.

Quite a few people are aware of this phenomenon now and we could see the reverse this time, with too many holding out for the final bounce?

Agree pumpky. The reward/risk investing in a company about to delist isn't for me. How do you exit? With a matched bargain facility you could be waiting a long to for a buyer to show up willing to pay the price you want to sell at.

The company does acknowledge that further funding may be required, beyond the initial £8m cash injection from Dunkerton, and the Circular includes:-

"whilst the Equity Raise is intended to improve the Company's financial position, there is

no certainty that the additional capital will be sufficient to meet future requirements or to

respond to unforeseen events or business needs. The Company expects that further

additional capital may be required, and there are no assurances that such capital will be

available or will be available on terms that are acceptable to the Company. A number of

factors will affect how much additional capital will be required or if it is required at all, such

as the financial performance of the Group, market trends, consumer confidence in the

Brand and wider economic conditions. As such, the Company is currently not in a position

to determine how much additional capital may be required or when it might be required"

I assume this might include the possibility of further shares being issued. Whilst this would be dilutive, it might be a price worth paying if it helps return the company to profitability.

What open offer at 5p?

Give me strength!

Stocks often do rise on a day or two before delisting, sometimes significantly (e.g. REDX), possibly due to shorts getting forceably closed. Volume is usually very thin though, so only for penny parcel trophy punters, not serious traders.

Norwich closed on 8 June. Good - cost saving!

https://www.bbc.co.uk/news/articles/c0ddyxwdy9ko

Amz_, the Risk Factors are covered in Part 6 of the Circular (page 30). I suggest you read it if you are serious about investing (as opposed to punting you can offload onto a greater fool before the stock delists).

For some reason I couldn't find the Circular on the Superdry Investors site. Is it there? If not, why not?

You can get it though, with a bit of Googling.