Member Info for Poleaxe

By that I mean the rights are worth about 6.3p per existing share. The nil paid rights could be worth about 15p, but you'll only get 3 of them for every share currently held.

They drop by the value of the rights, which I think is completely logical. Just as shares drop by the value of the dividend when they go ex-dividend.

Currently the rights are worth about 6.3p per share, but that could change between now and next week.

The drop by the value of the rights, which I think is completely logical. Just as shares drop by the value of the dividend when the go ex-dividend.

Currently the rights are worth about 6.3p per share, but that could change between now and next week.

Yes, but you'll suffer the value drop when they go ex-rights next week and if you take up the rights you don't get the money you could have got selling the nil paid shares. Hardly a bargain.

It may be cheaper to buy in the market next week ex-rights. e.g. If you sold yesterday and can buy below 36.75p next week.

There's no such thing as a free lunch with rights issues. It doesn't matter what discount the rights are set at, what you get given with one hand gets taken away with the other.<br /><br />If you sold today, or better still yesterday, you may end up better off than those seduced into holding out for the rights.

You can always buy back next week, ex-rights.

In order to qualify for the rights you have to be holding at close on 1st October.

I wouldn't be rushing to buy though, just in order to qualify for the rights. You may well be able to pick the shares up cheaper than TERP once they trade ex-rights. You could wait to buy them on the dip on the morning of 31st October, when the rump gets placed.

The lowest price they traded at on 1st August (the day before they went ex-entitlement) was 46.0p. I think the lowest anyone could have bought at and been entitled to the open offer was 36.25p on 29th June.

They need to be at least 15p if they are to be equivalent to the pre placing market cap (at 50p) of £119m plus the new cash of £129m.

Given the alternative at that time was going bust and the fund raising has given them a bit of breathing space, shouldn't they be more than that?

One of the strengths they claim is in the cross-selling of 'complementary services' and this could be compromised by selective disposals. Furthermore, disposals aren't mentioned in any of the five key tenets to the three-year recovery plan outlined in the Prospectus. Therefore, to embark on a programme of disposals would surely not be in line with their proposal on which they're raising funds?

That's not to say they won't of course. Far from it!

They'll still be debt though. Net debt perhaps £90m? It will give them a short breathing space to improve operating cash flow and, perhaps more likely, get down to disposals.

As I already pointed out the 79m placed at 10p will be fairly insignificant compared with the other 1,114m being placed at 10p.

In order to qualify for the open offer, you had to hold at close on 1st August. If you did, you should have heard from Lloyds shortly after that about the open offer. Too late to take them up now.

The 28% not taken up in the open offer is strange. It means existing holders at 2 August didn't think they were worth the risk at 10p. Yet it wouldn't surprise me to learn some of them are still holders at 14p!

The 28% not taken up is not very significant. It amounts to 79m shares which will remain with the conditional placees which is a drop in the ocean compared with the 1,114m shares in the firm placing at 10p.

Guys, you'll receive 18 shares in Portage Biotech Inc per SALV, not £1.40. Quite what they'll be worth when you try to sell such an illiquid Canadian stock (and how you'll achieve that) is not clear.<br /><br />Why isn't there a cash option?

Consider that for every 1,000 shares you buy today, they'll be almost 6,000 more shares coming onto the market at the end of the month that have been acquired at 10p.

I'm not predicting the share price will fall to 10p, just I have my doubts about 29p by the end of the year!

I get the impression a few people think this is a bargain because they're using the current number of shares in issue. I'm sorry, but you're in for a reality check. The market is already pricing into account the new shares (otherwise it wouldn't have tumbled from 50p last week, would it?).

They'll be 1638m shares in issue. Double price from here equals 29p. Market cap £475m.

Double your money from here by end of 2018? Are you sure about that? That would mean a market cap approaching £500m.

Technically, "agreed to subscribe" not "already subscribed". It's still subject to the passing of the Capital Refinancing Resolutions and I suppose there's always the possibility a placee doesn't pay up (although I think this is underwritten).

If the market price falls below 10p, why would you take up the open offer when you could buy cheaper in the market?

The placing & open offer are fully underwritten and the firm placees have already agreed to subscribe to their shares. Therefore the company should raise the £129m regardless. If the market price goes below 10p they'll be underwater and there could be a bit of an overhang, until the underwriters get shot of their shares.

It's not £60m market cap. The market is, rightly, already factoring in the new shares. They'll then be a total of about 1,638m shares in issue. At 15p per share that's a market cap of almost £250m. Bit of a difference there!