Member Info for Poleaxe

I couldn't understand why it was priced so high before and I still don't understand how it can be viewed as cheap here. On what metric?

A target (which they may well fail to meet) of breaking even on adjusted EBITA isn't very inspiring.

And a going concern statement that warns of the possibility of breaking covenants as soon as this month and includes "this material uncertainty may cast significant doubt on the Group's ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business."

I may be wrong but I think there's a strong possibility of tapping shareholders for funding in the near future. That means discounted shares. That means dilution. Bang go your EPS forecasts (if there were any 'E' in EPS).

A placing/open offer/rights issue coming soon?

It was announced by FTSE on 1 June. Here's the link to the link. I'm not sure if you need to register to access it.

https://research.ftserussell.com/products/index-notices/home/getnotice/?id=2604442

In case you'd missed it, the FTSE index move takes effect from open on Monday and a lot of the action today will be related to that, especially the volume in the closing auction.

Index funds will have reweighted. They're now a small fish at the bottom of the SmallCap index. Previously they were at the top of the Fldgling index.

I don't think we've heard the last of this. Don't you think the timing looks rather contrived, being the last day possible before he'd have hit three years of employment and qualified for options?

@alan188, I may run the CFD short to several days beyond 18th June as I'd expect some holders to bank their 'profit' as soon as they can sell their open offer shares. Perhaps KIE will bounce and I'll have to take a hit on the short, just this way I know roughly the gain I should make, rather than agonise that the share price could fall between now and getting my hands on the open offer shares. It's not 100% guaranteed, because there are events that could scupper the plan, like the shares getting suspended or IG forceably closing shorts at short notice.

I actually think KIE look a reasonable investment punt once the debt is reduced so may well keep hold of the shares, perhaps buy more if they drop further.

In order to qualify for the open offer shares you needed to hold them at close on 13th May. That's all that matters.

i.e. if you bought them on 13th and sold them on 14th you'll be entitled to participate in the open offer. I did just that and instructed HL yesterday to take up my entitlement. I've also shorted via CFD in order to lock in the gain, because the price often drifts back before the new shares commence trading, as it has done so far.

djframboise, I talking about shorting to lock in your gains on the open offer rather than unhedged shorting. I'm sure some people were happy to short their entitlement at 120p knowing they'd be able to take up the open offer shares at 85p.

Perhaps you'll be able to sell your open offer shares after 18th June for more than 120p. Perhaps you won't. At least by shorting you've locked in 35p net gains (less minor costs).

Rebooter, you won't receive the open offer shares into your account until 18th June, at the earliest.

If you want to lock in selling at today's share price you can always short the shares now. No doubt shrewd holders will have done this a couple of days ago.

I received my entitlement notification today from HL, for shares purchased on 13th May (the announcement date), just as it should be. No nonsense with irrelevant record dates / settlement periods!

A bit of debt isn't necessarily a bad thing, especially when interest rates are low. Assuming the company is making profits, the gearing increases the EPS over issuing more shares to eliminate all debt.

EMGOMG, you won't incur any fees in taking up the open offer.

I think the excess entitlement is derived from unsubscribed open offer entitlements. There are bound to be some.

The total number of shares available under the open offer (including any excess) will be 141,851,386, taken as clawback from the conditional placees.

In other words, if the open offer (including any excess) does not reach 141,851,386, the remaining shares are placed.

DaveT1, you need to hold at close today to qualify for the entitlement. You'll qualify, even if you buy in the closing auction tonight.

Anyone who held on the record date but sells before the ex-date needs to forward any entitlement to the buyer (if you have a nominee account this is invisible to you as your broker handles these sort of complications).

85p is a good price IMO. I was one of those who thought more likely around 60p. The rise in recent days suggests demand was leaking.

Forget the record date, it's the ex date that matters. They don't go ex-entitlement until tomorrow meaning shares bought today will still qualify for the open offer. I dare say some will disagree. Sobeit, I can't be arsed to educate on this anymore!

Pokerchips, thanks for confirming you received the open offer entitlement for shares bought 'on the placing day' (by which I assume you mean 4 May). You did well buying them at 30p, as the lowest price printed on LSE that day was 31p for a couple of small sells.

HL just confirmed my entitlement for shares bought on 4 May and subsequently sold on 5 May, which is as it should be. I find it hard to imagine anyone who has worked as a broker doesn't understand what matters for investors is holding at the point of going ex-entitlement (not record dates, settlement periods etc). A broker should be familiar with processing market claims for shares sold before the shares are marked 'ex'.

I don't suppose they'll be much appetite for the open offer. Anyone keen to buy additional shares will have surely bought cheaper in the market, albeit paying dealing costs (open offers don't have dealing costs). Plus, if you buy in the market you don't suffer the risk of being locked in for days between committing to buy and being able to sell.

castle2012, if you plan on taking up the open offer, why not just buy cheaper in the market now?

I was thinking the more you buy sub 30p, the less you're diluted by the 30p places. No hurry to buy here in case the second placing/open offer bombs.

Doesn't seem much point taking up the open offer, when you can buy in the market for 29.75p. Perhaps even lower soon. At least you don't have to worry about being 'diluted' by the 30p placees!

Buy/sell flags are only guestimates as to the aggressive participant in the trade. It's often based on whether the trade is done above or below the mid price. You probably bought below mid, which could be a sign there's plenty of selling interest.

I'd have expected there to have been a confirmation of completion of the first placing by now. Discussions about ex dates are all a bit academic if the first admission doesn't happen on Friday?