The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Why would you call it a dead duck? They just approved relending!!!!
I agree the share price probably won't suddenly fly back up as there's still more hurdles but I think it will rise a bit and stay there this time rather than slowly dropping again as usual as amigo will now be active again- ads on tele etc making money (all be it Limited to start)
Amigo state further down the RNS:
If the pilot phase is successful, subsequent originations are expected to reach approximately £200m a year in year two and grow to over £350m in year four.
If that's the case then would mean similar loan amounts to what they were doing before being investigated, when the share price was circa £2.50..... so what then? Very roughly could you assume a share price a 19th of that, ie around 13p?
If so VERY good returns to be had from any shares bought at the rights issue at prob sub 1p!!
My guess is they are stretching this out until November when the claim period for the scheme ends amd they know thier final liability. Fca will then approve relending and issue whatever fine they want at the same time.
Once that's done and dusted it'll be a few months of marketing together the new products blazing away and the sp has to rise then.
Once it hits a specific target then the rights issue will be announced and concluded by may
They have stated:
Amigo will make an initial cash contribution of £97m to the Scheme fund, of which £60m was paid in June 2022. £37m is due to be paid to the Scheme fund by 26 February 2022. A further contribution of at least £15m is expected to be made from the proceeds of the proposed capital raise
So it seems the rights issue will happen the n3xt payment un February, so presume will be about May time as per the maximum time frame. Hopefully will have return3d to lending long before then so share p3ice should look a lot better then if people want to sell up before the dilution