RE: Eat my words23 Nov 2025 14:40
1) The whole premise of carrying out the share consolidation is, according to the co, to have more manageable shares and it would go against this very priciple to issue billions of more shares.
The co stated in its RNS:
"The Company currently has 3,022,586,460 Existing Ordinary Shares. The Directors consider that it is in the best interests of the Company's long term development as a public quoted company to have a more manageable number of issued ordinary shares and to have a higher share price."
2) The co then in the same RNS stated, with regards to the amount it could raise by reference to the nominal value of shares. The particular paragraph dealing with this is copied below:
"Following the Capital Reorganisation, assuming the resolutions are passed, the issued share capital of the Company will comprise 30,225,865 New Ordinary Shares and 30,225,865 Deferred B Shares and the total issued share capital of the Company will be £3,022,586.46. Pursuant to the share capital authorities granted to the Directors as stated in Article 29 of the adopted Articles of Association on 10th January 2020, and as extended by Resolution 2 set out in this document, the Directors will have the ability, following the Capital Reorganisation, to allot further shares with an aggregate nominal value of £4,977,413.54."
The key point to note here is " with an AGGREGATE nominal value". For the purposes of further issuance of shares, the aggregate NV will be 0.1p + 9.9p =10p otherwise the word AGGREGATE has no meaning.
If you take the nominal sum of £4,977,413.54 @10p nv, the maximum the co could issue is 49,774,135. This would then give a total issued shares of 80m. 80 ÷30 = 1.67 which dilution ratio would have been the same if the share consolidation was not taking place as you have mentioned in your post.
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