Member Info for Reckoner

So why was the equity issue price (as stated in the RNS) significantly higher than the SP on several occasions in December?
I notice this isn’t the case in January btw.

Can’t see how it would effect ODX at all.
SBS provide a lab-based testing service, not lateral flow tests.

Twelvety

Opportunity for a top-up.

In the last hour or so there have been 10 trades of less than 10 shares each. When this happens once I put it down to a beginner making a mistake when using a trading platform, as I did once. But this looks like some kind of communication going on. Along with the false drop the last two mornings (created by setting an artificially high closing price the day before), I feel like I’m watching a game I can never understand the rules to.

Yes, I’m having this problem too. I hope it’s just something to do with their pre-Christmas housekeeping. Will check back this evening.

The May extension is merely a formality. It allows the SPAC (Longevity) to exist long enough for the merger to take place. Standard practice as per the rules in US. It doesn’t imply anything about the date when the merger will actually happen, so nothing has changed.

Yes, the RNS is retrospective but you’re still right that they are being issued at a premium to the price on that day. I’m learning as I go here, but I think the way it might work is that certain brokers will be used by PHI to offer the new shares to current investors, whether these are institutions or high-net worth individuals. They might be willing to pay more than the SP simply to ensure they don’t see a significant dilution to their % holding. The rest of us are excluded it seems, but we can judge whether the investment still makes sense according to our own objectives.

The shares are sold at a premium to NAV, not to current SP. As the SP was at a substantial premium to NAV prior to the announcement of the prospectus, this premium has now reduced significantly, thereby also reducing peoples’ holdings last week by 12%. And there will be continued pressure to prevent the SP from getting very far from NAV again as more shares are issued over the coming year. And it is dilution as the company themselves have stated.
As long as they issue new shares at a premium to NAV, and the underlying assets - i.e. the investments themselves - perform well, I guess it should be ok. But it will take a little while to recover that 12% drop.

I suppose when they say dilution they are referring to the % holding you have in the trust. When you say it, you must mean the value of the holding.

Liitlened, the prospectus itself says it will be a 50% dilution if you don’t participate in the share issuance programme.

I missed the RNS when it came out last Friday but have since read the share issue prospectus on the Baillie Gifford website. Can’t see any benefit to holding as I’m not intending to be in this for 5 years or more. Had a good run with PHI this year. Just disappointed that such a large share issue is underway. Might be my ignorance of how Investment Trusts work, but a dilution of 50% with the doubling of shares over the coming year is too much for me.

Failure, that is the ticker for Longevity, not for the merged company when it’s floated on NASDAQ.

Paddy, that's the ticker for the OTC (Over-the-counter) trading of 4D in US at present, pending the NASDAQ listing. OTC is where dealers can trade in unlisted companies among other things.

This is a contract awarded to AstraZeneca back in April for the provision of lab-based testing services, i.e. PCR.
So I would say it is irrelevant to ODX at the moment.

Bella, my understanding is the same as Crocqman's here.
The date of settlement with the broker isn't important. What matters is who is the legal owner of the shares. Unless there is some kind of agreement where the broker becomes the legal owner of the shares prior to passing them onto the buyer, then the buyer must declare their holding to the issuer (Avacta) within 4 days of the end of the day they crossed a threshold. As there is also a further delay before the issuer must notify the market - two days from the end of the day they were notified by the shareholder - you can get the situation where large holdings accumulate and several TR1 RNS's are issued in quick succession, sometimes on the same day. But I believe there should be one TR1 from the buyer for each trading day that one or more thresholds are crossed, if that makes sense.

Holdings have to be declared when they reach, exceed or fall below 3% and then for every 1% threshold from there, both increases and decreases. This is the FCA rule for UK issuers such as Avacta. The EU directive sets the threshold at 5%.
So Conifer would have to declare when they reached or went below 3%, if selling, and when they reached or exceeded 4%, if buying.
I think the rule applies to all shareholders, whether UK or otherwise, but I’m not convinced everyone sticks to these rules in the UK, yet alone abroad.

I think material announcements and US investor interest once on NASDAQ.
I don’t think a UK microbiotic company has floated on the US market before has it? So perhaps the market doesn’t know what to make of this. Unless DP has a card up his sleeve on the Blautix front, we’re waiting for the more savvy US investors in this space who should take more of an interest.

My, no doubt, inaccurate way of looking at what Matt said.
There are 131.4m shares.
19m share dilution is therefore about 14.5%. SP was 93.2p day before merger announcement.
So dilution would equate to 13.5p reduction in SP.
$10m is £7.5m. “Write this off” over 3 years at 2.5m cash per year and treat the cash as annual earnings. Suggest a P/E ratio of 10. So 10 x 2.5 = £25m. A 3 year write-off of the cash might be wrong but I see it as something which can be invested in growth over those years.
£25m divided by 131.4m shares = 19p onto the SP. So 19p added and 13.5p taken away adds 5.5p to SP on balance. Compared to the SP before announcement you’re then knocking around 100p for a while until the benefits of a NASDAQ listing are better understood and factored in.
Please do say if I’m barking up a wrong one here.

Zengah ruined the DDDD board on Friday with his aggressive ramping.
He appears to be desperately trying to reach his 10k milestone. That is 10,000 posts of dubious quality.