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I don't believe the market will know what value to put on the free shares. Its not like say a 2p dividend which can be deducted from the share price (when a Company goes ex Div) - how will a value be attributed??
If it’s possible to short Poolbeg then we could always short the stock when it gets to a desired level thereby locking in any gains whilst waiting for the 9 month period to finish
i think that Debt has been paid off
That would mean that they keep the shares and couldn't be a reason for any sells
Good point and well made Greg. It is very strange that Sturgeon isn’t making some kind of political play out of ODX. Why isn’t she supporting a Scottish Company at the forefront of test manufacturing???
I don’t think Invesco are fully out - I think CF meant that they are getting to a very low level (under 3%) when he made his last comment
That was a poor tweet - there is no need for the Company to dampen the share price (there are plenty of other detractors ) they shouldn’t be getting involved in share price discussion (they didn’t call it too high when it was over£1 - why now???)
Don't forget that CF said that there was a outside chance of 2 spin off's in April so the second one can't be too far away
Seems to me that the lack of news (delay) is down to ODX waiting (hoping) that they can secure Regulatory approval before making an announcement so that it is as positive as possible and hence avoid crashing the share price
The current spin off looks relatively small - it looks like a few pence per share but it is the start of a trend of spin offs and the Immutex spin off (and maybe the DIM spin off) should be the big wins
Wonder - the reduction in capital is a technical accounting move to comply with Company Law - a Company is not allowed to distribute funds to shareholders (Via a spin off in our case) if there is negative accumulated reserves. They can apply (to the courts) to have these negative reserves set off against the Share Premium account to allow for a distribution
Neon - in the vast majority of cases you are correct. When a share no longer has a dividend entitlement then the share price is normally marked down by the dividend amount (basic stuff really) Orph could recover quickly on the back of another dividend to come though
Moniman - thanks for that, I will try and keep on your good side
Agree Markshares - you need a cross section of views. I made a comment about the structure (ownership / fund raise) of any potential spin off and Moniman suggested to the readers on here that I should be filtered!!
Good post Hart - it’s l a judgement call whether to run with the Newco shares or sell as soon as possible
Fully agree Hart - it’s going to be extra for us all but not as easy and lucrative as some Clowns think
Is not as simple as many seem to think. A lot on here think all that’s needed is a share issue and we all walk away with an extra 30p (or whatever) per share
When in reality a prospectus needs to be written with a management team / premises / strategy / cash flow forecast etc etc - it will need funds to continue its existence and it needs to be convincing to attract investors. All this needs to be taken into consideration to calculate a launch market cap of the new entity
Thanks for advice earache and for once you have kept your post down to less than 100 words
you will get 1% of Orph's part of the ipo.
No more posts from me - pointless
The whole point of this discussion was Swap's comment that the new entity will need cash - hence we could well be diluted (too hard for Jimzi)
Not exactly Jimzi - if you own 1% of Orph you will own 0.5% of the new entity (as Orph shareholders in total will only hold about 50% and SEEK the other half) - and (getting back to Swap's original comment) that gives the new entity zero cash to grow / develop. So the new entity may need to issue more shares (or might be able to issue debt)