Member Info for Scoobydoo321

Per Claude -

What's happening?

Fonix is buying back 1,250,000 of its own shares at 159p each — spending roughly £2 million to repurchase ~1.26% of its shares from the open market today.

Why is this normally complicated for Fonix?

There's a group of shareholders called a Concert Party — people acting together who collectively own 33.06% of the company. Under the City Code on Takeovers and Mergers (Rule 9), if a group already owns 30%+ of a company, any increase in their holding triggers an obligation to make a cash offer for the entire company. A buyback would automatically increase the Concert Party's percentage (since the total shares outstanding shrinks), so Fonix has historically been unable to do buybacks without triggering this rule.

How are they getting around it?

A Concert Party member — Richard Thompson (via his company Starnevesse Limited) — has agreed to sell his own shares in parallel, in proportion to however many shares Cavendish buys back. This ensures the Concert Party's percentage stays flat, sidestepping the Rule 9 trigger.

Key details:

Price: 159p per share (yesterday's closing price)

Broker managing it: Cavendish Capital Markets

Window: Today only, closes at 4pm

Repurchased shares will be held in treasury or cancelled

Price cap: no more than 105% of the 5-day average price

All companies midcap have drifted 10-20% across board. SP falling may not be reflective of the progress made.

Might be a sell first, think later approach - coincides with the recent sell-off. ALL OTT IMO, still. Will keep my eyes on this though.

Could it also be driven by concerns over AI disintermediation?

Zia good ya.

Strong update. The sells of recent weeks make no sense whatsoever. Offers peeps entry at an excellent price into a growing company.

I found some loose change.

The fund managers just a few months ago We buying this at seven piece subscription price. This is an absolute no brainer. At these prices, Bob is going to grab a few more under his belt in the next coming days, I would imagine.

Very assuring TU. Priced too low.

Similar pattern as ELIX as it entered into FTSE from AIM expected. So expecting volatility.

This stock moves in mysterious ways ...

Reaction is underwhelming though

Insanity! Can get 7p shares for 5.7p - absolute bargain. I've added.

Hasn't been this low since Feb 2024.

Bargain.

Gresham House hold c24% of the company and they invested at a premium @ 7p.

They're savvy investors.

Bob Holt has a wealth of experience.

There's plenty more from this company.

LUCE is losing a lot of market value. Mmm - peeps not convinced of improvements in RMI market.

It's road is destined to be ... zigzagged.

Take over?

What makes you think that another bidder won’t come out at 400p?

All it takes is a TO bid 350p...

To a yank - that's small change.