Member Info for SE115

Too many chiefs and not enough Indians

Hi Steve, did you buy at the last minute to push the SP into a positive close today to punish the shorts ?

It is nice to see SP going up by 4-5% when Steve is away today.

Please read the RNS, this is new share purchase of about £25 million assuming the average price bought was 40p. He converted his initial £10 mm investment into Ingenuity. He now has 4.7% of Remainco from nil before.

Latest update mentioned £400 million cash at year end. How much of this cash is in Remainco after demerger ? THG should publish the opening balance sheet of Remainco after completion of demerger on 2 Jan.

MA invested £10 million pre-demerger which he converted all into Ingenuity. Now he put in £25 million additional investment into Newco. He really believes in MM or he has bigger plans to gobble up Newco?

When the demerger was first announced in mid Sept, SP was around 63p. £75 million of £95 million fund raised was given to Ingen, as a parting gift to get rid of a money losing high capex business while £20 million was kept by THG remainco for corporate activities. There was no increase in shares issued as new shares issued in the fund raising was subsequently cancelled. THG business is now very much more attractive in 2025 compared to Sept last year when the SP was 63p. It makes no sense why the SP is at this level of below 50p.

Mover 123, I suggest you sack your broker for telling you that there is going to be a bonus issue. Your broker has misled you

York, MM sold the ingen site to pay off the £128 million debt he owed to Warrington Council.

I think MM will focus his time, energy and money on making ingenuity a great success and list it on Nasdaq in a few years. He will then stick his 2 fingers up at London Stock Exchange. As for us who did not follow him into Ingenuity, we will reap good rewards with THG without MM. Therefore it is win win for MM and us.

A lot of MM personal wealth is in THG. He is as anxious as all private investors to see the rise in SP. He knows that he needs to have liquid assets to fund Ingenuity in future, therefore MM will exit THG at a good price in 2025 or 2026.

TrainTracks,

I wish most of the posters could be as positive as yours. THG without the losses and high capex of Ingenuity should get re-rated in Q1. It should be worth 2x sales of £1.75 billion, say £3 billion in MC giving SP of around £2 at least. MM could not be the CEO of Ingenuity and THG due to conflict of interest and compliance to FCA. I think we will get a RNS on the resignation of MM from the Board and CEO of THG in Q1. Just be patient, better days ahead for THG.

Ingenuity has been given £75 million out of the £95.5 million raised as starting working capital, MM and other shareholders will have to pump more money into Ingenuity in future. MM may have to liquidate some of his THG shares to pay for the funding in Ingenuity. He is not likely to sell THG cheaply. Therefore I expect the SP of THG to rise significantly in 2025, especially after March.

With reduction of 204 million shares after demerger, the SP is equivalent to 52p bard on Friday closing price of 44.92p.

I think the SP will keep going up until the ex-date of demerger because MM wants all of us to opt for remainco so that he can have lion’s share of newco.

If SP at the time of circular release is 45p, say tomorrow, shareholders of THG will receive about 9% more IN shares.

Please read the RNS, if SP is higher than 49p, it makes no difference to the share split ratio. If the market drops from 49p level, then there is a proportionate increase of IN shares to be allocated bearing in mind that IN equity value already fixed at £100 million.

Sell a few shares at closing bell to depress the SP the day before release of RNS to benefit from getting more IN shares

Lower the market cap at the announcement of the details of demerger, the more shares of IN the shareholders get. At 49p, it would be 7.5 shares of THG for 1 share of IN. At 45p, the allocation could be 6 for 1

Oxfordbull, How could MA invest in Newco which is not set up yet until the demerge in completed?