Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Https://numerco.com/NSet : 7850/8000
Numerco now 7650/7800. Things are moving fast!
https://numerco.com/NSet
Https://uk.investing.com/news/stock-market-news/earnings-call-acacia-research-posts-q3-results-acquires-stake-in-benchmark-energy-and-announces-share-repurchase-program-93CH-3236714
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Anthony Stoss: Got it. By the way, congrats on the Arix deal. That's wonderful for Acacia. One of the shareholders, it looks like, in Arix is kind of disputing the fact that you guys are getting cash, and others are getting stock. I'm curious if you can share your thoughts on that.
MJ McNulty: Yes. I mean we saw that news, too. I think they're a small broker that shouldn't take away from the value of their opinion. We are getting cash, and other shareholders are getting gig stock. Other shareholders have a say in the way that the deal ultimately happens. We did have a sizable position, and so we got a premium in terms of the consideration being cash instead of stock because of that position.
...
Brett Reiss: Okay. On a scale of 1 to 10, 10 being metaphysical certainty, what would you -- the Arix deal closing, what do you think it is, a 7, 8, 9?
MJ McNulty: I love it, Brett, when you ask me to put things on a scale. What I will tell you is that there is one condition to the closing of our, Acacia's Arix shares to RTW. And that is approval from the Financial Conduct Authority in the United Kingdom for the transaction. I will say that the entity within Arix that triggered this approval requirement is currently FCA-approved or certified as is RTW. So I don't want to handicap it, but we're being advised that this is a routine approval process by the FCA. Now it's -- there are things that are out of our control, but that's what we're being advised.
"
Another article in The Times today:
https://www.thetimes.co.uk/article/broker-quits-arix-over-rtw-takeover-875dkcms5
Again ohisay on advfn has cut& pasted. Here's the first part:
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Broker quits Arix over RTW takeover
Alistair Osborne
Saturday November 11 2023, 12.01am, The Times
Peel Hunt, which has its HQ at 100 Liverpool Street in London, believes the Arix deal is unfair
PEEL HUNT
One of Arix Bioscience’s joint-brokers quit on the morning it announced a contentious takeover deal in protest at its inequitable treatment of shareholders.
Peel Hunt demanded that its name and that of its two healthcare bankers be taken off the release for the sale of the company’s assets to the rival life sciences investment company RTW Biotech.
It resigned with immediate effect hours later.
The investment bank, which had been brought into the deal late in the process, is understood to have told Arix that it could not sanction a deal that discriminated against three quarters of its shareholders to provide a cash exit on better terms to its 25.5 per cent activist investor Acacia Research.
Under the deal, unveiled at the start of this
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"
Here's the first part:
"
BUSINESS COMMENTARY
Don’t swallow dog’s breakfast deal at Arix Bioscience
Alistair Osborne
Friday November 10 2023, 12.01am, The Times
Four years on and Neil Woodford’s portfolio is still coming back to bite. The latest case in point? Arix Bioscience, once a darling of the fallen stockpicker but one now trying to pull off a deal every bit as unhinged as some of his.
On November 1, Arix agreed to sell its assets to RTW Biotech, another UK-listed life sciences investment company, via what is mainly an all-share deal. It was billed by Arix chairman Peregrine Moncreiffe as a transaction with “clear strategic and financial logic” set to provide a “meaningful long-term growth opportunity”. On the day of the deal, Arix shares opened at 130p. Thursday night’s price? Just 113p.
It’s not hard to see why. If the deal had been structured as the acquisition
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Thanks skid35, pretty scathing isn't it!
https://www.thetimes.co.uk/article/dont-swallow-dogs-breakfast-deal-at-arix-bioscience-b9r0x2g5n
(For non-subscribers, ohisay on the adfvn discussion board has done a cut&paste.)
Https://www.stockopedia.com/content/investment-trusts-some-thoughts-979216/
"I am just about over the terrible deal the board of Arix Bioscience (LON:ARIX) did with RTW Biotech Opportunities (LON:RTW) . Shareholders were not given a great deal- one shareholder got cash and all because it was an asset sale not a takeover. To be fair despite being less than happy about the outcome of the strategic review I see the Chairman of Arix has been buying shares- 100,000 over the last couple of days. If you want to invest in Biotech, buying Arix is a cheap way in to RTW Bio. And I read corporate broker Peel Hunt has stated the deal is not great for Arix shareholders maybe there could be ...
Lesson is beware an activist fund who bought from a distressed seller and was not really interested in biotech."
Downgrade from 172p to 115p, and it's worth reading this :
https://www.theaic.co.uk/aic/news/citywire-news/peel-hunt-downgrades-arix-after-rtws-opportunist-acquisition-proposal
Thanks Steeltrader9, very good find!
https://www.burges-salmon.com/-/media/files/publications/open-access/guide-to-public-takeovers-in-the-uk.pdf
In coming up with the 'implied price' of 143p, they've failed to take into account the potential future flood of sales of RTW shares by those ex-Arix holders who don't particularly want to be RTW holders. RTW is quite illiquid (50-odd trades today, but usually less than 10) and has a bid/ask spread to match. Mr Market has anticipated this though, and their SP is already down to $1.06 bid, compared with the $1.1847 they used in their calculation.
In addition retail investors may also be hit for currency conversion charges. There is RTWG, which is £ denominated, but that has even fewer trades and a 10% spread!
Acacia, of course, would be immune to all this...
BTW The presentation is here, including a few words from Robert Lyne, but it's all pre-scripted management-speak:
https://www.rtwfunds.com/rtw-biotech-opportunities-ltd/results-and-presentations/
The 1pm Q&A might have been interesting, if we'd been invited...
Simon Thomson:
https://www.investorschronicle.co.uk/ideas/2023/11/01/is-rtw-s-offer-for-arix-a-good-deal/
"So, although I feel the combining of the two groups makes strategic sense, I would hold out for an improved offer from RTW. Hold."
Stockopedia commenters aren't happy either:
https://www.stockopedia.com/content/small-cap-value-report-wed-1-november-2023-spe-vtu-eck-978918/
When To Exit The Uranium Trade - Fabi Lara & Steve Mueller. An interesting dicussion between two people who are very knowledgeable while not claiming to have all the answers:
https://www.youtube.com/watch?v=D1EtqEzj5Qw
(But the answer is probably not yet for quite a while.)