Member Info for slowlyslowly

Interestingly, the "BOU Fundamentals" tab has the correct number of shares in issue, but the "Bou Share Price" tab has the wrong (higher) number. So it even depends _where_ on LSE one looks.

Why do you say the current issue is 8,746m shares? I make it 5,332m.

People are, understandably, confused as to whether selling shares now would reduce their entitlement under the offer. So "if I sell now, do I lose out?" is a recurring question on this board at the moment.

The really important chunk of time is from 11am on Tuesday 21st to 8am on Friday 24th.

At 11am on Tuesday 21st, the deadline has passed for taking up the offer. Individual trading platforms may give you an earlier deadline to let them pool the applications from their clients, but everyone can be sure that come 11am on 21st, you're too late to take up the offer, even if you have your own Crest account.

At 8am on Friday 24th, the newly issued shares hit the market.

In between is a GM of the company starting at 11.30am. That will trigger some definite news, the more so if the Board should meet immediately afterwards.

At some point, we'll hear what the subscription rate for the offer was, and what scaling back was applied.

At some point, we may get some new TR1s. We know from Antos that, even if someone doesn't buy or sell anything under the offer, either their holding in shares or their holding in % terms will change. So we'll start to find out who now holds what, and who's stumped up significantly more cash.

Then the new shares hit the market on the Friday, but by that point the landscape could look very different.

So the issue is now whether you lose out by selling between now and 21st because of your entitlement for the offer. The issue is whether you lose out by being out of the game by the time that 69 hours comes around.

Market close 30th April

Quite right. Flightman and others saying you can sell your original holding - be very careful indeed.

Read the RNS carefully.

As Havoc3852 has just reminded us all, here's one sentence: "If you have sold or otherwise transferred all of your Ordinary Shares after the ex-entitlement Date, you are not entitled to participate in the Open Offer."

I rang Peterhouse to check this. It means exactly what it says. They also told me that selling some of your holding between record date and application closing date reduces your entitlement accordingly.

Of course, they may not know how it works, so by all means go ahead and sell. You may find they were wrong.

As to the price drop since the offer was announced, this is not so much because people have already sold their shares (although some may have, not realising what I've just posted above), but because shares bought now do not come with offer entitlement, which means that if you buy in now your shares will be diluted at the offer, so it's less worth buying than before. But the sentiment has not changed significantly since we were at the 0.055 level prior to the announcement.

Balanced opinion? On here? You'd be lucky

You'll get someone telling you it'll got to 5p before the end of June. And someone else telling you it'll retrace to the placing price of 0.04. Somewhere in between lies the answer!

Correct, Biff

Would Antos not have had to disclose if he'd topped up?

You don't want to sell, sure. As to whether they don't want you to sell - that depends on whether "they" want the number of shares qualifying for everyone's basic entitlement to go down or not. ;-)

Incentive to buy? Sure there is. If you think the current price is cheap for what you get per share. You no longer have the incentive to buy in order to get more at 0.0125. But the fact you've lost that is already priced in. At close of 30/04 we were 0.0585. At open of 01/05, the shares went ex-offer, which adjusts the price to 0.0345 once you factor in you no longer get the offer. We're up slightly since then (about 20%), but that just means the market has continued to price these higher as the days pass. There's the incentive to buy - on 30/04, people thought 0.0585 was a good price. Since then, sentiment has risen a further 20%. Each person has to decide whether that sentiment is right.

Maybe I was misinformed by the company's broker.

Maybe.

But note that buys now do not qualify you. So it's asymmetrical.

If that's right, I have a theory why it could be set up in that way.

Someone considering a partial sell of their holding would have to decide whether to risk the possibility that what I was told is right.

I phoned Peterhouse to ask this. They said that if you sell some of your holding between 30th and the expiry time for subscribing to the offer, the number of shares you qualify for as basic entitlement goes down accordingly.

Broadly agree, Skaffen, but two qualifications.

1. I think the "in the next few days" starts after the Open Offer is completed; I expect things to move fast from there, but nothing to happen before. I may be wrong, of course!
2. I think some holders are confused by the precise wording of the RNS and not realise that by selling some of their shares they lose the entitlement to gain from the Open Offer accordingly. So they may sell partial holdings to fund their open offer take-up.

But, broadly, - yes to your "feeling"

A maxed out ISA only means you cannot deposit further funds. There's almost always nothing stopping you selling other investments (funds / shares) to free up cash in order to buy others or take part in an open offer - as long as the cash freed up never leaves the ISA wrapper.

Please ditch the ad hominem attacks, and talk about the company, its directors, its trading activities, etc. This is getting very tiresome for the rest of us who have to watch page after page of chat post scroll past. These posts are all heat and no light. Let it go.

https://twitter.com/DavidBurton1971/status/1124252179794157571

Are you considering buying or selling between now and 21st May?

You had to own shares by market close on 30th April.

You can own any number of shares; the Basic Entitlement is 1 new share for every 1 held at close on 30th.

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=PSL&ArticleCode=c79kkz0j&ArticleHeadline=Holdings_in_Company

But what happens if someone sells a third of their current holding to fund their offer subscription? Do the shares they get in open offer reduce by a third also?

As to sellers defeating the RTO. Nope. The Basic Entitlement open offer would reduce, but they'd still raise the intended funds with Excess Entitlement. I'd be very surprised if the issue isn't underwritten by someone with an interest.

They don't say, either way, what happens if you sell "some".
If someone rings one of the phone numbers listed and gets clarity, please let us all know.