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OK, but I'm still missing something. Let me put some figures on it, and you can tell me what.

Say our current market cap was £1m, and we RTO into a company valued at £50m. Aren't the private owners of that company going to have to invest £49m into PSL so that PSL has £50m with which to complete the acquisition? They'd fund that, of course, from the £50m they're about to receive when their private company is sold.

If so, then the current shareholders of PSL will then own 2% of the new company. Which means the sum value of all of our shares is ... £1m. Exactly as before the takeover.

What have I missed?

Can someone explain why we'd expect the share price to move north following a successful RTO.

Obviously, the company would then be trading in something worth investing in, so the market cap will be higher than it is now.

But doesn't the RTO process require that the previous private owners of the acquired company invest a considerable amount into PSL, so that PSL then has enough capital to buy out the acquired company? If that happens, then the market cap is bigger, but the proportion of the new company held by the previous owners of PSL will be miniscule. Assuming the RTO values the target company correctly, I can't see why the shares would move either up or down from there - surely everything is already factored into the price.

Correct @buko. That's a fairly densely packed sentence in there. Remove a few subordinate clauses, it becomes clearer:

the Company will be classified as an AIM Rule 15 cash shell
and as such will be required to
make an acquisition or acquisitions which constitutes a reverse takeover ...
or be re-admitted to trading on AIM as an investing company ...
(which requires the raising of at least £6 million of new equity funding)

@RKB: I'd already clocked the $55m loan and the parties involved. I'm being too slow to see why this proves Coeur are the planned RTO target.

Thank you - that's a very helpful explanation.

Could you also explain the bit about the warrants turning into shares on completion of an RTO. Does that mean that the warrant holders then get one share for each warrant at £0.00, and don't have to pay the exercise price to get those shares?

(It's off topic to a discussion of warrants - I'll look into the loan note. Thanks for the pointer)

So do they have the choice of (a) converting their warrants now. If done in fully, they'll pay 0.012p for their placing share, then 0.02 for each of the two exercised warrants, giving them three shares for 0.052p, or (b) letting the warrants lapse, in which case after an RTO those warrants simply become shares such that they'll have received 3 shares for a total of 0.012p.

Is that right? I'm still confused.

Can someone explain what this means in practice?

"Any outstanding Placing Warrants shall convert into Ordinary Shares at re-admission of the Company's shares to trading following the expected completion of a Reverse Takeover."

So, if the RTO completes, who ends up with what as a result of that sentence?

Correct, @MadChatter. Previous placing, he neither bought nor sold, so the increased shares in circulation reduced his percentage holding. This time, his percentage holding will remain the same, to do which he must by 14.22% of the placing.

Aaaaand... We've near enough hit the placing price by 08.05, give or take (trade went through at 0.0125). Pretty much as I expected. The question is: What happens next?

Two lovely little details in that RNS:

1. Antos is buying 14.22% of the newly issued shares to keep his proportionate stake. (Once again, we're left wondering why we don't get to hear who bought the previous issue, or who is buying the remainder. Surely it can't be hundreds of private investors - somebody must be over the notification threshold here).
2. "following the expected completion of a Reverse Takeover"

See http://www.lse.co.uk/ShareChat.asp?ShareTicker=PSL&thread=081EC595-8BF1-46D4-9927-F66C37A73EC2

https://www.charles-stanley-direct.co.uk/ViewShare?Sedol=B1TK245 (Time & Sales tab) currently shows:

Date Time Price Volume Type
18 Mar 2019 11:01 0.015 2,765,999 Unknown
18 Mar 2019 11:01 0.15 2,765,999 Buy
18 Mar 2019 10:37 0.0158 3,164,556 Sell
18 Mar 2019 10:34 0.0151 12,000,000 Sell

So they picked up a trade recorded twice at 11.01 for 2.7m shares - one at what must be the correct price, and the at 10 times that. The trouble is, the stock hasn't traded since, so it's been the last traded price on Google long enough now that they've picked it up on the half-hour to show on the 5-day graph. So we're stuck with an out-of-scale graph for the rest of the week.

Don't know. It randomly spiked on Friday by a factor of 10 as well, before dropping back to the correct level. Perhaps Google has the same problem as a number of folk on these boards, and gets the number of zeroes mixed up.

But I'm not sure the historic share price or market cap is even the slightest bit relevant. The nature of the business will be so different that you'd be comparing the historic graph of a different stock.

@RSI_russ
See rule 15 on page 8 of https://www.londonstockexchange.com/companies-and-advisors/aim/advisers/aim-notices/aim-rules-for-companies-july-2016.pdf then the section on Rule 15 on page 39.

Morning Star currently estimates the NAV to be 149.98 per share. So even after today's rise it's on a 5% discount. For most of the past 3 years, you've been lucky to pick it up at anything below a 5% premium; the past 6 months have been an oddity. (Or, if you want a different narrative, you could of course argue that the past 6 months have been the beginning of the new norm.) It's clearly cheap now compared to its relatively short history. The question is: Why?

@toomuchshine: You ask "What placing?"

RNS, Wed 6th March:

The Company is pleased to announce that it has raised gross proceeds of £170,000 through the placing of 1,700,000,000 new ordinary shares of 0.01p each (the "Placing Shares") at a placing price of 0.01p each (the "Placing Price") (the "Placing"). The Placing Shares are to be issued within the Company's existing share allotment authorities.

Only reduced in percentage terms because of the placing.

He hasn't sold a single share.

Interesting - back to 0.025 in the closing auction.