The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I think they would for profit but not for loss.
Trolls in overdrive since the RNS’s dropped on Thursday evening.
The way they’re painting this outcome looks like theft on the part of SDRY and JD. I think the very least the company can do is disclose JD’s rejected bid as they’ve rejected it in the interest of stakeholders and shareholders.
It’s certainly not in my interest as a shareholder to dilute my holding.
Clutching at straws probably but
If JD scoops the dilution he’ll certainly breach 30% hence he be obliged to make a cash offer for the entire share issue. Thems the rules. It’s possible that the BOD thought 79p undervalued the company and that’s why he’s taking this approach. Depends on the level of dilution but for arguments sake if he buys another 100m shares he’ll effectively own 65-70% of the total issue. The max he’ll have to pay is half of 79p. Thereby rinsing shareholders but still more than current value and significantly more than Tuesdays opening price?
I owe sheltee an apology for calling them a tool and accusation of fake news.
I clearly hadn’t seen the sudden barrage of RNS’s after the close.
Had some time to digest them now. Not we were hoping for however I don’t believe all is lost.
The suggested equity raise funded by JD will require shareholders approval, unlikely unless threatened with a CVA.
I’m guessing his bid was too low, shame they omitted the numbers from the update.
Furthermore, the RNS goes on to state that JD and anyone in concert can bid for a further 6 months.
If he supports the raise then surely he’ll own more than 30% and be obliged to make an offer. Obviously the longer this drags on the lower his offer must be so it’s in his interest to drag it out.
There are still so many possibilities, sounds like I’m ramping but I’m trying to fathom where this is going. Expecting a painful start to Tuesday’s trading as the fuel is clearly there to give shareholders a good beating.
Have a good weekend if you can, I’m struggling
Rule 9.5 of the takeover code FYI
https://code.thetakeoverpanel.org.uk/tp/rules/rule-9/rule-9-5.html
Noob
My understanding is that if 30% is indeed breached they are obliged to pay the highest the SP has been over the 12 month period, not the highest JD has paid so it should be 116p not 79p also the norm is a 10-20% premium on top.
That’s my understanding, happy to be proved wrong.
And they are in full swing this morning.
It’s comical.
Gary and Scotty the tag team.
I sincerely hope you fail to get into the heads of anybody as your nonsense is nothing more than playground rubbish.
Anyone still holding is very unlikely to bail when we only have 1 trading day to wait.
If JD was walking away, he would have done by now.
It may only be 50p but it may also be 150-300 none of us know but it’s coming and soon.
GLA
Gary
That’s exactly why JD is going to buy the company.
EBITDA expected to be 60m + in the near future, cost cutting is working, he can buy it now relatively cheaply and re-list in a few years. He’ll make a fortune and he knows it. 620m revenue with a 52% margin, once overheads are under control and loss making shops dispensed of, kerching
No CVA required
Can’t blame anyone for thinking the worst last week after the constant deramping and the SP heading down. Those of us that held will be sighing with relief and some justification that we were right (for the time being)
Personally I still believe this will come good. Will there be more games before the 29th? Possibly but I’m not selling a single share until we get a bid. It’s coming, probably!
GLA
Utter tosh Gary
Korea/China IP sold for 50million
India 40million
Currently the Uk market values the company at 24m, pathetic and doesn’t come close. 620m revenue, 40m in savings already on the cards.
I’d imagine if they really were up against the wall they’d sell another IP, say North America which is probably worth north of twice the current Mcap.
No doubt a bid will come in and it’ll have to be sufficient to warn off the likes of Next and anyone else with deep pockets watching and waiting.
I’ve no idea how much the offer will be but I for one think it’s worth waiting 5 more days to find out.
GLA
Exactly, low volume makes it too easy to drop the bid and scare PI’s into selling. Also, Ted baker going into admin seems to have caused a drop! SDRY is not Ted baker, it’s all games IMO. Just gotta ride it out whilst wishing I’d waited to average down. Oh well
Rock8
I’d be very surprised if the board would have entertained him if he didn’t show proof of funding. At least in principle.
My guess is they’re dotting the I’s and crossing the T’s before declaring the offer which will most probably have already have been approved. The only real question is how much?
I’m with fordy on this.
I also think given the low volume and downwards trend that people have become less confident in their investment and taken a hit. Can’t blame anyone for wanting to protect themselves. Just seems a shame so close to the 29th. 6 trading days to wait but if people feel the downward trend means a negative final result, so be it. My feeling is they’ll kick themselves when the bid comes but I could be wrong. I’m sticking out now to the end. 32p average so no other option in my mind.
GLA
Dean
That’s all fair and possible, frankly anything is possible, it’s a matter of what is most likely and I’m in too deep to call it unemotionally, therefore I will defend my decision and support a buyout by JD. He said it, not me!