RE: Further Investigations15 Feb 2019 09:52
Having been on the ATC chat board it doesn't look like this is a scam as Hargreaves Lansdown suggests. I think its more the case that HL haven't had any information regarding DAN holders. In fact DAN apparently went into administration on 1st Feb 2019.
It looks like what's happening is that ATC would like to re-list on the main market, but is not big enough to achieve that market listing. If, however there is a market registered company thats no longer trading then ATC can reverse acquire it and get onto a main market much easier. Daniel Stewart fits the bill perfectly. So ATC reverse acquires DAN and hey presto, gets a market listing.
The next thing is what do current DAN holders get out of it. Well its looking like 10% of the new group according to ATC's offer document. DAN changes its ticker to DSS and becomes the parent company, ATC changes to ACG and the whole group becomes Atlantic Carbon Group PLC.
So if we get 10% what's that worth? Well there are figure of 100m, 200m and 300m flying about. If we say 200m then DSS holders will be worth 20m. Next question is how many old DAN shares are in circulation? If we knew that figure then we could work out how much our individual holdings are worth. Though I fear the value will be much less than we paid for them.
There maybe an option to convert our holding to the new shares prior to re-listing and this could be done at the nominal value, which is £0.025 which would be good as I think we should increase our shareholding. However our true value may not be apparent until after listing and trading starts. Any conversion to the new shares would then be at whatever the market value is, which could be anywhere between 0.05p and 2.5p, which gives us a much smaller holding.
I'm making assumptions here, but they are only assumptions. No information has been released to DAN holders or their nominees, of which mine is HL. Nobody has any real idea how this merger/acquisition will effect us, but if anyone has any further thoughts then please post. We need to know what's going on.
GLA.
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