Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
That's approx 21m shares. The RNS states 22nd November as the date but the trading volume on that day was much lower than 21m (perhaps the 22nd is the settlement date not the trading date). The only day where the volume was high enough was the day (20th November). The volume was supposedly 49m.
Then again somebody posted that they alone had traded 30m on the day plus several others for smaller amounts.So the 30m + 21m + ? It doesn't add up. Perhaps the volumes stated on LSE are not accurate?
I've just contacted AJ Bell. Their corporate action team say everything is in place to show the shares at the correct value etc. But they are waiting for a statement from Automic (who they claim they have been chasing).
It would be interesting to know if individual holders who were contacted by Automic directly are having any problems.
My shares are in a SIPP so I don't have direct access. Maybe that's where the problem lies. Those that have shares held by a custodian ( ie. SIPP) as opposed to individual holders.
It all seems very strange especially when you consider that all the shares are held at the automic share registry.
On the 25/11/2019 keras declared that they ceased to be a substantial holder to the australian stock exchange for 723,750,000
shares.
On the same day the Ewani trust ( Family trust of Dave Reeves I assume) declared that they had become substantial holders of Calidus to the tune of 157,928,655 shares.
All this talk of paying for shares or providing the shares seems ridiculous to me. Automic hold all the shares and it is only a question of who is the owner of any of those shares. The shares can't disappear and if they change hands (apart from as in our case) they have been traded and those trades have to be shown on the ASX.
I can well understand if companies were claiming that they were waiting for the end of the consolidation etc. But claiming the shares weren't issued when the shares are already in issue is ridiculous.
Because after the split you have the value of Calidus shares ( approx 0.0035 GBP) per KRS share.
Plus todays SP of 0.00215 GBP gives a share price equivalent of 0.00565 which is a little higher than it was before the split.
Bassguy,
I agree entirely. I'm really sorry for those involved and can see how they must feel cheated.
Unfortunately though I don't believe there will be any chance of legal redress. Technically nobody has done anything wrong.
The company only have to notify the record date and any holder on that date became entitled to the benefits.
The XC date is a mechanism of the LSE for settlement and unfortunately anyone who traded before this date without knowledge of the mechanism has lost out. To be blunt lack of knowledge is no argument for redress.
It's just a shame that the company didn't issue some information on how the entire process works. But I'm certain they weren't aware and also certain that no 'insiders' bought shares on the day involved.
Hi BB2,
I really hope it works out well for you in the end. I've been holding for about the same length of time as yourself. It finally seems to be coming together and I hope that all the LTH's will finally get some reward.
Regards,
Steve
Rusell has told us what is fact - all shareholders on the record date became owners of the demerger shares.
What we do with our shares is only our business. If we trade them then the rules for trading depend on the stock exchange we are using.
If we trade ourselves and don't use the services of a broker or solicitor then it's our responsibility to make sure we understand the trading conditions.
As I've stated before I hope that nothing comes of this and that nobody makes a loss because of this.
Personally I wouldn't have risked trading the next day because I don't have enough knowledge of these things.
Pinecone, you are right.
This RNS doesn't give any clarity. We all know when the record date was and that those who held shares on the record date were eligible to receive the demerger shares.
The question of wether the ExC rules apply or not hasn't been answered!
I hope for all involved that the rules don't apply because I'm sure anyone with honest intentions wasn't expecting to buy shares the day after the record date and receive demerger shares with them.
You would have thought someone had made it a bit clearer before the event.
I think some of those buying yesterday were 'in the know' and realised most would be unaware of the rules for an XC date.
Others probably just got lucky.
Found this information on the web.
Normally! for a cash dividend the record date is 1 day after the XD (normally) But.....
Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).
If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid.
I think it will get really messy!
But it's probably like dividends. I f you hold shares on the record date you get the dividend. But if you sell before the XD date you pass that dividend over to the new owner.
Barclays are correct. You retain your holding and receive the additional shares on the record date. But if you the sell before XC you transfer that benefit.
The company were correct.
The record date was 6:00 pm on the 19th. Anyone who held shares before that date benefitted.
The only problem is that if you sold those shares before the XC date you transfered that benefit to the purchaser.