Member Info for tbow112

I wonder who makes these

https://rareearthexchanges.com/news/the-quantum-convergence-the-next-generation-of-quantum-dots/

I have suggested elsewhere that the raise might be to avoid the ASX listing complicating things.

Link works but the rest does not.

"Trades figure is irrelevant these days as half of them are worthless"

Does nobody have a broker who can explain the function of these microtrades ?

Thanks. A days drive by road according to Google maps.

One curiosity - "the product will be bagged and then transported in containers (by road) to Beira port. "

Does it say "by road" somewhere ?

In among the other CA articles I found this statement concerning placings; " At the moment, brokers must underwrite the raise before they can let retail know, ...."

Can anyone amplify what the regulation actually says.

Quick comment. I believe an AIM listing has important tax implications which cannot be ignored.

"In all my years, ive never seen raises being done at such a tight discount and if buyers were genuinely lining up to pay 32p, we would probably already be seeing them at 32.5p in the market, but we’re not."

Although I cannot think of any I am pretty sure that raises have been done at premiums, never mind discounts, simply because they solve the problem of accumulating significant quantities of shares without moving the price.

And you are missing the fact that subscribing to a capital raise is different from buying shares in the market and merits a different price. If I subscribe to a capital raise it is likely to benefit my existing holding of those shares whereas buying in the market will have a negligible effect. It may be quite rational to be prepared to buy EEE at 28p in the market but also to be quite happy to purchase similar shares at 32p in a capital raise.

"An PI open offer could take weeks, and in that time you anre guaranteed uncertainty, leaks, and the obvious forward selling by those in the know and who have no real interest in Empires development. "

AFAIK an open offer can be put together and completed within a week. And if you know how to make money from a fully priced open offer I would be interested to know how it is done.

"The other issue is “stickiness”, If you somehow managed to generate that level of demand in the PI open market, how much of it is actually long term capital? Realistically, a decent chunk (30%) would be short term money happy to take 10% and move on, leaving us shareholders with a big overhang and a stagnant share price for months as Empire shares get recycled."

I think we are both expecting a generally rising share price as Pitfield becomes operational. Why would we worry about the odd hiccup during that rise ?

"If II’s tried to acquire £8m worth of stock in the open market, IMHO Empire just isn’t liquid enough for that to happen without moving the price against themselves very quickly, which is exactly why funding calls exist."

I simply do not understand this paragraph. Both an open offer and a placing solve the price movement problem for an institution, but the open offer requires that the institution has to compete with other institutions rather than simply negotiating in a darkened room. This is likely to produce a higher price if there is any demand for the shares.

Taking a market price of 32.5p there will be people, including institutions, some happy to pay 32p, some happy to pay 31p and some happy to pay 30p so, given the size of EEE and the relatively small amount of capital required, it does not make sense to deliberately select those prepared to pay 30p.

Don"t forget it is a considerable advantage to an institution to be able to buy shares at full market price without moving the price against that institution.

"30p is only annoying if you're a trader."

It annoys me and I am definitely not a trader.

Papaduke, It is not really common sense. As I have pointed out you would normally get a higher price and raise more money by making an offer widely available.

And there is nothing complicated about an open offer as the mechanisms are already set up. All the initiating company needs to do is put together a few documents. A rights issue is preferable to an open offer but that is clearly more complicated.

Re placings, open offers etc.

"That’s because they’re easier, quicker, cheaper and in stickier hands (usually). "

This seems to be a common belief. There does not seem to be any evidence that it is actually correct.

One really has to wonder about the advice that modern companies receive. Simple logic suggests that you will raise more money at a higher price if you open a capital raise to a wider range of investors.

And yet companies continue to use placings and restricted subscriptions to raise capital when there is no reason to avoid an open offer.

Presumably this should be put down to financial advisers who put their own interests above the interests of the shareholders of their clients.

"Excellent news as it's institutional investors who are prepared to pay at very minimal discount on stock to hold........."

Very bad news. Another bloody company that has not learnt to raise money in a way compatible with shareholder"s interests.

"A have a lot of respect for Zeus but this mistake is on their doorstep."

It is not yet clear that the share price fall is anything other than a coincidence.

The failure to disclose who is behind Cascade is clearly contrary to the spirit of the regulations and continues to suggest a lack of interest in theconcerns of shareholders.