Member Info for TheMadStork

When the company is wound down and the plc is liquidated. Some point early in the new year - they will call a GM first.

Also

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https://www.ft.com/content/68e8a9e3-c5f0-46be-a517-30d2f14d7df2

"Amigo declined to comment. A person familiar with the company told Alphaville that the transaction is structured as a reverse takeover that will give the consortium *nearly all* the failed lender’s equity." (emphasis mine)

Sounds like even if it does happen, current holders will get pretty much nothing.

Ahahaha that is an amazing read. Some random guy just literally searched for "company that has fallen the most" on Morningstar and happened upon AMGO. The chances of this 'deal' receiving regulatory approval are... questionable IMO.

From the Notice Of AGM RNS:

"The Board has prepared the Notice on the basis that it is in the best interests of all stakeholders to put forward resolutions that would normally be expected at an Annual General Meetings. In doing so, the Board is not expressing a view on any longevity or expected future for the Company."

People with motivated reasoning can read anything into any statement, per the famous Upton Sinclair line: "It is difficult to get a man to understand something when his salary depends upon his not understanding it."

In this case, it is crystal clear what is going to happen, as it has been ever since the company failed to secure any funding for the scheme arrangement back in March. The company have repeatedly spelled it out via RNS but the unfortunate bagholders who remain are determined not to listen.

Indeed not. Too much weight is generally placed by PIs on the trading of IIs.

I know Sharebel/Profit Jock are/were only here for a quick in-and-out-trade, but I'd love for them to explain their theories as to exactly how the company will be saved, given

-They need a minimum of £45m to satisfy the scheme and for working capital for a new business

-The market cap is £2m, meaning an equity raise is flat out impossible

-The new product failed, market conditions are appaling and the sector is being regulated out of business

-The company is being wound down, with every single £ earmarkeed for compensation payments, meaning there is no chance of setting up a cash shell

They "left no stone unturned" (per FAQ on website) in their quest for £45m for the new scheme, and failed. Nobody is going to give them cash, nobody is going to lend them money. Why on earth would they? The new product has been a failure, the guarnator loan sector is being regulated out of existence. the cost of living crisis means affordability is non existent. Where is the £45m going to come from to revive a company with a tarnished brand? Nowhere. The final outcome is *absolutely* not in doubt. That doesn't mean there isn't money to be made on a trade, but those hoping for some sort of miracle are sadly delusional and suffering from sunk cost fallacy.

Curious as to what exactly the bull case is here? The company failed to attract any investment despite a lengthy process. All of the available cash and assets are earmarked for compensation payments. The company is in the process of being wound down, with no residual value left for shareholders. Two associated companies have been dissolved. There has been no news on the (frankly ludicrous) vague debt solution proposed by Steven Fleming, whose period of exclusivity has expired without a word. The upcoming formailty of an AGM will be followed by one in which the board will receive the necessary permission to delist and enter voluntary liquidation.

All of this has been spelled out in RNS. Why are people still buying shares? Doubtless there will be ups and downs, but this can only end one way.

The RNS couldn't really be much clearer. It's been over ever since they failed to secure any investment back in May. Doubtless there will be ups and downs before it delists and is liquidated but the final outcome is absolutely not in doubt.

Yes got mine with HL

They would need to get a new scheme approved by the court, otherwise they are legally bound to commence windown if they can't raise the funds. I think it vanishingly unlikely the court will agree to any new scheme.

The sums seem pretty simple to me: do the wind down admin costs exceed £15m? If so then they might have a chance. I think it *extremely* unlikely.

Ex div on the LSE is tomorrow.

I think it's more a case of the large seller finally dumping the last of their stock.

Because they are bankrupt and need to do a massive D4E swap which will leave existing equity with little or nothing:

"As previously announced, it is expected that any de-leveraging transaction will result in very significant dilution or elimination of existing equity interests in the Group and there is no guarantee of any recovery for holders of existing equity interests."

Actually we do know, because they have spelled it out. There will, best case, be a balance sheet restructuring involving a debt for equity swap and effective wipeout for current equity.

Any rescue bailout/debt for equity swap would result in at minimum 10x shares in issue, possibly up to 100x. Current equity is going to be wiped out. They have said as much in the RNS; anyone buying this for anything other than a short term trade is frankly delusional in my view.

Dilution on the scale necessary to take a decent chunk out of the secured debt and provide sufficient short/med term liquidity will be so large as to leave current equity almost worthless. That £45k, if held for the long term, will be worth around £4k max.

And that's the best case scenario. My view is that administration and dumping all the liabilities on the PLC makes the most sense. In that case your £45k will be worth £0.

Shares held in a SIPP are not subject to withholding tax.

Non-ISA Trading account: 30%
ISA (with W8-BEN): 15%
SIPP: 0%