RE: Nice start25 Oct 2023 10:13
Mark,
Just look back at the history over the past 6 years, they have struggled to het anything off the ground and moved from one thing to the next, I wouldn't be surprised to see them change tack again and again. There are many companies like that on the markets, lifestyle companies for the BoD and great pickings for the advisors, however without much to show for the long term shareholders.
What has never really sunk in here, is that an RTO by DKE to another company will be massively lop-sided, DKE has no cash, large debt and a listing on the main market still I believe in the construction and development sector. So would still need a Prospectus, etc to change sectors.
So the cost saving of an RTO is already being eroded.
Next how many companies want to list straight onto a main listing (I know DKE could try and RTO and relist to AIM, which might be more suitable due to the rules on market cap).
Lastly if I have a company worth £10m and say value the costs of listing on AIM at £2m then I would want 83% of the company. That leaves 17% for the DKE holders. Now as DKE has no real cash and has debts of over £1.5m let alone the need for a Propectus to change sectors possibly being needed, then the attractiveness of an RTO with DKE is reduced.
Finally why do most private companies look to list? To raise capital from the markets, which would mean dilution for current shareholders or for founder Directors and Stakeholders to realise some of the gains, which may mean they are less intent on delivering in the future, but looking for a way out.
So in a nutshell, I think the DKE Management have acted in a poor manner for years and that has continued up until today and I don't see it changing. There may be an initial profit to be made with a pump and dump on news, but look back to just before suspension and after coming out and you will see the same names pumping this and they have disappeared now.
Good Luck to those that want to persist with it, but please do look at the potential negatives, when you lose all your capital it is really hard to get back, if you take a reduced amount off the table there is still a chance to build it back elsewhere.