Thoughts appreciated13 Feb 2024 16:58
Long time lurker here, looking for some thoughts from others.
I have a few shares in this company and am considering how to vote. I am minded to begrudgingly support the motion - anything to give the company a fighting chance and recover some of the value from my holding. Lots of other companies are struggling for finance at the moment so I don't entirely blame the board for it having reached this point.
However, I don't understand this part of the disposal process: "Upon completion of the Disposal, the Company will be regarded as an AIM Rule 15 cash shell, having ceased to own, control or conduct all or substantially all, of its existing trading business, activities or assets. The Company will therefore need to, within six months, make an acquisition or acquisitions which constitute a reverse takeover under AIM Rule 14, failing which trading of the Company's shares on AIM will be cancelled."
What incentive would the board have to use the shell company to make an acquisition which constituted a reverse takeover, within six months? If they have created a new company and have permission to allocate 100% of the shares, surely they would just use this new company to raise capital, and leave the shell to cease trading? If someone could explain to me why the board would do the reverse takeover (i.e., why it would be in their interest to do it), that would be appreciated. As otherwise it just looks like they're gifting them all the assets and dumping the shareholders (turkeys voting for Christmas being the analogy which comes to mind). And if that's what they are doing I will certainly vote against.
Second question - I presume there's no way we can engineer an ousting of Rob Richards as CEO? I'd be much more willing to vote for the proposal if his departure was the quid pro quo.