Member Info for WG213

Groover: The Standard.co.uk article below is 100% incorrect with the reference to Hyve. The share price was never close to 6000p.

Roguemaile1: The shareholders who fully took up their rights issue suffered no dilution, so if things went back to pre covid, I believe they could expect the share price increase to approximately 600p which was in early January.

Now regarding how 600p was calculated. On the morning of 28th May when the price was adjusted as a result of the rights issue, the share price dropped approximately 43%. The HL chart adjusted their charts to behave as if the 43% dropped has always been present. So the early January price of 1000p was reduced by approximately 43% to get close to 600p.

The dilution (69%) of your portion of the company referred to does not mean the share price will drop 69%.

Those that didn't take up the rights issue, and kept their original shares will expect a larger percentage increase to get back to approximately 600p, compared to those that took up the rights issue. However, the former would have received cash for their losses.

I hope you are not referencing the google price chart as that is inaccurate. Best to reference the chart on HL or london stock exchange.

Hmm. I have received my shares from HL.

I can't recall if you mentioned which investment platform you are using, but any technical issues should be ironed out by today or monday at the latest. The bigger question is whether you should sell or hang on. Again, only you can decide that partly based on the reasons you invested in the first place. Why were your reasons for investing and your approximate entry price, post consolidation?

I believe it does. HL and London Stock Exchange website have the same chart.

No idea for Friday. The short interest has gone up from virtually 0 to 6.32%, mainly Guevoura Fund, over the last 2 weeks. I note that the fund seems to only short companies undergoing rights issue, and that might be depressing the share price. They normally exit their short within a 3 or 4 days but they seem to be increasing their short with Hyve. Not quite sure how it will play out.

I am still hopeful for close to 200 by end of June.

The dilution already happened on 28th May. The market cap will rise but the share price will move according to normal demand supply factors.

I use HL as well. You should have received a message or letter saying the below.

Hyve Group plc Rights Issue - Important information about your shares



Dear xxx



Hyve Group plc wants to raise approximately £126.6 million (before expenses) to support the company in light of the COVID-19 pandemic. To do this, they are giving existing shareholders the chance to buy an extra 9 Hyve Group plc shares for every 40 shares held at close of business on 27 May 2020.



Before opening the Rights Issue, the company implemented a consolidation where shareholders at close of business on 27 May 2020 received 1 new share in place of every 10 previously held.



As you held xxx Hyve Group plc shares (before the 1 for 10 consolidation) in your HL Stocks & Shares ISA, you’ve been credited with xxx Rights. You can choose now if you’d like to take up your Rights and purchase extra shares. The easiest way to do this is online and the deadline to give an instruction is noon Tuesday 9 June 2020.



You have three options



Do nothing
You don’t have to take up your Rights. If you don’t, your Rights will be removed from your account. If the share price is above 69p when the offer closes, we’ll pay the difference to you, minus any expenses.



Take up your Rights
You can choose to buy up to xxx shares at 69p each, totalling £xxx.



You can buy one extra share for each Right held. You cannot buy any additional shares on top of this.
As your Rights are in an ISA, you can buy the new shares in your ISA or in a HL Fund & Share Account.
Your new shares will be bought at 69p, regardless of the price of Hyve Group plc This means you could end up paying more or less than the market price of Hyve Group plc shares. So it’s a good idea to check the current Hyve Group plc share price before making your decision.


How to take up your Rights



Make sure the cash you need to buy shares is in your capital (not income) account by Tuesday 9 June 2020 and remains there until we debit the cash, expected Wednesday 10 June 2020. If there’s not enough cash we’ll only apply for as many shares as your capital balance allows. Cash from top ups and sales can be used to buy new shares.
Choose the Corporate Actions icon on your Hyve Group plc Rights and follow the steps. Please state clearly in the further details box if you wish to take up your Rights outside of your ISA.
Alternatively you can call us on 0117 900 9000 or send the enclosed form to Freepost Hargreaves Lansdown.


Your new shares are expected on, or around 12 June 2020, and we’ll add them to your existing holding.



Sell your Rights


If the share price is above 69p your Rights are expected to have a value of their own. Instead of taking up your Rights you can sell them online or over the phone at our normal dealing rates.



If you’d like to sell some of your Rights and use the proceeds to take up the rest, call us on 011

1. The rights should have already been allocated to you. The rights will convert to shares and be allocated to you on 12th June. They should automatically take the money from the cash in your trading account. But u need to confirm with them as we use different brokers. They should have sent you an email detailing this. Mine did.

2. Yes

Hi Dprogerson, I am surprised your broker doesnt know what is happening. Who do you use?

As a summary, due to the dilution of the rights issue, yours and everyone else's shares dropped overnight on 27th May. You dont actually lose money since you were credited with nil paid shares. The number 13031 given is correct by the way.

If you have £8991 you can register your interest to buy the rights issue before midday 9th June depending on your broker. If you have money, best to register interest immediately.

If you dont have £8991 you can sell your nil paid rights with your broker and they will give you cash roughly equivalent to the recalculated loss incurred overnight on May 27th. Or you can sell part of the nil paid rights for some cash to use to to buy the remaining nil paid rights.

Your broker should not have told you not to worry about nil paid rights but should have explained something similar to what I said.

Some helpful links are
https://www.sharesmagazine.co.uk/article/how-rights-issues-work-and-the-decisions-investors-need-to-make

https://www.investorschronicle.co.uk/comment/2019/12/18/how-to-understand-a-rights-issue/#:~:text=A%20rights%20issue%20gives%20existing,each%20existing%20share%20you%20own.

Hi Saadua, based on the timing mentioned, you do not qualify for the rights issue by buying shares as the deadline was close of business on 27th May. Shares went ex rights on 28th May.

Each 4 shares gives you 9 new ones. Not each 9 shares give you 4 new ones.

If prices went back to pre covid then it would go back to around 615p.

This is due to the consolidation and ongoing rights issue. Some charts are not designed for rights issues.

Do we know what the cash burn is for the next 12 months?

Please note this is not 10p in old money. It is more like around 17-18p in old money. Please consider the dilution.

The rights issue is still open and closes on 11th June. Even though the record date was 22nd May, most brokers (e.g. Hargreaves Lansdowne) still allowed you to buy shares with entitlements up until close of business on 27th May. If buy shares now, you will not be entitled to participate in rights issue.

The ex rights price from close of yesterday, including consolidation is 105p. So anything above 105p today is an increase from yesterday.

I think the price is likely to fall heavily tomorrow as it goes ex rights. However, this does not necessarily mean you have lost money, as you will be automatically credited with Nil Paid rights that allow you to buy shares at 69p(0.069p) or sell those Nil Paid rights at the market price. If you buy your full allowance, you will not experience any loss, apart from any normal increase or decrease in share price.

Hi, you need to decide if its a positive or not. The company has said they need money to reduce net debt otherwise they will fail their obligations with creditors. Personally I think its very positive and even more positive that shareholders are given the chance to participate.

You can buy into the rights issue from 28th May to 11th June. Your broker will likely send you further details on or shortly after 28th May. I don't think you "register interest". I think you just buy during the timeframe.