Member Info for wordog

Corporate action is happening because the company was running out of cash for the reasons in the last RNS. BV Tech are planning to turn it around and essentially want to purchase the company but can't at a reasonable price. Only those that held shares prior to the announcement are eligible to buy at 8p, they are theoretically limited to 1 placing share for every 3 held, however i managed to get 1 for every 2 held today at 8p. There is no gaining or losing shares with the 1 for 3, i believe it's a way of limiting the number of shares taken by existing share holders to allow BV Tech to get more cheap shares. They previously paid 125 and 160!

ODonnell, BV Tech cannot buy anymore shares below 125p once this waiver has gone through. The Defenx Board obviously didn't want to sell but needed to raise cash and BV Tech didn't want to buy the company at 160p as per Aim Rule 9 obligation. This deal is odd as they are proposing rule 9 is waived to allow BV Tech to become the majority stakeholder without having to buy at a premium. As for the offering, you cannot sell shares until after they are issued on 24 April, after that you can flip or hold. I took the offer this morning and now have an average of 10 fish and doubled my holding. I'm confident this will still be around the 20 mark or higher in 2 weeks time.

Lots of small sells this morning, I guess people are wisely taking profits. Once they are cleared I bet this rallies and finishes blue today.

The open offer is only eligible for existing shareholders, i.e those who held shares prior to the announcement.

Managed to get over the 3:1 offer, closer to 2:1

I plan to apply for my full allotment today

I think they are restricting it to 1 new share for every existing 3 so that BV Tech can pick up some more.

Considering this hit a high of +95% and a low of +48% and closed between the 2 any orchestrated P&D has still left the SP considerably up on yesterday, =but tomorrow will tell if it has legs.

I�m targeting 40p short term, because... The facts are that they cannot sell any shares until May when the lock in expires, any selling after that would be at a significant loss. Therefore this latest subscription from BV Tech is a sho of intent that they are interested in DFX and want to turn it around. The waiver for rule 9 exempts them paying a mandatory price of the highest paid in the last 12 months (160p) to cross the 50% threshold. Therefore they have become majority shareholders at a premium in this latest placing. They will have to pay at least 125p to buy anymore shares until this time next year when they would pay the higher price of the current or future SP. That tells me that they are heavily involved in DFX for at least a year at the absolute minimum. After that, we might see them buy the rest of the company. Either way, positive news for a company with assets worth �10mil (see sept interims) and cash of �1.3mil, mkt cap of 2.4mil seems cheap.

It's a mandatory requirement as per rule 9 given the recent subscription from BV Tech taking their holding above 50%. However they have asked it to be waived by the shareholders to allow the placing to go through and be a majority holder without buying the whole company at a premium (125-160, their previously paid prices). However, if they wish to but more in the future, or buy the company, they have to pay the highest previously paid price in the last 12 months of the offering, currently 160p!!! https://twitter.com/smallcappick/status/982609499000360960

Correct, thats to avoid a mandatory bid at the previous price paid, which would be bad for BV Tech at this point. I think most are looking at a medium term buy out potential. Either way, cash, plus assets, plus access to new market and strategy is worth more than the �1.6mil mkt cap before the RNS. Even at the current �2.6mil it's still undervalued IMO, obviously there's still much work to do to turn it around but BV Tech are balls deep now so will use their own resources to make it work.

If BV Tech want to buy the rest of the company - See rule 9.

Ticking back up again. If this was an orchestrated P&D it wouldn't be up and down like this, at least not normally.

Spread at 22.22%, MMs taking the pi**

Cheers mate, onwards and upwards.

Dijon, does this mean they need to pay 160 per share to buy the company?

Up and down like a yoyo, tough to get a price, resistance seems to be the 20 mark, if that breaks it could do 25 today maybe. Could also be dumped, lets see how genuine it is, i'm holding for now.

You're missing out on DFX mate.

In the RNS it states that BV Tech are still locked in and can't sell shares.

People seeing potential here, this company, with the same product line, was worth �12mil recently.