2253 days ago
Shares in Provident Financial (PFG) are falling again today thanks to weekend press reports that it is sounding out investors about a £500 million rights issue. The big question is where does this leave Britain's most conceited fund manager Neil "nomates" Woodford whose funds own 23% of the equity.
3757 days ago
A Joint offering from myself & Steve Moore: Cineworld Group (CINE) has announced a proposed £503 million acquisition of the cinema operations of Cinema City International N.V. and an accompanying 8 for 25 Rights Issue at 230p per share to raise approximately £110 million. On our Nifty Fifty website we are well up on this share tip but is there more to come?
3801 days ago
I approve of AIM Cesspit listed companies doing rights issues rather than discounted placings to City insiders. But not when the company in question is, to use the technical term, fucked. That brings me to dual listed Scotgold (SGZ) which, I have noted before on this website, is a total POS.
Last week with the shares at c1p it announced a 3 for rights issue at 0.5 cents (0.28p) per share. The fact that this company is doing a rights issue not a placing is nothing to do with its hopeless directors believing in shareholder democracy but everything to do with the fact that City punters just will not play ball. That is because ScotGold is fucked.
The company owes £1.5 million to a bank (RMB) that was mad enough to lend to a pre-production company. It has said that it may roll that loan (due for repayment before Christmas) over as long as
3814 days ago
I have received a massive response from investors, CEOs and Nomads to my articled on the Crony Capitalism that is destroying AIM. So what is the solution? Let us start with how money is raised: bring back the rights issue.
Right now for companies on AIM, money is raised by ramping the share price by paying vast sums to PR/IR people to ramp away. Private investors buy shares in the open market. At that point new shares are issued at a huge discount to City insiders who then flip.
