Aortech Share Discussion Threads

[25october1969] 06/12/2012 14:10

Hi Desha

"Which room"

Your question will be met with hoots of laughter on this Board as you are clearly unfamiliar with the habitat of the typical Aortech investor. Unlike many, I do still have a roof over my head, and as bedsits go it is passable, indeed most people would speed up to walk past it.

The idea of having more than one room........those were the days

[desha] 06/12/2012 13:40

Hi 25

You did not say which room ;-)
Thanks much appreciated

[25october1969] 06/12/2012 11:53

Hi Desha

Source is 2nd drawer down on my right hand side where white A4 size envelope containing my copy of Loan Note documentation resides

[desha] 06/12/2012 11:28

25October1969 5 Dec'12 - 11:03 - 1988 of 1993

Hi 25

Thanks for that clarification. I did not pick up that the 15% is net of deductions - it does not appear in the RNS, so would be grateful if you could state the source. That does have a significant bearing on the calcs.

I acknowledge the point about the equity dilution but my view was the downside was limited for noteholders, esp given that directors have participated signifcantly.

[papillon88] 06/12/2012 09:34

For what its worth I have sent an email to the FSA regarding the big seller of shares.
I accept that if a large holder wants to sell stock that is normal, however I feel that this is an exceptional situation as we are so close to an outcome.
More than likely nothing will come of it, I am just bringing it to the FSA's attention as this can be construed as irregular.

[1prophet] 05/12/2012 12:50

Good morning. It must be a big buy at this time Guys.

[day7rader] 05/12/2012 12:47

The mm offering stock is Fox Davies, they are doing it with a few stocks like pet ect. Fox aren't even on the level 2 strip.

I'm thinking its the mm trying to clear out on a lot of stocks.

[papillon88] 05/12/2012 12:29

The investment case has strengthened substantially since friday.
the shares are cheaper to buy now than they were last week, before it was disclosed that the 2 parties were in discussions.

I am very surprised that this has not been reflected in the price. The reason for this is the fact that the stock is so easily offered which is to me a major concern.

Like I said in an earlier post for a MM to be offering 75 000 shares (almost 2% of the company) at very nearly the bid price can never been seen as positive so its clear someone is a desperate seller and a big one at that, one would imagine that to have a sizebale position like this in the company the holder would have found a strong argument to be invested in the company why would they be so desperate to sell now?

[day7rader] 05/12/2012 11:20

25October1969, What's your gut feeling on AOR being bid for? Don't hold any shares at the moment,but I'm tempted to buy in.

[25october1969] 05/12/2012 11:03

Hi desha

One correction to your calculation. As I understand it the 15% of sale proceeds premium is based on the net sale proceeds after 3 deductions. deduction 1 is cost of generating the sale proceeds eg legal fees,etc lets assume $400k, deduction 2 is the actual value of the Notes to be redeemed ie $1.872m in your example and deduction 3 is the amount of the premium on the Loan Notes, again $1.872m in your example. Adding that all up would give a revised "15% premium" of ($5m -$4.144m) x 15% =$128.4k

No denying the loan notes are generous but if the monies had been put in as equity existing shareholders would be diluted to hell. This way, sure the loan note holders get the initial cream but there is still something left for the equity holders assuming that sale negotiations are successful. If sale negotiations not successful, then of course we could all be stuffed

[harrogate] 05/12/2012 09:40

As a note holder I can assure you I don't feel that lucky just at the moment !!!

[semper vigilans] 05/12/2012 09:38

I think AOR needed some financial muscle to act against St Jude or it was curtains - so I don't begrudge those putting up money if it comes off.

[desha] 05/12/2012 09:34

Hi I'm a first time poster on this board with a view to buying in. However, I am put off by the loan note terms which appear to offer most of the upside of any deal to the noteholders.

Assuming St Jude are willing to pay say $5m for Optim IP , then on redemption noteholders wil receive (on top of original investment) $1,872,000 premium + $750,000 from sale. That equates to 52% of the sale value! Clearly the proportion going to noteholders will change depending on the sale price, but in most scenarios, the shareholders will get less than 70% of upside and that's assuming a sale is completed.

Considering the short term nature of the note, I'd say the noteholders have got a very good deal! Is my maths wrong?

[harrogate] 04/12/2012 18:14

I would argue that the current share price is irrelevant to any offer anyone will make here since we are all in the dark and the share price has no information to base itself on at all which is very very unusual. I am not saying I think your £1.20 is wrong just that if that is the price that is because it is what the technology is worth not because it is 2 x curent share price.
I admit to feeling a bit uncertain, which is maybe a normal state for an AOR shareholder but I was sure we would see a decent surge in the share price this week after the court details of the "discussions" emerged late on Friday. The company has to announce something very soon here in my view especially if as seems likely we get another 7 day extension notice from the court this Friday.

[cocker] 04/12/2012 18:06

Worst case scenario St Jude drag out the situation or no agreement reached & aortech shares go down. Best case St Jude make offer for company but, at what price. Not often will any company offer more than 100% premium to the previous days share price So I doubt many here would be very happy with £1.20...

[papillon88] 04/12/2012 17:01

GAC this stock is very illiquid and fairly tightly held as you know I honestly dont think the sizes on offer are overhang

[gac141] 04/12/2012 16:09

I doubt the mm's know anything. Other than the fact there is a overhang on the stock.

[papillon88] 04/12/2012 15:58

After the recent news regarding the two parties coming together for discussion one would expect the share price to respond positively however quite the opposite has happened with stock available to buy at below the mid price and at one point today 75000 were available at 62p when the price was
60-67 right now the price is 55-65 with stock available to buy at 59p and only 1000 available to sell.
What do mms know that we dont?

[gac141] 04/12/2012 15:32

I see no reason why they would take the heart valve. Early days to say what will be the outcome. But I view the coming together as positive.

[1400] 04/12/2012 15:02

Without the heart valve.

St Jude sat on the heart valve for three years and gave it back. Why?

A dirty dealing company IMO.

[papillon88] 04/12/2012 14:49

I dont think we going to get £10 a share from STJ but Im sure a fire sale price of somewhere near £2 would certainly be considered by the AOR

[gac141] 04/12/2012 14:44

They are going to be talking that is a big plus. Maybe we will hear more next week after the court date of the 7th....

[bowmans] 04/12/2012 14:02

Soon after August 2009 the management of Active Capital Trust plc sought to identify targets for each of their holdings rather than short-term realizations. If anyone knows what price AIT considered fair value for Aortech's shares, it may conceivably indicate what price St.Jude would have to pay to bring the court proceedings to an end. On the other hand if St.Jude are only willing to pay a fire sale price, the litigation may smoulder on. As ever DYOR.

[gac141] 03/12/2012 15:26

I think we have a mystifying situation at the moment. According to the Court Documents we are going to talk with St Jude to potentially rectify this frustrating and undesirable spat between ourselves. A line in the sand could be drawn and a lot of worry and uncertainty could evaporate over night. Let us hope this is the case. But the price is down....????? No answer to that.

[1prophet] 03/12/2012 14:51

Sure is interesting. Something is the hell up. Patience.