Auhua Clean Share Discussion Threads

[clond] 01/9/2010 12:33

Can anyone explain this in laymans terms

I gather the notes are going to be converted into shares at an agreeable amount.

This increases shares in the company over and above the 75% which means the company has to delist the shares for trading in the AIM.

The value of these shares haven't been quoted but where initially to a value of 74.5p.

We where trading at 10p (shares in the company at an exchange of 75% equity reduces the shares to 2.5p).

Are the shares cancelled at delisting or are they just untradeable until the company reforms, with a new value of the relisted company taking into account the new shares ?

Does anyone really understand this properly - it clearly isn't turning out the lights, more as likely refinancing until the court case.

[sundaymonday] 01/9/2010 12:27

Sleeping on the job there, Crystball?

Most people dismissed my analysis over the past 4 years in similar derisory fashion.

[crystball] 01/9/2010 12:15

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[sundaymonday] 01/9/2010 12:07

I warned my old mate PP @ 100p.

@ 65p.

@ 40p.

@ 30p.

He had his own rationale and I would like to see a brief post here (might check out the prattish TMF as well) to give his thinking.

[ls lowry] 01/9/2010 12:03

Been watching this unfold for a long time the future was bleak the company on life support. Paulypiliot taken another hit here.

Whats tragic is my bigggest investment is Elektron PLC and 6 years ago PP didn't have a good word to say about EKT.

Since then the company has transforemd itself into a rapid growh electronic solutions and product manufacturer. EKT has just about taken over Hartest PLC this will be its 4th acquisition in about 7 years.

Elektron PLC is now a mini conglomerate its beaten all the indices the last year and is set to continue to grow its turnover at a rapid rate the next few years. Moreover EKT has little debt and good assets. Its one of the few companies that has not cut its dividend in the recession.

Elektron has been shortlisted as Aim transaction of the year see 5 below:-



. AIM Transaction of the Year
"The winner of this new award will be a company that has been transformed by a single financial or commercial transaction during the period under review. This is necessarily a wide ranging award, given to recognise a significant achievement by a company in transforming itself, literally at a stroke, and thereby creating significant shareholder value. "




AIM Awards Dinner 2010
Shortlisted nominees


1. Best Performing Share
Sponsored by RBC Capital Markets
Tbc

2. Best Communication
Sponsored by Arbuthnot Securities
1. Gulfsands Petroleum plc
2. H&T Group plc
3. Hamworthy plc
4. May Gurney Integrated Services plc


3. Best Use of AIM
Sponsored by Winterflood Securities Limited

1. Avanti Communications Group plc
2. CareTech Holdings plc
3. Daisy Group plc
4. Monitise plc


4. Best Technology
Sponsored by Merchant Securities Limited

1. Advanced Medical Solutions Group plc
2. DDD Group plc
3. Immunodiagnostic Systems Holdings plc
4. Nanoco Group plc


5. AIM Transaction of the Year
Sponsored by Zeus Capital

1. Bellzone Mining plc
2. Elektron plc
3. Petra Diamonds Ltd
4. Norman Broadbent plc


6. Achievement in Sustainability
Sponsored by PricewaterhouseCoopers

1. Bglobal plc
2. Nature Group plc
3. Ocean Power Technologies Inc.
4. William Sinclair Holdings plc







7. Best Research
Sponsored by Canaccord Genuity

1. Brewin Dolphin
2. Edison Investment Research
3. David Blackwell - FT
4. Investors Chronicle


8. International Company of the Year
Sponsored by MATRIX

1. African Minerals Ltd
2. Hutchison China Meditech Ltd
3. Petra Diamonds Ltd
4. Playtech Ltd


9. Best Newcomer
Sponsored by FinnCap

1. Bellzone Mining plc
2. Digital Barriers plc
3. Easydate plc
4. EMIS Group plc


10. Entrepreneur of the Year
Sponsored by Brewin Dolphin

1. Jonathan Milner – Abcam plc
2. Nick Robertson – ASOS plc
3. Matthew Riley – Daisy Group plc
4. Colin Bird – Jubilee Platinum plc


11. Company of the Year
Sponsored by Close Asset Management

1. ASOS plc
2. Hargreaves Services plc
3. Majestic Wine plc
4. May Gurney Integrated Services

[sundaymonday] 01/9/2010 11:14

I calculate that existing shares do actually have some value, but I make that something around 0.5p.

So I am wondering:

1. why people are holding on @ 4p?

2. if it's worth shorting?

[campbed] 01/9/2010 10:39

Hi Wilba re 7169

You write

The Senior lenders have converted the Debt via notes into shares does this mean they believe ACE to be viable

The senior lender appears to be Morgan Stanley who have no choice but to
support ACE on the best terms for themselves. Hence Morgan want the
unsecured convertible debt (less senior) lenders to convert their debt into unlisted
equity so as to reduce interest and administration costs.

Your L plates might also be showing after you write:

De-listing is a sensible move to save costs and consolidate

It's actually a move forced on ACE by Morgan and is only sensible from the latter's viewpoint.

As the terms of the conversion are not known, it does not look possible to
calculate any particular value for the existing shares. The terms of the extension
of Morgan's senior debt to 2013 are also not known which will affect how the
equity is valued.

I'd suggest to existing shareholders that their shares are likely to be valueless.

Neither any position nor much knowledge about ACE apart from speed reading today's RNS

[pre] 01/9/2010 09:15

can buy under the bid...be interesting to see what happens at the EGM...

[wilba] 01/9/2010 09:13

Spread wider than a hooker at the docks on pay day.

[wilba] 01/9/2010 09:01

The Senior lenders have converted the Debt via notes into shares does this mean they believe ACE to be viable or is it their best remaing way of getting some of their money back if it liquidates.

If it liquidates do they not have to stand in line pro rata after the creditors are paid off with the rest of us??

If they believe it will re-list in time is this not a good price sub 3.7p?

The shareholders will have to vote on this at the EGM.

[pre] 01/9/2010 08:50

looks like mm's have taken out many....watch them move this up shortly,,.,

[wilba] 01/9/2010 08:48

De-listing is a sensible move to save costs and consolidate.

With the write off value its not worth selling my holding now and i will chuck the certs in a bottom drawer and have a look in a couple of years. If it folds, so be it. The deal is now done as they say and this was my riskiest punt.

The diluted value looks something like 3.7 pence. There are buys coming in at that price.

GLA.

[bsg] 01/9/2010 08:42

Some, Wilba

[wilba] 01/9/2010 08:37

bsg. Have you sold?

[bsg] 01/9/2010 08:35

Not too bad narindg

[narindg] 01/9/2010 08:34

how bad a hit bsg

[bsg] 01/9/2010 08:31

Quite a few buys yesterday as well, (me included doh !) so thats bad timing, a punt that went pear shaped.

[narindg] 01/9/2010 08:23

people taking what they can - i have wriiten mine off ..

[newm0delarmy] 01/9/2010 08:23

A lot on here just wouldnt listen...last one turn the lights off.

[double6] 01/9/2010 08:19

Will dip in at 2p for a DCB!

[narindg] 01/9/2010 08:19

i was a holder or 2000 shares at 9p ... so glad i got a small punt

[ossies] 01/9/2010 08:18

Having come across this thread only a few days ago, I have to say I am not surprised from my extensive dealings with this industry in the past (I tried to reflect this in what I wrote without upsetting anyone).