|Thanks MrPhil. That's better than I thought as I was wondering if they would simply return the original capital plus the increase already credited. Presumably the income tax deduction will apply to the additional notes issued in lieu of interest with the uplift in the original take up being taxable as capital gain.|
|Does anyone know the completion date?
|What about where the original loan amount was say £1000, which by this method would give 1,666 Shares however because of interest paid over previous years the holder now owns 1,666 + plus the number added as a result of interest|
|Hi Husbod, excerpt from the letter.
Example of how the Loan Note Proposal will work
If a loan note holder holds £10,000 of Loan Notes (including PIK Notes) he will be assumed to have received the following number of Shares:-
10,000 / 0.6 = 16,666 and two-thirds Shares
The amount paid on redemption of the Loan Notes will be 160 pence multiplied by 16,666 and
two-thirds, i.e. £26,666.67. This amount will be paid subject to relevant deductions for income
|Hi Mr Phil
I think I am still in the dark.
Are we just getting our original cash back (plus a cash equivalent of what we have received since) or shares equal to 60p each which we then get £1.60 each for? The difference involved is substantial.
It certainly doesn't look as if a counter-bid is going to appear so I'm reducing my holding a buying elsewhere. Still keeping a substantial number as "cash" though.|
|Have emailed the company and got an immediate reply with copy of the letter so all is now clear!|
|"Pursuant to and in accordance with the terms of the Cyprotex Loan Notes, the entirety of the Cyprotex Loan Notes and associated PIK notes shall be redeemed by Cyprotex on the Effective Date. Holders of the Cyprotex Loan Notes will receive separate letters explaining the effect of the Scheme on the Cyprotex Loan Notes"
So I guess we wait for the letter.|
|Husbod, sorry I missed your earlier post regarding the loan notes. I'm not sure I consciously opted for further loan notes but then it was no surprise when they were credited to the account the first time so I must have half expected that in the back of my mind! Have we had confirmation of exactly how they are treating the loan notes? Are they being converted to new shares at the rate of 60p each?|
|To anyone sitting on a profit in CRX I suspect you will have chance to allocate the cash realised is an efficient fashion elsewhere in he not too distant future. Cash could be king again for a while.
Looking at the current market I am coming round to the idea that the sale of CRX is the best outcome. They would need more cash for the move and there is a bitter wind about to blow across all the markets that would hit CRX too.
A shift down in valuations would be no surprise so the timing of this exit may be fortuotous - looking on the bright side - liberating cash.
Keep an eye on Evotecs valuation as that will be telling as to what might have happened to CRX. Not immediately but in the next 12-18 months.
CRX, a great British company but not immune from what may be about to hit the markets. You could always but into Evotec in future.|
|Evotec clearly see the real opportunity!
Cyprotex is listed on the AIM market of the London Stock Exchange (CRX). It has sites at Macclesfield and Alderley Park, both of which are near Manchester in the UK, and at Watertown, MA and Kalamazoo, MI in the US. The Company was established in 1999 and works with more than 1500 partners within the pharmaceutical and biotech industry, cosmetics and personal care industry and the chemical industry. Cyprotex acquired Apredica and the assets of Cellumen Inc. in August 2010 and the combined business provides support for a wide range of experimental and computational ADME-Tox and PK services. The acquisition of the assets and business of CeeTox in January 2014 has enabled Cyprotex to expand its range of services to target the personal care, cosmetics and chemical industries. In 2015, Cyprotex launched its new bioscience division to expand its capabilities into phenotypic and target based screening. The Company's core capabilities include high quality in vitro ADME services, mechanistic toxicology and high content toxicology screening services, including its proprietary CellCiphr(R) toxicity prediction technology, bioscience services, predictive modelling solutions including Cloe(R) PK, chemPK(TM), chemTarget, chemTox and DDI-Fusion and a range of skin, ocular and endocrine disruption services. For more information, please visit www.cyprotex.com.|
|Having given the offer some serious thoughts,I have sent in my proxy and have voted against,I think that it is in the best interests of the company its employees,their customers that CRX remains an independent British Company,
The proposed acquisition, which has been unanimously recommended by the board of Cyprotex, is expected to close before year-end 2016. Evotec will pay approximately £ 55.36 m (EUR 62.00 m; £/EUR exchange rate of 1.12) in cash for the acquisition of all 26.1 million issued and to be issued Cyprotex shares and the funding of all existing company debt.
The offer of 1.60 £ per Cyprotex share reflects a 9.4% premium to the VWAP of the past 30 trading days at AIM. The offer is intended to be implemented by a scheme of arrangement regulated by the UK takeover code, with already >50% shares secured irrevocable. The acquisition will add to Evotec's revenues and be accretive to Evotec's 2017 EBITDA.
Cyprotex is the world's largest contract research organisation specialising in pre-clinical ADME-Tox and DMPK serving the Pharmaceutical, Chemical, Agrochemical and Cosmetics markets. Cyprotex, headquartered in the UK, was founded in 1999 and is publicly traded on AIM (CRX). It has 136 employees working from sites at Macclesfield and Alderley Park, both of which are located near Manchester in the UK, and at Watertown, MA, and Kalamazoo, MI, in the USA. With more than 1,500 partners, Cyprotex has a very strong customer network. Cyprotex reported H1 2016 revenues of £ 8.73 m (EUR 9.78 m) (H1 2015: £ 6.93 m (EUR 7.76 m)) with an underlying EBITDA of £ 2.34 m (EUR 2.62 m) (H1 2015: £ 1.10 m (EUR 1.23 m)).
Clearly it is on the cusp of real growth both in revenue and profits. I urge all PI's to vote against the motion. It is also my firm believe that an American buyer would be a more appropriate acquirer,the real opportunities for the technology and services that have been developed over the last 14 years or so are in the UK and the US. Surely eventually one of the big US CRO's would pay more than a 9.4% premium, if you vote against the motion CRX will attract the attentions of other suitors in due course willing to pay more than 9.4% premium,|
|Not received voting/proxy documents from Hargreaves Lansdown, yet. Apparently they're sending them out on Monday.|
|Just had a phone call asking me how I was going to vote|
|My understanding is the interest will be payable (in the form of PIK notes] pro rata from September this year up to the change of control date according to the document. (see below).
The Convertible Loan Notes carry a five per cent. per annum coupon (after deduction of any applicable income tax) and will be credited in arrears in the form of PIK Notes to the relevant Noteholder. Such interest will accrue on an annual basis or, if redeemed or converted less than one year from the previous interest accrual date, the interest will be pro-rated for the period from the previous interest accrual date to the date of redemption or conversion.
Subject to any conversion rights being exercised by the Noteholder, the Convertible Loan Notes will be repayable on 30 September 2018 (the “Maturity Date”) or the date on which a change of control occurs and the amount to be paid by the Company will be the greater of:
l the nominal amount of the Convertible Loan Notes and the associated PIK Notes; and
l the amount calculated by applying the average mid-market closing price of the Existing Ordinary Shares in the 30 dealing days prior to the Maturity Date to the number of New Ordinary Shares represented by the Convertible Loan Notes on the assumption that conversion of the Convertible Loan Notes had occurred.|
|Lancasterbomber - I see no reason why we shouldn't. It's a binding contract that will have to be honoured albeit by bringing forward the payment. No problem in calculating it given the fixed rate of interest and the sell out share price.
I ummd and ahhhd about taking up my full allocation at the time as the amount involved was quite considerable but it has proved to be a good investment.
MRPHIL - do you recall opting for further notes in lieu of interest at the time. I don't think I do which could mean that all Loan Note holders are getting additional Notes. No wonder the take out price was relatively modest.|
|So effectively each loan note is worth 160p, however will we also get the anniversary increases for 2017 and 2018?|
|Same here Husbod, mine increase each year too. Not been a bad deal if we can convert them to shares at 60p each then sell them for 160p|
|I see my loan notes have increased in quantity as they do on every anniversary - it can't just be me who is getting additional notes in lieu of interest which again must have been something that the parties have taken into account when agreeing the take out price - three further potential increases/interest liability before they mature (as at the date the price was agreed - two more as of now).|
|RichardvSneller probably, but he has held at a lower quantity for a long while. Been in the 3% club for quite a while. Koch was another one.|
|I think your find its s,,,,,,,h,,,d|
|Just a comment on the fact that the guy, whose name escapes me, who bought loads of shares a few months ago does not seem to have disposed of any which could conceivably mean that he too thinks that a hostile bid is not out of the question. Maybe he'll make one himself!|
|Good luck with IQE - as a Cardiff boy nothing would please me more than to see them fly. I used to have a substantial position in the company but have now reduced to a fraction of the original holding as it has been a classic "jam tomorrow" situation - great technology but the market never seems to be convinced.
Having said that it could be taken out at any time as one of the UK's genuine world class tech companies.|
|bahiflyer, I like VENN, LPA and SPE. I have positions in all of them so dyor etc. I'll have a look at PURI an IQE neither of which I am familiar with, so thanks.
Apologies to all for being off topic.|