Amigo Share Discussion Threads

[supercity] 16/5/2022 10:20

Some real 'bury your head in the sand and ignore the facts' posts in the last few weeks.Amigo have two options (as stated by Amigo last week).1) wind down the company (shares become worthless)2) significantly dilute the shares to raise money (shares will fall drastically) and they will be left with virtually no assets.."However, the New Business Scheme still needs to be sanctioned by the Court, and a significantly dilutive equity issue is needed to fund the Scheme and to recapitalise the ongoing business given the requirements of the Schemes for the transfer of virtually all existing assets to the redress creditors..Ignore those telling you otherwise - only fools and the gullible are buying this after that RNS

[sianhan] 16/5/2022 08:12

@Blackhorse23 you reckon have you looked at MLC’S APR rates 111%-498%

[blackhorse23] 16/5/2022 00:00

Amigo , need to approve from court , then placing & raises funds , settle claims , long way to go . MCL fill up the gap

[dexdringle] 13/5/2022 18:06

Perhaps its time for a recap of what went wrong here. And how Amigo went from a NAV of 30p a share in 2020 to one of -25p a share in 2021.

I assume all loans are being collected and the "I didn't understand it mister" defence of the guarantors (who suddenly didn't fancy being guarantors after all once the debtor stopped paying) held no water?

[chinese investor] 13/5/2022 14:09

"The New Business Scheme will require the Company to issue at least 19 new shares for every existing share in the Company."

"£15 million needs to be raised by a rights issue"

Therefore the new shares are going to be heavily discounted so that's good for shareholders !

n.b. current capitalisation is £33 million !

[rookieswingtrader2020] 13/5/2022 13:39

You assume that the share price automatically reflects the TERP, which is not always the case.

[dexdringle] 13/5/2022 13:09

Oh for gods sake. Rights issues don't cause share prices to crash.

Example. Company has shares yet are £1 each. You own one share. You paid £1 for it. It is worth £1.

The company then does a rights issue of one new share at 50p each for every one currently held. So the you pay 50p for a new share. You now own two shares that cost you a total of £1.50. The 'rights adjusted' share price falls to 75p so your shares are now worth THE SAME £1.50 that you paid.

This is not a price crash. It is a mathematical adjustment so that no one gains or loses. The company has raised £X new money and the value (market cap) of the company has increased by exactly the same amount.

There is no opportunity to gain because of a rights issue otherwise everyone would do it. You can't simply short it pre rights and buy it back post rights.

Regardless of how it is structured. The Amigo rights issue will be net neutral for those who take up (or sell) the rights.

[rookieswingtrader2020] 13/5/2022 12:20

Sounds like little or no opportunity for a high-price sale after a positive court judgment but before a rights-issue-announcement crash.

[brocksford] 13/5/2022 12:12

They are allowed 12 months I think but if it was me then I’d do it pretty much immediately, especially as the shares will be suspended at that time.

[rookieswingtrader2020] 13/5/2022 11:36

I wonder how long between: (1) court judgment(s) from the next hearing(s); and (2) publication of the terms & price of the rights issue

[dexdringle] 13/5/2022 10:36

"Blackhorse23 13 May '22 - 09:38 - 22784 of 22784

Trading will be suspended soon"

=================

Wow Blackhorse, you are good.

It's not like the same thing WAS STATED IN TODAYS RNS. Oh wait.....

RNS "Proposed temporary suspension of shares"

"In order to avoid the possibility of asymmetric information in the market during the period of the Court hearing, Amigo intends to request from the FCA a temporary suspension of its listing of its ordinary shares of 0.25 pence each nominal value, which are listed on the Main Market of the London Stock Exchange ('Temporary Suspension of Shares') for the period from the date of the Court hearing, starting 23 May 2022, until such time as the Company has time to update the market"

There are some weapons grade numpties on this board 😂

[blackhorse23] 13/5/2022 09:38

Trading will be suspended soon

[blackhorse23] 13/5/2022 08:43

Sold amigo & bought MCL which is leader of UK lending at the moment

[dexdringle] 13/5/2022 08:42

For gods sake supercity, give it a rest will you.

I'm not sure whether you think you're doing everyone a favour in a "mind that bus" kind of way - but it's really, really, tedious now....

We're all big boys. We know the risks. We don't need your advice.

Just bloody short the thing if you think it's a no brainer dog. Otherwise please just STFU.

[duck_and_dive] 13/5/2022 08:05

Atlas selling more now.

[supercity] 13/5/2022 07:35

Don't ignore the signs

[supercity] 13/5/2022 07:35

significantly dilutive equity issue is needed

[supercity] 13/5/2022 07:34

Don't moan in a few weeks that they didn't warn you - these shares are going to drop massively from here."However, the New Business Scheme still needs to be sanctioned by the Court, and a significantly dilutive equity issue is needed to fund the Scheme and to recapitalise the ongoing business given the requirements of the Schemes for the transfer of virtually all existing assets to the redress creditors.

[johninch] 06/5/2022 14:04

Correction 0.3p

[johninch] 06/5/2022 13:59

I am new here. I have 150,000 shares and according to your calculation, times 19 I will be able to buy 2,850,000 shares at .03p which will cost me £8,550 and produce £25 million in total for the company. If they need double it will cost me £17,000. Seems reasonable. So why are the existing shares going at 7p, which is 25 times your assumed issue price?

[dexdringle] 05/5/2022 10:21

....if you say so 🙄

[spirito] 05/5/2022 10:15

cloud and cuckop

[dexdringle] 04/5/2022 11:26

You literally can't say that as you have no idea of the terms.

Imagine they issue 9 billion shares (475 million x 19) at 0.30p a share. Which is £30 million. Assume that adds to the market cap which is then £60 million with 9.475 billion shares in issue. Which is 0.7p per share. The dilution is irrelevant as long as the shareholder takes up the rights.

[spirito] 04/5/2022 07:22

at a 19 to 1 dilution looks very overpriced