Collagen Solutions Share Discussion Threads

[w t tutte] 03/9/2020 16:02

Moon, my feelings are very similar. I need to turn it all over in my mind for a few days. I am pretty dead set against 6.5p but would I accept 8p ? A few days ago it was a clear NO, right now I am just not sure.

[moontheloon] 03/9/2020 15:50

I'd take 8.5p which reflects current opportunities which are pending

[w t tutte] 03/9/2020 15:46

NXC - Thank you for your sincere and reasoned response, while I remain convinced that in time there is substantially more value to be extracted from the business you have certainly provided food for thought and given your experience it would be foolish not to reflect on your views. I guess I need to think about to what level I would find acceptable today, if they were to come with an improved offer. At the moment I know 6.5p does not feel right but I am not sure I know what price does. Thank you again.

[moontheloon] 03/9/2020 15:32

There is also significant upside and 3 plus years of investing and supporting and being passionate about the company my only real gains are a few speculative low trades alongside my core holding. It doesn't sit well someone coming along with an imo not so generous offer. The current year and pipeline shows the company is about to finally give something back to investors. The deal isn't it's kind of saying thanks very much but f off

[nxc] 03/9/2020 14:57

WTT - yes I have signed an irrevocable undertaking as set out in the RNS. I have had no engagement with the offer or so any comment from me is just speculation - I really cannot see them paying more and despite some comment to the contrary I believe the Board ran a fair process and the outcome is not some form of stitch-up but one that was exhaustive and involved more than one party allowing Shareholders to benefit from some competitive tension. I still view de-listing as a real possibility and whilst it is no walk in the park the minority shareholders in that situation are left batting on a sticky wicket particularly given the Company will require further funding in my opinion.
I understand why some Shareholders view this deal as being sub-optimal and it was not the outcome I envisaged when I set out on this particular journey in 2012 when I acquired the assets out of the Administration of Angel Biotech but overall I think it is a deal that works for all stakeholders compared with an alternative where there is significant downside risk in the event of deal failure.

[w t tutte] 03/9/2020 14:34

NXC that means you have already agreed to sell your shares ? I get then why you would want 6.5p to go through, as your exposure is certainly meaningful. Would you be prepared to speculate on the next steps in the event that they don't get the 90% ? Increase offer, walk away, some other alternative. From experience and for reasons articulated earlier and assuming they are rational, the only option I am confident they will not pursue is de-listing.

[nxc] 03/9/2020 13:40

Moon - I have not posted historically (pot/kettle) as up until July 19 it was not possible as I am the former Chairman of COS - I think you fundamentally mis-understand the situation but I respect that as a Shareholder you have the right to air your views and vote in accordance with what you consider to be your best interests.

[moontheloon] 03/9/2020 13:11

Id like to find historical example of offer prices being refused and increased... Maybe happens a lot but can't see a multi billion operation cancelling deal over a few more million to take control.

[moontheloon] 03/9/2020 12:42

There's bound to a company associate on here to say how bad things will be if we don't sell to the offeree.... And there is a sudden interest in one person despite never posting before historically. The sudden talk of a definite placing is scare mongering and any share issue if it happened will take place at a higher more positive and optimistic mark once chondromimetic is approved at CE level. IMO this is in the bag or close and they've delayed announcement as rosen will have to pay a few million more for the company to it's patient shareholders.The way I see it is we have already had positive news flow about earnings surpassing any previous with postive ongoing forecasts for the year, so the business is operating better with more solid ongoing revenues which was always the plan. ce mark approval is probably days, maybe weeks away. And money wasn't it a completely dire state to make a placement immiment. I It's in the best most positive period in my time as an holder, all the things that I've held for is why rosen now want to grab it and stuff the shareholders.

[40 fathoms] 03/9/2020 12:21

If they see they will not get to 90% with 6.5p they will increase the offer. Clearly, I am not the only one to think so, there have been a number of trades over the last few days in excess of the offer price.

[nxc] 03/9/2020 11:08

Interesting observations WTT - it will require deep pockets to fund COS given its Shareholder base. You are also discounting the downside risks to the business.

[40 fathoms] 03/9/2020 10:31

I am with Moon on this one. Not a chance they will delist and if they did they will certainly regret it.

[w t tutte] 03/9/2020 10:19

NXC Why do you feel the risk of de-listing is high ? As it was explained to me last night if they can get the levels of approval to consider de-listing they can also get to the levels of approval to change how the takeover is done and force out the minorities. To the extent this is in fact true, why would they delist and not force out the minorities ?

[nxc] 03/9/2020 10:03

There is a high risk of de-listing and 6.5p is preferable to raising money at 1p/1.5p

[w t tutte] 03/9/2020 07:02

I asked an old colleague of mine to give me a view on all this. He feels as it is currently proposed they won't get the votes to squeeze out the minority shareholders, also that there is a low risk of delisting, he feels there are better ways to deal with minorities and they will need/want control if they are looking to relist the business in the future.

His money was on them either walking away or sweetening the offer. To my mind either of those are preferable to 6.5p.

[interstellar] 02/9/2020 16:31

final offload today

[40 fathoms] 02/9/2020 16:02

They will increase the offer or walk away, in my view.

[40 fathoms] 02/9/2020 15:12

There is no way they are going to take the reputational risk of delisting with disgruntled minorities on the register.

[w t tutte] 02/9/2020 13:08

I was just logging off for the day and I saw that ODDO BHF Asset Management SAS bought shares yesterday. Why would they do that ? Offer is 6.5p, they paid 6.3p, so on 1.2 million shares so they might make 2,400 quid before taxes and commission.

[w t tutte] 02/9/2020 12:51

NXC, your comments yesterday were all well made and certainly made me think. However, from experience of being involved in an private company with many smaller shareholders, who on paper have have limited rights,I know that for management/directors this is no picnic. An inordinate amount of money and management time was spent on maintaining registers and dealing with shareholders. Based on my experience I am reasonably confident they will want complete control.

[nxc] 02/9/2020 11:27

They already have effective irrevocables of over 50% - the 90% target can be varied at Rosen's discretion. Being a minority holder in an unlisted vehicle is in my view deeply unappealing.

[moontheloon] 02/9/2020 09:58

Kind of like first daft offer for a car.... Give yer head a wobble and think of another number. I would have accepterd in the region of 8.5 to 10p

[moontheloon] 02/9/2020 09:55

90% is a high target let's say 40% large holders directors and institutions... Can't see alot of people liking the offered amount unless carpet baggers from recent low and interim offer period