Content Media Share Discussion Threads

[pimp] 15/6/2012 12:42

wimirob , it seems it is a catch 22 scenario. The conversion of the preference shares will see the company delist and that will be the end of the small shareholder. If the resolution is not past the company say if is more or less doomed, which in my opinion is the better option - aleast selling the library will unlock some benefit for small shareholders and stick 2 fingers up to the directors.

[bozzy_s] 15/6/2012 11:58

180015 trades - fools and their money.........

[wimirob] 15/6/2012 10:36

The resolution to convert the preference shares is conditional on all the other resolutions being passed (including delisting from AIM).

The value driver is the conversion of the preference shares.

Shareholder circular is available on the company website.

[pimp] 15/6/2012 10:04

Ironic how its the first time in years we are on the leader board - esp as we are so close to the end !

[dpmcq] 15/6/2012 09:33

Think its a done deal makes no sense to buy IMO

[pimp] 15/6/2012 09:21

i honestly dont know. I suspect some are hoping it wont get enough votes to delist but this is an extreme gamble imo. Hope it does not delist for the remaining small shareholders. They need 75 % of the vote i believe.

[moneymagnet1] 15/6/2012 09:16

If this is as bad as people assume why are people buying?

[dpmcq] 14/6/2012 16:28

34Simon remember your posts, you were 100% right in your actions.
I also pointed out we are been hung out to dry, the cost of the listing is not great in relation to this compaies turnover.

[34simon] 14/6/2012 15:49

Just heard the news, I must thank the directors at the AGM for walking away from me when I tried to ask some questions, I was so furious I could not sell quick enough the following Monday after the AGM.
Sorry for the holders, I agree with others, they make so much profits they can afford the listing, prefence debt sorted so trade as normal with new stock and gradually eliminate the debt, can the vote possibly win against a delisting ?

[pimp] 14/6/2012 15:32

wimirob, i understand however as someone has already pointed out , you can now be diluted out of existence. Also , say 5 years down the line , if/when the company is making a decent profit how would you benefit besides getting a dividend ie how will you sell your shares and who will decide the price ? Private shareholder are once again left with nothing. I would rather the company go into administration - at least some value may be unlocked for all of us.

[wimirob] 14/6/2012 15:25

The company is effectively saying it can operate better and more efficiently raise capital / enter into business combinations / renew the JP Morgan debt by going private.

It is difficult to argue against that given the poor rating the shares have enjoyed for the last few years. The main reason for the poor rating has been due to the overhang of preference shares and the growing liability (currently £9.8m).

As this deal wipes out that liability (for 1/2 the value of the company in new shares) this should cause a substantial change in the company's bargaining position when looking at new business ventures.

However as anyone invested in AIM shares can currently confirm - the likelihood of raising capital at anywhere near a fair valuation is negligible. It is also unlikely that the company would attain a fair valuation on AIM even with the preference shares removed if the threat of dilution is there.

Hence the need for the company to go down the private route.

Longer term investors such an Syntek (private equity) will be looking for an exit at some point.

So in answer to your question (pimp): If you are able to take the long term view this is why you should benefit.

The downside of course will be the difficulty if you need to exit your holding (matched bargain facility to be available) before the business is sold or refloats.

The frustration for long term holders is that the potential valuation boost from the removal of the preference share overhang will not now present an immediate chance to exit. It also looks as though there will be no chance to participate in any future share issue.

[dpmcq] 14/6/2012 15:15

Ouch, only a few k for me pimp but it still hurts when you are been fleeced.

[pimp] 14/6/2012 15:13

sorry boys , what little i had i just sold. £40K loss . Ive had enough. Its been a pleasure mixing with you guys. All the best.

[dpmcq] 14/6/2012 15:13

pimp
We don't no matter what is put about matched bargains off market etc.
The PI are getting shafted here simple as that.
As someone else posted - another AIM delisting - it should not be allowed in my opinion.
Saves 150k mmmmmm hardly a salary for one of the big hitter????

[bozzy_s] 14/6/2012 15:10

Exactly. The delisting is clearly a fingers-up to PIs. Otherwise they'd have done the D for E swap, stayed listed, and continued to trade profitably and with the preference shares issue resolved, the share price would have recovered.

Of course that would've been good for the current preference shareholders too. So why they'll vote for delisting is beyond me.

[pimp] 14/6/2012 14:45

I am a little confused ,if delisting goes ahead what happens to our shares?How could we possibly benefit from a delisting?

[345654] 14/6/2012 11:14

They hold too many, so vote is waste of time, 150k a year listing is better saved, you are all long term, 10 years is 1.5 mil off debt, come back then and float again at a much better price if they are debt free by then.

The Conversion and the Bonus Issue will result in the members of the Concert Party increasing their shareholding in the Company to 48.1 per cent of the voting rights. As a consequence, the approval of Independent Shareholders is required to the waiver of the obligations of members of the Concert Party, which may otherwise arise under Rule 9 of the Takeover Code, to make a general offer to all remaining Shareholders to acquire their shares.

[bangers for bucks] 14/6/2012 10:57

Dj my 1 mill with be the same..

[moneymagnet1] 14/6/2012 10:55

please call me nieve but what exactly does this mean for ordinary shareholders like me... as they sre saying it's in our interest. I need to cast my vote for my near 2million holding. Can someone advise please.

[wimirob] 14/6/2012 10:52

fft - I guess we will all find out in due course....

At least they have finally found a solution to the preference share issue. This at least offers some hope for future recovery for those able to continue holding.

[djderry] 14/6/2012 10:43

This is absolutely shocking,just when the co. is making headway with Collins Ave,20 mill turn over,library worth £50 million plus etc.How can they do this to investors? I've held these for over 12 years,paying tens of thousands of pounds and was/am willing to hold.I will be voting my million and a half shares against.

[fft] 14/6/2012 10:23

thats not the best RNS i have ever read. Couldnt disagree with the conversion of prefs into ordinary, and the need to raise capital for future development.

However, the decision to delist from AIM, cancel all future AGM's and effectively leave PI's in the cold is not what i like to see.

We have no idea at what sort of price future placings will be made at. They, theoretically, could dilute pi's out of existence if they wanted to.

It comes down to thoughts about management,

But, if a lot of people try to sell before the delisting, the price will crash. Will anyone from syntec or others be buying ? Only if they think they will have to pay more later.

[charmer1_23] 14/6/2012 09:25

Oh dear, another delisting from AIM....

[bozzy_s] 14/6/2012 09:11

I wondered why these were down yesterday without any trades. Now I see why - MMs had insider info.