Gw Pharmaceuticals Share Discussion Threads

[pj84] 27/10/2016 11:51

Masingi HL are Hargreaves Lansdown.

[etarip] 27/10/2016 11:40

He was not at all encouraging, but understood the problems we are having. He would not have been in any position to say something would be done. One can only hope.

[future financier] 27/10/2016 11:38

masingi - where did you get this advice from TD? - All I can see is "GW Pharmaceuticals Plc has announced its intention to cancel the admission of its Ordinary shares from trading on Alternative Investment Market (AIM) on 5th December 2016. GW Pharmaceuticals Plc will retain its U.S. listing on the NASDAQ Stock Exchange of American Depositary Receipts (ADRs) under ticker symbol GWPH. The announcement includes conversion of the Ordinary shares into ADRs. Please note we are verifying the full details and a corporate action including the options available to you will be dispatched shortly."

The Ords will not cease to exist and directors will I suspect continue to hold most of their interest as Ords (unlisted). Citibank acts as the conversion mechanism for the ADRs - they buy 12 Ords and simultaneously issue 1 ADR - there is absolutely no change in the legal status of the Ords - except that they cease to be tradeable on AIM and hence the online brokers apparently struggle to maintain them within their systems (irrespective of the tax issue for ISAs). You could probably apply to have shares in a simple trading account translated into certificated form - but this would not work for SIPPs or ISAs.

TD really need to extract their digit and decide what they CAN do!

[masingi] 27/10/2016 11:32

PJ84: Who's HL?

etarip, Thanks. Are they going to do anything about it?

[etarip] 27/10/2016 11:22

masingi:

I have spoken to someone at GWP. They are aware of the problem.

Also he said he reads this BB.

[pj84] 27/10/2016 11:03

I have spoken to HL this morning and they have advised by phone that I will be able to retain the ADR's in my SIPP after the delisting. They are in contact with Citibank clarifying the process re the transfer and will then reply to my query in writing as requested. If they confirm in writing that I can continue to hold them in my SIPP after the delisting I have indicated that I want them to convert my holding to ADR's.

If not, I will be a reluctant forced seller as I can't withdraw the funds from my SIPP.

[masingi] 27/10/2016 10:57

For this to work, all existing ORD shares would need to transfer to ADRs and the ORD cease to exist, making the ADR the only and absolute underlying ordinary stock.

[masingi] 27/10/2016 10:55

I just emailed him this:

Dear Simon,

See below.

Just a heads-up for you, but I would value your opinion.
I spoke to you briefly on the phone this morning regarding the GWP AIM delisting making ARDs ineligible to be held in a SIPP or ISA. (Sample) advice received is given below from TD Waterhouse, although it is the same from every ISA/SIPP provider.
As you can imagine, investors are apoplectic about this situation. This is unlikely to improve when their stock is sold for peanuts on the 25th November! As PR advisor, there is bit of a sh!t storm coming your way.

Best regards and good luck!


“....HMRC do not allow shares to be held in an ISA that do not have an underlying investment that is traded on a recognised exchange. Following it's delisting from AIM, the GW Pharmaceuticals ORDs will represent the underlying ordinary stock which will not be listed. Though the NASDAQ exchange is indeed recognised by HMRC, the underlying holding will be unlisted and as a result the ADRs will not be ISA eligible, as is our current understanding. It is our policy to apply the same requirement to any securities held within our SIPP accounts....” – TD Waterhouse

[masingi] 27/10/2016 10:39

I have just got off the phone to Simon Conway, the financial PR advisor. It seems that they are not aware that ADRs can't be held in a SIPP or ISA post ORD de-listing.

He's going to get back to me...

Does anyone have access to someone senior at GWP for comment?

[masingi] 27/10/2016 10:12

nodding, only the owner of the ISA can move funds out of it. The shares will be sold and the money retained within the ISA..

FF, Correct. The ORD shares don't cease to exist, they simply can't be traded on an exchange. Each ADR remains the equivalent of 12 (now non-tradeable)ORD shares.

From a technical perspective, are ADRs actually shares in the company, or are they the equivalent of shares for trading purposes? Are the rights associated with ADRs, such as voting rights, truly equivalent to ORDs?

Big players, such as The Vampire Squid won't have these tax efficiency issues to worry about, they will be able to mop-up PIs holdings for a song.

My problem is that the majority of my investable funds are tied up in my SIPP, I won't be able to take money out to buy ADRs. So even if I wanted to buy ADRs, where do I get the money from?

[cfb2] 27/10/2016 10:10

That's the last of my ISA holding sold. Really unpleasant way for GWP to treat their long term shareholders.

CFB

[future financier] 27/10/2016 08:45

masingi - I believe that 25th November is the last date to apply for conversion to ADR - sounds like Barclays is planning to shaft the PIs by selling into a weak AIM market. Could be an opportunity to arbitrage this! (Maybe that is what Barclays is planning!).

nasdaqpat - whoever told you that the ADRs would cease to exist is talking total rubbish - they are simply a derivative that represents 12 Ordinary shares in GWP - and the de-listing of the Ordinary shares from AIM does not cause the shares to cease to exist!

[ih_406638] 27/10/2016 08:19

Is selling necessary, why do they not simply move the shares to a non-ISA account?

[masingi] 27/10/2016 08:10

On November 25th Barclays/Standard Life will sell all GWP ORD shares held in their customers' SIPP and ISA accounts. I imagine that would be a lot of selling, not sure what that would do to the price?! It might be a good time to purchase ORD shares and transfer to ADRs through GWPs route for those able to do so.

Note they are doing this on the 25th November, a full week before the Dec 2nd deadline.

[masingi] 27/10/2016 05:49

Has anyone spoken to GWP about this?

[ih_406638] 27/10/2016 00:18

Has anyone converted to ADRs? How was it for you?

[pj84] 26/10/2016 23:48

My shares are in a HL SIPP and it looks like you can hold the ADR's within both a SIPP or ISA see the following link

Edit Just realised that is the current situation whilst the underlying shares are listed on AIM have contacted HL to clarify.

Have just read the info. on the GWP website and it doesn't look good.

[thecrock] 26/10/2016 23:19

Sold out my remaining today at £8 after buying in a 50p a few years ago....don't know what the future holds for GWP but with a fluctuating pound/dollar rate and unable to hold in ISA I fear any further gains would be devalued by extra charges....however I will top up my holdings in Woodford Patient Capital Trust as they invested in GWP recently.....or wait till a big Pharma snap them up in the future.....good luck to all

[nasdaqpat] 26/10/2016 23:00

UK Shareholders getting shafted here...I wouldn't be surprised if the Directors wait for most of us small punters to have sold our GWP AIM listed shares (and not bought GWPH ADRs cos must of us can't) and then announce a 'surprise' takeover.

Do we have class action law suits in this country?

[cauchmer] 26/10/2016 20:40

TD sent me the following statement tonight:

" At present, it is our understanding that HMRC do not allow shares to be held in an ISA that do not have an underlying investment that is traded on a recognised exchange. Following it's delisting from AIM, the GW Pharmaceuticals ADRs will represent the underlying ordinary stock which will not be listed. Though the NASDAQ exchange is indeed recognised by HMRC, the underlying holding will be unlisted and as a result the ADRs will not be ISA eligible, as is our current understanding. It is our policy to apply the same requirement to any securities held within our SIPP accounts...."

Thanks again Justin.

[masingi] 26/10/2016 18:40

Thanks for the advice, etarip.
I'm at home on Friday, looks like I'll be spending much of it on the phone.

[masingi] 26/10/2016 18:37

Looks like the directors are not having any difficulty getting their share options converted to ADRs.

[nasdaqpat] 26/10/2016 18:09

The guy I spoke to said that as the primary listing for GWP is AIM then that is all they will trade. He also added that ADRs are merely a vehicle for trading a security on another exchange and once the listing on the primary exchange is delisted then the ADRs also cease to exist. He suggested that they will eventually need to create a fresh listing which may involve a new ticker/symbol.

I wasn't altogether convinced so am waiting for further information.

[nasdaqpat] 26/10/2016 18:00

It sounds like it depends who you talk to at TD...the word cowboys springs to mind.

[future financier] 26/10/2016 16:39

TD have told me that they will be coming up with a solution shortly ......