Mereo Biopharma Share Discussion Threads

[cir] 18/11/2006 03:20

i don't know what you guys are worried about.

take a close look at the latest interim figures.

check out note 4 regarding the diluted earnings per share.

if the company decided to reward the staff members after the results, it would have to price the options above the market price then ruling.

[nardelli] 18/11/2006 02:44

hopefully the option is way out of the current price, to cover any upside and give an idea of future price, a strike price of 400p would be nice. haha

[remynapoleon] 18/11/2006 01:01

This has me baffled.

The only logical conclusion I can reach, (given that the RNS is correct) is that the acquistion is a private company, with a sole owner, who is willing to accept shares/options in MPH as total or substantial part payment. If correct whoever this may be could then join the board as an employee thereby making the statement accurate.

This was the arrangement with JCC if you remember (other than board membership).

For a more outlandish theory, maybe Mr Abdullah is willing to allow some intergration with Ungaro.

I hope the former is the answer as dilution on this scale MUST be out of the question.

As usual time will tell but can anyone see a chap like Mr Morris shooting himself in the foot?

Anyway, it is too late to do anything now as we have already given the authority, we can only wait and trust. From previous posts I fully understand trust is not a widespread feeling on this board but the only other option is to hit the sell button monday AM.

Personally I am holding.

remynapoleon

[lord buffett] 17/11/2006 22:20

Maybe they forgot to divide by 5?

[momentos] 17/11/2006 20:12

Last years report and accounts indicate this is not the situaiton and that the Employee share option cant exceed 10% of shares in issue anyway. Was far less if you look.

Must be an error, unless they have done a whoops and included shares to be issued for a forthcoming acquisition. I would expect any further acquisition to be share based.

[0o0] 17/11/2006 20:03

When surfing thru the hardman site I came across this statement as a reason for a company to pay for their valuation,"Establishing a start point for an Authorised Option Scheme". It did startle me at the time but I had to discount it as MPH had stated that they would be buying back shares, not printing more.


I hope Monday brings better news for the long term Holders but this does certainly smack of the dreaded Friday Afternoon RNS.

[corrientes] 17/11/2006 19:32

Can't believe that this company would be so crazy as to undo all the progess that has been made recently,given its chequered history.

The RNS states that the business is well placed to capitalise on further licensing and acquisitions opportunities. If they are earnings enhancing, so what. People automatically think dilution is bad, but that's far too simplistic.

If, however there isn't a good commercial reason for this RNS, then the company's reputation, and not just on the investment side, will be shot to pieces for ever.I can't buy them shooting themselves (or investors) in the foot so soon after the half yearly results.That would be real chutbah (I think that's the word.)

[beerbandit] 17/11/2006 19:05

Don't like announcements at 16:30 on a Fri 7 million!!! someone tell me its a mistake or nothing to worry about. I won't sleep all weekend.

[jason8466] 17/11/2006 18:45

Additional listing.
Monday will be additional dilution. This stinks. And look at the timing,friday evening when we will not be able to get any answers.

[cr4zyness] 17/11/2006 18:22

Well I hope they have got the sums wrong or it could open on Monday at 95p!

New investors trully stuffed hope Im wrong, I bought some more today!!!!!!!!

[momentos] 17/11/2006 18:11

Creating more shares does not facilitate an mbo!

7m shares = c GBP8.4m for 115 employees = 73k per employee! Somthing is wrong in the numbers or the reason. Perhaps need to divide by 5.

Marchpole normally sorts its employee share options around November time hopefully not so generous though!

[cosnova] 17/11/2006 17:52

two scenario's I envisage diluation then an MBO! or an acquisition requiring extra shares, any comments

[wbjunior] 17/11/2006 17:37

9 million max allowed and the company are going for 7 million stating its for EMI share options that require 1 million. Waiting for reply from Mr Harrison, have a good weekend everyone.............wbj

[andyok3] 17/11/2006 17:24

thanks wbj

[momentos] 17/11/2006 17:22

2 Resolution 8: Authority to allot shares
Under section 80 Companies Act 1985 the directors of a company may only allot unissued shares if authorised to do so by the shareholders in general meeting. This resolution, if passed, will authorise the directors to allot unissued
shares up to an aggregate nominal amount of £453,300, representing approximately one-third of the Company's issued Ordinary Share capital as at 8 August 2006. The authority will expire at the conclusion of the next annual general meeting of the Company. Although the directors have no present intention of exercising this authority, except for the purposes of allotting shares under the Company's employee share schemes, it is considered prudent to maintain the flexibility it provides.

This allows up to 9.066m shares (new money) to be allocated

AFAIK blocklisting = now alloted = dilutive. 25% dilution?! Explanation or correction required quickly.

[wbjunior] 17/11/2006 17:18

Andyok3
Its asking for permission to allocate 7 million shares reserved under a blocklisting if optioned are exercised. Someone has got there figures wrong because as of the year end there were only around 5.3 million options outstanding and that figure has to be consolidated by 5, ie just over 1 million options so why ask for 7 million. Will contact finance director.........wbj

[argy2] 17/11/2006 17:16

One way of getting the market cap up to trigger those cheap Director options!

[momentos] 17/11/2006 17:12

7 MILLION?!?!

methings that number may be a bit screwed. Thats almost 1/4 of already in issue!!

[cosnova] 17/11/2006 16:52

more news afoot and the board are getting bullish above the next acquistion, maybe?

[andyok3] 17/11/2006 16:45

what does this mean wbj? TIA

[wbjunior] 17/11/2006 16:34

Marchpole Holdings PLC
17 November 2006

MARCHPOLE HOLDINGS PLC (the 'Company')



Block listing application



Marchpole Holdings plc announces that an application has been made today to the
London Stock Exchange and UK Listing Authority for the blocklisting of
7,000,000 ordinary shares of 5p each. The blocklisting is in relation to the
possible future exercise of the Company's options under the Company's Employee
EMI Share Option Scheme.

[pingi] 17/11/2006 16:28

Is no one concerned about:
1. the dilutive effect of another acq.?
2. turnover/profit declining in 2008
3. depreciating $

or is it just me?

[lex1000] 17/11/2006 16:13

MPH rock solid investment.Good weekend everybody.

Max size buy on line 3,750 asking 121.9p.More to come next week.

[wbjunior] 17/11/2006 16:10

What a difference a week can make in the markets. It is my belief that the acquisition MM has lined up is already well established in the UK and generating revenue of 10 million+ If that is the case there is no reason why the revenue for 2008 will not at least match 2007. All conjecture on my part but looking at the large trades taking place it would not surprise me. Now is the time to be holding, the tide has turned imho.....................good luck...wbj
125000 T trade at 19.5 interesting goings on.