Mereo Biopharma Share Discussion Threads

[nurdin] 20/11/2006 09:30

What I dont understand is why issue the RNS at 4.29pm if they have nothing to hide? Good news always delivered first thing in the morning imo.
Until we have some clarificatiopn I will remain suspicious...

[skyracer] 20/11/2006 09:26

Still, whatever the explanation, doesnt instill confidence. Error could also be the registrars, options not having been updated for consolidation ?

[momentos] 20/11/2006 09:25

Now theres something I agree with you on!!

[jason8466] 20/11/2006 09:24

I would expect some clarification by 10.30. Has anyone contacted John Harrison and by which method? It would seem pointless hassling the guy who I think is in for a busy morning.

[momentos] 20/11/2006 09:23

jason it does not consist of conjecture.

It consists of fact, based on reading the RNS, reading the Annual Reports and understanding how share options work. Something that appears to be missing from a few posts here.

DO you work for a Market Maker, are you trying to perpetuate the panic selling?

[daza70] 20/11/2006 09:15

well not nearly as bad as most people thought over the weekend!

[jason8466] 20/11/2006 09:14

Momentos,

your post consists of conjecture on behalf of M.P.H. So please do not be so condescending.

[skyracer] 20/11/2006 09:13

There should only be about 2m share options after consolidation at about 95p average (so little effective dilution). Also options should not exceed more than 10% share capital. PP2 it takes time to issue an RNS.

[momentos] 20/11/2006 09:10

Have you read my post?

I would suggest more than a schoolboy understanding of finance and the operation of share options would help!!

7m options at zero pence have not been created which seems to be your panic suggestions.

If there are 7m options (doubtful) they will likely be around 120p - 130p. When realised the money paid to buy the shares GOES TO MARCHPOLE.

The effect is therefore similar to a rights issue ABOVE current market price!

[premierpompey2] 20/11/2006 09:09

momentos
If there is an error why on earth haven't they issued an amendment?

[lord buffett] 20/11/2006 09:03

momentos / Skyracer

I don't believe in 'schoolboy' errors of that magnitude... unless it has been 'made' to conveniently affect the market (which wouldn't surprise me).

Call me cynical but I've seen this sort of thing before.

If it isn't 'true' in the detail what were the company and the nomad doing?

[lex1000] 20/11/2006 09:00

For further information contact:


Marchpole Holdings plc
John Harrison - Finance Director 0207 908 7700


Shore Capital
Alex Borrelli 0207 408 4090

[momentos] 20/11/2006 09:00

"There simply doesn't appear to be ANY positive spin that can be put on the latest announcement"

See above, not spin, FACT!

Don't quite get the conspiracy theory myself....

[lord buffett] 20/11/2006 08:58

The sheer weight of selling will eventually push this down further.

There simply doesn't appear to be ANY positive spin that can be put on the latest announcement, simply because the company chose to [deliberately IMO] suspiciously time it and not to qualify it, leaving everyone in the lurch and to stew over the weekend.

It was 'deliberate' in its intention - for what reason/purpose we shall no doubt see.

[momentos] 20/11/2006 08:55

Agree with Cir here. I really don't see the problem.

1. It clearly states the block listing is in connection with options under the EMI scheme.

2. They dont have to notify a blocklisting if new shares are alloted on an acquisition (see RNS's pre JCC takeover) for obvious reasons of confidentiality.

3. The number of options outstanding at last year end was 5.3m (equiv now 1.06m) at an average strike price of 24.65p (now 124.25p).

4. as can be seen below, 6.46m (now 1.3m) were granted during the 2004-5 financial year, hence the option price around 25p.

5. If any moer options have been granted since 31/3, then the price would reflect somewhere around the current price.

So:

IF there are 7m (doubtful, I believe they meant 1.4m new shares) and if they are realised MARCHPOLE GET 7M X 24.65p X 5 INTO THEIR COFFERS = GBP 8.6m.

Effectively a rights issue ABOVE the current price! Options ARE NOT FREE!!

Please think it through before panicking and selling.

[daza70] 20/11/2006 08:54

im holding firm!

[wbjunior] 20/11/2006 08:51

mm playing the field with that announcement and who can blame them. Holding firm.....wbj

[taffychaff] 20/11/2006 08:46

my gut feeling is to hold.......mms have had evry opportunity to hammer this today and haven't...yet.

As I understand it the shares have not been placed but will be held by the company until needed and until needed they appear on the balance sheet

[pingi] 20/11/2006 08:41

Selling on Fri. starting to look like the right move...

[premierpompey2] 20/11/2006 08:38

I'm now having doubts here. Let's face it, for MPH to get to the higher value we want to see, we will need support from instis. Are they likely to invest in a business which issue RNSs like that at 4.49 on a Friday (particularly with MMs previous rep)?
Edit
I simply fear that MPH might be seen as highly unpredictable and therefore risky.

[daverw] 20/11/2006 08:35

Personal theory, the new shares were placed at 110p or 115p and the announcement was delibrate to reign the price back to that level.
A more transparent RNS would have gone a long way to alleviate the
sufferring.

[wbjunior] 20/11/2006 08:35

Lex awaiting email from John Harrison, hopefully soon...........wbj