Clearly the naughty boys that brought down the share price are having to buy it back prior to delisting.
I wouldn't in the slightest be surprised if the same again happens tomorrow.
I watched something similar but different with Quindell (QPP) where it was drawn down to the point all the life was squeezed out it and I think I was about the only positive sole on the bulletin board stating the obvious and then it rebounded massively. The thing was that you could clearly see with QPP a sum of parts well over market capitalisation value.
Delisting aside Fusionex is probably worth a lot more than 62.5p per share.
I'm sure the reason for todays rise will out itself at some point.
I've sold out at 70p, believe I'm lucky to get that, rather than 30-40p.
50% loss, plus traded in and out a few times at a profit. So an overall loss of 30% isn't a disaster.
From everything I've read about voluntary delisting, there are potential benefits from the big investors but the small investors generally get screwed.
In theory as 89% of investors voted for it, delisting is the correct thing to do for the business, though share price collapse says otherwise.
What will happen to private investors who don't sell now. Will they hold stake in company and maybe make profit in a few years time if company relists.
Or is it certain they will get wiped out or bought out at a few pence
Maybe things are not as certain as one would think.
For some reason they have sought to launch Giant 17 and come out with promises of double digit growth amidst a timetable for a vote to delist from Aim. The share price itself seems also to be starting to regain previously lost ground.
Reminds me in a way of Taptica, another one that I am interested in and which probably has less strings to its bow than Fusionex. Yet no problems with its share price rising over there and targeting Far Eastern growth.
By comparison the Fusionex CEO may have had a valid point re not being near true valuation prior to any further recent delisting falls in the share price.
I cannot believe the ineptitude of Ivan Teh. The CEO announces a proposal to delist from AIM in a manner that causes the Chairman & Advisors to resign. The following days they announce the launch of GIANT 2017 along with detailing how many of the trial companies are to take up the latest package. Why did the board not release the GIANT 2017 news along with the continuous news of the increased take up of GIANT 2017 as it subsequently happens. The share price could have been monitored then to see if the value and liquidity was improved over the release of the news. To me it shows that there is an ulterior motive behind the delisting that does not align itself to the reasons given in the announcement of 26.05.2017. as lack of liquidity and in depth research are news dependent and as far as political uncertainty in Europe is concerned, that was put to bed when Macron was elected.
From the announcement:-
"The Directors believe the reasons for this under-valuation are multiple and complex, but specifically include a lack of liquidity, and in part, a lack of in-depth independent research into the Company. It is not possible to attribute this to one single factor however the Directors believe that the current political uncertainty in Europe is unhelpful, which makes the public markets in the United Kingdom less attractive for Fusionex than at the time of the IPO. These are factors beyond the control of Fusionex and its Board of Directors, which has led the Directors to decide on this course of action."
75% needed for this delisting to go ahead. The directors are committed to 42%. The other 33% is quite a substantial amount needed to be obtained both from private investors and other financial institutions. With the share price down to the level it is now at, nobody is in any hurry to sell at that price and take the losses. It is far easier to fill in the voting form for the EGM and vote against the proposal to block the delisting and keep the share tradeable on the AIM market. The excuses given by the directors for this decision are partly down to themselves. Shares move on news and they have not been very forthcoming in the past.
one way- I do like your cheerful sense of optimism and hope that you are proved right but
fear we may be the losers as Spec believes . Whatever the outcome if you're a small PI
there doesnt seem much sense in selling at this price although its many seem to be doing.
I dont think I will bother buying any more but just hold on to the small number I have and
hope for the best
My previous sad experience with being done over like this was with Cosalt and the conniving
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