Ambiorix1
07 Jan 2016
Re: here we go again Hello CDI and UP,I really don’t share your point of view this time. Your critic towards the major loan note holders seems very harsh. Halfway 2013 CRX needed money to expand. So it proposed (in part) an open offer to the existing shareholders. It also proposed an offer to an institutional investor from whom CRX knew in advance the offer would be subscribed in full because Trident Fund is a fund managed by Harwood and because they other (then) major shareholder, Oryx Fund (27%) is also managed by Harwood. The open offer was only subscribed for 10% by existing shareholders (other than those supervised by Harwood). So Harwood came up with the rest of the money and by doing so took the major risk. In fact the major shareholder invested in the major part of the loan notes (89%). Can you blame him for doing what other shareholders didn’t dare to do? And then you blame the note holders for not having any consideration for the other shareholders. Well, you can try to look at it from another point of view. The major shareholder is Harwood Capital through Trident Fund and Oryx Fund. Together these funds hold about 30% of CRX and they also control 90% of the loan notes. In fact they fully control CRX. If they convert all their loan notes, they probably would have to launch an offer to buy out the other remaining shareholders. So, I ask myself would they cut in their own fingers. I don’t think so. I think, sooner or later, there is another plot in the making. Biotrace was taken over, Celcis was taken over…and it is my believe CRX is the next one in the row. Look at the management and the existing major shareholders and you will find the same people; history is repeating itself, but only for those who don’t understand it…. Who would be the predator then? There are a lot of them around. Merging with SBS could make sense, since Oryx is a major shareholder, but what to think about expanding Charles River Laboratories (NYSE: CRL)? In July 2015 they bought Celcis for 212 million $ and in November 2015 they added a CRO namely Oncotest Gmbh. They seem to have a lot of money to invest. CRX could be on their list. Harwood probably wouldn’t mind.Ambiorix.
Carefully Does It
06 Jan 2016
Re: here we go again Holders of the notes don't care about other shareholders, only their own return. They have no responsibility to, or for, other sahreholders.CRX entered into the arrangement with their eyes wide open.Capitalism is what it is and the market will find the optimum bias point over time. SP too high, debt burden rises, price falls.CRX's sole responsibiity now is to grow profitably and prepare to payback what they agreed when they agreed to do so.It will all come out in the wash. People who are unhappy with the situation will sell and move on.
up protherics
05 Jan 2016
Re: here we go again I can see your thinking, but I think in the long run it would be cheaper to get rid of these as early as possible .. In terms of protecting the company they could buy the convertables back convert and hold the stock in treasury giving them as a company a larger holding which would protect them to some degree from a preda
Carefully Does It
05 Jan 2016
Re: here we go again I think Baxters options are issuable when the share price reaches £1.20 irrespective of the reason.There may be a clause that there has to be a # of trading days or an average > £1.20 for a period so they are not triggered on a simple spike.That was one incentive to increase the SP with out without the loan notes. The carrot to drive the sp higher.Not selling mine and I see no sensible reason for doing so and it would cost the company a bundle now and make them vulnerable.
up protherics
04 Jan 2016
Chart I am not an expert on charts, but have looked at another stock which I hold and there is a similarity with the graph.. My understanding is that a head and shoulders were formed at around 1.20.. Looking at my other holding the price subsequently dropped 30% from that level. If that occurs here then we will be looking at the 80 p level.If this does prove to be the case we are back to square one again and probably looking at waiting another two years for any decent rise in the share price.On a positive note I have read that the tox testing market is set to grow at over 11% during the next five years. So at least we should see a steady increase in revenue if nothing else occurs during the next couple of years.. That's of course if there are no hidden dangers ahead
up protherics
04 Jan 2016
Re: here we go again The notes are tradeable.. They should in my opinion approach holders and buy some if not all of them back at a reasonable price.. After all any holders should think about what incentative there will be too grow the company from here to only see the price held backwith reference to Nr Baxters options they are only excisable at change of ownership.. It would be more advantageous for him if the notes were reduced as this would allow the share price to trade at a more reasonable level before any change of ownership occurred
Carefully Does It
04 Jan 2016
Re: here we go again I don't see how they can force closure of the notes before maturity as I cannot for the life of me remember any clause enabling it.
up protherics
04 Jan 2016
here we go again Looks like a replay of two years ago.. This is even without an update indicating how much funds will need to be set aside to cover the loan notes.. I wouldn't be surprised if its the same broker as the last time putting clients into the stock and then suddenly realising that there is a pending debt liability.One plus is that things have progressed during the past two years so maybe this will settle down at around the 90p mark.I have this said this all along these notes are bad news.. They really do need to look at a way to repay these before maturity
up protherics
30 Dec 2015
Interesting price level Todays closing price may prove to be very significant inmo. If I am correct the loan note calculation for valuation purposes will be on the average mkt price of the shares for the past 30 days. There is also the pending company share options at a strike price of 1.20 to consider..I believe something quite major is about to happen..INMO either a bid for the company,a management buyout or maybe an acquisition of some sorts..Hopefully whatever happens there will be a nice premium on todays closing price.
Carefully Does It
29 Dec 2015
Baxter He should get his options!Well done Mr Baxter.It can add to some dilution but worth every penny.Now the shares in issue are so reduced I wonder if they will look to raise at the new higher SP for sizeable acquisition ?
up protherics
27 Dec 2015
Re: I Just Hope They are also a poison pill to existing shareholders.. INMO the company raised this money under durre,s.. Cyprotex is a good example of how the banking system in this country fails small businesses.Just think where this company and come to think of it the country as a whole could be if tax payers money had been invested in companies such as this rather than the so called spivy bankers.
Carefully Does It
24 Dec 2015
Re: I Just Hope Yes, now I remember why I bought the notes. No intention of looking at them until the end. They also act as a bit of a poison pill to anyone looking to acquire on the cheap.
Ambiorix1
24 Dec 2015
Re: I Just Hope Hello UP and CFY,This is what CYPRO explained to all shareholders in January 2014……(quote) an increase in the share price over and above 6p (since consolidation: 60p) increases the amount of potential loan note-related debt repayable on maturity….debt repayable at maturity is calculated by reference to the premium over 60 pence of the average mid-market closing share price in the 30 market dealing days up to year end…. In other words, if the notes are exchanged in shares, CYPRO will have to issue new shares (it has done it recently for some 25K of notes) and by doing so, dilute the shareholding of the existing shareholders. In the other case, if the notes are repaid, the value of the notes to be repaid by CYPRO depends on the SP. If the SP is below 60 p Cypro is the financial winner, but that would also indicate a negative growth towards 2018, which wouldn’t be interesting at all for us. If the SP ends above 60 p. by 2018 Cypro will have to pay 60 p plus the difference between the average SP and 60 p. ….and don’t forget this neither, the number/value of notes increases each year with 5%. Compounded this means in total the number of notes multiplied by 1.27 and again multiplied by the % value above 60 p. If Cypro would have to repay today, and since the actual share-price is 115, this doubles almost the value of the notes to be repaid. In other words, we are happy with the rising share-price, but for Harwood Capital this was a very juicy deal if the SP continues to go up. The open offer subscribed by qualifying shareholders represented only 404,598£ or 10% of the offer. Harwood Capital got the other 90% of 7 million £. Since they are also indirectly the controlling shareholders (with Christopher Mills pulling the strings) my advice is to keep a close look at every RNS containing a Notification of Major Holding.Ambiorix.
up protherics
24 Dec 2015
Re: I Just Hope Carefully.. I hope you a right about recent buyers looking at it for a hold investment as we do not want a occurrence of two years back.Hopefully its different this time with such a positive trading statement.
Carefully Does It
23 Dec 2015
Re: I Just Hope I can't remember but it's 60p shaees at redemption I think and 5% yield. I don'f even think about them now and only looked at the cayman listing details once.Perhaps an offer could be made but knowing Harwood if would need fo be very attracfive compared to just running them to maturity and then what would the benefit to the company if they have to pay over the odds to clear them early?For an investment like this it would be expected to be a hold for 3-5 to see full possible benefit so I would hole recent buyers look at it as such else volatility will only increase as they grow bored.
