MRBIG
04 Mar 2015
sale of stake in fair oaks releases capital
the julio
25 Feb 2015
Re: EGM You make a number of fair points. Perhaps if more shareholder made their feelings known to management we might see a change if favour of ordinary shareholders next time they need to raise capital.The J
mr5percent
25 Feb 2015
Re: EGM Hi Julio,Thank you for posting the reply. However I still object to not being allowed onto the gravy train. The 7% discount amounts to £1.4 million. Although Mr Miller talks about :We had a range of institutions and private individuals did so and all of those who registered an interest were allocated some stock. Dead right. It was so good a giveaway we were overwhelmed by the response. 'and private individuals' - Yes but ONLY those who met the criteria:"Qualified Investors" - persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)e of the Prospectus Directive AND relevant persons persons who are (i) investment professionals within the meaning of paragraph (5) of Article 19 or certified high net worth individuals within the meaning of paragraph (2) of Article 48 or high net worth companies or unincorporated associations within the meaning of paragraph (2) of Article 49, of the Financial Services and Markets Acts 2000 (Financial Promotion) Order 2005 (SI 2005/1529); and (ii) qualified investors within the meaning of section 86(7) of Financial Services and Markets Act 2000.So if it is so necessary to maintain a book of investors that are willing to cough up quickly when required, then why doesn't the board tell all investors that's what we want. You could issue part paid shares entitling the company to tap extra funds quickly. There are many fairer ways to skin the cat .....Just because the board was in a closed period and were excluded from the gravy train still does not justify the giveaway which every other shareholder has 'paid for'.The earlier comments on governance on AIM are valid, but that still doesn't justify the action. And getting the money ain't quick - they still have to await the EGM outcome on 16 March. No doubt the ones who were tipped off and got the shares at a £1.4 million discount will vote it in ..... but what is £1.4 million between friends on a £20 million fund raise?.... Let it happen once and it will happen again.
Zouppy
25 Feb 2015
Re: EGM A helpful account from Mr Miller which leads me to temper my criticism. I would have been much more aggrieved if the Board had filled their boots at the placing price (as is usually the case). His point around timing pre-election is a fair one. Feeling much less bruised.
the julio
25 Feb 2015
Re: EGM I share your concerns and e mailed Mr Miller about this this morning. His response which came within 2 hours is given below.Many thanks for your email.The Board of GLI Finance chose to raise funding through an accelerated book build due to the costs and time taken to raise money through an open offer, which would have given all shareholders a longer time in which to respond.As an accelerated book build, all shareholders had a period of 24 hours or so in which to register their level of interest, through their broker, with Panmure Gordon who was acting for the company. We had a range of institutions and private individuals did so and all of those who registered an interest were allocated some stock. As the deal was oversubscribed no investor got everything they applied for. None of the Board or the management team, nor any other related parties were entitled to participate, due to the fact that the company is in closed period, and therefore we all suffered as much dilution as everyone else.An open offer would have cost approximately £1m more to the company, would have taken several weeks longer and would have added execution risk. It would have removed the potential for us to launch a closed end fund before the General Election and thus been self-defeating in its aim of accelerating the growth of the company.In all decisions bout corporate actions there are advantages and disadvantages. The Board decision was that on balance an accelerated book build would in this case be the right choice.RegardsGeoffChief Executive OfficerGLI Finance Limited Direct Dial: +44 1481 755561Mob UK: +44 7408 830719Mob US: +1 203 916 0003 www.glifinance.com Registered Number: 43260Registered Address: PO Box 296, Suite W5 Sarnia House, Le Truchot, St Peter Port, Guernsey, GY1 4NAI am impressed with both the speed of his response. less so about being excluded from the offer. I will take this up with my broker. The J
Zouppy
25 Feb 2015
Re: EGM Your sense of outrage at being an existing shareholder but excluded from the placing is spot on. In my view the right for the company to over rule pre-emption rights is there in order to ensure funds can be raised quickly in times of duress. This is clearly not the case with GLIF. The Board is placing a higher value on certain (institutional) investors over others (private shareholders) The Board will probably hide behind the cost of preparing a prospectus for a proper rights issue but this is a poor excuse. The non execs are aware of the make up of the share holder base and should be ashamed to have gone along with this. This is not the first time I have been on the receiving end of this abuse as a private investor in an AIM. My conclusion: do not expect the level of corporate governance you normally see on the main market, AIM is the 'wild west' of stock market investing and you should reflect that in the returns you seek.
coldascheese
24 Feb 2015
Re: EGM Well if you had £25 million or so to spare I'm sure they would have called you !
mr5percent
24 Feb 2015
Re: EGM MM I think you are missing the plot. I wanted to be in the 58p deal. Who would not when the market thought they were worth 62p? - a 7% discount to the then market price. If you did not want to participate, I am sure others would gladly have taken your entitlement.What is clearly happening here is that a few 'selected investors' - see the definition - are being allowed to invest in the company at a 7% discount, whereas loyal shareholders are not. That is discrimination in my book. And as to whether I could have 'signed up' in the space of a day - i could have.Yes it is good news that there are investors but hey there were a lot more who were excluded. Maybe if the extra investors had been offered a chance the discount would not have been so large. Etc etc.Whether the sp has recovered or not, I was denied the chance of a free givaway of a quick profit. And I'm a shareholder. I don't like being treated like that and I'm entitled to vote.
coldascheese
24 Feb 2015
Excellent news I was a little bit miffed about the placing but, I must say that as they have raised the funds so quickly the company must be held in high regard as to its future and there must be a great demand from their lending platforms. Also by doing a bookbuild in this way it has reduced a huge amount of costs that a rights issue would entail. As their previous RNS I think that they are going to organise a seperate stock market listing of shares in all the platforms that they have holdings in but before this they are going to increase stakes in them with this cash, so there is a grand plan in the making.Shares have risen back a bit today and with the dividend and with their grand plan taking shape I think the shares will be a lot higher in 6 months time.As an aside I would suggest that a purchase in shares of their broker-Panmure Gordon-could be a very good bet at today's price as they are near lows but could report excellent results and will likely restore dividends with results.
Medway Man
24 Feb 2015
Re: EGM If you have a grievance about tbe placing, why dont you email GLIF, i am sure if there is a logical reason why they are doing it that way and they will tell you why (assuming its not subject to divulgement under the issue rules etc).Over the years, if there has been something that they planned that did not make sense to myself or my wife, we have emailed Geoff Miller or whoever at GLIF and generally got a satisfactory/valid response.
Damp Seaweed
24 Feb 2015
Re: EGM Hi Medway Man,My criticism is not about the wisdom of raising additional investment capital. That can be considered separately when the management choose to share that information. It may be a great idea, but at this stage we don't know.My criticism is with the cavalier attitude and lack of respect being shown to the current shareholders.The reason the share price has dropped to 59/60p is because of this announcement by GLIF. The market is quite rightly asking why it should be trading at 62-63p when the Board of Directors (BOD) think the company is worth much less by intended to raise capital by placing shares at 58p. If the BOD valued it's current shareholders, should it not offer them, the loyal investors, the 'Right' to purchase additional shares at this discounted price of 58p ?. After all that it what is written in the Articles of Association and exactly what this EGM is trying to ride rough shod over.A 'Rights Issue' is the method a decent and respectful company would employ.So I can see absolutely no reason why it is in my interest to dilute my shareholding and short term dividend cover for the benefit of some city institution(s). The discount they will be receiving is approximately the same percentage as the annual dividend percentage that I receive from GLIF. You don't need a degree in Financial politics to work out what is going on here. And one shouldn't be so naive as to not suspect that GLIF will be garnering its's favored shareholders with privileged access to this placing. Which ever way you look at it, the small private investor is being stitched up as usual.In contrast to your view, It has been my experience, that with small AIM companies, very rarely do these placements benefit the existing shareholders. Good companies value and respect their shareholders.
Medway Man
24 Feb 2015
Re: EGM Depending on whose share price you look at (as a number of brokers were quoting 59p and less overnight) , 58p might be only a saving of 1p, so is that really a deal killer..........afterall the SP could realistically drop by that in trading to day?Ok, if the SP was now 70p for arguments sake, and institutions bought in at 58p that would be an issue.But lets flip the deal on its head. It would seem that GLIF must be confident that 1, 2, 3 or a few more institutions are coming in for the proposed placing. GLIF invest money raised and gerate more profit, could that put in place measures for the dividend be lifted to 6 or 7p?Before dismissing the deal now, before you have even been asked to vote, why not take a step back and see what the ongoing effect will be at that time?My wife and i hold several £000s worth of GLIF; we are long term investors in this share and generally add fresh capital to our holdings each tax year. I can't think at this moment in time, of any deal along the way that has been done, which ultimately has not benefitted shareholders ......... So the likelihood is we will vote in favour, but we wont decide until we know exactly what is what!
mr5percent
23 Feb 2015
Re: EGM Yep disgraceful. Why should an ordinary shareholder vote to disadvantage himself? I'm voting no.
Damp Seaweed
23 Feb 2015
EGM Why would I want to vote in favour of a proposal to exclude me from buying additional shares at a considerable discount to the preannouncement price ?
the julio
17 Feb 2015
Re: RNS-looks good Agree with your points. I have a target of 70p for GLIF but am happy to hold meantime for the 5p a share annual dividend.
