Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

R4E - placing and refinancing and chat with Nigel Wray ( we buy shares)

By Tom Winnifrith & Steve Moore

16 November 2015 02:28

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Reach4Entertainment (R4E) announced on Friday the terms of a conditional, including on 2^nd December General Meeting approval, placing and bank refinancing. We have this morning made a chunky (for us) investment in the shares (ie we bought in the market).

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Comments

Smudgedan

16 November 2015, 03:14

Clearly the placing price was a huge disappointment to all existing holders of which I was one. I too have taken some in the placing as I see great potential in the company given their revenue and hope that Wray will be hands on here to assist with the operational gearing.

I had hoped that Stoller would have been keen to preserve the share price as much as possible given his previously substantial holding in the company so can only guess that this was the best they could achieve given the companies long standing financial problems and general difficulty in achieving funding for small caps in the current climate.
David Russell

16 November 2015, 03:46

Thanks steve for your update on R4E., but I do not agree. It might treble in value from 1p placing price but some of the shareholder who am not involved with the placing bought many years ago will not get a chance to recover their investments if they keep issuing at 1p. They could have issued at 3p and raised the same money and we would have fewer shares in circulation. This placing is not fair in my view based on the fact that at 2.25p R4E was undervalued on the AIM market and the management who should have belief in the company should have done the placing at a premium and gave the small shareholders hope. Good luck with your investment
wildrides

16 November 2015, 05:17

Trainspotting is preferable to stamp collecting . My thesis was indeed correct .