Help explain the shares consolidation anyone???

mark4p

Hi everyone, can anyone help me with this Biome Technologies consolidation thingy.

I bought 471,377 shares in Stanelco which became Biome Technologies. They have since consolidated shares. Long story (long story bellow) short is I have a certificate for 177 ordinary shares at 5p a share. 177 deferred shares are mentioned at £2.379 each. This all happened on 16th July and looking at the share price yesterday they were 82.25 or similar.


What the hell is an ordinary share and deferred share when it's at home? Help......


Long story;

Dear shareholder

At a general meeting of biome technologies plc held on 20th June 2013, resolutions were passed resulting in; the consolidation of every 430,000 existing ordinary shares at 0.1p each into one consolidated share of £430 each, a subsequent subdivision of every consolidated share of £430 each into; 177 ordinary shares of 5p each and, 177 deferred shares of approximately £2.379 each.

grey_gym_sock

they are reducing the number of shares in the company by a factor of 430,000 / 177 = 2429.3785 (approximately), so each share will now be worth about 2429.3785 times the previous price. well, actually it will be worth whatever the market decides, but probably it will be about 2429 times the price immediately before the reorganization.

all the stuff they mention about shares "of 5p each" etc, is just a quirk of company law - shares have to have a nominal value. it isn't the real value of the shares.

i'd guess that the 177 ordinary shares are your real new shares (and the old certificate for 471,377 is no longer relevant). the 177 deferred shares are probably worthless - more to do with quirks of company law.

are you also being paid any cash? since only 430,000 of your old shares are being converted into 177 new shares; the other 41,377 old shares would usually be amalgamated with other odd lots of shares to be sold off, and then you'd expect to be paid the proceeds. though if it's a very small amount, the company might keep the proceeds instead.

mark4p

Thankyou for your help, I have emailed the company issuing the share certificate so hopefully they would confirm this.

I just think the share price was 82.50 which having 177 shares it would total 14602.50 I believe, they only cost £2050 and were only worth a 3rd of that before all this

Anyone welcome to correct this though...

mark4p

No mention of any money for the shares left over....only received certificate Sat though.

grey_gym_sock

the share price seems to be 82.5p

this announcement - http://www.hl.co.uk/shares/news-article?articleid=20915506&type=rns - says they should pay out cash for fractional shares so long as it's over £3.

mark4p

Yeah share price is pants 82.5p

I wasn't getting my hopes up at what I worked it out at, i was tired and it had all drastically changed.

Thank you so much you were right about this I spoke in email to someone, I haven’t heard anything about any money for outstanding shares

vkdoc

What will happen to my shares <10,000. They seem to have disappeared from my 'small' account! Have they gone forever given that they were less than 430,000?! Cheers for advice

mark4p

I think so, but don't hold me to it, from what I can gather I have lost 41,377. I had a total of 471,377 originally.

Emailed them today and they haven't replied, they replied about the 177 ordinary shares which seem to be my only shares now.

mark4p

VKDOC it's a rumour here but someone on a forum says they have been told that a meeting by biome bosses at the end of this week will decide what people will get paid for lost shares.

Can't send link as won't let me on here.