EVO - Evolve Education

[silverblizzard888]

While the share price is quoted as down 10.7c, in my book it was actually an amazingly strong day. The institutional book build was at only 8.5c so I'd expected the price to drift down towards this price point. Although it followed this pattern towards lunchtime, after that it was a different story ....strength!!!. The price got pushed up, a lot.

The ex entitlement close was 12.3c. If the entitlement was tradable as rights, it would have been about 4.3c. Shareholders got 4.4 entitlements for each share. 4.3*4.4+12.3 = 31.2 which is up 8.2 on the pre-announcement close of 23c. The afternoon buying interest took the price up from under 10c to 12.3c.

From its afternoon timing, its a safe bet the buying was coming out of Australia. It was the same sort of afternoon price setting action that occurs all the time for duel listed stocks like ATM, WBC & ANZ. It therefore appears some Australian's thinks that they are worth more than last week. It could be due to the removal of risk re debt levels. My guess is that its more likely to be due to some similarities to the early day's of G8 (which Google shows as having been circa 10c in 2008 / 2009 and ran all the way up to over $5 by 2014). 50 Bagger's aren't that common and people that have enjoyed one will sometimes take punt's on their possible repeat's.

Yeah I agree its held up better than I thought, actually quite surprised that the demand for shares was this strong. I think the strength comes from Chris Scott, the man who built G8's golden years and the one adding $12 million to his already $20 million AUD investment into Evolve, that is confidence from one of the best. The man has admirers in AUS thats for sure. Currently any shareholder taking up there entitlements would end up gaining from last weeks closing price.

[dreamcatcher]

More Skin.........An entity associated with fellow Director Chris Sacre has participated in sub-underwriting the offer and will subscribe for new shares if there is a shortfall and either bookbuild does not clear.

[silverblizzard888]

More Skin.........An entity associated with fellow Director Chris Sacre has participated in sub-underwriting the offer and will subscribe for new shares if there is a shortfall and either bookbuild does not clear.

You need guys with connections like these, they are what can be the difference between a company failing or succeeding, next connection they pull will be for acqusitions

[carrom74]

I'm not sure you've got the entitlement offer numbers right. As its stands you can sell 100% of your holding and be able to replace it by 340% more on top of your original holding. If you have 10,000 shares currently, you will have 44,000 shares in your entitlement. Meaning you can actually sell 44,000 if you take up the offer and still have you 10,000 share holding, you just have to wait until you get those new shares before you can sell though. The total consideration is 54,000 shares in this case, that is the better perspective to take.

Giving the closing price of 12.3 cents today thats a good 4.3 cents, or 53.75% premium on your entitlement offer price, though I don't expect it to last. Short term it'll head to 8 cents a share sadly like all capital raising situations, long time I hope their strategy pays off.

In other words, I can sell my current holding now and may be use the proceeds to pay for the rights offer right? Correct me if I am wrong.

[Scrunch]

Same principle as for dividends except it's an entitlement to buy shares at 8c. If you do nothing and the retail book build it's over 8c then it's almost the same as a dividend as you will receive a payment. The more the retail book build is over 8c, the bigger the payment.

[silverblizzard888]

In other words, I can sell my current holding now and may be use the proceeds to pay for the rights offer right? Correct me if I am wrong.

Yes that is right. These are entitlement rights already given to you regardless of future events as long as you were a holder on the recording date at 10th May 2019. You should have received an offer document to confirm that.

[carrom74]

Yes that is right. These are entitlement rights already given to you regardless of future events as long as you were a holder on the recording date at 10th May 2019. You should have received an offer document to confirm that.

Yes-- received an email yesterday.

Thank you

[dreamcatcher]

Would be positive for Evolve's Aus outlook

'Labor has promised nearly $10 Billion over 10years to boost early childhood educators wages by 20 per cent starting from 2020'

https://www.abc.net.au/news/2019-05-...ction=business

[Scrunch]

Strange pricing nz vs across in oz. Nz closed down at nz10.5 on modest volume of 1.8m shares. At just after 3pm oz time they were up 1c at aud12.0 on 3.3m shares of volume. 700k of buyers listed at aud11.0c. A late nz placement at 11.5 may be reported as the nz close. If the oz price holds this could help the nz open tomorrow.

[silverblizzard888]

Strange pricing nz vs across in oz. Nz closed down at nz10.5 on modest volume of 1.8m shares. At just after 3pm oz time they were up 1c at aud12.0 on 3.3m shares of volume. 700k of buyers listed at aud11.0c. A late nz placement at 11.5 may be reported as the nz close. If the oz price holds this could help the nz open tomorrow.

Its the two 'Chris' on board, really starts bringing this into Australians attention.