Market's view on Rev Bars
Published on April 2024
- Stock watchers highlighted Edelman’s significant influence on the balance sheet and his potential personal investment in the company.
- Concerns were raised about the company’s ability to survive given its current balance sheet.
- Market makers are struggling to sell stock, indicating a lack of buyer interest.
- A massive share placing of 1.2 billion was questioned for its impact and necessity.
- Criticisms were made of a 25% share price spread, suggesting poor market conditions or financial health.
- Edelman’s investment of £14.4k in a risky business was viewed as a bold move by some, while others remain skeptical of his involvement due to past business failures.
- Negative sentiment surrounds Luke Johnson’s involvement, referencing his questionable oversight in past business failures.
- Some stock watchers are optimistic about the hospitality sector’s recovery, especially with significant investments from credible sources.
- The company’s successful equity raising and partial debt write-off were acknowledged, though some felt it was the only option left.
- The restructuring plan, including the termination of 18 unprofitable leases, was debated, with opinions divided on whether it truly enhances the company’s profitability.
- Concerns were expressed about the management’s past performance and their substantial remuneration despite the company’s deteriorating financial condition.
- The proposed restructuring plan and fundraising to raise £12.5 million through various share offers were detailed, with shares priced at 1.0 pence each.
- The company’s liabilities and debt levels are viewed as dangerously high.
- Negative reactions were noted towards after-hours regulatory news services announcements, implying poor company updates.
- The initiation of a formal sale process and a share placing at 1p reflected drastic efforts to stabilize the company.