Clarification of RAMcap’s amaysim intentions
February 4, 2021
Update: Due to circumstances beyond its control RAMcap withdraws its interest in making a takeover offer for Amaysim.
January 6, 2021
A RAMcap board meeting was held today to clarify the company’s intention to make a scrip takeover offer for Amaysim.
RAMcap consideration will comprise an offer of RAMcap ORD shares and RAMcap ORD options.
Liquidity in ORD shares will be provided through a monthly share buy-back [facility] that will enable ORD share holders to cash out up to 100% of their shares at 100% of the ORD NTA (at the relevant month end).
The buy-back facility will be available from June 2021 and continue until November 2021.
ORD stock will be issued at a 5% discount to the ORD NTA ( at the date of the offer).
RAMcap options expire 3 years after issuance and will have an exercise price at least 10% lower than the ORD issue price under the offer.
Liquidity in RAMcap options will be available in the months of September 2021 through to November 2021 and will enable the option holder to cash out their options at 50% of their intrinsic value.
The RAMcap ORD dividend policy has been affirmed today. A 0.5 cent dividend will be paid on ORD shares in February 2021 and a minimum 0.25 cent dividend will be paid in August 2021.
RAMcap ORDs value/performance
RAMcap’s $11m investment in 6 gold producers continues to deliver outsized returns through 2021 with additional unrealised portfolio gains since 31 December now at $1.0 million.
RAMcap corporate strategy
In the requisite Bidder’s Statement, now in preparation, we intend to elaborate our plans for our entry to Australia’s LIC industry which has been plagued by mediocre investment performance delivered by managers in entrenched long term contracts with no meaningful equity in the captive LIC.
RAMcap is on a journey to become a leading LIC. We deploy a tactical strategy in concentrated, leveraged portfolios of mainly small cap and microcap stocks for which the investment thesis anticipates a 100% gain within 12 months from each position.
RAMcap intends to supplement its outsized portfolio returns with fee income generated from a hedge fund management business which is intended to launch in Q4 2021