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The most ridiculous thing about all of this is that they say they don’t have information and even suggested to me that if any of us know more we forward it. Seriously? Can’t they do the basic homework to determine the custodian and status of amavf?
Regarding sending to Viktor and Axel, my contact with them led me to believe they just don’t know much re the amavf shares and don’t see it as their responsibility to. But they wanted to know anything we learned so might not hurt to educate them with things you discover.
Unfortunate situation but hopefully you all are right that eventually you get paid. Makes sense. I had sold all at 41.50 before it stopped trading and bought back in a solid position between 26-30 because it seemed a sure bet to make 25% or more and didn’t mind having cash in Ira tied up. But then got nervous with Axels replies and got out. I hope for all u holding it comes through and my guess is it will.
I hope you are right, please let us know what you learn. The one difference from the past is that Arcm.st is no longer trading, which makes for a very strange situation. I agree with you that if the amavf shares corresponded before to real shares than that should still be the case. But i am still concerned there is no clearly articulated requirement or perhaps even ability to apply Swedish squeeze out law to an ADS. Then what? Does GE just get to claim the remaining shares? Seems like it would become an obscure question of law and jurisdiction where amavf holders would only get representation if they hired lawyers.
BAD NEWS for holders of AMAVF
Friends, I am sorry to be the bearer of disturbing news for holders of AMAVF. I heard back from the minority share holder rep (or his associate), who stated that shares held on the ADS are not subject to the squeeze out process. This is insane and shocking to me, as is the fact he says they don’t know who the issuer of the ADS program is. Perhaps there is still some way these shares will receive a buy out price, but I fear they instead may be some very strange limbo shares that become worthless as they no longer correspond to real shares. Thoughts?! I sold all mine today.
Dear Mr. Fine,
According to GE/Arcam, the ADS program is unsponsored and was set up without any involvement by Arcam. Since an ADS is not an actual share in Arcam, the ADSs will and can not be subject to the squeeze out process. Unfortunately, we do not have any information on who set up and/or who is the issuer of the ADS-program. If you find out who the issuer may be, please let us know so that we can forward the information to other ADS holders.
Best regards,
Victor
Got a reply after emailing second time with viktor email on it. Not a very reassuring reply regarding amavf.
Dear Mr. Fine,
The financial instrument traded under the ticker AMAVF is a so-called ADS (American Depositary Share), representing the right to receive one ordinary share in Arcam. The ticker ARCM.ST is the actual Arcam share that was listed on Nasdaq Stockholm.
As we are in the beginning of the squeeze out process, we are currently investigating the status of the AMAVF and will revert to you when we know more.
Please find enclosed a letter with general information on the squeeze out process.
Best regards,
Viktor
---------- Forwarded message ---------
From: Aaron Fine >
Date: Thu, Mar 22, 2018 at 12:06 AM
Subject: Arcam Questions
To: axel.weibull@lindahl.se <axel.weibull@lindahl.se>
Dear Mr. Weibull,
I learned of your role as designate trustee for minority shareholders from other shareholders. I have held Arcam shares for many years and had a couple additional questions I am hoping you can answer.
1) Will the price per share that comes out of the arbitration be equivalent for stock held as AMAVF and ARCM.ST?
2) The stock continues to trade as AMAVF in extremely limited volume even though the ARCM.ST was delisted. Will the squeeze out share price for shares held prior to the announcement and delisting be equivalent for shares bought as AMAVF after the announcement and delisting?
3) The share price of AMAVF has gone down significantly based on extremely little volume, presumably because some shareholders are pressed to free up funds. Do you have any concern GE could use this price drop as basis for a lower squeeze out price?
4) Lastly, just out of curiosity, do you know why the stock continues to trade as AMAVF so long after delisting as ARCM.ST?
Thanks so much,
Aaron Fine
Thanks
I emailed axel with additional questions and haven’t heard back, has been about a week, how long did it take for you to get a reply?
Great job Charlie, actual information! I may email him with additional questions, will let you know if I learn anything.
Makes sense. And do you also think they have to offer the same price to shares owned before the listing and shares purchased on otc after delisting? Hard to see how they could not but whole situation is weird that it is still listed at all
Interesting re currency. My other question is if there is a chance they lowball buyout because of the drop in share price among slimly traded Amavf. That would be crazy but as weeks go by and there are ticket prices that are low makes me a little wary, think that is justified concern? Probably not...Makes me want to buy one share every day at a higher price to move the ticket price high lol.
I had sold all before new year but have added my way back in with cheap shares. Just when I thought I was out, they pulled me back in!
Do people think the selling going on in the $28-30 range is just people wanting to free up the cash since the timing is indeterminate for the squeeze out going through? I can’t think of any other explanation but have been a bit surprised it’s continued albeit in small batches.
And it would seem it’s enabled by some odd process issue whereby it hasn’t been delisted here.
Before you do, read the recent article in Barron’s: https://www.barrons.com/articles/general-electrics-dim-prospects-1518842677
It’s a good reminder of how mammoth and complicated Ge is. I still am interested long long term but may keep an eye on it for a couple years into some real changes happen like splitting the company.
It’s only 3 trades. No idea why there are sells at that level.
So are u the one buying up shares or others thinking like you? Or could GE be purchasing for some reason on open market?
The board of Arcam applies for de-listing and GE initiates compulsory redemption
On 27 December 2017, Arcam AB (publ) (“Arcam”), announced information regarding GE Sweden Holdings AB ("GE") acquisition of additional shares in Arcam. Following completion of the acquisition GE has been registered as shareholders in the share register of Arcam of the acquired shares and holds app. 95 percent of the shares and votes in Arcam. GE has informed Arcam’s board of directors that GE has resolved to call for a compulsory redemption of the remaining shares in Arcam.
Considering the above, Arcam’s board of directors makes the assessment that circumstances for a well functional and satisfactory trading in the company's shares no longer exist. Accordingly, the board of directors of Arcam has applied for de-listing of the company's shares from Nasdaq Stockholm. Nasdaq Stockholm has approved the application and resolved that the last day of trading in the Arcam share will be Friday, January 26, 2018.
For further information:
Magnus René, CEO and President, Arcam
Cell: +46 702 79 89 99 or +1 781 266 6957
E-mail: magnus.rene@arcam.com
Arcam, a GE Additive company, brings together best-in-class Additive Manufacturing systems, the highest quality materials and real-world production expertise, changing the way manufacturers conceive and produce metal components. Together we use our collective knowledge to inspire and disrupt conventional thinking. Through our solution orientation, Arcam is an innovative partner for advanced manufacturing, primarily in the aerospace and medical industries.
Arcam Group provides Electron Beam Melting systems through Arcam EBM in Sweden and powder metals through AP&C in Canada.
________________________________________________________________________________________
Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden
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I am out but rooting for u to be right on higher buyout. I am doubtful though as I don’t see a higher buyout without a higher stock price and don’t see that happening. Maybe if it takes a really long time. But there just aren’t many people left to trade.
Thinking to buy into GE over extended period of time. Hopefully at least safe hold with dividend and long term growth. But beyond my investing skills to really evaluate a company of this size.
My holdings in fidelity and E*TRADE were cashed out at 41.50. If no one else had that happen then maybe I messed up and the order I entered Thursday wasn’t day only.
Either way I am all out.
Why are people holding? I don’t see any benefit other than possibly avoiding commissions or taking gains in 18 instead of 17. I can’t imagine there will be a higher price than Elliot got.
We've been cashed out at 41.50 for any remaining holdings. And so it ends!
Anyone read the Swedish law and know if they are required to give us same buyout price?
Indeed, a fun ride, will be sad to be out, been a lot of years of following this stock and story. Thanks to all for sharing in this great board together. Wishing success and goodness to all
Wow. This is big news. Maybe good. Wonder what will happen to share price. Wonder if GE pushed them out or was really self initiated
Magnus René, CEO and Johan Brandt, CFO leave Arcam
Magnus René, President and CEO of Arcam AB (publ) (“Arcam” or the “Company”), and Johan Brandt, CFO and deputy CEO of the Company have both chosen to terminate their respective employment agreements with the Company. Magnus René has been CEO of Arcam since 2001 and Johan Brandt has been CFO of the Company since 2012. Magnus René has a notice period of 6 months and will remain in his position until a new CEO is appointed or at the latest until June 3, 2018. Johan Brandt has a notice period of 3 months and will remain in his position until a new CFO is appointed or at the latest until April 30, 2018.
“Magnus René has with energy and decisiveness built Arcam to a leading company in the Additive Manufacturing sector. He has together with his team, customers and partners worldwide developed the company from a start-up to a global industry. Magnus has also been instrumental in bringing Arcam into its new future with GE as an owner”,
says Göran Malm, Chairman of Arcam, and continues; “Johan Brandt has as CFO and deputy CEO built the structure of the company and thereby facilitated our growth and globalization. Johan has with his leadership and his team developed first class management of Arcam’s and our subsidiaries financial functions”
“I have had a fantastic journey, being part of the team building Arcam during those 16 years. Today, Arcam is well positioned, with a great team, world-class products, strong leadership in our companies and a strong cash position after the recently concluded share issue. With GE as majority owner this is a good time for me to move on and for a new CEO to take over and develop the company in the new environment”,
says Magnus René, President and CEO.
For further information:
Magnus René, President & CEO, Arcam AB
Cell: +46 702 79 89 99 or +1 781 266 6957
E-mail: magnus.rene@arcam.com
Göran Malm, Chairman of the Board, Arcam AB
Cell: +65 9632 0619
E-mail: goran_malm@windswept-inc.com
This information is information that Arcam Aktiebolag (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below on 4 December 2017, at 18.00 CET.
Arcam, a GE Additive company, brings together best-in-class Additive Manufacturing systems, the highest quality materials, and real-world production expertise, changing the way manufacturers conceive and produce metal components. Together we use our collective knowledge to inspire and disrupt conventional thinking. Through our solution orientation, Arcam is an innovative partner for advanced manufacturing, primarily in the aerospace and medical industries.
Arcam Group provides Electron Beam Melting systems through Arcam EBM in Sweden, powder metals through AP&C in Canada and implant contract manufacturing through DTI in the U.S.
________________________________________________________________________________________
Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden
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This was long in coming. They have been expressing disappointment about DTI from the start.
Arcam evaluates strategic alternatives for DTI
The Board of Directors of Arcam AB (publ) ("Arcam" or the "Company") has resolved to initiate a process to explore and evaluate strategic alternatives regarding DiSanto Technology Inc. (“DTI”), to strengthen its focus and capabilities within both Additive Manufacturing and conventional manufacturing. As part of this process, the Company intends to consider a range of strategic and structural options, which may include, among other things, a restructuring, full or partial separation of DTI via a spin-off, sale, joint venture, strategic collaboration or other transaction.
The evaluation is part of Arcam's continued efforts to allocate resources and capital to maximize the advancement of Arcam’s offerings for its customers. Arcam’s objective is to strengthen DTI’s ability to serve as a contract manufacturing partner to orthopedic customers seeking to combine the benefits of additive manufacturing with traditional manufacturing capabilities.
There can be no assurance that this review will result in a transaction. Although Arcam expects to proceed in a timely manner, there is no timetable for completion of the review process and the Company does not intend to announce any updates other than what is required by law and the stock exchange rules.
Arcam has engaged Viant Capital, LLC as financial advisor to assist in the review of strategic alternatives for DTI.
About DTI
DTI in the US offers contract manufacturing of orthopedic implants. Production involves both Arcam’s EBM® technology and more conventional equipment and manufacturing capabilities. DTI produces a wide range of components in titanium, cobalt chrome and medical grade plastics. DTI has significant experience in manufacturing services for the orthopedic market including prosthesis parts for hip joints, knees, spine and extremities. DTI’s office is located in Shelton, CT, United States.
This information is information that Arcam Aktiebolag (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below on 1 December 2017, at 8:30am CET.
For further information:
Magnus René, CEO and President, Arcam
Cell: +46 702 79 89 99 or +1 781 266 6957
E-mail: magnus.rene@arcam.com
Arcam, a GE Additive company, brings together best-in-class Additive Manufacturing systems, the highest quality materials, and real-world production expertise, changing the way manufacturers conceive and produce metal components. Together we use our collective knowledge to inspire and disrupt conventional thinking. Through our solution orientation, Arcam is an innovative partner for advanced manufacturing, primarily in the aerospace and medical industries.
Arcam Group provides Electron Beam Melting systems through Arcam EBM in Sweden, powder metals through AP&C in Canada and implant contract manufacturing through DTI in the U.S.
________________________________________________________________________________________
Arcam AB • Krokslätts Fabriker 27A • SE-431 37 Mölndal, Sweden
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http://www.arcam.com/arcam-announces-outcome-of-rights-issue/
That's the link that you aren't allowed to read lol. Looks like on the 21st most of the new shares start to trade, will be interesting to see where the stock price goes from there.
The new shares it says will trade on the Stockholm exchange which makes sense, but I guess that means that those of us who were able to subscribe will get shares on that exchange rather than AMAVF which I hadn't thought of, assuming it actually goes through in the end.
They sent an email as well but only in Swedish. I'm signed up for both the english and swedish one which are usually duplicates, but not this time or with the prospectus.
Reminded me how when I first was following arcam i was translating everything (google rather) because there was literally nothing about them anywhere in english except the one article I got lucky to come across by a guy on seeking alpha. If only I had invested a lot back then...
Looks like people doing some buying today. If this is bottom or close to it I will be happy. Thought it would drop further. Probably some volatile weeks until finds new balance
Summary article:
GE announced plans for a major restructuring, including halving its dividend — for the third time in the company’s 125-year history — and focusing on its health care, energy, and aviation divisions. In a presentation to investors, the industrial giant also said it would cut its board from 12 to 8 and reiterated CEO John Flannery’s promise to exit over $20 billion in assets. The dividend cut to 12 cents per share could scare off shareholders, CNBC notes, but would “free up much needed capital to fund a turnaround for the one-time American bellwether.” GE’s shares have plummeted 35% this year.
Cleos, I think you are missing a couple things.
First, according to what has been posted on this board no one has succeeded to put in an order to exercise their rights for new shares except via Fidelity. So if your shares are in fidelity you could do the first part of your plan, if not you can't. Even if fidelity I would check that it is still possible before banking on it, diff brokers seem to be giving diff deadlines from official.
Second, the same applies re brokerages for purchasing additional rights. And even if you are at fidelity, it is not guaranteed you will succeed in purchasing them.
Lastly, even if you could purchase additional rights, I don't think there is a point for you. It costs about $2 a right and you need 5 to be able to get a new share. Which means you would pay $10 to be able to buy a new share at $29.50, which ends up being the same price your share are now(ish). And you will have paid brokerage fees.
So if you don't have money (or ability) to exercise rights I would say sell the rights ASAP if your brokerage allows and you are still able. You'll bank the $2 per share and can use that to buy more on the open market if it drops more. Or you could sell some now and try to buy back lower, of course it's super low volume and who really knows how the stock will act.
From my convos with fidelity and etrade I would emphasize- don't trust the official dates for selling rights, act asap so you don't lose that money if you haven't already.
Hope that is helpful, and of course, I am not a financial advisor...
Thanks, just sent him an email.
Charlie, do I remember right you use Fidelity as well? Just wondering if others also were able to apparently exercise rights through them.
They will let you sell subscription rights which it sounds like almost all brokers will. So far for exercising rights sounds like only fidelity is able, if they know what they are talking about.
If u are saying they won't let u sell the subscription rights I would try to transfer asap to another brokerage. Might be too late but worth a try
Etrade said today is last day, not sure why but I put in an order just now. They also said there are 2 ways to do it, a manual trade to try to sell right now (what I did) or an agency trade which I don't really understand but bottom line you have to wait and not guaranteed it sells.
Would recommend doing today unless you have a reason otherwise.
Thanks, that is the best clarity we have received. And it provides a possibility for how Fidelity could be actually able to. I would try to move other shares there but not enough time.
Huh. Not sure if fidelity has loophole somehow or they don't know what they are talking about and I will get screwed and just lose those rights if leave order in exercise rights.
At least according to E*TRADE notice they become null and void.
I was able to put in to exercise my rights via fidelity international desk. Even had them talk to higher up to confirm and mentioned all the other signals. Still worried it doesn't go through and I lose the money of selling rights but going for it.
Other ones in E*TRADE can't. Fidelity says they don't have same international capabilities is why
Actually, I now understand the answer to why there is 1 right per share showing up in our trading accounts.
"Arcam’s shareholders will have pre-emptive rights to subscribe for new ordinary shares in proportion to their holdings. For every ordinary share held on the record date, the holder will receive one (1) subscription right. Five (5) subscription rights entitle the holder to subscribe for one (1) new ordinary share."
So to buy the right to purchase a share at 240 SEK would actually cost about $10 right now, which adds up to more than the going price of a share on the open market. Which means that selling our rights is actually a good deal if it is something you want to do I suppose. You could sell your rights, take the money and buy more shares on the open market and have made money, no? If those shares are available. Or just keep the money. And if we can't exercise our rights, this may be our only option.
From the Oct 10th announcement:
"For existing shareholders who do not participate in the Rights Issue, a dilution effect arises corresponding to 16.67 percent of the total number of ordinary shares and votes in the Company after the Rights Issue. Shareholders who choose not to participate in the rights issue may be able to compensate for this dilution by selling their subscription rights."
But most confusing seems to be this Sweden only issue. The prospectus is up on the arcam website so it's not exactly hidden. I received it in email too but they only sent it out in Swedish.
The timeline in the prospectus and the Oct. 10 email says:
October 25th - November 7th 2017 Trading in subscription rights
October 25th - November 9th 2017 Subscription period
My understanding would be that the trading in subscription rights is happening now until Nov 7th, simultaneously the opportunity to exercise subscription rights is happening and will continue 2 days after the time of trading subscription rights.
If we really can't participate, then we can sell them apparently. If that is actually not legal, then what happens with our rights showing up in our accounts?
The answer may be in this paragraph from the Oct. 10th email, which I can't really make sense of yet:
"If not all ordinary shares are subscribed for by the exercise of subscription rights (primary preferential right), the Board of Directors is to decide on the allotment of ordinary shares subscribed for without the exercise of subscription rights up to the maximum amount of the Rights Issue. Where, firstly, new ordinary shares that have not been subscribed for with primary preferential rights shall be allotted to the shareholders who on the record date 19 October 2017 are recorded as a shareholder in the share register kept by Euroclear Sweden AB, who have subscribed for and been allotted ordinary shares by exercising subscription rights and who, in addition, have notified their interest to subscribe for new ordinary shares without subscription rights (secondary preferential right). If new ordinary shares are still available after for allotment to those who have exercised the secondary preferential rights, the ordinary shares shall be allocated between the subscribers in relation to the total number of shares held by them in the Company on the record date, and where this is not possible, by drawing of lots. Secondly, if all ordinary shares have not been allocated according to the above, allotment of ordinary shares shall be made to those who have otherwise subscribed for and been allotted ordinary shares by exercising subscription rights and who, in addition, have notified their interest to subscribe for new ordinary shares without subscription rights and, in case of oversubscription, pro rata in proportion to the number of subscription rights used for subscription of ordinary shares, and if this is not possible, by drawing lots. Finally, allotment of the remaining ordinary shares shall be made to the guarantors of the issue, if any, in their capacity as guarantor and in accordance with their respective subscription and guarantee undertaking."
I'm still sorting through the situation as was traveling, but my father in law who got that Schwab info concluded the rights are not available to non-institutional owners but we can sell the rights. It doesn't make much sense though that we own the rights but can't exercise them.
What is clear is that we can sell our rights, and they're going for about $2 a share. My father in law went ahead and did that. He claims it has to be done by Nov. 1. That's the line that is showing up in our portfolio's - the price per right that we own at the going rate. Apparently they can only be sold on the Swedish exchange.
Questions that need clarification (and forgive me if I'm repeating, this is confusing):
Why is it showing that we have 1 right per share that we own? Shouldn't it be 1 for every 5?
Can we also buy those rights on the Swedish exchange, or only sell them?
More importantly, can we or can't we exercise the rights showing up in our portfolio's, and if so how?
Hopefully between all of us we can get to the bottom of this soon.
I think it's possible this is just a cheap way to raise money. GE had a terrible quarter. Read the article below if you haven't. One line:
"The decline in the power business also put a big dent in G.E.’s cash flow, reducing the corporate total by an estimated $3 billion, to about $7 billion this year, the company said. That has raised questions about G.E.’s ability to keep paying its current dividend, which consumes about $8 billion a year, analysts estimate."
https://www.nytimes.com/2017/10/20/business/general-electric-strategy-report.html?rref=collection%2Ftimestopic%2FGeneral%20Electric%20Company&action=click&contentCollection=business®ion=stream&module=stream_unit&version=latest&contentPlacement=2&pgtype=collection
GE/Arcam want to invest more money, this may just be a good way to do it, although I don't claim to understand the finances of underwriting loans etc, but according to the investopedia previously posted, companies raise money this way because it's cheaper.
As I've said before, I don't see why it would matter a great deal to GE to get our small potatoes retail shares, not sure how that would make much of a difference since Elliot is the only block to full ownership. Maybe there is some reason it simplifies to get down to less owners but I'm not sure what that would be.
What does it matter if we don't all participate as long as Elliot does? Ge might get slightly higher percentage but not full control.
Personally I decided to sell some last week and then plan to use all my rights to both lower my cost basis and increase holdings, but not
Increase to the max that I would have if i didn't sell some. Not sure if will be best strategy in the end but seemed a decent middle ground.
And down to 32 here? And only see trades at 39 today. Confusing. Thought this would take place after tomorrow.