The Lemon Fool

I have applied for the 2019/2020 Issue of Proven VCT shares. They cashed my cheque on Thursday 27/2/20, and an issue was made on Thursday 5/3/20. Usually I can check what shares have been allocated on the Registrar - Signal Shares, but there have been no additions to my previous holding, and no share certificate has arrived by post. Have any of you made a similar purchase - and have you received a share certificate?
Its difficult to believe (though not impossible) that more than a week was required to clear the cheque - but if so, possibly I'm now awaiting the next allocation, which according to their RNS of 10th March should happen "soon".

hi scotia i applied for shares at virtually the same time and called them up last week. luckily for me at least I didn't get allocated shares on march 5.

you may have seen they consequently wrote down NAV on covid-19, so i at least should end up getting more shares than i would have done on march 5

shootingstar wrote:hi scotia i applied for shares at virtually the same time and called them up last week. luckily for me at least I didn't get allocated shares on march 5.

you may have seen they consequently wrote down NAV on covid-19, so i at least should end up getting more shares than i would have done on march 5

As long as they use the latest NAV! I'm hoping they do, and I will end up profiting from their tardiness.

On reading the Supplementary Prospectus, dated 31st March (https://provenvcts.co.uk/siteuploads/literaturedocs/Proven_PGI-sp.pdf) it carries corrections to the earlier Main Prospectus of 27th January - in that it updates the NAV to the value of 20/3/20, as published on 23/3/20. So it looks like the final issue of 2019/2020 will definitely be at the new NAV. The preamble to the Supplementary Prospectus indicates that un-allotted applications can be withdrawn up to 5pm on April 2nd. So I would expect the last issues of 2019/2020 will take place thereafter - probably on Friday 3rd April

OK - Email from Proven today. I have been allocated Proven VCT shares for tax year 2019/2020. The NAV used was 65.1p - as at 20th March.
So their tardiness in handling my application has been advantageous - otherwise I would have received the shares on 5th March - computed using a NAV of 73.6p.

scotia wrote:OK - Email from Proven today. I have been allocated Proven VCT shares for tax year 2019/2020. The NAV used was 65.1p - as at 20th March.
So their tardiness in handling my application has been advantageous - otherwise I would have received the shares on 5th March - computed using a NAV of 73.6p.

agreed but picking out this : So their tardiness in handling my application has been advantageous you should add 'to me' cos it's not advantageous to existing holders (such as my daughter) who are being more diluted.

BusyBumbleBee wrote:

scotia wrote:OK - Email from Proven today. I have been allocated Proven VCT shares for tax year 2019/2020. The NAV used was 65.1p - as at 20th March.
So their tardiness in handling my application has been advantageous - otherwise I would have received the shares on 5th March - computed using a NAV of 73.6p.

agreed but picking out this : So their tardiness in handling my application has been advantageous you should add 'to me' cos it's not advantageous to existing holders (such as my daughter) who are being more diluted.

I'm afraid so - but at least I can feel happy

BusyBumbleBee wrote:...it's not advantageous to existing holders (such as my daughter) who are being more diluted.

Not necessarily.
Assuming the recent new share issue was at a small premium to NAV to cover costs etc, then all then existing shareholders have made a micro-gain.

Furthermore, all shareholders old and new ended up with shares of equal value both in NAV and in share price.

Kidman wrote:

BusyBumbleBee wrote:...it's not advantageous to existing holders (such as my daughter) who are being more diluted.

Not necessarily.

That's a different question. BBB's comment referred specifically to scotia's good luck in having his allocation delayed, thus getting more shares for his money than he would've done without the delay.

Back in the 2008/9 crisis, the ProVens issued a new "D" share class. Some time thereafter I had the opportunity to ask them about the reasons for that (given that they hold regular top-ups), and was told that was 'cos with the turmoil they had no idea of a fair NAV for existing shares!

UncleEbenezer wrote:Back in the 2008/9 crisis, the ProVens issued a new "D" share class. Some time thereafter I had the opportunity to ask them about the reasons for that (given that they hold regular top-ups), and was told that was 'cos with the turmoil they had no idea of a fair NAV for existing shares!

Would that all new issues were into new share classes. That would be fair to all cos, for example, if NAVs continue to fall which they surely will - then existing shareholders will get their share of the new cash.

As Robin has pointed out elsewhere, those new share classes can actually pay dividends.