More misery for Woodford investors as Synairgen shares – which were sold by fund administrators – rocket 550%
Investors trapped in Neil Woodford’s former flagship fund have missed out on a huge windfall after administrators sold shares in a firm that later rocketed 420.6 per cent higher.
Shares in Southampton-based drug maker Synairgen were trading as high as 240p yesterday – up from 36.5p on Friday – after bosses revealed a ‘game-changing’ new treatment for coronavirus patients. They eventually closed at 190p – but rose again today by 13.7p or 7 per cent to trade at 203.7p by late morning.
It had previously been partly-owned by investors in Woodford’s former equity income fund, which was shut last year.
Synairgen, which has soared 550 per cent, had previously been partly-owned by investors in Woodford’s former equity income fund, which was shut last year
But Link Fund Solutions, which manages the collapsed fund, sold its holdings in Synairgen last month for less than £10million. Those shares were worth £40.5million at yesterday’s closing price.
The equity income fund was closed altogether after investors rushed to the exit and Woodford was unable to repay them promptly enough.
Yesterday’s surge did deliver a boost to two of the Southampton University scientists behind Synairgen, Ratko Djukanovic and Stephen Holgate.
Djukanovic’s 0.56 per cent stake rose from about £306,600 to £1.6million, Holgate’s 0.59 per cent from £324,850 to £1.7million.
Professor Donna Davies, the third founder, is also still involved but it was not clear last night what the size of her stake was.