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SB
Yes, Ok no choice but to take the 3p if the company winds up in March 2022 ergo take 9.6p in all or see where this cash shell play goes looking forward, I presume we would have shares in the new entity of MMX2? ....................you are a star.H
Hucks - imo we will either get the 3p out in March as a final return if the company is wound up; OR the cash will be used to fund a RTO opportunity and the 'value' would be reflected in an increased share price. Not both. SB
I now feel like my holding is tiny! Although far more than I would like . On my my ISA holding currently 30% in profit. If I had sold my other holder a lil later in the day yesterday would have broke even but the two hundred pound lost isn’t end of the world.
SB thanks for that, very helpful....yes I would say my reasons for hanging on are pretty much identical to yours by dint of the size of the holding, I can also see how you got to 8.4p, good call..... by way of clarification if we accept the tender offer of 6.6p do the rights of our shareholding continue to exist in that we will get the March 2022 payout and then continue to enjoy any value enhancement a RTO gives? H
That's a good question hucks. I'm holding 2x your position so very conscious of how I can actually make some money here as a member of the 8.4p club! As I see it - there are two options. 1 - sell now at 8.3p and move on (Not for me). 2 - accept the tender offer of c.6.6p and let the rest ride. We know your shares would be worth a further 3p, but are currently being discounted for 'risk' - and as such the only certainty of securing the additional 3p is if the company winds itself up and pays out the remaining cash. As a cash shell it is likely we will still trade at a discount to net assets; so the only point at which we would get to a total of 9.6p (and beyond) is dependent on the quality of any business we pursue as an RTO. The expectation is we would get a decent 'bump' in such an event - or why would we consider such an action. Not sure if that helps.....FWIW I'm minded to hang around post tender offer - and that is based on the hope we can successfully bring a company to market as a cash shell. ATB SB
How big is your holding!
Morning SB and all.......I am please this RNS is good news for many, for me 9.6p would mean MMX wipes its face, more relief than joy really, but it brings this farce to a sort of conclusion.
Question is what is the best route to achieving 9.6 p? given that I would like to share in the benefit in any cash shell gains; every 1p increase in sp is worth £ 27,000 to me
H
Thanks for the help SB, appreciate it.
Leader - correct - the tender offer is an initial return of capital - if you accept you will receive a payment but your remaining shares will be worth less as a result of the company’s payout. The actual mechanism is not yet available but the company may attempt to consolidate its 876m shares in circulation by offering to buy then cancel shares. All will become clear when the actual offer document is posted. SB
All, doesn't MMX still own a Florida Porn Website ? No mention of sale thereof today so maybe to remain as an asset after sale of the TLDs ?
Ah ok, so the tender offer is as well as, not instead of, waiting for Mmx2?
Was thinking once you accept/apply for the tender offer you are all out?
Leader - of course you could sell today and get 8.1p - the reason for holding would be to get the c.6.6p tender offer and the subsequent 3p residual value left in the business at some point taking your return to 9.6p. That said - we don't know if the 3p will be returned as a further return of capital next year or if that cash will be used to promote mmx as a cash shell - in which case there may not be any further return of capital but an increase (or decrease) in the company's share price! Back to micksters gamble comment.....SB
But 3p is still a lot less than 8.1 I can get today, still don’t see why I should wait. Is it sell up now or via tender offer or wait for what could be more than 8.1p?
Sorry if I’m being dumb
Leader - worth noting that each share post payout is likely to have a 'net' worth of 3p - if the market places a current value on that future value at 1.5p then so be it. And as Mickster notes - if the company completes a RTO then there would be a general expectation that would create some value - adding our cash to a company looking for an AIM listing and some capital to finance development. SB
because mmx2 will be welcomed by the market and the sp wont be anywhere near 1.5p.. thats the gamble
Thanks for the response SB , not clear on why holding on to shares until the post payout is a good thing if they are only worth c1.5p?
Am sure there’s a bit in the middle I’m not seeing!?
I'm in the relief camp too...but will hold my remaining holding for now, still a 17% margin to the nav of 9.6p
Atb
Nice to hear from you SS - we almost made it into double digits!! I'm in the relief camp......well I will be when I see some cash in hopefully a few weeks. I hope your other investments are working out. Who knows where we go from here - it will be interesting to see what happens post the tender offer - perhaps some investors will take a position in the anticipation of a RTO opportunity - or just looking for a 100% return if the shares trade at 1.5p with a 3p pay-out next year if nothing else materialises. SB
Leader - as I see it - each share currently has a net asset 'value' of 9.6p based on $116m - or £84m at 1.38 exchange rate - total cash after deal costs and a bit put aside for working capital. If the company pays out 6.6p per share in the tender offer (the $80m); it leaves $36m - equivalent to 3p per share based on current shares in circulation (876m). The tender offer may cancel shares - we don't know the exact details yet - but the principle would remain based on the $36m left in the business divided by the shares in circulation. What price the shares will trade at post the $80m pay out remains to be seen - based on todays price they would be about 1.5p (8.1p - 6.6p) - which would be a 50% discount to net assets which seems pretty high imo. Hope that helps. SB
Congratulations guys...if that is the right word...more relief,I would think...Its been a long and soory saga ,and recent A&M activity in the space has demonstrated the complete incompetence of all managements...
I will be looking in with interest to see what MMX2 has to offer...I hope it is crypto based..
Good luck all
SB can you explain what you mean by this bit?
leaving 3p per share net assets following distribution
I wouldn't say you lose shares kitkat - the company will offer to buy them and you have the choice to sell - but given the companies net assets per share will decline post capital return its highly likely taking up the offer will be in your favour! That said - nothing wrong with selling at the current price rather than waiting for the 1.5p difference to the net asset valuation - or the hope the company pursues a RTO and increases its net asset position as a result - although I guess there are risks to this strategy and given historic performance shareholders may not be overly confident we could execute such a move. That said - the quality of the RTO team and business would be the primary value driver. SB
So the tender offer will really be of no value if it's less than the current share price and you also loose shares
Deal is done. We have more cash than previously anticipated - 9.6p net assets per share after costs and an allowance for the next six months. As per the RNS mmx intend to return $80m capital via a tender offer (i.e. it will offer to buy your shares) - the company will still have about $35m (Escrow and cash) after the 'initial' return - the wording of which implies the company may be considering a further return post March 22 - or as we know there has been earlier reference to proceeding as a cash shell although no news on that so far. What will be interesting is the price used to calculate the tender offer price - usually a tender offer would be in excess of current share price to make it attractive - but more likely here it will be fixed at a lower level - 6.6p looking likely based on amount being discussed - leaving 3p per share net assets following distribution. A tender offer can proceed pretty quickly - I suspect money could be distributed in next 4-6 weeks. SB
So I am keeping the ISA holding which is my biggest one, and average meant if I had sold I would have made a profit. But even with the special div I get back my original stake.
My other holding the non ISA although did average down by chance just before all this happened with the Gd offer was at 8.4 average, however I decided even though I loose a few hundred pounds to sell it, and got 8.14 could have got 8.145 but was umming too much. I figured it was best to free the money back to savings and I had a few other bits that could take me to capital gains and I didn’t want to wait any longer.