04/11/2014 08:02 UKREG Touchstone Gold Limited Acquisition " ...Inclusive of a nominal consideration for the assets and goodwill, Touchstone has committed a maximum of GBP250,000 to finance the acquisition and to enable GOS Systems to fund initial working capital requirements. Additionally, Touchstone will make available up to a further GBP250,000 to fund growth development requirements...." http://uk.advfn.com/news/UKREG/2014/article/64273539
Of the £500,000 TGL has committed to GOS Systems, it's notable that only half of that is required as working capital for the business at its current size: the other £250,000 is for GROWTH.
This is significant in two ways: 1. It supports the view that GOS Systems is profitable now that it's debt-free: £250,000 would be a normal amount of working capital for such a business of GOS's size (turnover of a couple of million pounds p.a. or so). 2. Expansion of GOS is very much on the table, and is being pursued.
Agree there is a master plan here and all the ducks are being lined up.No wonder nobody is selling.Once progress is announced this could multibag in the blink of an eye.Peeps only need to do a little research but I guess that is beyond most!!
"the assets, intellectual property rights and businesses that constitute GOS Systems": quality businesses turning over millions of pounds p.a., debt-free, and profitable. That on its own has to be worth a penny a share minimum to TGL, with plenty of upside, and we should certainly hope that this will be reflected in acquisition negotiations.
The amount of equity TGL has to give away for a coming acquisition will be determined by the respective bargaining positions of the two parties, and what each side sees a fair value for its offering. The pre-existing market value of TGL will have some bearing on this, but only some.
And it's quite possible for a deal to be struck at a price of a penny even is the market price is half that, if that's considered to be a more accurate reflection of the value of TGL at present and of the enlarged company.
That said, the deal should be a (largely) paper-based transaction, and the s.p. at which the deal is struck should be a nominal figure. More important is the quality and size of the business being acquired, and the amount of equity that TGL has to give away to acquire it.
In my opinion, TGL has pulled off a master stroke here by gaining full control of GOS Systems, its intellectual property and management team, without issuing ONE share in dilution as partial consideration for the acquisition. It is my sincere hope that if they do a bolt-on acquisition, it is struck at a significant sp premium to the current depressed level.
How to get the sp up in advance, is what I imagine is taxing IK's mind currently.
TGL's RNS on 4th. November said: "We continue to review a number of other acquisition opportunities as we seek to fulfil the company's investing strategy and build on the unique platform created by GOS Systems." http://uk.advfn.com/news/UKREG/2014/article/64273539
It's worth noting that the next acquisition doesn't necessarily have to be a RTO (reverse takeover), especially as TGL is no longer a shell.
TGL's value has been increased substantially be the acquisition of GOS Systems (not reflected in TGL's current market cap.), so it may be deemed to be worth more than a target company. In such a case, TGL could still of course make a shares-based acquisition of that target, but one that results in that target having the minority of the enlarged equity, rather than a majority.
There could also be more than one additional acquisition in quick succession, perhaps even simultaneously.
If the acquisition(s) are not RTOs, then it should far less likely that TGL's shares are suspended from trading for the transaction.
" ... Growth stock expert David Thornton says: "If you don't invest in Big Data small caps NOW – you stand to miss out on the most rampant bull market of the next 5 years!"
... For thousands and thousands of years, human beings have been creating and collecting knowledge in the form of information.
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Just consider this…
500 million tweets are sent every day.
100 hours of video is uploaded to YouTube every minute.
There are 10,000 credit card transactions recorded every second.
Before your head explodes with all these big numbers – I just want to prove a point: there is more information generated every single day than we can possibly understand.
There is simply too much to make sense of.
Crucially – we haven't had the tools to analyse even a fraction of it.
But all that is changing…. Fast.
For the first time ever, we are able to make sense of all the information we are collecting...
This new breakthrough is called 'BIG DATA'.
And it is being put to extraordinary uses – unlocking a new wave of breath-taking innovations…
It is being harnessed in ways that will change every industry on the planet, including: energy, medicine, business, biotech, and agriculture.
Over the last year or so we have started to make the transition from having so much information it's virtually useless…
To being MASTERS of our knowledge and data. What used to take months or years to accomplish can now be done in hours or minutes.
We now have the capability to sift through masses of information in moments… and it's fuelling some incredible breakthroughs.
From the useful:
Like tracking your run on a Sunday jog… making sure you pay less for aeroplane tickets… or checking your glucose levels on your smartphone.
To the incredible:
Decoding our DNA sequence… 3D printed artificial limbs, intercepting terrorist attacks before they occur … isolating cells that cause cancer… even re-growing body parts.
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Yes, these are all remarkable breakthroughs… you may already have started hearing about them in the news or seeing reports in the paper… But as a growth stock expert, I am most qualified to show you how you could make money out of what's happening. ..."
08/12/2014 07:00 UKREG Touchstone Gold Limited Appointment of New Director "London, 8 December 2014 - Touchstone, the AIM listed investment company, is pleased to announce the appointment of Richard Almeida to its Board as non-executive director. Richard Almeida's career spans over 20 years in the global technology industry as a business founder and business builder, with a successful track record of businesses that he founded being sold to large global technology companies. Richard has worked at Board and Senior Management level at a number of international companies. He served as founding shareholder and Chief Technology Officer of INSnet (later acquired by Cable & Wireless) and a founder of Nominet UK, and Network Managers (later acquired by Microsoft). He continues as advisor to early stage technology companies, including businesses in the 'big data' sectors. ..." http://uk.advfn.com/news/UKREG/2014/article/64699226
I wonder if any of those 'big data' companies that TGL's new director is advising are looking to come to market? Via a RTO? It's certainly interesting that the RNS about Richard Almeida singles out big data in particular for a specific mention, and nothing else currently.
And big data is an area that looks to be very complementary to both quantum computing, and GOS Systems:
"Leading the way with tactical and strategic intelligence gathering and secure communication solutions for law enforcement, homeland security and government agencies around the world." http://www.gos-systems.com/
In addition, it's also an area which may well be one of the 'next big things'.
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