Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Has anyone else received information to vote by 24 July for the AGM on the 28th July?
I’m with ii.
Hi clued I wonder how many long suffering long term holders are still out there I can remember a few names that have not posted for a long time and are are you ready for the new dawn?
I AM
I know a share reorganisation will probably happen, which I hate only because on paper your looking at hundred and not thousands and thousands and not millions
But in the bigger picture neither here, nor there
I reckon LSAI management and shareholders have likely seen where they can immediately save costs, and grow revenue to allow the business to very quickly become breakeven or even profitable in the very short term, as an £8m loss per year, cash won’t last long at all.
My guess is all LSAI warrants get converted at 0.2p, management and/or sorted shareholders also put in £5m at 0.2p, that’ll give the business plenty of cash. Relist price around .2p and possibly do a share price reorganisation also to decrease the number of shares in issue
Hope you're right HappyRob. I've been in this since late 2016 and now just goung with the flow as down so much !!
I believe it will take a couple of years, when the world is in a better place than it is now probably a little bit bumpy but what a difference for us all right from the start
By September, what a coup, I wonder what the share price will start at how quick it will rise and where we will be this time next year? if it come off.
Sorted’s unaudited management accounts for the year ended September 30, 2022 reveal that the company generated revenues in that year of £6.4m and a loss before tax of around £14.5m. At the same time Sorted had assets of £32.4m.
Location Sciences has clearly seen enough in the business and its numbers to want to buy it.
If the proposed acquisition proceeds, it’s intended that the existing subscribers, including shareholders of Sorted, will be given the opportunity to participate in a cash subscription for up to £5m of new shares in Location Sciences to seek to align their interests with those of existing Location Sciences shareholders.
The planned acquisition would constitute a reverse takeover under AIM rules and is subject to due diligence and satisfactory negotiations.
It’s hoped the deal for Sorted, which currently employs 96 full-time staff, will be finalised by September but the implications for other exciting tech companies will reverberate for a lot longer.
Yep, September is mentioned in that article which would be a short suspension for an RTO as some can taken many months, but likely a lot of background work has already gone into this.
Sorted has had $100m pumped into it in the last 9 years with majority within the last 4 years, and LSAI could be picking this up for a snip of what has been invested. They certainly have the people and management to potentially turn it around. I was personally expecting a profitable business to come in, but in that case you’d likely need to pay a premium with potentially not as much upside. If these guys can turn this around, the upside could be pretty spectacular from a low starting point, as I’m pretty sure at one point only a couple years ago when $40m was invested I think it valued it at over $100m.
Looking forward to hearing the details of the deal, if management of sorted align themselves with current LSAI holders to the tune of £5m and LSAI warrants get converted upon deal, everyone involved would be fully invested in getting this business turned around.
And with a time frame, I recollect you mentioned September in one of your posts DJP4976
Good post, very interesting read.
Https://businesscloud.co.uk/news/what-happened-at-techs-poster-boy-sorted/
I guess boohoo Hughes & co have hade they eye on this one for a while as sorted were burning cash, working out what need to be done to turn it around.
Sorted shareholder have a life line have this not the old location Sciences this is the reborn and could be massively successful.
I am hopeful this is the best investment I have ever made.
I would imagine it’s a fairly big ask and somewhat hard to swallow to sell a business for a pound but there’s always more to it than that, and it happens all the time.
Ok thanks DJP
I don’t think that’s the case no, discussions will be happening now between LSAI and sorted management and shareholders to come to agreeable terms, once they’ve agreed amongst themselves we will then be given the details of the discussions and genera meeting for approval of LSAI shareholders.
If discussions with sorted fall through, we will either relist without a deal and in the same situation as previously or in the time we are suspended a better deal could present itself and it could change to that new deal.
I think the next state will be publication of the admission document which should be sent to Location Science shareholders (I don’t know how it works for Sorted) and notice of a general meeting.
I presume Sorted shareholders will receive the equivalent document and also have to approve the RTO.
I can’t admit to fully understanding the deal, but if I’m right, LSAI I picking Sorted up for £1 nominal value and taking over debt.
Considering sorted has had £73m+ invested in it since 2014 and £60m+ since 2019, that’s a lot of value destruction for current sorted holders, but could be very lucrative to LSAI shareholders if they think they can turn it around.
They also have almost £25m of net assets in September 2022.
Like I said I could be getting it totally wrong, but if that is the case and LSAI are just taking them over for £1, taking over £4m debt and giving a bridging loan of £2.6m, get sorted holders/management to invest and the current LSAI warrant holders all exercise their warrants to further inject cash, we could be looking at a decent turnaround.
Baring in mind if they don’t raise with any retail and the raise stays with current Sorted investors and directors, and LSAI holders and management convert their warrants - LSAI should in effect remain just as illiquid on relist as it was before it suspended.
Interesting times ahead but from a sub cash position that LSAI was trading at before suspension, really the only way should be up from here if it goes through
I haven’t seen boohoo listed as a sorted customer, ASOS is on the list so if the deal go through you can add BOOHOO
A lot of ground work be done here just need a bit of the Midas touch from the likes of boohoo Hughes and Co
https://www.thebusinessdesk.com/northwest/news/2090236-sorted-expands-with-clicksit-aquisition-following-40m-funding-round
Thanks for for your honest and considered responses.
It’s hard to argue with your assessment.
No we can only wait and see what transpires.
Misread that CEO still in place it was the founder who stepped back.
Getting over excited
With the announcement of the CEO stepping back news can’t be far away, wouldn’t it be great.2 then a stampede on the share price when its relisted
I need .65 to break even average down massively over the last few months from 2 pence been in this a looong time even bought at 3.5p when the SP took off way back when and I have never sold a share been waiting of this to happen
Also agree with Westbury, this deal has likely been worked on in the background for sometime, so I can’t see it being a very long suspension, maybe a few months at the max unlike some that seem to take forever. Nigel Burton alluded to that fact when I’ve had contact with him previously that any deal wouldn’t be announced until much nearer the time of RTO. He’s also stated a number of times that any deal would be expected to create value for shareholders, and majority of holders are in at 0.2p+
Also, baring in mind who is involved here, Kamani family, Booboo founders and pretty little things, Richard Hughes Zeus capital, turner and pipe family, bunch of Boohoo directors and founders/execs etc, if this deal goes through it should gain some national press also IMO, that coupled with a very illiquid share ‘IF’ the deal is structured as per below and not a huge raise with retail, it could be a flier on relist, all just my opinion
I have no doubt whatsoever that it will not be lower than 0.2p for LSAI holders, they currently have £4.1m cash as per results, which equates to .155 per share alone, that’s without the value a listing attains and the deferred tax asset.
Also these guys put in almost £4m in 2021 at .2p, directors have been being paid in shares at 0.2p, so do you honestly think they will shift themselves and do a deal lower than that price, it isn’t going to happen.
I have been hoping for a premium RTO at say .3-.4 which could potentially still happen, but if management want existing Sorted shareholders to contribute upto £5m in a raise to align themselves with LSAI holders then I would imagine that’ll be done at 0.2p being the same price the majority of SH and directors of LSAI are in at!
Like I said in a previous post, even if it is only .2p, if they raise with just directors, vendors and management or Sorted, and/or LSAI shareholders exercise their .2p warrants, that’ll mean LSAI will remain just as illiquid on relist as it was on suspension, which would mean it could see an almighty move on low volumes.
Going to be interesting times ahead but given current cash position of LSAI and where management and concert party entered it won’t be a shafting that’s for sure