Minds+mach Share Chat (MMX)

Thankyou SB - most helpful

I wonder if the company intends to publish its annual report prior to Fridays vote - not that this would change the outcome of the voting but it would seem the right thing to do to provide shareholders with all relevant information in making an informed decision. My only real issue in the sale rationale is the insinuation that our foreseeable growth is in line with the industry and would therefore be in 'low single digit percentages'. Our main peer - Radix - has been posting healthy double digit growth for years. So for me the sale is more reflective of an II opportunity via godaddy to exit and move on from the domains space - if there is life for the company beyond domains it will be linked to trust in TF (and possibly BD) - and for the business to support a genuinely compelling investment opportunity and management team if that is the course we take. SB

Thanks SB

davemake/photonic - as I see it - you can only base current decisions on what we know so far and what has been made publicly available. Meeting on Friday 23rd to approve sale; progress approvals thereafter and once secured deal will complete (or be adjusted of certain waivers or agreements cannot be reached) - with the hope the sale will compete in July. During this period the company trades as per business as usual - albeit there will be discussions with shareholders on the next steps in regards to the sale proceeds - with an expectation shareholders will wish to see a majority of the cash received paid out - what that amounts to in $ is subject to confirmation following those conversations and the needs of the business. We know a minimum of $12m goes into an escrow account until March 2022 - the company may elect to retain further funds as it explores options as a cash shell - the referred to Reverse Take Over (RTO) opportunity to assist an existing business secure an AIM listing which has some some available capital. IMO any cash distributions are likely to be by way of a return of capital which has tax benefits; dividends are subject to taxation and are paid from earnings and this is not the case in a sale of assets which is occurring here. I believe any return of capital would be paid into whatever trading account you hold - ISA included - and would be in the form of cash. Please note this is all IMO and is not intended to be investment advice - we will find out more detail in due course. Hope that helps. SB

I've been a holder since TLDH days
I don't understand what happens now regarding my funds. Do I sit tight ? Can anyone explain please?
Will cash arrive arrive into my ISA? Will there be any real cash? Thx

There's still a chance the deal will fall through. Also many owners subject to taxation of dividends will be sellers as any money dividend out will be taxed. So they will never see 8.8p in their pocket.

Owners of 64% of Minds + Machines shares confirmed they will vote in favour of the sale, the company said. After transaction costs, the offer is worth an estimated 8.8p per share,

Firstly thanks to all informed posters on here over the years.

So if I can ask a novice question please.
Been here since TLDH days, seems we lost the .com battle and never got the revenues I had hoped. But here we are.
So if I stay , take the cash which seems a done deal I will be left with the same shares in a shell of a company.
Do we know if the board have any ideas for a punt of a business with what’s left , or other ideas?
Is there anything to come out of this post sale apart from cash redistribution and wind up ?

I am happy to gamble, just wondered?

Couple of 500000 buys gone through today.

Owners of 64% of Minds + Machines shares confirmed they will vote in favour of the sale, the company said. After transaction costs, the offer is worth an estimated 8.8p per share,

It won’t be that high especially if they do a rto

Does one of you has an idea how they probably will distribute the excess cash? For us non-UK holders it is quite relevant as with an expected income taxation of about 25-29% for me in Switzerland I would need a total distribution of at least 10.5 to have a better return than just selling now tax free for 7.50.

It sounds like they are going to use your entrepreneurial ability in some way..another plus..for the journey to the other side...I look forward to it...atb.Sunday

imho ,

having gone through a sale and purchase agreement with mmx , i think it’s safe to say there will be no walk away of a higher bid comes in . i would suggest the only chances of failure would be if icann refused permission ( zero chance) or some wrangle with the chinese regulator over approvals which again i see as unlikely given that those TLds are already approved in china , godaddy’s status as a multi billion dollar US public company and i’m sure some of the TLds already in the GD stable are already approved in china so isn’t like they don’t know who godaddy is .

there may be the odd chance of a wrinkle on some of the partner / geo names that need extra permissions but that’s a negotiation which i am sure has been figured in and a “ throw away “ number for each TLD agreed if one or two small ones fall out .

i too hope that the great release and general trading goes well as every penny earned pre closing gets kept by MMX so enhances our value .

i think the gap in SP to the ultimate deal value is normal and allows those to get out now to do so with an attractive arbitrage for others .

i have some interesting ideas for the shell post closing so is probably best i stop posting here for awhile to avoid any suggestion of conflict of interest etc . should
any of my ideas be taken up .

for the record i will vote yes at the AGM and intend to stay invested with 5% of the equity for the full duration .
as the great vinnie Jones said in the movie “ it’s been emotional “ .

all the best to you and perhaps see many of you on the other side :-)

It’s where it is as we don’t know what will actually be returned

It would be good to see a revenue boost from the big release...and a corresponding benefit to shareholders post sale .The current SP ,still remains at a substantial discount...somewhat strange, given that the deal has been accepted by IIs...

Another deal wont be coming in and sjl who knows the market says the deal is fair although at the lower end

10 days to go! The Great Release

MMX plans to remove hundreds of thousands of domains from its premium list later this month, and reduce prices on a hundred thousand more.

Dubbed The Great Release, the April 23 adjustment will see 725,400 names currently reserved at premium prices released to the available pool at the usual wholesale fee for their respective gTLDs.

Another 102,000 names will keep a premium ticket, but will see their price reduced. MMX says it’s wiped $145 million from the list price of a total of 827,000 names.

The names are available in 26 of MMX’s portfolio of new gTLDs, which GoDaddy currently intends to buy for $120 million.

An MMX spokesperson said that the current pricing had been in place since 2014 and was up for review. He said:

Premium pricing is not something that had been looked at in great detail since it launched its TLDs, and MMX felt that its pricing was out of step with current market trends. MMX also saw that it had held back much of its inventory without ever releasing it, and following a large volume of enquiries over the last 12 months, MMX decided to release all reserved names to get them into the hands of users.

A searchable database of releasing names can be found here, but you’ll need to hand over your email address to access it.

We should see some good money rolling in in Q2.

If another bid comes in, this deal is dead. I think one will come. This one is too cheap.

MMS looking for shares.

Well it’s going to happen whether you like it or not as they have the votes

They intend to leave circa £20m behind if sjl is right. Over 6 more times than the average if you are correct. So a new market cap of £60m plus, again if you are correct. I still say it's helping the II to offload an asset they are involved in. Not a happy bunny.

Gotcha - qualified statements - so not quite irrevocable :)

I knew cash shells always run at a premium so I did some research as to how much.

The average listed cash shell (70+ analysed) has just £3 million however has an average market cap of £10 million. The board have a proven success of running, developing and selling a business so a cash shell with a NAV of 8.8p should be worth 26.4 on the low average side!

That is a 266.6% increase!

The reason they trade at a premium to cash is that they can do a take over of a performing business outright for cash and not require any dilution as such the future business prospects for the listing are particularly sweet in this case as post sale MMX have a significant amount of cash on hand.

Anyway, just putting that out there for discussion. Thoughts?

If a higher bid comes in, those irrevocables disapper. I will still be voting against it. 1.7m shares

Another offer? Doesn’t irrevocable mean there’s no turning back. 64% :

Irrevocable Undertakings

The Company has received signed irrevocable undertakings from certain Shareholders holding, in aggregate, 561,327,371 Ordinary Shares as at 7 April 2021 and which together represent approximately 64 per cent. of the current issued ordinary share capital of the Company, confirming that they shall vote in favour of the Resolution being proposed at the General Meeting.

On the basis of the signed irrevocable undertakings from Shareholders, it is likely that the Resolution put to the General Meeting will be approved.