Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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The £5mil. BGF loan notes from early 2016 have a 7 year term, with redemption permissible from the third anniversary and required from the fifth anniversary, and carry interest at 8% a year. In addition, Adept granted BGF an option to subscribe for 50,000,000 ordinary shares at 6 p. We shall see if the same terms will apply to MXCP, or are varied by mutual consent, but if the option of 50mil. shares is exercised at whatever price, it would bring MXCP back to 26%. Perhaps something for the future.
Thank you. Perhaps that is one of the reasons it may be a related party transaction. In any event MXCP will notify their updated %age holding when new shares are issued..
MXCP owns part of CloudCoco they invested in it at the startup I believe when the Redcentric sales team set it up.
So in effect some of the shares will be theirs.
MXCP is overdue a re rating this should be way beyond £1 by now.
There is yet no MXCP RNS, but the Adept4 RNS today indicates a probable purchase of Cloudcoco in return for shares. With new shares issued in payment it leaves MXCP with a reduced holding of 15 %, with Cloudcoco private investors the largest holders at 49%. This would be an unusual situation for MXCP, so I await MXCP comment. At the same time, MXCP will buy the £5mil in loan notes from BGF for £3.5mil., a good deal on the face of it for MXCP, and in the meantime, MXCP's 30% holding has doubled in value today.
I have little to add, except that I am now amazed that the share price, despite the continuing stellar performances of Ide and Adept4 ( previously the poor performers in the MXCP stable ) has shown little sign of reflecting the upward change in value of MXCP investments, and retained cash. It is not keeping pace with NAV. Investors Chronicle summarised the position back in May - https://www.investorschronicle.co.uk/comment/2019/05/09/mxc-returns-to-trading-profitability/
The writer ignored Ide and Adept4, though not in a previous article. I cannot judge the future of those 2 companies, though it is increasingly evident that Ide is very much part of MXCP plans.As can be seen, in May MXCP NAV was 62.3m ( market cap today £50m. ) or 97p a share, and Thompson in his earlier article had rated MXCP as a buy to a 'decent' premium to NAV, to take account of the ongoing Ravenscroft and Liberty Global partnerships, and this before the increase in value of MXCP's 43% of Ide and 30% of Adept4. I am sure Thompson will return to comment upon MXCP in due course, though I had hoped the price would be well advanced before then.
I don't know what lunatics are selling this but their carer should step in and take their computer access away urgently.
MXCP will in my opinion start paying massive dividends in the not too distant.
I,m serious I think divis would be upwards of 50p and a £1 in the not too distant.
They only have 67m shares in issue and nearly all of them are held by the founders and their mates.
Then they have also bought back millions of shares to put into the EBT.
So they benefit most from large divi's.
MXCP often make large lump sums in the 10's of millions when they cash out of a situation or pull off a deal like Calynx.
Now that they have sorted out the shambles that was a drain on them namely AD4 and IDE they will have a lot of cash
slopping about that will have to be paid out at some stage, keeping enough back for future operations of course.
IDE and AD4 are both on the road to recovery by the look of things and they are adding millions upon millions to the value of MXCP's holdings each day now.
Every 1p rise in IDE for example is worth more than half a million pounds in value to MXCP.
Likewise at AD4.
Although it has not been done yet the value of MXCP's holdings have risen considerably recently and the shares in effect because of the EBT have tightened up enormously.
The big money has yet to come , this will be delivered by the tie ups with Ravenscroft and the Liberty Global deals.
The very last thing I would be doing here is selling.
This is as strong a buy and hold as you can get .
The heat has gone out of Ide and Adept4 now, and they are likely to behave more rationally and subject to published developments. MXCP is in a much improved situation, and with regard to Adept4 we shall see what occurs before long. I have no idea what that might be. It will be somewhere between cutting and running, short or medium term, or taking positive interest in building the company through buy and build. MXCP will have little interest in mediocrity - it is not their business model - and may be viewed as diversionary from the building partnerships with Ravenscroft and Liberty Global. The financial year ends shortly - but things will certainly become clear when MXCP results are published later, if not at the time Adept4's acquisition is finalised.
"The acquisition, if completed, would not constitute a reverse takeover, but would be classified as a substantial transaction under Rule 12 of the AIM Rules for Companies."
I have been mulling that over. MXCP must be party to an agreement with an entirely new business, with it's existing management, moving in. Relations with current Adept management must be strained to say the least, so that problem would be resolved, but I wonder what it means for protection of their 30% interest at board level, going forward. Historically they have been badly burned due to loss of control with Ide and Adept. "IDE Group Holdings plc ("IDE") and Adept4 plc ("AD4") are the last remaining public company assets that the Group holds and are both investments where MXC tried to scale its business by deploying executive management teams, a strategy which has not rewarded us as investors." But it does not matter, MXCP will have learned their lessons and the Adept case resolved one way or another, and not before time.
http://mxccapital.com/investor-centre/company-information
Oak Trust has since notified 11.99%.
Frankly, I had written them off in relation to my investment at MXCP. It is such a joy to be proved wrong!
AD4 and IDE have been a pair of basket cases thanks largely to the inept management teams in place
I can see a turnaround in both companies now, reputations are on the line.................
The price running away has forced an early RNS
Number : 7558H
adept4 plc
02 August 2019
Adept4 plc
("Adept4", the "Group" or the "Company")
Movement in Share Price
The Board of Adept4 notes the recent rise in the Company's share price and confirms that it is in discussions to make an acquisition. As previously announced, following a challenging period for Adept4, the Board has been considering the strategic options open to the Company and believes that the proposed acquisition represents the best opportunity to return the business to growth for the benefit of all stakeholders. Alongside and conditional on the acquisition, the Board is also in discussions to reduce its level of debt.
There can be no guarantee that the acquisition or the reduction in debt will complete. A further announcement will be made in due course. The acquisition, if completed, would not constitute a reverse takeover, but would be classified as a substantial transaction under Rule 12 of the AIM Rules for Companies.
MXCP will be heavily involved. Expect an announcement. The situation here has changed completely for the better. News from MXCP should bring attention and comment.
I try to be factual with a little opinion, and am open to being wrong. I certainly did not foresee the rises at Ide and now Adept4. I have a few recent thoughts on Adept and will write and post them there in the morning I think, circumstances permitting. In short, I have persuaded myself there may be room for greater optimism there than I previously did. But facts will follow conjecture. I am as sure as is possible for me that our investment here will improve as the year passes. If not, Ian Smith and Tony Weaver are purely salaried and their personal holdings in MXCP might as well be in the Post Office, and Ian Smith could put something better in his SIPP.
Ide reversed again today ( from 2.5p ) so there seems support at that level. And as a matter of record, Adept4 ( MXCP 29.98% ) has shot up by 35.7%. This is unquestionably good for MXCP NAV, though as yet there is no benefit to the share price.
Should Ide settle at 2.5p or thereabouts, having reversed twice from 2.3p - 2.5p, it would amount to a healthy increase on the investment for this half year period of £1.65m. Let us hope that investors, who drove the price to top out so far at 3.3p, show continued support.
I do not ' do ' forecasts, but on what I see this can comfortably trade at over £1.
I am not a long term holder here, in the sense that some will have held since 3.5p days ( 175p ) and perhaps higher. I have not experienced the history in the way that some have, so may be lacking in some respects, but have been back-reading. The decline from a better place seems to have been brought about by three issues. Those are the decline in the values of Ide, Adept4 ( as is now ), and unfortunate events at Redcentric which resulted in a currently nil value of MXCP warrants in that company.( though shares were successfully cashed out ) That all impacted the accounts, and the share price. It has long been reflected in the share price. I bought in on the basis of that, that the share price had bottomed out, and that a brighter future was heralded by the MXLG buy and build partnership ( resulting in fee income and profit to come from the final result on sale at the end of the matured company to Liberty Global) and the Ravenscroft partnership ( resulting in fee income and profit from the sale of investments in the various investee companies ) Though without any faith in Adept, I viewed any improvement in Ide as a bonus ( some bonus now! ), which has recently come into play. I think that fairly represents the position, but am naturally open to be corrected by those who have followed past events more closely. It is my view that Mxc Capital has 'started again'. As I write, on my reckoning, Mxcp's 43% shares in Ide ( they were given dispensation to avoid an offer ) are currently worth about £5.43 m, a marked improvement on the position reported in May of £2.67m. MXCP will be looking to sell in due course, in such a manner and taking loan notes into account as to recoup all or a substantial part of historic losses. I continue to believe that Mxcp's longer term future lies within the MXLG and Ravenscroft tie-ups, and Ian Smith's buy and build experience and opportunistic nature. In the meantime, Ide is no longer a drag and MXCP worthy of a higher price - that will surely receive commentators attention.
If investors have their eyes on the ball, I suspect there will be renewed interest, even if Ide does not advance further, which it could well do, or hold all of its gains. Share price value accretion should transfer, later if not now. This week may be an interesting one.
I agree there should be. But no one has bought. My view is that investors are currently following Ide ( it is far more exciting ) and not looking at who is behind it, and who stands to gain. It will reflect in the NAV, and MXCP will undoubtedly draw attention to that in any trading update and in results to 31st. August. In the meantime Ian Smith will have the opportunity to buy back into the EBT below NAV, reducing tradeable shares. Perhaps investors will, once Ide stabilises and in quieter moments, turn their attention in MXCP's direction. I believe they should, and prior to results and comment, hitherto marred by Ide share price performance.
Interim result to 28/2/19 announced on 8/5/19 disclosed that Mxcp interest in equity shares of IDE was 40%. If that’s true than why should not there be an increase in market capitalisation of MXCP following IDE ‘S threefold rise to 14m in terms of market capitalisation?
As far as I am able to see, nothing has changed since before suspension, and if that is true ( perhaps you can point out any change ) I am unsurprised that there is no reaction here. I am though, entirely surprised and bemused by Ide's sudden good fortune and wish its shareholders well.
Ide came back from suspension and rose 300+ % today. But no movement here. Can anyone please tell me how MXCP share price should have reacted in a perfect world?
Well we know who the buyers are now, usually a good pointer of news to come !
Sajid Vakilian, Managing Director Mergers and Acquisitions, Liberty Global was also appointed director this year, replacing Andrea Salvato. So a change on each side of the partnership. And there is a million share buy today, in respect of which my earlier comments apply.
I should like to think the intended size of MXLG, initially through multiple acquisitions is a full time job for one or the other of the two, and I have always understood Tony Weaver in discussion with Ian Smith to be the nominated lead for MXJV. I do not know what their thinking is, but there are other fish to fry at MXCP and Steven Zhang has an M and A, bid support and due diligence background, seemingly ideal for the buy and build exercise.