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It’s not easy, as it’s not the best idea for them to buy listed companies, unless they are getting special terms eg clns or warrants, as otherwise potential seed shareholders can bypass seed and go direct to lgp, or whoever. Which leaves private companies, who as Mr Ed said, are reluctant to disclose data, which makes it more difficult for seed to entice shareholders as they are blind.
Ed has a win under his belt with prtg, if leap is a successful realisation then he’ll have momentum which the market will recognise….we wait!
Also have mentioned in posts that it may be worth keeping Leap for its growth, even after it floats. Divs are not always guaranteed especially from small companies who like to keep the cash to reinvest in its products.
The time to sell would be when it stops growing, then get out quick even at a price lower than its quoted value as you will still have made a good profit. However we think they will dispose of it one way or another, interesting to see if they do bring a buyer out of the woodwork. So long as they do not waste the cash from the sale (from which ever way) by buying in to others to quickly.
Do we need the cash? They are doing due dilligence regulariy on opportunities but have currently only got £1 million allocated for investment prior to Christmas which leaves a years worth of expenses as cash with a further £3.5m in liquid investments that can be sold if required for more appropriate investments.
I was listening to a report last week that said most of the investment houses were tapped out for this year on the amount of IPO's and takeovers already undertaken. We have 6 IPO's to get away so I'm not surprised that a lot of the liquidity events that I hoped for in Autumn have been pushed back. I would like them done at the right price rather than at any price.
Quint - somewhat agree re Ed's temperament. I do think he knows what he's doing, I just wish he could explain it as well as Fleta Solomon. (Even the little things, like I added both Ed and Fleta on Linkedin. Ed ignored the request; Fleta accepted and sent me a personalised note back, thanking me for my interest etc.)
I mentioned a scenario that I'd run on my tracker yesterday, assuming modest growth in most investments (broadly 10% across the board over six months) and factoring in opex, interest on loan notes, discount on conversion (assuming all the planned IPOs go ahead). If Leap - as a whole - floated for £50m... that gets Ed to £40m NAV for SEED by Feb / March 2022. There are a number of things that could nudge us closer to £50m, and I don't think slippage of 3months is too bad. "£50m by the end of the year" is not ludicrous, in my opinion.
(And yes Barwy, I know we need to wave goodbye to Leap, it just feels like a shame. Everyone seems desperate to get rid of it, and we need the cash, but at the same time I'll be sorry not to have it in the portfolio...)
you cant ignore Leap Reefles its our biggest investment, no company wants to work flat out at just say 55% as Seed would be if we ignore Leap, it could be possibly be a couple of years before they hit profit, no if's or buts Seed cant afford to keep hold it will need money very soon, Leap needs to be held by one of the big boys under one roof in the states, that's my thoughts for what there worth :-)
I've always taken Leap with a pinch of salt. It was a risk-weighted part of the attraction for me, as was Mellon's stake in FFWD, but it was mainly the CBD interests (particularly that SEED had recognised the potential of Northern Leaf - even if they were capped at £600k due to the oversubscription). I've even argued on here that we should keep Leap for the divi's when it hits profit - why sell off one of our best assets?! (Although that argument was slightly facetious.)
If you ignore Leap, though, our listed stocks are pretty much at market value and the convertible loans aren't large enough in any one company to be a huge attraction. The portfolio could be very attractive to an institutional investor, but if I were an individual looking at SEED now... I might go straight into LGP instead.
I can only imagine the sellers yesterday were disappointed day traders who were looking for a quick bump from a Leap announcement, and - faced with waiting six months - got out at a loss to punt their cash on crypto or something. Not the kind of investors we need. I think we've just got to hang on until we've got liquidity from Leap (agree a raise would be devastatingly dilutive), then we'll get the investments that will drive decent daily volumes.
I hope those people are right, who think Ed is drawing a buyer out of the woodwork by talking the IPO game. He's done well to wait until Leap has grown, its market has grown, there are precedent prices in the sector, and the potential acquirers have had strong results. It's absolutely realistic that, as they work up valuations for an IPO, this forms the due diligence for a quick sale.
Guessing today will be a quiet one, though... or will we have a mysterious leg up at EOD...??
Just had a listen to yesterdays meeting….not making an issue of this, its been said a million times already but I could feel Ed’s pain on that Freudian slip when asked about the share price, and he replied “I’m not the one pressing the buy button…”, it was like one of those text messages you ve sent to the wrong person and trying to get it back from cyberspace.
To be fair, there were many relevant questions asked. Good thing they had that result from portage to show.
It would be good to see Ed on the crux platform, Mat is a very sharp host.
Proactive has an audience, but you get what you pay for…..if you know what I mean!
(A) he should have had shares already
(B) he shouldn’t have said months back that he’ll be buying a significant amount of shares, when he can….its stretching it.
As I said ages ago, Mr Ed needed to counterbalance the amputation of leap, have a showcase of smack investments that he can tout. If there were ongoing communications, Ed could have teased out that leap event was going to be delayed, cushioned todays blow and more significantly, allowing today to be all about yooma, lgp etc.
What would you have to say if Ed or anyone on the BOD invested let’s say £100,000 tomorrow and they sold Leap for £50 million next week?
Ed gave a definitive answer to this ongoing question.
Seed need an heavy hitter on board someone who will take around 10 % of the company, also why do the bod expect the share to lift, if they won't buy themselves. Did anyone ask Ed why he has not purchased shares? Markets move on sentiment and good news flow.