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Thank you for your reply and the information regarding Guident.
As I have always maintained we will be successful because of the products in spite of the Management.
We will agree to disagree as in my naive way at looking at profits the bottom line is , not creative accounting , that TekCapital is running at a loss but reporting a headline of a profit owing to the value of the sub companies increasing.
Regarding the dilution of Salarius and MicroSalt have a read of all the Q&A’s on the funding page, here is the relevant Q&A below.
Question from Alan .....
what percentage will micro ventures investors own of the company after the offering assuming that the pfds are converted to commmon? will tekcapital still be an investor in the company and if so how much percentage will they own? what was the thinking behing saltme purchasing the company from Salarius?
Answer from Konrad Dabrowski our CFO ....
Many thanks for your questions and interest in Microsalt. Please note that should the current target of $250,000 be met, assuming the $40,000 note does not convert and taking into account the discounted price for the first $100,000 invested, it would result in 4.96% ownership by Reg CF investors and 82.72% ownership by Salarius Ltd.
Regarding the fact pattern in your last sentence, please note SaltMe!® brand remains an inherent part of Microsalt business, which concentrates operational activities of both Microsalt® brand and SaltMe® brand.
This was based on a fund raise of $250,000, they have now decided to triple it to $750,000 a massive jump why ?
The initial dilution was 4.96%, treble it which equals 14.88% take that away from our still quoted ownership of 87.1% we had so Salarius and Tekcapitals share will be down to 72.22% ownership of MicroSalt.
Please contradict the above and if you can then I will agree I am posting BS, if not as an investor in TekCapital you were obviously unaware of this dilution and did the RNS state this fundraiser would dilute the holding to this level , NO.
As for investing in our sub companies through the crowdfunding I have enough shares to track never mind having to invest in potentially 4 more. If these companies were IPO’d then maybe, also I am pretty certain the Lucyd fundraise was/is still only open to North American investors.
As a consequence of me trying to post factual information, with my own comments and being accused of posting “BS” and “bad mouthing” I will not post anymore on this board.
Stay Safe and good investing.
I can understand frustration but I don't see the point in bad mouthing your investments. Not good for your investments in my mind.
"Dilution of ownership to TekCapital shareholders from 100% to 72.5%."
From the last RNS
Tekcapital owns 97.2% of the share capital of Salarius Ltd. and 87.1% of its subsidiary, Microsalt, Inc.
, from a pure operating point of view the company lost $404,334 and achieved a profit by the underlying valuations of the companies being increased., by whom ?
By the raising of money. If you raise $500k for 10% that makes the whole worth £5m. Our investments are increasing in value by the raising. All early stage, if you don't want any dilution you can join in on the raises. TEK is an investment firm, this is the path I expected, timing is never quick enough for investors but for me I actually believe in a lot of these products TEK are backing.
I was hoping to refrain from posting this week as my frustrations were being aired on this BB.
Two points I would like to challenge you on.
My knowledge of accountancy is simplistic in that to make a profit your income has to be more than your costs. The profit before tax of US$1,897,629 was achieved by unrealised profit on the revaluation of investments of $2,301,963. In laymen’s terms, which is all I know, from a pure operating point of view the company lost $404,334 and achieved a profit by the underlying valuations of the companies being increased., by whom ?
All the accountants will descend on these comments saying the signed off accounts show a profit but on an increase in NAV which isn’t going to pay our ongoing costs, hence constant dilution at TekCapital level or this new , not reported immediately, ,crowdfunding method at the sub companies level.
As I am the one who has recently reported reduction in ownership percentage of the sub companies please can you expand on your comment below , what you are specifically disagreeing with ?
“However some of the stuff written here is utter BS. TEK isn't loss making nor have we reduced holdings as much as said.”
I look forward to your reply
To the best of my knowledge the current expenses for TEK outstrip revenue. Hence , my comments regarding loss making. Would be great to get some updated sales figures.
You are entirely correct , that TEK did record a profit in the accounts due an adjustment in the valuation of investments .....adjustments like that never fill me with much confidence (I don’t know the underlying detail behind the re-valuation).
The crowd funding/dilution is reflective of lack of revenue as would be expected of companies in their infancy looking to upscale .
Hopefully concrete progress soon
I can understand LTH if the entry was 50p being disappointed. I agree the salt contracts are taking way longer than i thought. However some of the stuff written here is utter BS. TEK isn't loss making nor have we reduced holdings as much as said. TEK is an investment company and investments take time. I'm way more confident in the BOD here than 95% of AIM companies.
Latest Report available here..
• Net Assets increased 16% to US$26.18m (30 Nov 2019: US$22.53m)
• NAV per share US$0.30 (30 Nov 2019: US$0.35)
• Total Revenue of US$2,859,647 (H1 2019: US$5,401,568)
• Reduction of operating expenses by 4% to US$711,300 (H1 2019: US$740,947). o Servicerevenuecoverappx.58%ofcurrentcostbase(H12019:63%)
• Profit before tax of US$1,897,629 (H1 2019: US$4,421,279)
Lets hope for some news to lift the spirits.
Sounds like folk are losing faith in this one. I’m break even at 14p so still in for now. Things on all fronts do seem to be dragging on.
Very good D.monies :-) :-)
While I am surprised anybody can be bothered to ascertain where and when I post.....
Perhaps, for the sake of balance, it is worth mentioning I rarely reference Lucyd (not even in my latest post - not a coincidence) as have posted numerous times I don't rate it. Also, I posted only recently I was disappointed in the Salarius sales figures.
I am entitled express a long term view. An unlike others on here , have not accused others of chasing "rainbows". It seems you are quite delicate if you delving into the world of implication from my waffle.
Nor, have I made any references to '10 bagging' by date X.
But, you are right in that I don't say negative things about the Gross family. I would not comment negatively about anybody family (or anybody) with out the information to justify doing so.
I also frequently highlight the risk of investment in my posts. I spend all day assessing financial risk (when not looking at the Charlton athletic website in dismay) .......but not for TEK :-)
Have a good weekend d.monies and all
MaximusD, joined on the 25th Jun 2020, only ever posted on the TEK bb, won't hear a bad word said against Tek or the Gross family and basically implies that anyone who is displeased with the current state of affairs is just a rainbow chaser.
Anyone would think there's some damage limitation occurring here currently.
Cm22 "nothing much fundamentally changing".... maybe that's the problem.
Good post Maximus D.
The sentiment on this board seems to swing wildly from month to month, based on nothing much fundamentally changing.
Without any actual news people massively overreact to things which aren't really new and aren't really news.
My take on where we are is as follows:
Belluscura: About expected in terms of the FDA approval process. Would expect approval by March or maybe April.
Solarius: A bit disappointed. Not really sure why it hasn't made more progress. I am impressed by the product and hope that when the COVID crisis subsides salt reduction will become more of a focus. Perhaps as well companies are not looking to make big changes during the time of crisis and upheaval. At least the distribution deals are good and the 80% reduction in sodium product should make it even more attractive.
Lucyd: Pleasantly surprised. This was always my worst of the companies, but i am actually beginning to buy into the new prodoct. Sales look good and it is getting some traction.
Guidant: Very pleased with the progress in 2020. However, i think the market won't really be there until 2022/23. So not really expecting any massive breakthroughs until then.
Adamsky/ MaximusD – both spot on, although I am not thinking about bailing at this stage…my answer to being too tense..switch off the PC for a few hours and spend some time out in the garden in the sun which gives me a better perspective. To quote Doris Day, ‘Que Sera, Sera’!
and yes, I have entered the Euro millions tonight..if I win I’ll buy the company and get things moving!!!
Have a great weekend
Everybody here, whatever their entry point, has knowingly invested in a company that is not currently profitable.
Not currently profitable means share dilution is almost inevitable. Dilution is a consideration at the outset when investing in any AIM company. Not particular to TEK.
Despite the dilution the share price , for the moment at least, the is holding up relatively well. No not if you invested at 50p! !! But, if you invested at 50p, you have to do your own appraisal of whether the assets of the company were worth you paying 50p at that time?
Many concerns on here are valid. How can anybody not have valid concerns about a company that is not self sustaining (burning money)? I certainly do.
Given we have all invested in a loss making business, presumably everybody here is looking for tomorrows winner.
Frustration seems to relate to the definition of tomorrow and whether tomorrow will actually arrive (not helped by overly optimistic announcement by TEK in relation to Belluscura). Natural concerns.
I am all for asking questions and for updates/ explanations with regard to progress (Salarius, Belluscura, Guident). I want news of concrete progress. Where I differ, is the drawing of straight lines, from TEK is not financially successful (yet), to the following unsubstantiated claims and criticism on this board:
The board is not motivated - subjective / unfounded
The board is not showing any urgency, don't appreciate it is a private venture - subjective / unfounded
Manzanilla is not doing a good job - subjective (definitely not produced good sales figures, yet!)
Criticism of employing family members (perhaps they are the best person for the job, more skin in the game from a reputational perspective)
Belluscura is dead - Subjective. Could be correct but based on current known information is more emotional/frustration than rational.
Every single one of these is these claims is unsubstantiated and alternative explanation / interpretation could be produced.
If you were a new investor looking at this board you would think 'run for the hills'.
When in fact, we have a leadership team full of integrity and intellectual capability. Cliff seems engaged and excited when he speaks about TEK.
TEK has a portfolio of quality products which as yet have not made a financial break through. This represents an opportunity (and a risk) from an investment perspective.
AIM is about the winner of tomorrow and TEK has much more potential than most to be a big winner.
If it stays at this level (or lower), when the tax year changes in little over a months time, I will happily invest some more as part of a diversified portfolio.
Have a good weekend (and break from fixating on the daily SP)
No worries at all. I does seem a bit tense around here ! I'm assuming you'd take the Euro win over Manzanilla halting his posting on twitter. Interesting surname (Spanish for Chamomile which is a very popular hangover remedy)
That looks like a clear well reasoned plan and always good to have one. I sincerely hope that news we are hoping for will drop and prevent you leaving of course. Fair timelines too I reckon.
Fingers crossed we'll be discussing some great news inside your time lines !
In answer to your question one of these things has got to happen in the next two months for me to stay invested.
In order of likelihood, in my opinion ......
Belluscura - FDA Approval
Salarius - multinational snack food manufacturer signs a supply contract with us
Guident - very positive update on shock absorbers or JV with a major player in the EV/self driving arena
Lucyd - take over bid or partial buy out by a major company
Guident - Tesla launches a bid for our IP
I win £180 million on the euros tonight
Salarius - Manzanilla stops posting his videos and self promoting material on Twitter and concentrates on the job he is being paid by us for.
Sorry about the last two but needed to lighten the mood
Any other news you guys think might be delivered that I have missed ?
Stay Safe and let’s hope for some substantial news....soon
It was intended to be tongue in cheek however clearly I failed in my use of words.
You didn't fail - Just water of a ducks back. Unknown faces etc etc
Your concerns are well documented (noted usually at low cycles in the SP) and all valid but it's an unfortunate fact for some that winning on shares is all about 'timing' and nothing else. It's also an unfortunate that the 'big picture' as you put it often takes a lot longer to come to fruition than is often anticipated.
Got to say Bellusucra is dead. I for one do not believe a word about FDA delays. I'd go as far as saying it's failed miserably again. Thankfully I got in at 7p so my hopes are pinned on one of the others coming good. When you think about all the timescales that had been given on FDA approval not one has been adhered to. They could have also provided a market update on the user trial as part of the FDA application, they couldn't even be bothered to do that.
It was intended to be tongue in cheek however clearly I failed in my use of words.
What others bought in at (which in my case is at several points over many years) and what they'll sell at is irrelevant. I'm not in it for a fast buck, I'm in because I believed in the picture which was presented from outset. My disappointment relates to the continued delays which have occured with Belluscura, the substantial director / employee overheads, absence of progress updates, the dilution of shareholdings and in the case of Salarius a CEO who seems to spend more time self promoting than delivering for shareholders.
Classic BB !
Clenched - No problem. Your prerogative of course
I prefer to keep my personal financial arrangements private but thanks for asking.
'However, they have to recognise this is a private company and investors are looking for a return' - As quoted by Big Bang.
This is the crux of the whole shebang isn't it. If you're in at a lowly SP you're not going to be as disenchanted as some longer term holders.
I'm not defending the management but I'm a straight up poster and I don't mind declaring I don't give a flying fook about anything other than where the SP is going .
Adamsky. I get your stance..ie willing to give it a couple of months or so to see what transpires. I'm assuming you'll be wanting to see substantial progress in one company
Clenched Cheeks and D Monies. You've been very expansive in your posts and all views are appreciated on this BB (reasonably grown up one) but what are you material plans? If you don't mind me asking what are your entry prices and what are your realistic sell targets ?
Excellent comment below .....
“There is no doubt the products being developed are for the good of mankind and will come good. However, they have to recognise this is a private company and investors are looking for a return. Usually, if people want to play the philanthropist, they do so with their own money!”
Even if this comes good I won’t be eating my own words as the postings by me over the last couple of days stated facts with my own comments thrown in. If anyone wises to challenge them feel free.
Let’s hope for some very good news soon.
As I said before, there is no doubt they are an honest bunch, but no sense of urgency as I guess most of them are financially secure in their own right. There is no doubt the products being developed are for the good of mankind and will come good. However, they have to recognise this is a private company and investors are looking for a return. Usually, if people want to play the philanthropist, they do so with their own money!
Let’s hope we are all eating our own words in the next few weeks, they come good and we are apologising for all these negative comments…you live in hope!!
Gross has become complacent if you ask me, whenever he appears on any interviews it's apparent he thinks Tek are doing a sterling job and the companies we're invested in are amazing but the sentiment on here and the share price tell a different story. Would Cliff be so content if his salary was performance based ? Because from what I can see, in the near seven years Tek has been going with Dr Clifford Gross at the helm - the company has successfully commercialised jack sh*t.
All I've seen for some time is dilution and the hemorrhaging of money in what's been a lucrative job creation scheme for Cliff, his son and his daughter as well as the many others who are no doubt paid very well. All of the group companies appear immensely top heavy for what little (if anything) they've delivered to date (and in the case of Belluscura failed to deliver to date despite many assurances).
Even if they do manage to get one over the line, the dilution will have been so great that the shareholder rewards will have diminished considerably in my opinion.
When I refer back to previous statements and broadcasts, I can't help but think that with the benefit of hindsight, the picture painted was far from reality and had I known then what I've learned since, I'd have stayed well away. I've been here for many years and am extremely disappointed.
What a great post. As I was told first impressions count and the CEO of Salarius , Manzanilla, is posting 3 to 4 times a day on Twitter. For those who haven’t seen him some of the posts contain videos of himself and are not just your normal short Tweets , these videos took time to create.
One of the posters said Manzanilla had been with the company 18 months, incorrect, 1st August 2018, OVER 2.5 YEARS AGO.
Here is part of the RNS ....
Mr. Manzanilla has significant business management experience in Fortune 500 companies. His expertise is focused on building and leading teams, developing and strengthening both new and global brands and delivering financial performance.
As you say with the absence of data we only have the information from the RNS’s and the fundraising page.
Three distribution deals
Launch of some crisps
18 restaurants signed up
$50k a month cash burn
Dilution of ownership to TekCapital shareholders from 100% to 72.5%.
This product was ready to go when he was appointed 2.5 years ago, start to deliver or go.
We did hear that things are taking longer because of COVID but if anything this pandemic has focused people on a more healthy lifestyle.
Have a look at the calibre the management of Salarius , on paper they are amazing, I will repeat on paper.
I apologise for my negative or realistic posts but I am so frustrated, great products but failure to deliver is a common theme.
On a semi lighter note I think Clifford Gross is playing a video game similar to fantasy football called fantasy companies where you employ the best professionals you can hire. As we know it is not the players you have but the person who has the controller, get my drift Clifford.
I still believe but will TekCapital deliver ?
Have a good evening.