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That was a surprise release after the close
Looks like they are making real progress
https://www.lse.co.uk/rns/BRSD/half-year-results-for-6-months-ended-30-june-2023-jhavfkm5pmr7xuk.html
Strange timing - why not wait until 7am tomorrow.
revenue growth and gross profit increase looks good, but still making excessive losses (over £2m for this 6 months) and marketing spend is now £2.5m, almost as much as the gross profit.
Cash burn is reducing but with £1.3m cash in bank and there are a lot of trade payables on the accounts so i'm not sure there is sufficient cash to get it to cash positive.
At 30 June 2023, the Directors' view of fair value of the Company's investment in WeShop Ltd is $3,840,920 ($3,663,072 at 31 December 2022). This remains in line with the aggregate cost of investment. While WeShop remains pre-revenue, the Directors continue to believe that social commerce represents an exciting and authentic digital shopping opportunity, particularly post Covid-19 which has driven more traffic online and away from the high street. While the Directors are hopeful of a deliverable transaction at an attractive valuation, they consider it prudent to continue to fair value the asset at cost
BrandShield Ltd has an agreement with Leumi Bank to provide a revolving credit line facility of up to 8 million NIS (c. $2.2 million) for 24 months, ending on 26 September 2023, the renewal of which is in the process of being negotiated by the Company. The credit line bears a competitive interest rate. The facility allows drawdown of up to four times Monthly Revenue (net of churn) and includes covenants of a type typical of such an agreement
Hi Shandypants2,
The company has stated in it's Final Year results from July, that: "the Company believes it will get cash flow positive during 2024 without the need for further funding." and also :
“an increased emphasis has been placed on achieving a cash flow generative position in 2024. The operational cash burn has been significantly reduced through various initiatives including the roll out of the enhanced 'BrandShield 3.0' platform to the Company's clients. This has allowed greater automation to be achieved leading to wider re-structuring within certain areas of the Company, particularly within the enforcement division. Other cost cutting has been achieved including a reduction in cloud based costs. The Company also holds legacy investment assets that it is seeking to dispose of in an orderly way. Opportunities may arise to dispose of these however the Company is not reliant on this in a going concern scenario. In addition, the directors have undertaken sensitivity reviews of the forecasts to model the effects of lower than budgeted growth and believe that cost reductions would be achievable if needed (albeit to the detriment of the Group's long term strategy) if required to avoid the need for a fundraise within the next 12 months. These measures would include if required the Directors deferring an element of their salaries. As such, the Directors consider that the Group will have access to adequate resources to meet operational requirements for at least 12 months from the date of approval of these financial statements.
I'm guessing that would be why Sir Terence Leahy and William Currie were prepared to buy more shares back in May, otherwise why risk dilution?
Impressive results, Brandshield does always hit it's financial targets, so the estimated end of year Revenues of $11 million looks very achievable. With revenue growth continuing at such a high rate, and operational costs reducing, who knows, maybe we'll be in profit by year end...
And then there is the added bonus of Brandshield's holding in WeShop, conservatively valued at $3,840,920. All for a Market cap of $7m.
- Strong new business momentum achieved in the first half of 2023, with the Company securing 45 new customer wins in the period to take its total number of customers to 209. This growth continued post-period end, and as at end of August 2023, BrandShield services 214 custome
Def seem to be doing something right and most of their business is in the USA
Well, I was wrong about needing another placing!
Raise $3.32 million (£2.68 million) in a Subscription of 47,137,662 new Ordinary Shares and up to £2.20 million in an Open Offer of up to 38,669,962 new Ordinary Shares, each at 5.68 pence per Ordinary Share (in each case before expenses)
The placing is the least of the news. Shares are being de-listed without a group with more than 30% having to make a bid. Outrageous
5.68 pence per Ordinary Share is over 25% of current price. Both Sir Terence Leahy and William Currie both subscribing to another $500,000 each.
Sure, and if you're willing (or able) to keep an unlisted/private share for 3/4 years until the Company is sold or re-listed, then the group's 5.68p investment is a good sign for you. Otherwise, this is a case of 'They did it because they can....' and a complete whiff by the Takeover Panel.
Hmm another Israeli terrorist attack
First of all, that's needlessly anti-semitic, so knock it off. Secondly, the key people and institutions that are f-ing you are almost entirely British.
Buy some shares then we will delist!!
Attractive proposition.
Another AiM scam
You can only but £250…
But can sell whatever you want at 2p…
I think the significant shareholders are taking out small shareholders at 2p.
No need for the anti semetic comments. no one likes that. really been misled here by terrys poor investing choices
Nothing to do with anti semetic who remembers Geo interactive another Israeli bunch
Anyone know what happens if you are holding your shares through a share trading platform like AJ BELL, Hargreaves Lansdown, Interactive Brokers, etc ?
What happens if you are holding the shares at delisting date - will they continue to hold unlisted shares in custody, or give you the option to transfer ownership into your personal capacity, or do they require you to sell prior to delisting ?
Thanks.
I am pretty sure in a Sipp is a no no the rest not sure but doubt
The only thing is if they are willingly paying 5.85p why would they not scoop everything up under that price on the open market
Hi nicwe,
I had a chat with HL. From what I understand, if you choose not to sell pre de-listing, then after the de-listing date, your shares would still be held in your account, until you arranged to sell them via a matched bargain facility with a broker such a JP Jenkins. You would then contact HL to transfer them across. I would expect this to be equal or above placing price, depending on when you decide to sell.
I would expect the share price to recover over the next few weeks, as it is well below placing price, so would make sense for long term holders to buy, while below the 5.68p price.
That's not an unfair take, Barnacle. Anyone in the investment group at 5.68p is certainly incentivised to buy in the market below that figure. More important than the price they're paying in the fundraise, is the fact that they are all in a position to hold an unlisted share. In addition, the 'matching' system for possibly 'trading' your shares, if one does go the private route, can be relatively effective (at times). There are a couple of platforms that provide that service and certain names have indeed seen big gains on a matching basis. One of the big problems is this, however: if you thought that management s***d at comms when BRSD was listed, just wait until you are a tiny minority shareholder in the Company when its private. Also: a small detail on the deal if anyone is considering going for Open Offer - the Leahys of the world are getting 1 warrant per share, while the miserable retail shareholders will get 1/2 warrant per. More evidence, as if you needed it, that this is an historically outrageous breach of the spirit of the takeover code. Full stop
I've had this before when a share has delisted (and then relisted a few years later, actually for a decent profit). You just do nothing but accept this will be a few years wait. And i don't disagree that small investors are being shafted here vs institutions, however, there is method in the madness. They're basically telling you they think the business is worth a lot more than AIM is ever going to value it at (the problem with UK markets vs say the US). So anyone selling now is only doing so if they want to realize the loss / cash of their position. But personally I think it's too late in the game to be selling. And I've got a lot invested here, and have been underwater for some time, but given my previous experiences of delistings I am going to accept the reality and hold on to see how the future pans out as their addressable market is massive and I would imagine ,in time, it continues to grow and then gets sold to a larger AI/tech company.
Good luck sitting on an unlisted co
They behaved appallingly listed
They should at least pay out 5.68p to bring current price to offer price
It's not about luck. it's about whether you think the company's valuation here does or doesn't reflect reality. And talking of reality, what's the benefit of an AIM listing when the shares are valued as they are. Yes a benefit to small shareholders of daily 'liquidity' (if you can call AIM that, given the ridiculous spread that shares trade at.).
Other companies with subscription based revenues can command a multiple 5x of what BRSD is valued at. So anyone who isn't happy with the events, then they can sell - but selling below 5.68p is frankly stupid in my view, and on a 2-3 year view the story hasn't changed for me, this is a $40-50m market cap company, and possibly $100m if their market share opportunity is as big as it can be.