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Brandshield are offering me the chance to purchase shares as part of this fundraising offer at a price of 5.8p and then take the company off the listed market making it very difficult for me to be able to sell my shares.
Plus any shares that I hold in my my ISA are going to lose the ISA wrapper, which for me is a real body blow!
And if I’m not mistaken I could go into the market today and buy the same shares for 3p
This seems to be a lose, lose, lose for ordinary investors….I have already lost more than 90% of my investment trying to do the right thing here and this is how we are rewarded…its a shocking disgrace.
Am I wrong?
You're not wrong, it is a blow to lose out on the ISA benefits, and the Open offer is a joke considering where the share price is at the moment. But, if you believe in the future growth and rate of growth of the company; it will be in profit in 2024, and look at who else is invested, the added bonus of WeShop, then surely it is worth buying at 3p, when the Subscription offer is at 5.68p? And as to selling your shares, there will be buyers as the value of the company increases through increased revenue and profit, or if it is relisted on Nasdaq for example. You just may have to wait a little longer....
The Open Offer only raised £52k out of the total £2.2m on offer as per today's RNS - retail investors had the common sense not to subscribe.
Not sure about everyone else, but for me it was getting tiring hearing them peddle the same story every year about needing more funds for attempting to accelerate growth through marketing/sales spending. And then the kicker was from last year's cash raise hearing messaging about them being close to cash generation and having cost mitigation options to avoid further fundraises before that point, yet now they have tried to go for possibly their biggest cash raise to date. Not to mention the repricing and reissue of options for founders - if they believe the current share prices are not a true reflection of the company value, how is it fair to retail investors that the founders get options issued and repriced relative to these levels, especially with it soon to become delisted with no quoted price to reference anyway. Don't recall the founders ever making a purchase of shares on the open market if the price represented such good value, seems like they just want all the upside through options and not willing to take on similar risk as other investors getting in at these prices.
CFO has also has exited with immediate effect in other recent news.
Nicwe - you have summed this company up very well.
Yes, it does look undervalued and may get to profitability in a year or so (a big may IMHO as they've missed every previous target). Furthermore there is the potential of a decent profit on WeShop at some point in the future.
If you believe this and are happy to tie your money up for a few years then go for it. I suspect many doing so have no choice as they are sitting on big paper losses.
I think they will have to re-list at some point, or be bought out, as the founders have so many shares and options that's realistically that's the only way they will ever see some value.
On the downside do you trust the BOD? The founders (CEO and CTO) are both extremely well paid (£420k each in 2022) and yet have repeatedly failed to manage the business - hence the repeated fundraises and missed targets.
Furthermore, both have over 10m shares and a similar amount of options so they have no interest in participating in their own placings. Similarly, governance is so poor that they have managed to get these millions of options re-priced to reflect the terrible SP performance.
On balance i think the current SP now makes an attractive entry price. For those who bought in the double digits it is not much consolation.
Not sure why you think they will not be in profit in 2024, you just need to look at the ARR growth and increasing customer base to see that this will happen very soon. Estimated revenues for this year $11M and $18M for 2024.
What targets have they missed that you refer to?
All early stage AIM companies require funding, and Brandshield always said that they were going to invest heavily in sales and marketing in the early stages. I believe the company is at an inflection point, and now is a great time to invest.
Barnacle - are you a paid ramper, you have you keep repeating the same lines?
On 3/7/23 they said "Given BrandShield's highly scalable SaaS platform, the Company is focused on the top line whilst customer conversion continues to be of paramount importance for 2023. That said, the Company believes it will get cash flow positive during 2024 without the need for further funding."
So to have a massive fundraise 3 months later seems to be a pretty big miss IMHO.
The reason they may not get to profitability in 2024 is because the revenue increase has only been possible due to massive marketing spend, which shows no sign of tailing off. Until they can show they can manage costs then the revenue increase is meaningless.
What loss are you sitting on?
Hi SP, no I'm not a paid ramper, maybe a little over enthusiastic. I do hold shares but have averaged down recently, down about 8% at present. I just believe that the accelerating growth in revenues will easily exceed costs going forward. I could be wrong, but these are only my opinions.
Taking the company private is biggest disservice they could do to long standing shareholders who are already sitting on MASSIVE personal paper losses that have not yet been crystallised as they/we have not sold our shares.
I have Brandshield in my ISA , my SIPP and my normal trading account and have put in a shedload of money (for me).
To this happening is absolutely gutting and feels so unfair, especially the way the offer is set up reward the fat cats who have their snouts firmly ensconced at the top table….shocking!
I feel sick that the directors of this company have been bankrolled by investors for many years. Those investors have lost in excess of 90% of their investment and now when things may be coming to to fruition, they decide to take the company private and destroy peoples ISA’s, SIPPS and real chance of trading their shares under the future set up.
To think that one of theses directors is/was an MP makes me even more angry.
The usual small shareholders are totally shafted….me to the tue of more than £20k
Like many people I am so well down on this share hey ho win some lose some!
I really don't understand what is happening with this company its being taken into private hands etc
What are these warrants that they were offering?
Why have Terence leahy and William Currie increased their holdings significantly?
What did they know that we didm't? Or did they?
All questions that will no doubt be answered in the fullness of time
So what happens to delist shares
We get paper certificates?