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So what happens to delist shares
We get paper certificates?
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
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
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!
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.
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?
I can see the share price returning to the subscription price of 5.68p in the next couple of weeks, a good return on the current price.
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.
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.
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.
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....
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?
So looks like Mr Currie is hoovering up the bargain basement shares...
Someone is taking advantage of this bargain share price, mopping up all the sold shares from yesterday. Easy money for some....
Hi ShandyP2,
We'll have to disagree there then, Tennyson have estimated a profit of US$ 5M, and their figures have been pretty accurate so far. With ARR growing about 60% year on year, even if operating costs do increase, it will be at a much slower rate than the increase in Revenue. Brandshield have signed 45 new customers in H1 compared to 53 for the whole of last year, and H2 is historically a stronger period in this regard. All the clues are there....
Barn - they will not be profitable in 2024 IMHO, although i expect the loss to be massively reduced.
In H1 accounts marketing costs increased form £1.8m to £2.5m - almost a 40% increase.
Why do you think marketing costs will not increase further based on previous numbers?
If the products are so good why are the marketing costs over 50% of total revenues?
This is a bizarre business strategy
I can easily see this share 10 bagging in a couple of years, Revenues YE2024 are estimated to be $18M, operating expenses of $11M, will see Brandshied making a healthy profit. If the company were to be re-listed on the Nasdaq, or acquired by a larger competitor, then maybe more.
From the Tennyson Research Report:
ARR to grow 61% per annum over forecast period. We are forecasting that BrandShield will grow its ARR from $3.28 million in Q4/21 to $21.95 million by Q4/24, which represents 61% per annum average growth. This translates into 22% per annum growth in reported revenues, which we expect to grow from £2.62 million to £17.83 million over the forecast period.
Looking at the peer group of global cybersecurity names, we can see that BrandShield compares favourably in terms of expected top-line growth over the forecast period. Looking specifically at 2023E multiples, the peer group trades at 5.0 times revenues, and the lower growth UK benchmark, Avast, trades at 6.2 times. Using a 5 times reported FY23E revenue multiple, this gives an enterprise value for BrandShield of £42.8 million, and allows us to set a 12-month target price of 37p per share
ARR of $10m by year end but most importantly was the loss being halved.
You can see why certain significant shareholders want this private.
Bid is slowly creeping up on every sell, buy order being filled. At a market cap of £5M, and an ARR of nearly $10M, it's not surprising.............
If they are illiquid and untradeable which is the excuse the co gives for delisting
It will be much worse and un unlisted co
They havent even given details of where it could be traded
Just shows they do not GAF
We are where we are, the fact is that the share price is currently 50% below the subscription price of 5.68 pence, so if you buy now, and believe in the future growth of the company, then you are pretty much guaranteed a 50% return on your investment.
One more thing the directors are happy to take huge salaries out of the company and if the shares are so cheap why were they not buying them?
Small float, directors buy the price will rise
Nothing adds up here
If they are going to be profitable in 2024,why the need to delist?
Its is all a way to rob shareholders that cant or dont want to hold an unlisted share
They have made excuses when they could have cut their own pay
Their interests are clearly not aligned with minority shareholders
The way they have treated shareholders as a listed company who in their right mind trust them as an unlisted company?
Its is a scam.
They have effectively robbed many smaller shareholders.
Why did they not release results during market hours?
Why did they not announce the placing during market hours ?
Why did they not release that BS 37p a share price target during market hours?
This was another israeli co that has come to london for a heist
All smoke and mirrors
The management paid themselves much more than the Aim listing cost
Another reminder dont invest in foreign co's that dont list in their own country
Hi SP, Full Year Revenues for this year are expected to be $11m, most of their new business being weighted to the 4th quarter, and next year this is expected to increase to $18m, so if marketing and sales costs remain the same, then the company will be in profit in 2024.