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2nd para - Obviously meant RE-listing not delisting on second use - .....bigger player or relisting in 3 to 4 years
I was a holder here a few years ago. Bought in at 38p and sold out (gave up) at 15p taking a hit for about £2.5k. I simply couldn't see an end to the raises, and then if (when) AIM loses interest in a stock the SP suffers big time - as it has with Brandshield.
I think de-listing is the way to go here, with a view to selling to a bigger player or delisting in 3 to 4 years. The question in my mind as always with delisting is can you trust the board to act in the interests of ALL shareholders, not just the majors. I've witnessed some really crooked delists over the years.
However, I'm getting enough confidence here with the statements and the financial reports to take a small position in the hope of recouping past losses and making a decent return. That's my 50,000 share buy at 11.59. Hopefully not good money after bad.
My message to the BoD - Don't let me down here. I'm showing a little faith. Keep the communication up and continue to show the commercial progress of the last few years.
For those questioning holding shares in a SIPP, you can (I'm a HL), but not in an ISA.
Barn - what's the saying an out revenue being vanity and profit being sanity. That sort of sums up BRSD.
Yes revenues are growing but the marketing costs are excessive and are still increasing - over £2.5m p.a from £1.8m last year. A silly amount when total revenues are only c£4m, hence the massive losses and the regular fundraises - despite what the BOD have previous said.
Based on current spending i don't think the current placing will be enough to get to breakeven as surely no one will buy via the open offer at over 5p when you can buy in the market today at 3p.
Maybe WeShop will come good, but i've been waiting for a few years on that one.
7.4 Views of the Independent Directors
The Independent Directors support the Concert Party's stated intentions for the business and its employees. The Independent Directors firmly believe that the Proposals are in the interests of both the Company and its Shareholders. Although the Board is acutely aware that some Shareholders will be concerned about a de-listing from AIM and the consequent reduction in immediate liquidity it sees no prospect in the near to medium term for the Company to achieve a valuation that reflects its actual performance and future potential, demonstrated through sustained growth of ARR and continued penetration of a fast-growing market. BrandShield has been recognised independently as one of the leading players in the Digital Risk Protection sector (Frost and Sullivan Report 2022) and the Independent Directors believe that all its Shareholders will be far more likely to achieve a positive outcome as a de-listed company where it is likely to command higher valuations based on realistic ARR multiples. In short, the Board believes the proposals are significantly more likely to result in a positive outcome for all its stakeholders, including employees and Shareholders. In considering this, the Independent Directors have given due consideration to the assurances relating to the Company, including those given to its employees regarding the implementation of the Proposals.
Https://www.brandshield.com/wp-content/uploads/2021/03/Tennyson-Research-BrandShield-Systems-PLC.pdf
It's worth reading this report which is on the Brandshield Website. They have been pretty accurate with their estimates of ARR and Revenues, and it gives a good perspective on where the company is heading next year.
Taken from the report:
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.
Https://uk.finance.yahoo.com/news/iamfire-plc-weshop-060000457.html
IamFire plc
AQSE: FIRE
(“FIRE” or the “Company”)
WeShop Update
IamFire plc is pleased to provide an update on progress within its primary portfolio company, WeShop Holdings Limited (“WeShop”).
WeShop Update Highlights
Six-figure equity fundraise at a share price of £4.76 per share, valuing WeShop at c. £130m giving IamFire a see-through holding of £22.5m assuming CLNs outlined below convert to equity.
Sponsorship of SoccerAid for UNICEF resulting in national and international exposure of the WeShop brand, and continued uptake from various creators and influencers which enables viral uptake of the app.
User downloads for the WeShop platform as at 31 May 2023 were over 230,000 up from 43,000 last reported by FIRE on 21 November 2022.
Total purchases through the platform now total over 180,000 with an annualised gross merchandise value (“GMV”) of £33.4m as at the end of May 2023 (over a 3 month average) compared to the last reported figure of £27.9m for March 2023. Total GMV to date is £22.1m through the platform.
The list of retailers affiliated to WeShop continues to grow with recent additions including John Lewis, Argos, Habitat, Sports Direct, TicketMaster, booking.com and Skyscanner. This adds to the existing list of over 1,000 UK retailers.
Richard Griffiths, Chairman of WeShop Holdings Limited said:
“WeShop’s growth continues to impress and over £20m has been spent through the platform. We now enter the next phase of the company’s growth which will be enhanced through digital marketing and national advertising campaigns. Our partnership with SoccerAid for UNICEF 2023 has increased the public profile of the company whilst at the same time supporting an incredibly important cause. The WeShop team continues to work tirelessly to achieve its goal of building the world’s first shoppable social network owned by its community.”
SNAP!
I'm uncertain why there isn't more interest in purchasing at this current price. The growth potential is still evident when you examine the numbers. The market capitalization appears to be undervalued. If we exclude the Weshop valuation, the company's value is essentially negligible.
Not sure why more people are not buying at this price. The growth story is still there. Just look at the figures. The market cap is a joke.......... If you strip out the Weshop valuation, the company is valued a practically nothing.
It's ok for you to sit on them unlisted if they're not in a stocks and shares ISA, however, for smaller younger investors like myself who bought into the growth story, and for me one of the biggest of my investments, we're well and truly shafted. I'd just like to say to the BOD, you've acted like a bunch of c..
Thanks,
IG
I think last week there was a large trade that went through way below the market price
That should have set off alarms bells
Anytime there is a large trade way above or below a current market price someone knows something
Barnacle and Jimmyr_83 - thanks for the reply regarding what happens to shares on delisting.
Agree with Jimmy, Brandshield should have an Enterprise value of $40-50M, it's estimated revenue for YE 2024 is nearly $18M which would increase this even more.
BS
this is a co run by charlatans that have enriched themselves at the expense of shareholders
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.
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
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.
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
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.
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
I am pretty sure in a Sipp is a no no the rest not sure but doubt
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.
Nothing to do with anti semetic who remembers Geo interactive another Israeli bunch
No need for the anti semetic comments. no one likes that. really been misled here by terrys poor investing choices
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.