focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I’m in Manchester and unable to attend on that day. Would be good if someone could represent us.
The strategy to me is them waiting for a buyout to be affordable to them else acquire 75+% shares to enable a delist else bumble along. The delist is perhaps less likely as the loan could have been just another 230k more to achieve that with Stecconi now.
They listed on AIM to gain liquidity and obtain external funds. They presumably want to maintain that especially as it costs circa 150k per year to be listed on AIM. Their latest accounts state an intention to return the company to profit and new payment terms with debtors over the next 48 months. The latest loan looks like it is designed to provide enough working capital for 6 months then crunch time again unless Defenx’s revenue streams improve. So, it looks to me that everything is converging on April when the current loan is exhausted, the share price offer drops to 35p, Q1 aspirations have either been met or failed, and we have D day again.
My understanding is that if a company is delisted then the shares are untradeable so effectively worthless. They could provide a Matched Bargain facility but it’s unregulated, provides extremely limited liquidity, can be ages to complete a deal, etc.
Im in Birmingham, bit of a trip.
Is anyone attending the AGM? We need specific answers to at least the following:
- who is directly employed by Defenx in the U.K.?
- who in BVT is operationally supporting Defenx?
- why are the Defenx websites unresponsive and unprofessional, e.g. mixed language web pages.
- what is being done to enable resumption of cash flow, e.g. fix the unusable website.
- who is in charge of operations?
- what is the status of the GFC recruitment that has had over 200 applicantions on LinkedIn?
- what is the status of the search for a permanent CFO?
- why are calls by investors ignored and/or unanswered?
- what happens if the latest BVT loan funds are exhausted and there is again insufficient working capital being generated by Defenx itself to keep it operational?
- are BVT preparing for a share offer for the remaining shares?
What BVT will have to offer us for our shares if they achieve 75%? I'm guessing nothing? Can someone please explain me how this works?
BVT obviously aren’t letting this company go, another show of intent that they want Defenx products within their group. Financially it sounds like they’re over the worst of it and there’s enough cash to take them up to a relaunch, confident that Q1 will return to profitability. There’s so few shares in free float now any good news from here should see some quite volitile rises. BVT are actively supporting development and integration of Defenx products, and most importantly offering it to their own customers. They mentioned that the turnover was still quite seasonal, traditionally H2 saw double the income of H1 for the company, so fingers crossed more cash will come in prior to relaunch. Debt recovery is positive, but so much will still be lost. The new focus on the European market should prevent it happening again, and its should be more lucrative. For me the hard work is done, they’ve essentially been in hibernation while they cleaned up the mess. In some ways it’s been quite an achievement, most companies would have just folded. Hoping to see some decent permanent appointments now they have the cash. I’m sitting on my shares, happy to wait until Q1 to reap the potential rewards.
Hmmm, Averaging down is always an option , on the assumption that you think the share price will rise at some point. That is debatable.
I tried to buy today at 10p but couldn't, maybe wishful thinking. Hopefully it will find a level over the next day or so but nothing will happen until the 50% + spread is sorted.
If DFX does get delisted from AIM.... how much do they have to pay us? I don't understand this part what does bargain bucket offering mean? Hmmm I fancy KFC now...... my price average is about 65p. What's my best option?
5h4k35p34r3. Great insight and info. thanks
on 4 october 2017 ....the price was 121.50...........and now today 2.october 2018 ......the price was ...6.50.this morning ....can you believe
Correction: after the loan conversion into shares, Stecconi’s share would fall to 2.58% so BVT’s and Stecconi’s combined share ownership would be 69.68%. Uncomfortably close to the 75% dominating share proportion but not quite enough, unless other shareholders vote with them.
Notable that the 2017 accounts value the shares at end-2017 at 27.5p based on nett book value. And the 2018 interim accounts value the shares at end-June 2018 at 24p each. After the loan conversion into shares the value per share based on current nett book value would fall to 16.6p and BVT’s average share cost would be 14.5p from its current 19p.
A buyout offer in January at the required 48p would be 3 times a share’s current NBV. At the required 35p price in April it would be just over twice current NBV.
My biggest concern is BVT in liaison with Stecconi, who resigned but still has a significant interest and share, having 75% of the company enabling them to delist it if they choose and our shares would be untradeable.
turned from being a nailed on to a nailed to today imo
My current reading:
the new loan gives BVT increased controlling interest in Defenx and keeps it operational without forcing them to make a buyout offer;
the loan is structured so that 150k is available immediately to keep Defenx afloat then can be drawn down in full at the end of November to carry Defenx into the new year;
the loan is convertible into shares giving BVT 67.1% of Defenx;
Stecconi has a 6.49% interest so collectively they would have almost 74% between them;
BVT will make that conversion;
the RNS confirms that BVT own the IP and BVT employees are supporting the Defenx products so BVT are effectively now Defenx by proxy;
the websites still don’t work properly so operationally its crippled, which is odd as that would be easy to fix;
the required offer price falls to 48p in January and 35p by April;
I suspect BVT will make an offer for the remaining 25% of shares some time in Q1;
if BVT acquires 75% or more of the shares they can delist the company from AIM with impunity: https://www.theqca.com/information-centre/markets/1441/delisting-from-aim-issues-arising.thtml
Tiny little trades will have no impact at all on the share price, need the spread to close but obviously the MM's don't want to take any chances , if the don't sort that it will bumble along like this until the company sorts itself out , which reading through the RNS's will take a long time.
Need to get a decent FD in who will put in some standards. They appear to have no idea of cost control or credit control. Pretty much the basics in my opinion.
it,s gone quite now .and who are the little seller
can buy at 12.6p, sale price 8.8p, can't see too many trades with such a huge spread, the MM's don't know what to do yet
I hate the way they have treated their investors this year but if the spread closes a bit I will be buying, I think there will be some opportunities today
Back to 30p again?
can,t buy
With so little shares in issue it dosnt take much buying pressure to lift the sp.... question is who would buy into a company that shunned its investors for the last 6 months
So there we go. This share's current worth is a maximun of 8p.
Down 52% pre open. I can see the day traders having a field day here.
Yup. reading that lot, fills me with no confidence at all. Looks like the board were asleep at the wheel last year.
Poor comms, Decidedly underhanded ops with regard to posting of accounts.
Im not holding my breath for a good day tomorrow but hope you guys can say I was talking **** after 8 am.
Trading starts tomorrow