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DVRG has £1m in cash. It owes MSYS £1.4m as well as a bunch of creditors. For years it has been annual net cash outflows and with the apparent reduction in turnover I cannot see that this will change - even with a reduction in costs. The company will almost certainly require additional funding and without that will likely go bust.
We have been promised new contracts for years and none have been forthcoming. Let's hope that changes.
Those who think the SP will suddenly shoot up to make the warrants worth exercising are living in a different universe. This company is very much living on the edge and will require a massive change in investor sentiment before anyone is foolish enough to put good money after bad. They have got through 3 lots of investor funding - each time at a lower price than the last and I cannot see that changing.
It would not surprise me if the company has further investigations by the authorities. Where has all the money gone? Why was turnover half the stated level? These are fairly basics questions and we have not had answers.
We need news of more contracts.
The Company is exploring funding options including trade finance as a stronger balance sheet would enable the Company to accelerate delivery of some existing contracts and increase confidence in seeking new business.
Trade finance is key. This is a sort of mediator that can bridge the gap before the receivables come in. If they get this sorted asap. This will help them move.
For the next few months a Placing will be impossible; only if new contracts are won, big ones, that require a lot of fresh WCap.
MCap now is 5mln, for SP to hit 3p we need a 500% rise and MCap going back to 25 mln; for that to happen, again, new big contracts need to be won (by which time, the warrant cash will not be needed).
Re the "imminent" new contracts, the RNS had added the caveat, "if won"; so, it's not certain that any or all of the bids will succeed.
I think people are giving the Co a few more weeks to get its numbers in order.
Apart from the payment plan can you offer anymore insight. I don’t buy the warrant theory although that is welcome if true.
from microsaic.
A settlement plan has been proposed by DeepVerge to Microsaic, the terms of which are substantially agreed subject to clarification in respect of suitable potential security for the balances due.
it is a formality and should be announced very soon along with the 'imminent' new contracts. Any talk of a placing is just de ramping by those who want to buy the big chunks like the 900k and 1.2m just gone though.
Thank you for your reply. So, by doing that this is going to only strengthen the share price. That’s the impression I Get. I think we just need a confirmation RNS from Microsaic.
Co raised Placing money in November; without the Audited FS for 2022 being released first (unqualified), so that any serious investor has at least an idea about the cash situation, there is no appetite for a Placing;
They will have to trim expenses, delay pmnts to creditors, factor the invoices ideally or offer early bird discounts to Debtors, but no placing for sure.
Is the company going to do a placement immediately or is there a possibility that the company will sort itself out first and then do a raise?
Surely there is not a need to raise if they have 1m and cash from contracts coming in?
hi k3, thanks for reply, hope it can come good for you here in time.
agree placing coming, but they may need to find ways to reassure
potential placees re possible litigation against the company yet to
come re the ‘accounting’ issues - me, i don’t think it was simply an
accounting ‘error’, but as always issue is what can be evidenced.
agree china a serious dilemma / headache for investing - utterly
untrustworthy actor and often economically irrational, but way
way too big to ignore / omit in the overall investment universe.
(me, i am ultrawary of taiwanese assets / investments, as sadly i
think taiwan is total toast, but that can be tricky given for example
extensive cross-holdings in the west re semi-conductor industry.)
atb
Share price 6 months ago was 10p, now 0.6p, all bad news out in the open with a good outlook going forward. New contracts imminent and a possible £4 m in warrant cash at 3p per share if they can get the so back to 5p within the next 6 months.
I bet they will do it.
Spikeyj
“ K3, back in early november you were posting about applying for shares in
the broker offer, getting 50% of what you asked for because of scaling back.
? what happened to that holding?”
Sorry. I didn’t see this until just now. I’ve still got the 550k I bought in November. I think I posted that I had been looking to buy more, but hadn’t got round to it, when the accounting “error” came to light.
I like the business, but am wary of any stock that involves China. If they have another placing, I will probably take it, but I don’t think I’ll be buying in the open market, while a placing looks likely.
Following the above review, the Company can confirm that the current order book for Modern Water and Glanaco exceeds GBP10m, all of which is expected to be deliverable, and recognised as turnover, in 2023 and 2024. Further contracts are being sought, and, if tendering is successful, will be announced in due course, with some expected imminently.
Expect contract news very soon…
https://www.gq-magazine.co.uk/article/personalised-skincare-cosmetics-for-men
Just seen the above mentioned on LinkedIn.
Let's hope the business is able to turn things around, and gain new contracts. When/If we become profitable, being registered in Ireland means a lower tax rate compared to the UK.
The RNS'd fund raise first , I'm sure that'll be painful considering the last give away
August 2022 SP was 16p, so 5p is possible now that they have cleared the decks of all bad news imo.
Possible warrant cash to come in on positive news and getting the SP up.
In addition, there are 135,187,500 unlisted warrants at an exercise price of 3 pence per ordinary share and an exercise period until 16 November 2023. These warrants are freely transferable and were issued on 16 November 2022
= £4m
In addition, there are 11,265,622 unlisted warrants at an exercise price of 2 pence per ordinary share and an exercise period until 16 March 2026. These warrants are freely transferable and were issued on 16 March 2026
= £225k
Good news from here to drive the price up to 3.5 for the 2p warrants and 5p for the 3p warrants. Achievable with a couple of decent rns?
I am hoping that the next thing the CFO does , is find a load of cost savings within the balance sheet where they can cut admin costs etc and maybe make things more efficient .....
Si, tu regrettes beaucoup.... if the price zooms up.
I think that's the problem. It feels so dangerous at this point in the cycle when we're all so battered and bruised. And witnessed other holdings of ours being liquidated (I have). But if you look at the long-term market chart as a 10-year-old you'll say "well obviously that's when you should be putting most in"....
Good luck! Hope you go for it and it serves us well.
I like the look of it now. This temp CEO seems to be wanting to sweep the decks and get everything above board.
It’s not a company that is desperate for cash or has a duster around the corner. Reading the RNS the company has cash it has money due in from its contracts and that money is accounted for in 2023/2024.
According to the RNS we should hear news of potential new contracts as well. Terms and payment plans more or less agreed. Makes sense with Nigel being on both boards. Could be quite a positive few weeks obviously for LTHs it’s incredibly painful. But the company does have meaningful products advertised in GW magazine yesterday.
Lots to be cheerful about. Took a reasonable sized position here.
Down 96% on my £24K - so do I feel lucky?
Tempted...as I was sure it was gone Monday.
I have done this before... Non, Je ne regrette rien?
I agree with you that upside is much higher than downside risk...and more chances of positive news in the next few weeks.
But until then, worries will linger for a lot of people, unfortunately.
Lt…
Today is a good day to see no big decline with limited volatility within the spread created by the MMs to make big money.
At this entry level …the risk is limited with modest purchase…
There will be more positive than negative news from here…
I am happy with my entry yesterday but feeling sorry for the lth …
Just imo
GL
is Nigel Burton likely to be made the permanent CEO, or after 5 months are they still looking externally ?
Does Nigel actually want the job permanently ?
How much notice period is Fionan Murray serving ?
I think the mkt is still worried about WCap financing; if/when we get a new major contract, it will put these worries to rest; and once we get the audited FS out, it will be a further vote of confidence that there are no more skeletons in the closet. IMO
In the meantime, some people will be exiting, some averaging down.
Agreed hasiba.
But one of the primary responsibilities of the Chairman is to ensure that there is effective and accurate communication by the Company with its shareholders, including the smoothing of any transitions regarding information and data consistency/communication, between old and new management teams.
So whilst the current major co*k-up is probably surmountable, in terms of having a new CFO who evidently isn't going to suffer mis-communication, there are very big questions as to whether the current chair has a tenable position. Passing the fiasco off and blaming the "executive" arm is a classic "I wasn't paying attention to my paid role" diversion, and this is very poor, if not inexcusable.
As for the previous CEO, I'd personally be quite wary of coming out of the blocks so quickly, to announce money owed. Director disqualification proceedings can be launched if it is believed that a current or former Director has been involved in the supply of misleading information and/or subsequently found, by a court, to have not carried out their duties, in the management of a company, correctly.
The quite large glimmer of hope, in my opinion, is that the new CEO appears to have put his reputation on the line to get out of this, and also appears to be building a team that can run the Company successfully and, most importantly, responsibly. Although it is obviously a lesson for all the management team in appropriate due-diligence, a MCap of half an expected minimum revenue is exceedingly rare in bioscience AIM, so I will also hold.