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Whatever's happening, hurry up! As a very small, micro investor I'm supposed to be making relatively speaking, lots of money to buy myself a 1960s mini cooper.
Yep I know, my point was no resistance or effort from sorted to keep the present paperwork in order, a sign I guess of coming to terms with the inevitable
Chill Rob, this isn’t some ponzi outfit, Richard Hughes and Kamani backing it, we are in safe hands.
Confirmation statement overdue
As well as year end
Leaving them liable for prosecution struck off the register.
Better get a move on
A limited company has 9 months to file, I guess this is the least of their problems.
What happens if a limited company does not file accounts?
You'll automatically receive a penalty notice if your accounts are filed after the deadline. The penalty is doubled if your accounts are late 2 years in a row. You can be fined and your company struck off the register if you do not send Companies House your accounts or confirmation statement.
Could make sense that they are waiting for the last known bad set of results to be out the way until the RTO is put to a GM, with a plan on how to quickly turn to profitability and grow the business
Very much look like 30th September is year end I guess will will wait until then
That’s certainly an option that’s crossed my mind considering LSAI loan secured against all Sorted assets, but would be last resort in my opinion and not the best outcome.
Best outcome would be £5m injection from sorted management/investors at the same price as concert party of 0.2p. This would show the market extreme confidence sorted can be turned around and backed by significant funds from everyone involved. This is also the preferable route for the share register/freefloat to remain largely as it was pre suspension, which to me is important.
Second and least preferred option is Sorted management/investors don’t want to commit any funds, meaning LSAI will inevitably take control of Sorted, but this could leave LSAI in a venerable position if they don’t have enough funds to stabilise the enlarged business, if they can’t raise enough funds between themselves or other investors they may need to raise with retail and that could see a discount to get a raise away.
Anyway, I don’t believe any of this wasn’t thought about prior to entering into the loan agreement, and I would like to imagine LSAI management may have had at least a good idea that they would secure the funding from sorted vendors prior the the last announcement.
That’s a thought
Let them go bust and take the assets.
Could the plan be, to wait until sorted results come out in September with not so good figures and forecasts, then put the offer to their shareholders,Sorted that is, they are the ones that have to accept the deal, so until that happens LSAI need not say anything.
Remember this management is completely new to the old guard of 2021, they’ve now gone, and this new management is largely being controlled by the concert party with the likes of Richard Hughes and Mahmud Kamani, so I’m happy to give them a chance and see what price the deal is done at.
Watch this interview from back in 2019 where Richard Hughes stated he plans to do lots of deals with Mahmud and mentions he plans on buying businesses in distress or technology businesses, this is both
https://vimeo.com/368818072
I genuinely can’t see them doing a deal for less than their 0.2p - these guys didn’t get to where they are at today but doing a deal for less than their entry, and it’s not like it was pocket change, £3.8m in at .2p. We suspended with roughly .14-.15 of cash so levels.
I can’t see it being a premium to 0.2p any more as they want the sorted investors/management to stump up £5m to align with themselves, I reckon it’ll be 0.2p, and if no further funds raised with retail, the free float will remain largely the same as before suspension so will remain very illiquid.
My worry is this, and I hope I’m wrong.
Sorted make a huge loss in their next reported accounts for year end. The RTO injects 4 million and the accumulated tax.
So what if our loan and tax don’t cover that in year, even with cost savings being implemented?
We go to the market and raise cash at a dilution of the share price.
All management get share options and we have a further erosion of our holdings.
This is only me thinking out load and is not based on anything.
We wait, there is nothing else we can do.
We have to hope that we see a return to trading at a good price and not a further dilution that only benefits management via increased share options and a promise of something better in the future that never happens.
But we can only wait and see.
Still just a waiting game. Fairly confident we will hear something shortly as Sorted cash burn needs to get under control asap, which likely they already have started to implement cost savings, but if the board want full control of all cost savings the RTO needs to happens as soon as possible.
Still struggle to believe the RTO gets done at less than 0.2p considering the almost £4m that went in at that price, just can’t see the likes of Hughes and Kamani doing it for less than their entry.
Deafening ..........
s i l e n c e
Anybody out there?
Seriously though anyone got a scooby what's happening ?
Cheers
Nick
I wonder what tranche they are on now and how many they may be, the last funding they had was 09/2022 was 3m
could that be the deadline for the 4m mentioned.
Yes they definitely are over a barrel, I’ve been through that document myself. It’s either this option or administration unless someone else fancies backing them.
The fact our directors want sorted management to align themselves with the LSAI shareholders is key, no one wants to lose money, if the sorted board are presented with a plan from LSAI board which must have already been in place prior to RTO RNS, that shows large cost savings and a quick path to profitability, and they agree to invest everyone involved will be aligned in getting the company turned around and the share price much higher
The link was to the loan agreement which has a lot of details in in, it reads like sorted are over a barrel.
The agreement is on company house website
That link doesn’t work.
Also September wasn’t mentioned by the company, but a news article published after the RTO RNS.
But I would agree it’s likely it would need to be wrapped up fairly quickly to stop Sorted going into administration and cost savings implemented asap.
We were told at the start it was going to be September, so no surprises
Bit disappointing but you can’t do the job without the tools now they have a box full
RNS posted just after I sent my post.
So no mention of the RTO so the wait continues.
Has anyone heard who the meeting went and what was discussed?