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The only saving grace is the paragraph that gives me a little hope that PJ might be looking after us . It would be easy for me to put the co into admin and walk away, however it's better for shareholders to have a deal in place that will provide a chance of seeing their investments improve from the present state Ps. Might have been a little harsh saying F the board and F MDC, just angry about the whole situation!! Money is tight for a lot of people here so the prospect of losing money is a little hard to swallow.
Here's the email from PJ, I was totally against posting email responses I'd got from MDC due to them being marked private, but since this has all gone pear shaped and MDC has bent us all over, I've decided fuc£ the BOD and fuc£ MDC. A circular was posted to all shareholders on Friday evening that outlines the proposed deal for shareholders to consider. Some have already received it and it will be available for download from our website before Tuesday morning. The facts are that MDC are not in a position to further develop or operate Intabet directly as they do not have, not are able to obtain, the appropriate gambling license. The reason for this is the mismanagement of Purple Lounge by the previous board, because of Purple Lounge (rightly or wrongly) there is also a strong anti MDC feeling amongst the gambling community. These circumstances make raising money for development and promotion very difficult if not impossible in the current market. In addition the company needs to generate revenue, the company has a number of stretched creditors, including HMRC, again thanks to the last Board who failed to pay NI for a long period of time, but who are nearing the end of their tether. It would be easy for me to put the co into admin and walk away, however it's better for shareholders to have a deal in place that will provide a chance of seeing their investments improve from the present state. To avoid any confusion, if a deal doesn't happen it would be very difficult to convince the auditors, the NOMAD and AIM that we are a going concern. It's important to equip yourselves with all the facts, I am happy to respond to emails or take calls from shareholders, especially at these times when it may feel uncertain. Read the circular carefully when it comes and, of course, I encourage you to heed the recommendations I make in it. Kind regards, Phil.
lol! What worries me (if I understand this correctly!) is if they do a massive placing at 100p it's going to make the mcap huge... which will inevitably cause a huge drop because it won't be worth that much. I guess to know what is going on here we need to know 1. how much debt they are in 2. how much they can sell Intabet for 3. how big the placing will be and at what price ...I wonder if they will release details of any ii's buying the shares, as that will at least give the company some cash value rather than them just releasing a load of shares on the open market for pi's to buy
Sorry fortune, we already got torture lol
I like it. We can make a torture off this. Do I hear £100 for intabet?
I'd be happy to give you £25 for it Mr Hopeful!... confident I'll get £50 or more for it
"...how do they determine the price for fundraising..." Without any business to talk of they are likely to pitch the price at a value that attracts penny and sub-penny punters. 100p and 50p are not the type of prices that attract get rich quick REM type investors. These people need to buy shares in the millions or hundreds of thousands at the very least. Pitching the new shares at 1p will do the trick nicely. Come 17/09/13 LEO may have some more info about their investments to put flesh on the bones and justify the new shares. Its just a question of wait and see. I have based all my postings on from what I have read and past experience in these situations. Needless to say I could be totally wrong and the shares open up with a 400% premium.
I'm buying it for £2 then! I'll sell it to someone for at least a £10
The directors have told you they cannot develop Intabet any further without funds and a gaming licence. Intabet to MDC is worthless and a drain on resources as patents have to be maintained and updated. I would expect it to go for a nominal value of £1.00 (just a guess). When Intabet and any associated intellectual property is sold off I would also expect PJ to resign and the new oil and gas directors take over. Again just my views.
OK fair enough, I love the optimism, but you still haven't answered this question....how do they determine the price for fundraising? Whats the logic of 1p and not 50p or any other number. If they are talking about 100million shares versus our consolidated 1million, what difference does it make anyway. your 1p suggests the listing is worth £10,000 only. As 100th of current market cap is £10,000. I'm not following how that makes sense.
It is unbelievable that there is not a mention of it in the document. Even just a view on whether it retains any value and how much. This was discussed in the first RNS then it totally disappears. If he walks to TWL with it for nothing, that's worth raising to regulators. Misappropriation of company assets potentially.
As cruel as it may sound. The board are giving you something for nothing. MDC as a company is now insolvent. The BOD have given you the opportunity to transfer your worthless stake to another entity that is nothing to do with the old MDC. If the resolutions are not carried all is lost. New investors are effectively purchasing the AIM listing from MDC shareholders that's all. Anything else MDC may have will be sold off to satisfy creditors.
If they value the listing at 300k and a similar sum recovereable for intabet, then 40-50% discount would be reasonable?
This is in a terrible situation with all the B sheet said to us . The most important info that we require is missing. What are they OR Phil planning to do with INTABET , is it being sold and for how much? this will determine the asset in the company before further shares are issued. I believe we are being taken for a ride and Phil our lovely Chairman as saying, do it this way or we are in administration. Hope people who paid him MONEY for the share issue will have some clout with him. Hope we have not been conned here. Yet again jam tomorrow. Thou I am not hopeful. Regards Kammi
There is intabet to sell. It doesn't need to be operating to be worth IP, hence why MDC bought it
20% or 90%. Any discount is better than nothing which is where this could have easily went. You say you cannot see how the directors can justify a discount of 50%,80% or 90%? I cannot see how they can justify a discount of only 20% when a 100% of the business has ceased trading with no cash and only creditors to pay off.
JLF..what would the bod gain by diluting by 99%? What's the point given how low the mcap is anyway and that they have the ability to issue 100million and existing shareholders will only represent 1% of the future action if they release all the new shares anyway? I dontn understand why they would do that as a bod who represent us?
Basically, nothing changes as a result of the consolidation. They are simply playing with numbers vs. Value per share. However, the bit we need to have more visibility on they will not give us. That is, what price will they raise funds at? So if they sell a load of shares immediately for face value i.e., 100p, then no impact on share price at all. There is no dilution as cash is exchanged directly for shares at market price. However, they aint gonna do that, as they warn the fund raising may be materially dilutive. That is to be expected as investors won't give you a load of cash for nothing. Im not absolutely sure how they pick a price. One could argue that any price materially below the market price directly after consolidation could not be in the interests of the existing shareholders. It would seem reasonable for them to expect a discount i.e. 20% which is not uncommon in placings, but 50%,80% or 90% discount? I'm not sure how the directors could justify that was in our interests. So in short, the directors will ultimately tell us whether we are screwed after we all vote yes. But until the subsequent placing, we remain the only shareholders and the only people whose interests must be first in the thoughts of the board of directors. I would have no issue being kicked for 20/30% in exchange for a load of cash for investment, but at what point is it not worth raising the funds if it jus at totally wipes us out. In my eyes, a 20% discount on current price would seem fair for say £5,000,000 pocket money for investment.
mike444 When a company places shares there are two types of dilution. There is the dilution of your percentage stake. For example if there is 100 shares in issue and the company issues another 100 shares your stake has been reduced by 50% (provided you are excluded from partaking in the placing). There is the second dilution which is the price at which the new shares are placed. Normally In order to attract a new investor there is a discount value to the placing shares so the new investor can realise a profit immediately. I use the word normally because there are cases where the shares are in such demand or the directors are so confident in the company that the new shares are placed at the current market price or even higher. The recent placing by REM being such an example. In the case of the new shares in MDC/LEO it is impossible for the share price to be the same for on the30th April 2013 you had a company that was about to launch a nation beating gaming platform with the Tote already signed up now on the 23rd August 2013 you have company that has nothing except creditors and sacked directors. So how can the value of your stake be the same now as when it was when the shares were suspended. The only chance of the shares retaining their current value is if you get a bunch of speculators thinking LEO is the new REM and that is not going to happen because the shares are initially coming back at 100p. The speculators in REM are penny and sub-penny investors.. As I said before there is a reason why the consolidation is 1000 : 1 it is in anticipation of a 90 - 99% drop in the share price on relisting. If it drops 99% then you have the 1p share price for which all these worthless microcap oil and gas companies trade at and 1p is also the price at which new shares can be raised and attract REM type investors.
Now off for 2 days so will not be able to respond ( might not be a bad thing considering expected responses!) ATB
If it is approved and i agree with JLF that it is likely a foregone conclusion then it will happen automatically, you will receive new share certificates or your CREST ( electronic transfer system) will be updated and the ticker will change from MDC to LEO.
Right JLF don't rip me to shreds just want your take on this as I have asked around and have been told that dilution will not directly affect individual valuation but reduce your % stake in the company. If you hold £5k now you will still hold £5k after dilution. If the share price goes down then obviously your valuation will go down. Keep reading ..because remember April 04th AGM this year MDC issued 300,000,000 shares ( three hundred million ) to raise cash for whatever which was a 30% dilution but actually the sp was not affected i.e it did not drop one jot but all our holdings decreased 30% company stake wise not value wise. Is it possible that if dilution will be for raising cash to invest in the company from start up actually enhancing sp value. This happened in April could it be the same again or at least not as tragic as first thought. I suspect you will agressively disagree, that's fine not here for an argument but the above did happen so which is it. Mike
Any mug can tell you that if you are going to utilise a shell listing it is the oil and gas sector you go for. It is the one sector from which you can raise millions of pounds in equity on reports that cannot be verified by anybody else. Why do you think REM price shot up. They've reported the finding of a 100 trillion zillion tons of lithium. Who is in a position to deny this? Nobody. If they were in the pharmaceutical sector and reported that they'd found a cure for cancer they'd be torn to shreds. Of course its no coincidence that REM are in South America and LEO are heading there too. Its the place to be now for worthless AIM stocks.
Thanks, just stuck at work for 12 hours on a Bank Hol and bored witless so didn't mean to ramble on, thanks again for advice will give it a look. Mike
you're asking advice of people in here who have just lost a shedload lol... but since you're asking, take a look at WSG due a groundbreaking contract at any time