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What’s happening?
Good start
What a f--- up from start to end in my opinion....icaan let all parties involved down...and still the general population do not even know these domains exist.....PLE versus TLDH... both were dead ducks in the end.......shameful
Hopefully they will return the money and not invest part of the money in any other company.
SB Yup H
Hi Hucks - I think GD saw an opportunity given the state of the company and did what any business does to make money - good on them - we on the the other hand….a real failure to deliver for shareholders. SB
yup SB.....a very sorry arsed affair.....although I suspect the Inst Shareholders told the BOD to sell asap, so not really quite a fire sale but a sell under some considerable duress..........so we all lose............just want this done and dusted, H
….how little effort our management team made to max the price for mmx just look at the deal GD did to purchase the dot club and dot design extensions - $77m for both - plus a potential $12m earn out for one of them - probably club. Rips the michael out of the mmx deal don’t you think and I’m sure makes for some rather uncomfortable reading for our larger shareholders.SB
Kitkateat yup this has always been the case, I think when the new CEO came in the Institutional shareholder told the BOD to sell and get this sorry arsed affair over and done, this could explain the sorry arsed price being paid. GD probably realized this and offered the lowest price they thought they could get away with, my take on the value was about S 150M Huck
Huck
I don’t think we get a choice what they do, they talk to the larger holders and not think of the rest of us
I hear you hucks.....and yes there is no doubt we have underperformed ......but whilst I am clearly very disappointed with the current return here (i think a number of us have an average around 8.4p...!), i do remember agreeing with you when the deal was announced that in some ways it brought some relief that GD was prepared to shell out $120m. Its not what we expected - but its not sweeties either. I've had my share of complete wipe outs in the past.....! Without the legacy partner payments we might have been nudging 11p but alas! The key issue which needs to asked - do shareholders just want 8p now, 1p in April '22 and shut the doors; or do we have confidence that our BOD can genuinely follow through and complete a successful RTO and add another couple of pence to the value retained in the business. SB
yes SS may have made a smart move, we are definitely missing out elsewhere, I bought quite a few Royal Dutch Shell shares a while back thinking that as the use of oil and the price of oil rises so would the sp, but not a great deal of movement yet due to the strength of the US economy, investing is not always so easy. I am hoping to b/e with MMX which clearly represents a massive missed opportunity even within our own sector, who has done worse than MMX? H
Doing just fine thanks Hucks - although its pretty quiet around here as the great wait continues! Hope all good with you too. I liked the bravery of SS to sell up and use the money elsewhere - I bought a few shares in CNIC a few weeks ago and they are up 10%+ - the problem with having capital tied up here are the missed opportunities in a decent market. I remember CNIC at 40p when I decided to invest in mmx - on reflection not my smartest move!! There's been no update here from SJL for some time - he obviously knows TF well and has no doubt been in touch - possibly with some thoughts on mmx2 - and as such probably wants to make sure there are no conflicts of interest from any postings which may or may not effect those conversations. Certainly moving forward I would like to think as a major shareholder the company consults with him on what is next - and hopefully that is sooner rather than later! ATB. SB
Hi Silv hope you are well.........I must say I am hoping this deal does go through this month, unfortunately no cause is totally lost until it is endorsed by MMX! as we know from experience so things may not be going to plan, thanks for you post of 9.29 today, I agree given we have a deal. I will be hanging on to the end waiting to see if there is ever going to be an upside to MMX, I would be gutted to go through this sorry saga only to miss out right at the end. Question for you as I really don't look at this board very often now.....SJL was quite excited about MMx as a cash shell and the options that might be thrown up by that, has he posted at all, I have not seen anything from him myself, I wonder if he is moving and shaking the collected mass of the BOD (sounds like an impossibility to me) into actually doing something positive because if he isn't surely he could post? any ideas.....Harry Huckster
That's a good question 007. Assuming we complete this month as hinted in the last RNS, the company will have c. $130m in its coffers - about £94m. However, we know $20m is being used for transaction costs, leaving c. $110m - or about £79m. Based on fully diluted shares this equates to 8.9p net assets per share - a 20% premium to the current share price. The only certainty is the $12m (about £8.5m) locked up in the escrow until March 2022. So in theory they could distribute up to c. 8p per share as long as its remaining overheads are covered in the transition period by GD. However - we do know that they intend to use the company's status as a cash shell to explore reverse takeover opportunities - and this will likely require cash seed funding to be be retained in the business - how much is the key question and will directly impact on what can be distributed to shareholders in the meantime.
None of this actually answers your question! I think the gap between distributable net assets of 8.9p and the current share price of 7.3p will close once money is in the bank; and I expect a reasonably high % to be paid out as a capital distribution - SJL previously noted 6.5p - and that would leave about $30m sitting in the business (including the $12m escrow) for an RTO. The company has stated it will consult with II's and smaller shareholders following completion of the sale before it makes any final decision on its cash reserves so its unlikely anything will happen quickly that's for sure! SB
What is everyone's guess as to where the stock trades at August month-end?
What % of proceeds will be distributed vs. held to make an acquisition?
Nice one both - ISA's are definitely a good place to be. Pity we wont be able to benefit from the capital gain we once thought might come through here - but it is what it is, and the story isn't fully over yet! SB
Thanks for the insight SB. All my holding is in my ISA so I’m not expecting any issues. Been here since 2013 so have seen a lot of changes and shenanigans over the ensuing years. GL.
Capital gains is after 12500 so it’s down to individual to sort out. I have two holdings one in isa other normal so for me I be fine with payout
rgm - i would be extremely surprised if they opt for a dividend. Cash should be returned to shareholders in the form of a capital repayment likely to involve a reduction of the company's share premium account which would require court approval to allow excess cash within the business to be distributed. This is the most tax efficient method of distribution for all parties. Bear in mind the scale of the distribution is way beyond our trading profits i.e. those monies which are capable of being distributed as a dividend. Generally - a capital repayment is not classed as an income distribution for taxation purposes. Dependent on your personal mmx position there may be CGT tax implications. Pretty sure if we go down this route the company will provide some guidance from HMRC - i have seen this before but am no expert on tax matters and as such DYOR. As for the scale of the payout - it depends on what's next for mmx and whether there is a genuine appetite to use our status as a cash shell and if so what level of cash is retained in the business beyond the $12m escrow and ongoing working capital. SB
Yes, nearly there now. Be interesting to see what is decided on shareholder distribution. I suspect it will be a special divi, but that won't suit some who have tax implications.
At a guess 6.5p. Anyone else?
Morning kitkat - it was a strange time to issue an RNS after 5pm last night so some may have missed it. If our geographic partners had signed off it looks like the deal would have been done - as it is a minor extension is required to the longstop date so they must be confident on timescales. Next RNS is likely to be the one we waiting for to confirm the deal is done and payment has been made. SB
We get a rns and this bb goes quiet!
Good luck to you my friend. It's been a pleasure.
...and the second batch of 19 (not 18 as mmx previously reported) domains are now under GD registry - that's 23 to date including adults. Just leaves 4 (Bayern, NRW, Miami, Boston) to be resolved with partners, secure ICANN consent to transfer and we're done. SB