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We are down a lot, and 20% today, but your right, that King game looks fantastic, it should easy sell several Million, but cant find sell date.
Wayne
Netease recent buy could also be signal tide turning here, being Nasdaq listed and valued at $69bn. They've been pretty acquisitive https://en.wikipedia.org/wiki/NetEase
If you are in any doubt as whether Tiny Build is a raging buy or not...go check out King Makers trailer .
Posted last week with millions and millions of view across all social media already.
Rot seems to have been stopped... future is very bright.
NFA
Why are these 6p-6.5p and the new issue 2p-7p???? Are they not the same?
Just read your post bond_invesment, fair to call me out but how was I to know they would raise at 5p, had I known in advance I would certainly have bought ! hindsight eh !
Having done my research, these are my final comments about this company, no doubt to the delight of MoneyShark!!!
The emergency cash being raised comes at the expense of private shareholders whose holdings will be virtually wiped out completely, through further dilution.
This is an equity raise of about $14million. Atari are taking up about $2million. Nichiporchik is taking up about $10million and the rest is open to retail offer.
Nichiporchik, the co-founder, took out £56million (about $70million ) with the IPO in 2021. His underwriting of this recent placing and retail issue is effectively a re-injection of a bit of this money. In my view, this is virtually taking the company private by the back door, but not quite.
Shareholders vote today. Over 50% support is needed (not including Niks present 38% holding) to pass the resolution.. With his injection he will have control over 50% of the company. He has also said that if there is not sufficient support, the company will file for chapter11 insolvency.
All this came about due to very few people noticing the early capitalisation of development costs that didn't show up in a hit to profitiability. On top of this, the company wasted tens of millions on Verses Evil and shut it down within two years. Additionally they have faced a couple of serious law suits.
The company has been run by games wizards who have virtually zero business acumen, and who in my view are cowboys incapable of running a business. Good old Nik. Down to his last £48,000,000 from the IPO, while the rest of us have lost 97% of our investment at the present price of £0.042p, with the prospect of that going to below a penny. And we never did find out what happened to Luke Burtis' holding and whether he sold or not. Thanks a bunch Nik.
HI Moneyshark, thanks for the suggestion! I know I can ignore the offer.
I thought about selling what I have, but quite frankly it now amounts to only a couple of hundred quid. I may as well hold, and pray for a miracle. At least if people stump up the new issue, the cash will help the company, although I suspect the CEO will be left taking up a lot of the shares. If the company fails, at least I will be able to offset the whole 'loss' against capital gains tax liabilities elsewhere!
....apologies, we did in fact discuss the credit facility cacallation some time back. I may have repeated myself somewhat on this placing situation. Sorry for that. Still reeling from the losses I've incurred!
Firstly, I don't think anyone mentioned on here that the $35 credit facility was terminated by bankers following the last disastrous update. Clearly they weren't going to throw good money after bad. That leaves them with existing cash which they've been burning through like nobodys business, plus an extra $10m placing which, no doubt, will have to be taken up by the CEO who has underwritten it. All in all, I see existing shareholders being further screwed with a dilution. I've lost faith in this. Why should I pay £0.05p a share (on a one for six holding) when I can buy it cheaper on the market for £0.04p ? The only answer to my own question is that if I pay the £0.05p price, it will prop up the company for another six months, whereupon it will either go under or be bought out or taken privavte for peanuts.
Agree the management is problematic plus needn't have got to the point where cash became this depleted, but you can't rightfully criticise the raise itself being at a premium. That's a rare thing and best case scenario as far as raises go, one of the advantages of the self interest that comes from CEO being major shareholder. Why he allowed things to get this bombed out in the first place is another matter.
I've received a 'corporate action' notice from Interactive Investor concerning my TBLD holding.
To all intents this seems to be virtually the same as a rights issue, but without even the benefit of being able to sell on the nil paid rights, which, given the value of the shares, would be basically worthless anyway. One simply either 'defaults' by ignoring the offer or buys the extra shares.
I have to let I.I . know by the 12th January if I want to pay £0.05p per share (one share for every six held), when the mid-price on the market is £0.04p. Why on earth would I buy these shares above market price when, once the offer is finished, the price is likely to drop further due to the dilution? Are we being taken for mugs yet again? Perhaps someone could explain in simple terms why I should be stupid enough to take up this offer.
Unless you have entire faith in this cowboy of a CEO who, whilst he knows his way around a games program, appears to have zero business acumen, I suggest shareholders give this a wide berth. I mean, £2.50 to £0.04p in a couple of years is some achievement.
All this corporate action for a mere $10 million. The CEO is underwriting this issue. I suspect he will end up acquiring a lot of the untaken offer. I also suspect that $10 million will not be nearly enough to save this company given the cash burn. The whole thing would be laughable if it wasn't so serious.
What do people see as the key releases that could transform the company’s prospects in 2024? Sand looks promising although beyond this, I don’t see which titles could be game changers for TinyBuild. Also does anyone have a strong view on the gaming market outlook in general - were ‘platform deal’ style contracts a phase that the industry has now moved beyond and will not return to?If so, what do you see as the next catalyst for companies such as TinyBuild, Team 17 etc?
As I mentioned this morning before the results of placement, I though this is a real possibility and that I still think the CEO either tries to take private or sells off some/all the company, presumably to Atari potentially? Although they are not a massive company with endless cash to burn.
Do you think there’s a risk that if IIs aren’t onboard, they may refuse to back the rights issue?
I thought it was a done deal
What do you think that suggests?
Where's threeput? He asked a few days ago why anyone would buy because of upcoming fund raise. Price up 80% since then! Good call buddy! Nice one!
I know there is a finite amount available, but right now why would companies buy this at 5p per share when it’s available now for 4p? Surely they should suck up the lower priced ones first and then when those have gone, top up for the extra
I agree Atari on paper is a good bit of news, but if the assets/IP are decent but struggling for cash and at depressed pps, when Atari owns what like 7% or something, and CEO stake may increase depending on takeup, they together could see 50%+ and could vote through a takeover deal at prices not ideal for many Tinybuild shreholders.
I am just making guesses.
If it allows the company to realise its potential then I view it as good news. Better to have a smaller part of a more valuable business than a big part of one that goes bankrupt . I feel quite optimistic about some of their upcoming releases and I’m less underwater than I was this time yesterday so that’s a good start. We’ve just got to hope they have learned from their mistakes and some of the institutions opting into this fundraise will be able to make positive changes (still think Atari is an interesting new dynamic)
Yep, I am neither but I follow the story of it as I did research into it but figured not for me due to cash burn, so my only question would be can management do anything meaningful with this $14m? Hope so for all involved but could be a plaster rather than a cure.
They say $14m no? Which is about £11m at 5p a share is 220m no? Sorry I may need some coffee
Am I right this will essentially add another 220m shares? or has my maths/RNS reading failed me this morning?
Surely the 5p placement price with a guarantee they will be purchased is a good thing.
Interesting to see Atari being name dropped too.
This company is so leaky. As I suggested , the volume goes up before the RNS lands. The question now is whether the market will take this as a positive (because there’s some stability and the future is secured) or negative (because of the dilution).
They could also look to licence/sell some of the assets now to keep it solvent. Gamepass or PS+ could potentially also licence upcoming games/back catalogue. There are means to raise capital without an equity raise. A secured loan is also very viable given that this can be backed by guarantees and the company is presently debt free. It did seem strange the RNS didn’t mention these potential routes, but there’s a chance those options will have presented themselves by now.