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Hi guys - new here and bought in on the advice of a friend but have some concerns. Can anyone help me understand. What is there cash position. Looks like they had c. £450k in September and were burning cash at £1.1m in 6 months (excluding changes in inventory and trade payable/receivables). That would be about £165k per month, or about 3 months run rate. Am I missing something?
simple answer to your one and only question.... yes
Hey Ppiper24, nah we’re fine on cash, rollout progressing nicely, just hired a new CFO to count all the cash that’s coming in! The orders are flying in from our signed up distributors. Hang tight, £1 party is coming soon!
YES !!!!!! you are missing something...a brain !!!!!!!!!! do some research....
beat me to it RH !!!!!
pPipoer24 - John Storey (Ox Distribution ) bought a stake in the company early last year and paid for this with 12 x 165k monthly payments. The monthly payments went through until this Jan or Feb. Someone correct me if I’m wrong- thanks.
Ah - I see. So how long are these payments still coming in for?
Sorry just re-read your message. So these payments have now ended and relying on an increase in sales to sustain the burn or will need to raise some more cash. Appreciate the response. Thanks
we are expecting increase in sales....not relying on ut..
Ppiper = deck with
Pmsl
Give uo
Yes you’re missing something and that’s subtlety! Most have worked out that your message has an agenda. If you’ve researched and found out the company has no money AFTER investing then I suggest you sell quickly and move on. This share isn’t for you. Best leave it to those who understand why the SP is where it is and why the forecasts are that it will continue to rise.
New investor or polite, subtle deramp! Time will tell!
99% certain that John Story has nothing to do with Ox.
It is a valid concern and effectively the main argument posed by shorters. However if you dig deeper it becomes apparent that the entity is being backed by parties with a significant interest in the company and also significant pockets to back the entity up. Additionally the company now has a relationship with AATAC where other means of credit will be available to allow the business to run smoothly from a cash perspective (such as invoice discounting).
Let’s go deeper. The company has hit all time high after all time high. I have been invested in companies with poor cash flow and liquidity in the past. Whenever there is a high in the price those companies typically make use of the premium and issue shares to obtain capital at a favourable rate from their perspective.
Zoetic has seen similar highs and spikes. No issues of shares. If they were desperate the natural conclusion would be for them to make use of these highs.
Going further John Story has just acquired another 1% let’s say approx 1.5m shares. He bought these on the open market, they were not new issues. Again if they were desperate for cash the company would have surely used his sentiment and offered him a discounted price to issue further stock (approx 1.5m) to raise capital. They haven’t.
Reading between the lines it looks like they’re doing fine from a cash perspective.
I agree, BlackDog, except that John Story (a UK-based HNW individual unconnected to Ox, our largest shareholder), went from 6.26% to 7.59%, which is an increase of 2.6m shares.
I understand that ZOE have been offered cash by (potential) investors more than once over the past many months and have refused it, as they see ways to manage their cash flow without dilution. So do I.
BlackDog92 - Thank you for the response. I just looked up the John Story investment as I didn't know the details and found this article. https://www.sharecast.com/news/news-and-announcements/cannabis-firm-zoetic-raises-pound039m-from-individual-investor--7308356.html. Looks like he invested as a loan note which expired at the end of this month. Is it not likely that the increase in stake is related to a conversion of loan notes at 6p rather than buying at the current price? I looked at the RNS and difficult to tell. What do you think?
Peter Piper, you really need to read properly.
Story's loan note matures at the end of this month, so that's a further 5.5m shares he will pick up if (inevitably IMHO) he chooses to convert at 6p/share.
If the 2.6m shares he had purchased were due to early partial conversion, the company would have had to announce as much via RNS, also specifying the new number of shares in issue, admission to trading etc.
So he bought those on the market. A confident investor. You?
Pretty sure a conversion of loan notes wouldn’t show up as buys on the open market. The transaction is held directly between the third party and the entity.
Additionally if the loan notes had been converted in pretty sure that the entity would have to issue an RNS detailing the new denominator of shares for all holders to determine if they have to fill a TR-1.
Looks like you’re going to have to try harder PPipper lol
PPiper if you want to look at everything that could be deemed negative and with little research log into the ************* account and read twat faces lies and biased bile...
Otherwise perhaps focus on things that convinced your friend or perhaps close friend to invest here in the first place...
I’m afraid the new poster:
“just bought in on advice of a friend, but I’m concerned about “ is like so overdone now......
If you read back far enough in the history here you’ll find about 50 new accounts with the 1st poster just happening to invest on the back of a friends advice, and asking the same questions and receiving the same answers.....
I had no idea you can’t type the name of TW’s hate and bile and awful tipping site here! I suppose it’s treated the same as excrement or any swear word! Lol
Black Dog - Thanks - i seem to be getting other peoples backs up but truly just trying to understand and this seemed like a place to get answers. I would have thought any conversion would be announced and have just looked back at the RNS. Should the loan notes not also be listed in the disclosure of holdings then in the 8.B2 section. Tried to work it out by going on the FCA site to see what should be disclosed and loan notes seem to fall in the definition. ' A person must make a notification in accordance with the applicable thresholds in ¦ DTR 5.1.2R in respect of any financial instruments which they hold, directly or indirectly, which: (a) on maturity give the holder, under a formal agreement, either the unconditional right to acquire or the discretion as to the holder’s right to acquire, shares to which voting rights are attached, already issued, of an issuer; ' . I guess we will find out in the next month or so whether they have been converted or not as they expire on the 31st
Genuine poster? yeah, nah. These loan notes WILL be converted and Story's holding will go up accordingly, accompanied by an RNS. No muss, no fuss, no issue
Another "selected" research posting! You're not fooling anyone as to the real purpose of your coming onto this board!
Haven’t got my back up, my holding is currently worth more than 7 times a certain welsh hovel, probably more considering the flood risks and asbestos problems, the Groundhog Day 1st time poster stories just amuse me!
There aren’t any gullible hot money people left to flush out here.... the long term holders are adding what they can and you should put more focus on the millions of shares that are sold and borrowed, that need to be bought back, than worrying about an UHNW individual increasing their stake further still at these prices, as well as the additional shares they will own when the loan notes convert!
They aren’t being flipped onto the open market!
If worried about shares in issue go pester the boards with 141m 1p warrants or companies listing with 3 times the shares in issue than Zoe has on their first day of trading, and will need plenty more cash to make a successful business and leave the serious investors alone.