Member Info for 5h4k35p34r3

The www.defenx.com website has ceased operating.

Hence, I don't know why you keep saying it. It's the same thing you keep saying all of the time. I don't see the point of repeating the same thing ad nauseam.

I don’t why you keep trying to talk this up. It has no relevance nor effect. This will recover when DFX do some basics like getting their website working so the world can actually buy their products, not web chat.

If BVT acquires 75% or more of the shares they can delist the company from AIM with impunity and our shares become untradeable: https://www.theqca.com/information-centre/markets/1441/delisting-from-aim-issues-arising.thtml

https://www.sharesmagazine.co.uk/article/owning-shares-in-a-delisted-company

BVT in liaison with Stecconi, who resigned but still has a significant interest and share, have a combined share ownership of 69.68%, after the loan conversion. Uncomfortably close to the 75% dominating share proportion but not quite enough, unless other shareholders vote with them.

The main reason for companies delisting is the cost of maintaining AIM membership which currently costs Defenx circa €234,000 per year. BVT appear keen to keep Defenx on AIM though, hence them publishing their accounts by the deadline by which they would have gone from suspension to cancellation.

In every transaction, there’s a seller and a buyer.

Somebody is buying them up...

Why would there be? They're just drawing down on the loan that the RNS of 2nd October announced so no new news.

I would love a buyout offer in October but the likelihood of being offered 38p for shares that are currently trading at 8.5p and the highest annual price at which an offer must be made would be 53p, achieved on December 14, 2017, is surely nil.

I’m in Manchester and unable to attend on that day. Would be good if someone could represent us.

The strategy to me is them waiting for a buyout to be affordable to them else acquire 75+% shares to enable a delist else bumble along. The delist is perhaps less likely as the loan could have been just another 230k more to achieve that with Stecconi now.

They listed on AIM to gain liquidity and obtain external funds. They presumably want to maintain that especially as it costs circa 150k per year to be listed on AIM. Their latest accounts state an intention to return the company to profit and new payment terms with debtors over the next 48 months. The latest loan looks like it is designed to provide enough working capital for 6 months then crunch time again unless Defenx’s revenue streams improve. So, it looks to me that everything is converging on April when the current loan is exhausted, the share price offer drops to 35p, Q1 aspirations have either been met or failed, and we have D day again.

My understanding is that if a company is delisted then the shares are untradeable so effectively worthless. They could provide a Matched Bargain facility but it’s unregulated, provides extremely limited liquidity, can be ages to complete a deal, etc.

Is anyone attending the AGM? We need specific answers to at least the following:

- who is directly employed by Defenx in the U.K.?
- who in BVT is operationally supporting Defenx?
- why are the Defenx websites unresponsive and unprofessional, e.g. mixed language web pages.
- what is being done to enable resumption of cash flow, e.g. fix the unusable website.
- who is in charge of operations?
- what is the status of the GFC recruitment that has had over 200 applicantions on LinkedIn?
- what is the status of the search for a permanent CFO?
- why are calls by investors ignored and/or unanswered?
- what happens if the latest BVT loan funds are exhausted and there is again insufficient working capital being generated by Defenx itself to keep it operational?
- are BVT preparing for a share offer for the remaining shares?

Correction: after the loan conversion into shares, Stecconi’s share would fall to 2.58% so BVT’s and Stecconi’s combined share ownership would be 69.68%. Uncomfortably close to the 75% dominating share proportion but not quite enough, unless other shareholders vote with them.

Notable that the 2017 accounts value the shares at end-2017 at 27.5p based on nett book value. And the 2018 interim accounts value the shares at end-June 2018 at 24p each. After the loan conversion into shares the value per share based on current nett book value would fall to 16.6p and BVT’s average share cost would be 14.5p from its current 19p.

A buyout offer in January at the required 48p would be 3 times a share’s current NBV. At the required 35p price in April it would be just over twice current NBV.

My biggest concern is BVT in liaison with Stecconi, who resigned but still has a significant interest and share, having 75% of the company enabling them to delist it if they choose and our shares would be untradeable.

My current reading:

the new loan gives BVT increased controlling interest in Defenx and keeps it operational without forcing them to make a buyout offer;
the loan is structured so that 150k is available immediately to keep Defenx afloat then can be drawn down in full at the end of November to carry Defenx into the new year;
the loan is convertible into shares giving BVT 67.1% of Defenx;
Stecconi has a 6.49% interest so collectively they would have almost 74% between them;
BVT will make that conversion;
the RNS confirms that BVT own the IP and BVT employees are supporting the Defenx products so BVT are effectively now Defenx by proxy;
the websites still don’t work properly so operationally its crippled, which is odd as that would be easy to fix;
the required offer price falls to 48p in January and 35p by April;
I suspect BVT will make an offer for the remaining 25% of shares some time in Q1;
if BVT acquires 75% or more of the shares they can delist the company from AIM with impunity: https://www.theqca.com/information-centre/markets/1441/delisting-from-aim-issues-arising.thtml

Anything is better than calling in the administrators.

Anyone selling at 12.5p *shouldn't be in this game.

Anyone selling at 12.5p should be in this game. Buying such volatile stock is somewhere between brave and foolish. I'll be holding.

Seems pretty straight-forward to me: Defenx will issue the 2017 and interim 2018 accounts in October, suspension will be lifted, trading will resume, BVT will provide further working capital, back in business.

The Group Financial Controller vacancy was relisted on LinkedIn yesterday with 177 applicants so far.

"through to September" is ambiguous and it was predicated with "believe". I expect another RNS some time in September.

It was in the RNS of 16th July: "Accordingly, the Company is in advanced discussions with BV Tech S.p.A, the Company's majority shareholder, to secure funding to assist the Company in meeting its working capital requirements."

What comes next is just speculation.