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What might happen is they find a project. Sound out investors and debt providers. Suspend the shares. Relist say 4 to 6 months later at a higher price. With a viable project and willing lenders Adv would be worth more. Equity investors would be investing post project not pre project like now.
Adv would bring the debt finance. Also, the team have contacts and experience. A large player will obviously want to divest to a company with experience so as to minimise later reputational damage i.e. if there were an oil leak or workplace accident. There aren’t that many experience rich teams looking to do this.
Both RockRose and Jadestone have done deals where no net cash was paid for a producing property. It all depends on whether a large company wants to divest. Can Adv also do such a deal ? Let’s see.
Er, the RNS of 28 Jan, stated the opportunities Adv are looking at are ‘suitable for debt and vendor financing’. So any equity raise will be targeted at a minimum level.
Er, Adv are fully funded, as stated in their RNS, for 2022. Appraising new opportunities will be done by the team who yes, as you recognise, are paid salaries. So to be clear Adv are in a position to evaluate and sign up to new opportunities. If these opportunities require a direct equity contribution or working capital then obviously a raise will be needed. As Adv are targeting cash flow projects, perhaps vendor or loan financed, then we can expect any equity raise to be kept to the minimum necessary.
Adv say they are ‘fully funded for the current calendar year’. So funded until end 2022.
Bill,
That 's the $bn question as we know. I'm modelling a $5 CPM. That's at lower end of the $3 to $15 CPMs widely paid as I'm assuming it's going to take a bit of time for ad agencies and brands to work out how to best use in game advertising. Should a brand advertise just after the gamer has scored a goal or just before they win the match?
I'm estimating 5 adverts per gaming succession. Each active gamer plays once every two days on average. So at 40m active gamers that's roughly $180m of ad revenue a year. That's not unrealistic. It's less than $5 a year per gamer. Bidstack's share should be about $50m in direct revenue.
Thanks Dafad. Good post. Azerion must be super pleased with their Bidstack deal. From the 17 Dec RNS, Bidstack are bringing 40m active gamers to the table. If they play once every 2 days and can be served 5 ads each a day then thats 100m ads a day. Which is about what Azerion currently serve pre-deal.
From RNSs to date we can maybe expect 80m active gamers by year end via Bidstack. The Bidstack deal could really support Azerion through 2022 post their IPO.
Spike, if value hits $10 a barrel then that’s a 9p share price. Still unfunded but firstly, if the well comes in as expected by ADV, the economics should make financing relatively straightforward, secondly ADV would have had to show CNV a credible funding plan. Maybe even letters of intent by funders.
Spike, you may misunderstand the economics of this well and reservoir. If ADV hit their 2C target then they expect to extract those 12m barrels over about 2 years at a margin of $70 a barrel at current oil prices. Yes, they will have additional costs such as corporate overheads and interest on the intended loan. So let’s say $60 per barrel operating cash flow. So to suggest that a value above $10 a barrel is not credible misses the particular economics of this project.
PoC
It could be gas on the basis that you never know for sure until you drill. But all the nearby fields with the same reservoir are oil, so highly unlikely.
I would have thought oil or gas was ADV's first question when they considered the opportunity and obviously rejected the gas possibility.
Significant things also said were ‘investment bank” and ‘frothy markets’. Investment banks don’t bother with small deals. My interpretation is maybe a SPAC of Guident is a possibility over the next 12 months after signing a few customers. Also Cliff said maybe Guident had the lowest latency of any monitoring solution. So they have to be a front runner with any car company.
TKOTM,
7 of the largest 10 companies in the world by market cap have never paid a dividend. Please be assured they have plenty of institutional support.
I think it's just the possible pool of investors who can buy 7Dig at the moment is quite small.
For IIs it's difficult to justify a purchase before meaningful figures are released.
For PI's, some who look at these types of companies are already long. Other PI's are waiting for more guidance from a broker note or company presentation.
Herein lies the temporary buying opportunity.
Lots of shares go nowhere for a time and then say 10 bag within a year or two.
Yes, I think your possible revenue of £20m in 2021 sounds very credible. Not sure the costs would be as high as £15m but maybe I'm wrong. In any case £33m market cap will look very cheap.
Once we start getting some figures to guide us then hopefullly institutions will start buying in.
Maybe the Triller IPO prospectus will give us some meaningful licensing costs.
Yes, my view is even if Tesla don't adopt them on all their models (maybe just the Cybertruck), there will be more niche markets where extra range, so allowing longer time between charging, is valuable.
Vehicles like buses which are always stopping and starting could be a good market. 4x4 off road cars as well.
Gheko,
I hope they SPAC Guident. We'd get a vastly higher valuation once we sign some customers later this year than using TEK's AIM quote. Also, Guident is essentially a US company so a Nasdaq SPAC would be appropriate. Here's some valuations I posted on 12 Jan:
Interesting article in the FT today showing market caps of suppliers to EVs following SPAC IPOs. Lidar suppliers Velodyne Lidar at $ 3.9bn market cap and Luminar at $ 10.2bn. QuantumScape - batteries - at $19.3bn.
Wonder if Guident could SPAC in the 100s of $ m if shock absorber trials and software go well over the next few months ?
Not impossible compared to other suppliers.
So if it's a say 3% energy saving then 4 shock absorbers could extend the range by 12% ?
I 'm thinking commercial vehicles like taxis and trucks could be early adopters as they'll be able to work out the $ savings and range between charging benefit the easiest.