Member Info for BusterScrugs

So… SWC have drawn down £18.5m of a £21m facility at an average of 7% interest.

On 17th June there will be a vote on the proposed Capital Reduction. No doubt this will be pitched as a mechanism to re-finance and increase the treasury bitcoin yield but surely (in the absence of a significant increase in web business turnover) it will also be to help with debt financing?

Thoughts?

After the initial dunk I expect the drift now is mostly investors that bought the 4-4.5p dip that are now getting twitchy with the lack of news and are paring losses.

Given the gravity of the situation the lack of news isn’t necessarily a bad thing but the drip drip drip of the price ebbing away is going to start making even believers like me question its future.

BTC hold promise but the SWC fundamentals would make most financial analysts shudder. I can’t see this moving up the FTSE at all…. Tbh I can’t see it handing diluting itself into oblivion from warrants, handing back a chunk of its stack to TOBAM and then bleeding out from overheads.

@ IFA

This is the issue. TOBAM paid Fiat Currency for the loan. Yes the money was used to buy BTC at the time but redemption value not simply a case of the bitcoin inventory being used as collateral, the loan was pegged at the fiat investment value of £15,803,762.67 less 2% for “admin costs”. This gave TOBAM a risk free investment. The way I see it the agreement entitles TOBAM to request the value of the loan back in Fiat less 2%. This leaves SWC on tue hook for both the $50k per coin value depreciation and the FX given Sterling had weakened against the dollar. Short of refinancing SWC would have to sell additional BTC to cover the shortfall.

“ liquidity issues are likely to have a particularly negative impact on the group if they occur at a time that the smarter convert notes are due for settlement. Although the amount of Fiat currency the group is required to pay under these notes is closely tied to the value at the time of repayment of bitcoin purchased using the funds from the notes if the bitcoin market experiences liquidity issues at the time of repayment this will limit the group’s ability to sell the acquired bitcoin to repay the relevant notes if the lender has asked for repayment in fiat currency. In this instance the company would need to use its other cash resource to repay the smart converter note or refinance the smart to convert notes if the group we’re not able to do this, the company may be subject to enforcement proceedings which may lead to the winding up the company unless the company is able to repay the smart notes. The commencement of any such action would like to lead to a significant decrease in the value of the ordinary shares and ultimately the listing of the ordinary shares if winding up is proceeded”

Placings and warrants are one thing. The biggest risk, other than a lack of new funding, is the repayment or restructuring of the $21m Smarter Converter loan which is due in early August of the SP is below £1.95 per share.

Given TOBAM could request payment in cash (and the BTC price paid with the sub was circ $119k) SWC could end up handing over or disposing of not only a fair chunk of their stack, but additional BTC to make up the circ $50k BTC price shortfall.

If I’ve misunderstood the loan structure I’d appreciate clarification as this is one of my main concerns about the strategy in that it ‘appears’ to have not factored in a down cycle within the loan period.

This turnover is just embarrassing. The board implied that figures were looking-up ffs! After tax and expenses the underlying business as just a one-man-band would struggle to pay the average mortgage yet it’s now a main market listed stock and the wage bill pushing £2m!

This company simply cannot withstand even a medium term confidence downturn that impacts its ability to raise funds and with the warrant issue and smarter converter loan around the corner I can’t see it do anything other than bleed out with overheads.

Raised £82k @ 44p equivalent and the sp this morning is looking getting a slap down to 38 or 36p in short order. This is testing the faith that’s for sure…

I pointed it out the other day and the resident rampers gaslit me about being a troll. Read the prospectus, it’s all there.

The web business itself though… i mean is this not a red flag to people? The sector itself is massively vulnerable to AI assisted DIY platforms yet their SWC website looks like a college kids homework using clipart.

But don’t listen to me I’m just a troll… it’s a multi-bagger with a flywheel that going to defy gravity

Hopefully all genuine investors are reading the prospectus and not taking financial advice from bulletin-board rampers.

The Prospectus outlines the ‘Fair Value’ point. The average accumulation price is $108,635. The current price is $95.225.

Overwhelmingly positive hey. The wage bill is nearly £1.5m and the revenue is £29k.

But yeah im the bad guy lol. I’m going by to sign off this chat as all the BS will start giving me an ulcer.

Just do me a favour and read the prospectus. The facts are there so DYOR.

Https://www.smarterwebcompany.co.uk/smarterweb-co-uk/_img/pdf/prospectus/16-01-2026-swc-prospectus.pdf

Summary Consolidated statement of a comprehensive income for 9 months ended 31st July (audited):

£29,232

Once that settles in read the list of Risks.

This is not a growth strategy… it’s a last roll of the dice.

I note there was a successful subscription yesterday for circ £1.6m at 51p after the recent pump. Looking back through the BTC buy RNS’s in almost all cases over the last 6months were announced the following day at 07:00.

Unless any buy announcement is being delayed it’s fair to assume that at some, if not all, of this raise will be used as a war chest to fund the uplifting to main market and shore up working capital. Although Im often accused as being a harbinger of doom on here how do investors feel about being diluted when it’s NOT for BTC accumulation?

Serious question.

Will a main listing make that much of a difference and what extra risks will it bring in terms of transparency requirements and admin costs.

GLA

DownsideMan - not sure what my parents have to do with anything, maybe try using mature debate instead of pathetic insults. If you’re struggling with this maybe an AI tool may be able to help… there are several options out there.

As for this stock I have a lot of skin in the game (like a 4 bed house in Kent’s worth) on MSTR so seeing a UK equivalent got me a little moist at first I admit. Taking advantage of my 20+ years in the market though I had a look into it and came to my OWN conclusion that this stock nothing more than a crypto-play in the right place at the right time. It’s now the wrong time. My contra-arguments to some the laughable jargon-ramping on here haven’t changed and ALL OF THEM have subsequently turned out to be correct. Momentum, sentiment and hype has reversed, investors have got burned and there are other less risky instruments available.

We can all sing when we’re winning and I expect a lot of you guys that are so bullish on this think you’re the next warren buffet because you momentum rode SWC and at one point were 10x on it. Rylidan saying the warrants are effectively priced in is exactly what I’m talking about.

shorts? i wouldn’t touch anything to do with this stock with a ****ty-stick. it may have escaped your blinkered notice but the bitcoin inventory is underwater, the underlying business is a joke and about to get its ass handed to it with diy ai alternatives, the lock-in period / warrant exercise date / smarter-converter loan is round the corner and the overheads on the wage bill alone have skyrocketed. add to this the fact they haven’t been able to raise money even on aquis for the last 3 attempts and that any move to the ftse will come with costs they will have to scratch down the back of the sofa to find what exactly are you so bullish about?

Main market listing will come with higher standards and more scrutiny. For starters the trivial nature of the underlying business makes this look more like a BtC investment vehicle than a vanilla equity. The underlying web business financials will be under the microscope too… no more hiding behind the opaque Aquis reporting standards. Far from be a catalyst for growth I think this will accelerate decline.

Another non-exec mouth to feed on the wage bill I see. I’ll be interested to see the web business turnover in the next results…

Still churning out the same old tosh and see Rylidan. Delusional. This companies buggered.

The corporate equivalent of “this time next year Rodney…”

With a BTC treasury in negative equity and little investor appetite for new subscriptions / fundraising the next results statement had better be pretty bloody peachy!

They’re better off buying scratch cards with a subscription of that size. That’s just embarrassing.