Member Info for Candlestick

Had some comms back from TETE this
morning regarding the timeline.
Looking at the capital SEC filings I couldn't
get my head around the DEFA14A, as it just
appeared to be a duplication of the previous
8-K filing.
I got this back -
The Form 8-K was filed under Rule 14a-12.
as required by the applicable rules, so it also
appears as a DEFA14A. We haven't filed the
proxy statement yet. The date of the EGM
will not be known until we have filed the
proxy statement and gone through multiple
rounds of SEC review.

So it looks like the timeline for the closing of the deal will run into 2023. Once they file the proxy statement there will be a shareholder meeting within 30 days and then most SPAC deals close within 3 to 5 months of that. To be fair, TETE press releases did state that closing is expected in H1 2023

Looks like we wont have long to wait until Shareholder meeting to consider approval. DEFA14A was filed on 19/10. Not fully certain if this date starts the 30-day window, but it seems to be.
“Parent Shareholders' Meeting shall be
held as promptly as practicable, in accordance with applicable Law and Parent's Organizational Documents, after the Proxy Statement is "cleared" by the SEC, but in no event later than 30 days following the date the Proxy Statement is "cleared" by the SEC.”

We also have to really consider the holdings of Dato' Hussian and the Estate of Dato? Shamsir bin Omar.

Between them, they hold 62.5m shares, out of 106.3m in issue. This means there is a free float of just 43.8m.
Try buying some when news kicks in!

Really interesting to see the impact that Vidacos selling has had -
They held 21m on 30 Aug 21, they sold those down to just 7m by 3rd June 22.

Their sells accounted for 39% of ALL volume over that period. If we assume that 39% ratio continued since 3rd June, they will have sold out of all of their holdings on 19th October - the day we got the JV news.

Their impact on the sp is well known, but to put some clear numbers out there -
Share price on 31/8/21 = 19p
Share price on 3/6/22 = 9.5p
Share price on 18/10/22 = 4p

The fact that they will be out provides a clear route for a massive re-rate; any news and increased sentiment should really drive it skywards.

Just looking at the SPAC deal.

TETE acquire all shares of Super Apps, equal to $1.1bn.

This is split into 2 -
$235m paid at Closing
$865m paid based on earn-outs over the next full 12-months

The overall target is to generate $87m each quarter to get 21.625m shares. If they over-earn, the quantity goes up as a ratio of (Achieved/Target) x 21.625m shares.

This target that MBO have to hit is approx $30m/quarter, so there is an incentive for all parties to achieve that revenue target.

It really does have the capacity to be huge

Astonishing is the word…

https://twitter.com/candlesticks18/status/1585350483404722176?s=46&t=hY2Zvlfe_m75VVoD8aDiDw

There’s so much more to come from this. MBO will be getting GBP11.1m just for the license to use the IP.

This isn’t exclusive, just a licence to use it. More than the current MC for the licence.

I would be surprised if MBO aren’t trying to duplicate such deals with other businesses.

“MobilityOne currently has ownership of the intellectual property that OneShop Retail uses in its operations and, in connection with the closing of the Business Combination, MobilityOne will grant OneShop Retail a long term license for use of such intellectual property. MobilityOne’s technology platform is flexible, scalable and has been designed to facilitate cash, debit card and credit card transactions (according to the device) from multiple devices while controlling and monitoring the distribution of different products and services.”

Things we’re waiting/hoping for this quarter (only 2 months left now):

1 - Expansion via SWIFT
“Central Bank of Malaysia approval for the Group to expand its money transfer business via the Society for Worldwide Interbank Financial Telecommunication ("SWIFT") network.”

2 - FCA Application to expand in UK
“In order for the Group to expand its business in the UK, M-One Tech Limited, the Company's wholly-owned subsidiary in the UK, continues to progress its work in respect of re-submit an application to the Financial Conduct Authority (the " FCA "), the financial regulatory body in the UK, for authorisation as an electronic money institution to provide e-money services in the UK (together the "FCA Application"). While it was originally the Group's intention to re-submit the FCA Application by September 2022, as most recently announced by the Group on 29 June 2022, the Group now intends to re-submit the revised FCA Application reflecting the FCA's feedback in the fourth quarter of 2022.”

3 - confirmation that SuperApps and TETE merger closes, releasing £7.5m in cash to MBO
“Following the completion of the Proposed Disposal, the Group is expected to receive cash proceeds of RM40.0 million (c. GBP7.53 million) and RM20.0 million (c. GBP3.76 million) within 14 days and 180 days respectively of completion of the Merger Exercise”

4 - Any further partnerships the company can develop, similar to SuperApps
“For future growth, the Group will also consider partnerships with parties in complementary businesses to explore new business opportunities.”

If any of these come through, the price will respond incredibly well. If ALL of them come through, wow.

So, I read this as OneShop will be in charge of payment collection and credit lending for ANGKASA.

“Super Apps and MYISCO Sdn Bhd (“MYISCO”), a wholly owned subsidiary of MyAngkasa Digital Services Sdn Bhd (“MDS”), a Malaysian private limited company led by Angkatan Koperasi Kebangsaan Malaysia (“ANGKASA”), entered into a collaboration agreement, which shall become effective upon closing of the Business Combination, allowing OneShop Retail, as the authorized bill payment collection and credit lending agency of ANGKASA, to operate its payment collection system through ANGKASA’s authorized dealers for the collection and remission of any payment of bills via cash payment, credit card, debit card or cheque. ANGKASA currently facilitates the monthly salary disbursements of its members under its salary deduction scheme.”
“Based upon the Company’s anticipated collaboration with MYISCO and other potential collaborations, the combined company projects revenue of approximately $348 Million for the financial year ending December 31, 2023.”
————
ANGKASA are huge…

https://themalaysianreserve.com/2022/05/23/angkasas-cooperation-with-iffco-to-unlock-more-msia-india-biz-opportunities/amp/

“As of June 2021, ANGKASA has 14,657 cooperatives nationwide with an individual membership of about 7.04 million people, total share capital/ fees of RM16.3 billion and total assets of RM152.1 billion. The revenue of the cooperative movement recorded RM41.5 billion as at 31 December 2020, as reported by the Malaysian Cooperative Commission.”

1Shop is a subsid of MBO. Super Apps are paying MBO once they merge with TETE; they appear to be using 1Shop as a means to gain access to MBO’s IP.

“1Shop, which is incorporated in Malaysia and is a wholly-owned subsidiary of M1 Malaysia is currently focused on retail sales of consumer products. In the financial year ended 31 December 2021, 1Shop reported revenues of RM13,007 (equivalent to c. GBP2,449) and generated a loss before tax of RM6,024 (equivalent to c. GBP1,134).“

There’s a good article in this link:

https://www.globenewswire.com/news-release/2022/10/19/2537503/0/en/Super-Apps-Holdings-to-Become-a-Public-Company-Through-Merger-with-Technology-Telecommunication-Acquisition-Corporation.html

“ MobilityOne currently has ownership of the intellectual property that OneShop Retail uses in its operations and, in connection with the closing of the Business Combination, MobilityOne will grant OneShop Retail a long term license for use of such intellectual property. MobilityOne’s technology platform is flexible, scalable and has been designed to facilitate cash, debit card and credit card transactions (according to the device) from multiple devices while controlling and monitoring the distribution of different products and services.”

Just looking at this one, wanted to check a few things:

MBO has a Mcap of under £8m, with cash of £4.72m (end Jun 22)

- They will receive (subject to disposal merger between Super Apps and TETE, expected this year) £7.53m within 14 days of the merger, with a further £3.76m within 6 months. This will give cash of over £12m, rising to almost £16m after the 6 months

- They are getting shares worth £3.76m if they can move OneShop from a business generating revenue of £2.5k/annum up to the giddy heights of £105.4m (but this revenue is expected to be driven by Super Apps, with no material impact on MBOs normal ops). They will then sell the shares.

- They also retain 40% of the revenue generated as they’re selling a 60% stake. So that’s at least another $40m to add to the $113m they made in H1 2022.

- Super Apps’ merger with TETE will create a listed company worth $1.1B.

MBO has a Mcap of under £8m

If this goes ahead, it feels transformational and a likely takeover target for the new TETE company.

It was due to the CPI data release from the States

Tiburn -
They have $11.5m in cash now.

They had $7.8m in cash at the end of Q1.
They raised at least $10m in April

So they’ve burned through $6.3m at least in Q2?

At that rate, there will be no cash by YE?

Production is NOT up 30%.

Net production went from 1,114 bopd (Q1)to 961 bopd (Q2), based on 58% WI

You can’t just add in CUDAs share without including any costs involved in taking over CUDA’s share. This can be added from Q3

Sure…
- BOPD - 980, down from 1114
Q2 monthly published figures are 50764 / 49796 / 43403, so 1582 bopd. 58% is 918. Plus a little bit from other wells (was 54 in Q1 so I’ve rounded thing up a touch, actual number I’m working on is 978)

- Realized sales price - $106, up from $91
Average WTI across Q2 is roughly $108. Can’t get it exact as only have weekly numbers so went with caution and suggested a couple of dollars lower

- Revenue after royalties - $7.5m, up from $7m
Royalties around 22% - so 978*91 days*$106 is around $9.5m, less 22% = $7.4m (rounded up a touch to $7.5m)

- Net Hedging loss - -$2.6m, down from -$0.9m
Difficult to fully estimate but based on WTI at $108 and Butane at $1.50, that’s the number I get based on the hedging figures of $56.58 & $0.768.

- Operating Netback - $32, down from $39
Revenue after taxes, OPEX and royalties comes to around $5.3m, less the hedging loss of $2.6m. Divide $2.6m by 91 days to get $30k/day. Bopd is 978. That gives a Netback of 30.57, I must have mistyped 32 when it should have been 31.

This is what I expect this week:
- BOPD - 980, down from 1114
- Realized sales price - $106, up from $91
- Revenue after royalties - $7.5m, up from $7m
- Net Hedging loss - -$2.6m, down from -$0.9m
- Operating Netback - $32, down from $39

It’s not being sorted in Q3, they are hoping to have it done in Q4.

If it’s not achieved by Boxing Day, the CB conversion price drops to 13.25p. Tick-tock…

32% premium. Imagine that.

We’d be bought out for 24p… Good to it rejected and the sp went up more than that amount anyway!

Don’t forget how many times he’s said he’s raising funds for operational purposes, then just comes back for more.

They can’t wait for any drilling and a Reserve Report before signing up to an RBL. It will be based on current reserves

They have to drill to move any numbers into reserves. You think they’ll wait on the RBL for that to happen? How exactly are they funding any drilling?

The RBL won’t take take the 993m barrels into account.