Member Info for Canoncan

Hi Quantum thats an interesting question.
I think it is almost certain that they contract it out and it wouldn't surprise me if its made by Diageo.
The CEO has close ties there and could even be nurturing the brand for them.
Miton dont have cashflow issues as such they have just merged with another fund.
I imagine they are having a clear out.

The Gin market is completely flooded and overloaded with craft Gins.
There is very little room for growth and margins are tight.
Better to be in the next boom and that is RUM which is just at the start of its rise in popularity.

It's a very good sign it is just one of many things that has to be tidied up.
Deal is done. News imminent.
Cant say more.

I agree with what you say Shandy up to a point.
I thought the plan here was to build up a brand or brands and sell them on to a bigger company once they are worth more.
The Rum seems to be the one they have all their attention on so in that respect yes it is just 1 good brand.
But the CEO has stated if he was offered £10m for the brand he would laugh at them.
So we know he expects to be able to sell this Brand for north of £10m
That would leave a company with £11m in cash and several lesser brands they can then start to build up.
So that has to be worth more than a £5m mkt value.
The ceo pointed out that a selection of Brands have sold for prices of £10m for a cottage Gin maker to £50m and £200m and £500m to £2.2 Billion for a vodka brand Gray Goose I think.
He went on to say Red Leg is not a Grey Goose but it is also not a £10m brand.
So we at least know we are in the £10m to £2.2b range.
Now I know that obviously we are not ever going to be close to a Grey Goose value, but we might be within a £50m to £100m
If we are then this should be trading around 10p easily.
This brand is in many outlets and becoming very well known the majors buy them from companies like us and then can push them into their system which puts them on the shelf around the world .
Rum is on the up it is increasing in sales worldwide.
Its the new Gin in sales terms.
Even if Red Leg was sold for £30m it would increase our mct cap significantly.
The new investor who took over 3% recently and who is a business and industry expert might just have realised this?

Here is a very brief summary of what is happening here right this very moment.
AD4 has been in the IT services business since 2013 , it had to change its name for legal reasons.

The company is in the process of kicking out the old management and bringing in a new team by way of
a merger , it is an RTO in fact.
The company has applied to the stock exchange to forego the rules relating to an RTO and are getting special dispensation for that. Because its easier for them.
The new company is well known in the IT industry and has as it's CEO soon to become AD4's CEO the top salesman in the entire sector and along with him comes his team.
They are called Cloud Coco.
This is why we recommended buying these shares at 0.003p
The company is debt free and has solid institutional support who are funding this deal.
The news of the deal being finalised is imminent.
This is why people are buying and holding these shares.
It is a rocket waiting to be lit.

If I was to bet on it I would say that Roland Grain is just the vanguard.
I would suggest that more of his colleagues are buying here ahead of some possible collaboration or merger activity.
There, I said it.

What on earth are you talking about Cavendish?
Do you have the slightest concept of who and what this company is?
And what has been transpiring here?

This company has brands worth several millions probably 10's of millions if sold yes?
It has £1m in cash in the bank.
It is valued at a laughable £5m
It has No debt remember.
This is a bargain and it has to re rate soon.

And again this is starting to get very tasty!!

Up we go again , something starting to build in the background methinks.

Yes this Roland guy sounds like he would be a good fit to join our board.
This could open up quite a few collaborations perhaps.
If you look at the company he is involved with it would be quite reasonable to think that some of their Directors and management might follow Rolands lead and be buying here.

Sure is a lot of buys versus sells today. Has to be smoke and mirrors again.

There we go thats it just turned blue, it had to there has been a lot of buying pressure over the past 2 days.
Now that it has been let go (perhaps a sell order has been filled) it can really start to motor now.

It would be rude not to buy at least a million of these tomorrow.

Wow a lot been happening here today.
Bargains to be had now :)

No posts ? where is everyone?
I was away all day I was hoping you would miss me lol.

Hi guys been away all day.
Some nice buys showing at the end there.
I guess the whole market will be treading water until all the brexit shambles is sorted.

I see significant upside here and think 6p is very achievable.
I get the feeling there is a lot more news on the way.

This is significant , this article shows that MXCP is completely aware of the current sp and still think it is very undervalued.

"The re-rating has also been driven by news that Adept4 has entered into a non-binding agreement to acquire Cloudcoco, a profitable company that offers cloud and related technology solutions and one with a strong and growing pipeline of business. It was established two years ago by the former directors of Redcentric (RCN), a UK IT managed services provider. If the deal goes ahead then Adept4 will issue 218m shares to the vendors to give them 49 per cent of the company’s enlarged issued share capital of 445m shares, so reducing MXC’s stake to 15.3 per cent.

Another reason for Adept4’s re-rating is because MXC has agreed to buy £5m of Adept4 unsecured loan notes for a discounted price of £3.5m from The British Growth Fund on completion of the Cloudcoco acquisition. This is the only debt Adept4 has. The fact that MXC will now own the loan notes, which are due to mature between 2021 and 2023, is a positive move as it removes the financial risk that was subduing Adept4’s share price. The £1.8m uplift in MXC’s shareholding adds a further 2.7p a share to its own NAV."

The other partnership is with Ravenscroft, an independently owned investment services group based in the Channel Islands with £4.7bn of assets under administration. MXC acts as consultant to Ravenscroft in its role as investment manager to the GIF Technology & Innovation Fund in which the States of Guernsey has invested. MXC contributed £5m of the fund’s initial investment pool of £38m and it should be fully invested by the end of the calendar year. In addition, Ravenscroft paid £2.25m for a 25 per cent stake in MXC’s transactional businesses, highlighting the value it sees in MXC’s deal makers. MXC’s retained 75 per cent stake in that business is in the price for free, too.

The bottom line is that with MXC’s previously poorly performing listed investments turning the corner, and the directors targeting a 2.2 times return on capital over the next four to five years on its investments, then there is ample scope for the company’s share price to return to a decent premium to NAV in due course. Trading on a bid-offer spread of 89p to 90p, MXC's shares are well worth buying.

The re-rating has also been driven by news that Adept4 has entered into a non-binding agreement to acquire Cloudcoco, a profitable company that offers cloud and related technology solutions and one with a strong and growing pipeline of business. It was established two years ago by the former directors of Redcentric (RCN), a UK IT managed services provider. If the deal goes ahead then Adept4 will issue 218m shares to the vendors to give them 49 per cent of the company’s enlarged issued share capital of 445m shares, so reducing MXC’s stake to 15.3 per cent.

Another reason for Adept4’s re-rating is because MXC has agreed to buy £5m of Adept4 unsecured loan notes for a discounted price of £3.5m from The British Growth Fund on completion of the Cloudcoco acquisition. This is the only debt Adept4 has. The fact that MXC will now own the loan notes, which are due to mature between 2021 and 2023, is a positive move as it removes the financial risk that was subduing Adept4’s share price. The £1.8m uplift in MXC’s shareholding adds a further 2.7p a share to its own NAV.

It’s also worth flagging up that the private equity funded takeover of Aim-traded Tax Systems (TAX), a leading supplier of corporation tax software to the large corporate sector and the accounting profession in the UK, completed at the end of March this year. MXC had invested £14.9m in the company and realised £24.2m of which £200,000 of the £9.3m profit will be recognised in its forthcoming annual results.

Value opportunity

I estimate that MXC will book total realisations and investment gains of £12m (17.9p) in the second half of the financial year just ended to lift its closing net asset value (NAV) to £74.3m (115p a share after adjusting for the market value of shares acquired by the company’s Employee Benefit Trust through MXC funded loans), significantly higher than its current market capitalisation of £60.5m. Moreover, MXC’s share price is now completely backed by four of its investments: £15.1m (22.5p) shareholdings in IDE and Adept 4; net cash of £19.5m (29p); a loan portfolio worth £11.5m (17p); and investments of £14.5m (21.5p) held in private companies.

Clearly, with MXC’s shares trading well below my spot estimate of NAV then no value is being placed on the two MXC partnerships that are generating over £1m of fee income. One is with a subsidiary of Liberty Global, the international TV and broadband company, to create an IT services provider focused on small- and medium-sized business customers. Both partners have invested £3.5m each.

The other partnership is with Ravenscroft, an independently owned investment services group based in the Channel Islands with £4.7bn of assets under administration. MXC acts as consultant to Ravenscroft in its role as investment manager to the GIF Technology & Innovation Fund in which the States of Guernsey has invested. MXC contributed £5m of the fund’s initial investment pool of £38m and it should be fully invested by the end of t