Member Info for CJohnSpain

$8m (800k CRV shares at $10 each) for 29.9% of the Swedish conglomerate values it at $26.7m.

At today's CRV share price of $4.6, the Swede conglom is valued at about $12.2m.

Yes, an AIM listing would make sense of the move of the correspondence address to London. And the taking on of CRV as company banker.

I've had a quick look at the filings of these five companies (possible conglomerate??) at Companies House.

The London presence is relatively recent and no financial details available.

And all these five companies share the same London correspondence address:

1 Blake House, Waterside, Admirals Way, London, United Kingdom, E14 9UJ.

Cato Crogh ¡s a director at three of the five; Jesper Peder Carlso at three of the five.

Indeed, following up my last post: Garimon Ltd owns "Magazinos.com"; Onebas.com Ltd owns "ONEbas music".

Magazinos.com and ONE.bas music share an Instagram account.

All the deals will happen simultaneously and the stakes in each of the five companies are being valued at an identical price.

So we can conclude that these private companies are closely related with overlapping management/ownership.

Hi Tully,
This is a really surprising development. You must be right re the role you imply for Gyllenhammer. He must surely have drawn the attention of M Pajak to these private companies. it's unlikely Mark would have known about them otherwise.

I, for one, am happy that CRV's recent investments have been in countries with negligible political risk. USA, Sweden!

The fact that these stakes will be paid for with share subscriptions in CRV at $10.00 is another vote of confidence in the company.

But in the last analysis, as we know nothing about these Scandinavian companies, we don't know if this is a good deal or not.

Hear, hear, Tully!

By the way, there have been suggestions on here that the the participants in the two placings have had wind of some specific new development that the rest of us have not been informed about.

I strongly doubt that that's right. As there would be manifest disclosure issues.

My feeling is that M Pajak has convinced existing and new investors of the general potential going forward and of the solidity of balance sheet values and the fact that they understate the real picture.

((I wonder if Gyllenhammer taking a serious stake has sparked some defensive salesmanship on M Pajak's part?))

The irony is that share buybacks at up to a price of $10 was going to be the catalyst to unlock value.

Now it's new shares being issued at $10 that's the catalyst!

N

invester2015
" agee bobat....ths has 2p writtem all over it. mkt cap of £4mill, and they have asset sale of £6mill.... and no dilutioon....base price was .70......1.20 has been paid today, it wlll move much higher. imho. another buy/ hold."

The asset sale was 6 million EUROS= 5 million sterling.

One operation the cash could be used for would be share buy backs. These are authorised up to a value of… $10 per share.

That having been said the company line was that any such buy backs would follow realisation of cash from asset sales. (But then again you can see selling new shares as an asset sale.)

Yes, that's right, Tully.

Existing and new investors took took 190,000 new shares between them, of which, Kalimtgis took 100,000.

So clearly several significant investors have come to similar conclusions.

Hello, isthisawinner and others,

From the update: "Whilst this does represent a 237% premium to the closing mid-market price on 11 February 2020, it represents a 1.1% premium to the last audited NAV per share of $9.89 as at 31 May 2019."

Evan Kalimtgis is a serious figure on the London asset management scene, who took a 9.39% stake in CRV towards the end of 2014.

(I won't go back over Kalimtgis's his notable biography now. This may be something Tully Crow would know more about than me. )

To buy more shares at such a premium to the market, Kalimtgis must be persuaded of at least TWO of the following:

1. The audited NAV is a significant understatement of the real-life and/or potential NAV. (In my view that's right.)

2. He wouldn't be able to buy such a quantity in the open market without sending the price sky-rocketing. And hence overall, it would be cheaper for him to do it this way.

3. Without the funds, there could be issues - eg cash flow, Swedes taking control, Black Mountain falling through etc - which might impact negatively on the value of his already large holding.

It's got to be emphasized that this is a serious vote of confidence in the company.

I personally had been buying more because of the huge drop in price and because of the Swedes buying in. But in view of this news, I feel I should have bought more.

You're absolutely right about that Leo-IX.

The company do give their estimate of 1.5p per share cash returned AFTER taking into account transaction fees and running costs until the company's wound up.

So here's hoping it goes like they say.

Hi Leo IX,

even with a delay of 3 to 9 months, you get a very decent implied annual return, if you're investing at around 1.14 like this morning.

SuhailM3471 "Anyway, minimum 1.50p return which could be imo around 2.25p if get the tax rebate."

The tax rebate, if it happens will go to Mi-Pay ltd, which is being sold, NOT to Mi-Pay Group, ie the PLC.

So the maximum shareholders will receive is around 1.5 p per share.

I can only see that the deferred shares will be cancelled and the share premium account reduced. This was all announced quite some time ago...

This will leave only ordinary shares.

Hi Tully, you're right, I'm jumping the gun.

On April 15th 2020, CRV will almost certainly repay their $1.5m loan from LMFA by handing back 640,000 LMFA shares. At that point, they will have 178675 shares. Thanks for the correction.

(The delay to April could be material, if the LMFS shares suddenly rocket. )

So sadly, what I'm hinting is that Gyllenhammer might very well choose NOT to go for a buy out.

He's picked up almost a quarter of the company at very favourable prices. Let the share price recover and then find an exit.

Even in this scenario, his buying is a boon to other shareholders.

Rusty, good to hear from you!

Say Gyllenhammer did choose to increase his stake above 30%, at what price would he have to pitch a bid to secure him majority control?

In my view, it would have to be well above the prices he's been paying recently.