The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Not crazy about the choices on offer.
None of the parties seem to be great.
On balance, supporting the founder, as with initial investment case.
They are dancing around Pranagraf, as expected.
I wrote as much in the shareholder feedback today. Interested in cash in-cash out of that entity.
Thought about Tirupati some more, perhaps in line with what others have written:
Either they keep more cash (and advance everything more slowly, less aquisition/expansion) OR they communicate and keep good relations with banks and investors (credit and capital infusions)
They f-ed up and the graphite markets aren't great. F-ups happen. But if you run two businesses with no money cushion and no communication, you get this.
When you are in trouble everyone can mess with you: government might offer you a third of your money only, offtake partners will lowball you because they know you're in trouble, etc.
Thinking about their situation, Pranagraf may have been their crutch for offtake.
We'll see if the company survives or law gets involved.
Shareholders wouldn't be so fussy about Pranagraf if Tirupati was running profitably and everyone's investment was doing well. But they messed up and now they could have opened themselves and us to legal action or more equity loss.
Best of luck to everyone. Make sure you diversify well in venture investments. Best to think about them as zero's anyway until they work out (or don't).
Sad, considering the potential. I have skin in the game.
The downturn in the graphite market and real trouble would be easy to stomach. I would be happy backing the people even if it was a 0 in the end if they communicated and took some haircuts for faliure.
But the RNS messages, how the 6 million were spent long ago and decisions when under strain are the real measures of character here. What was the 6M raised for and how was it spent?
This might still go somewhere, the company might succeed, but it still feels gross and without any integrity: 7th of May voting shares issues is just looting of the company. What the f* foes Puruvi do in the company worth 1.3M shares. Did they raise money previously just to pay half mil salaries just like Canadian lifestyle companies. This is a Sh* move to get more control and equity after collosal faliure.
https://www.fca.org.uk/markets/market-abuse/how-report-suspected-market-abuse-individual
Employees and execs, consider whistleblowing to save your skin if there has been fraud. The FCA may be coming sooner or later.
I'll make my case to the FCA in a report after the meeting if you guys don't have a damn good plan on the meeting and have a lot of honesty. You better apologize to shareholders in the least for the self-dealing with no CFO and the baby board.
I get that company building is messy, a lot of us have understanding even if things are less than clean as it can be impossible to deal with multiple regulations. Stabbing your own shareholders (business partners) in the back may not be something you can walk away from or any of your board. That could be why so many were resigning.
People in communication with the Poddars, by all means there are regulatory agencies and there are prisons if you suspect wrongdoing.
There are two roads to value here. 1. Poddars pull it off and it still leaves everyone very suspicious forever (company building is a messy business after all), all is forgiven by some. 2. F* everyone who was complicit. Impounding and cancelling shares issued after certain dates/ and or a fun asset sale. The assets may still be worth a good amount on liquidation. This is ugly, but the assets are strategic, you may get some of your money back you may get 0.
I regard the shares I own as a zero, as should you all until there is clarity on these: Where was the money spent? Self dealing? Who is the auditor and when are the audited results coming in? Why are partners passing on supporting this investment (have the guts to own up to shareholders, many have been candid).
Good luck all.