Member Info for Crossthetea

Interesting article from mining.com, could put leverage on the Dugby sale, location notwithstanding of course

https://www.mining.com/dearth-of-quality-new-gold-discoveries-puts-supply-growth-under-threat-report/

That's a really long 'I told you so'... only got the the second line.

Just bought in again this afternoon, love a rollercoaster, GLA.

Well, to be kind, it is a textbook example of the importance of knowing your customer and developing an appropriate marketing strategy. CBG/CBD users at this time did not want to spend for premium skincare and the attempt to break into the mainstream market failed absolutely.

20/20 hindsight though. Partially why I would love to have the formulations, I'd give it a go myself, focussing on the kitsch rather than the riche.

George Foreman as brand ambassador. Sponsor a few skibidi toilet webisodes. Change brand, reduce prices. Flood gen Z/A/Mill with nonCBD advertising...

I wouldn't mind taking the formulations and WIs for the skincare products off their hands if there is ever a firesale, they were great and I'm running out of aftershave balm. Other balms are genuinely rubbish.

Also, apparently carbon capture is the next big thing.

https://www.telegraph.co.uk/business/2024/08/02/carbon-capture-could-be-hero-green-economy/

There are a few clues on the CG website pointing to FlexLabs, and it makes total sense when you think about it.

Strange thing... the Cel chatbot is still live on the Cellular Goods website and the marketplace is still there albeit not in use. It makes me wonder if the long game is to bring the skincare products back to work with their AI offering to direct to external sellers. They'll need cash, which can only come from a loan or an II buying more shares... though at least one II is offloading ATM causing the SP to tank under the cash value of the company, so not sure how they are going to play it.

I assume Midori is offloading as Matt is out and KingTide is doa.

Prob going to fold, but I'd be interested in what the actual plan was. I would like Mike to demonstrate his business brain, as at the moment he's being a bit of a mushroom CEO.

Delayed from 0822 so prob a PI sell. Delayed on the day also so MMs did not have the cash/drive to complete in one shot. Also, it looks like they'll try their darndest to keep the SP above 13p to recoup some of the cash they have fronted. With this and Argo's woes it's not a good time to be Mike Edwards. Who is also down around £40k.

Looks like that is mostly from a kamikaze buy in the morning. The SP won't lift without a watertight turnaround plan. Or rather any announcement of one.

I wonder who would post the RNS, are there any directors left?

Https://www.ft.com/content/d818a16a-9844-4455-a2f0-d1de15de2199

Interesting, not directly linked to what KingTide claims to do but in the ballpark, major economies pushing carbon offsetting as part of national policy.

Could be worth a bit of well managed.

OK, so Insta has gone quiet, which tells me Nik McD was on a 3 month contract to promote the AI platform. Now the BoD are comparing data from Pure AI, Discounted Skincare and Premium Skincare.

I would guess a decision will be made on a new direction sometime in July, which may include a fundraiser... or they'll just switch the lights off on the way out. Bets are on!

So... are you thinking FlexLabs will move to acquire CEL? I suppose it would be a cheap way for Flex to take up residence on the main exchange. Assuming Mike consolidates all assets it would make the listing worth substantially more than it is now.

Kind of makes sense from a business perspective, if I had confidence in the future of LSE.

Very quiet in here... well I suppose it is raspberry season. I'm doing quite well on making a pi, myself.

Exactly. Also, I see seaweed as food, carbon capture, and fertiliser has been getting quite a bit of airtime in the media lately. No idea what KingTide are up to though, other CEOs of similar companies are very vocal in comparison and seems to be in the same space of pre-commercial R&D.

A bit mediocre, but quite a methodical approach to their business development, can't argue with that if they have the time and cash runway.

Takeaways...

They are keeping the skincare business so relaunch incoming

Carbon capture has been deprioritised and the group has been told to find funding. Right move, I see InnovateUK have an agri competition open at the moment just up KingTide's street. They are an SME with an upcoming Layout gov committed to green so winning should be simpler. Academic partners get a share and 100% funding so their Directors will be happy.

AI looking to expand as a service to other companies, likely a subscription model and pay by traffic.

All in, could be an explosive turnaround at the current SP. They have 15months plus extra when EPSRC/IUK funding starts coming in. The dice are rolling...

I appreciate the respect, but seriously? It's not just the 'idea' it's the also collection of patents, industrial secrets, trademarks, copyright, suppliers, compliances, skills on team, I could go on.

This is what values 'makers' above resellers, though if the company also provides marketplace then add suppliers book, supplier quality, packaging, logistics, again the list goes on.

There's value in execution as well as product or service. Add or subtract more based on market development, and the market is definitely softening.

If some company comes along and has the option to invest in themselves or buy another with everything they need for less. No brainer. In Cel's case I would imagine it would be an II who will aim to break up the assets to resell at profit.

Again, if I was in charge I would argue for an 8M valuation based on this, but back shares, lift the SP then make RI to settle the debt and to fund development.

Clear as mud.

Back of an envelope determinations here, now that the market is softening... I reckon with IP in production and supply of CBD skincare, IP in carbon capture and presence in AI driven marketplace and social media, a shrewd CEO would be able to negotiate at least an £8M valuation without too much trouble.

I would accrue debt to buy back shares in order to hold a Rights Issue at 1p without dilution, pay back debt with the proceeds then push for another RI at SP 3p, which will see income from released product and services. Or just sell the lot at 3p when the EU get serious about carbon capture and the market consolidates.

Still think an £8M valuation at this time is realistic nonetheless.

Well, that's not true, is it? Their products were excellent in quality and performance. They did cost a premium though, and the current debacle of western ev companies show us that it is not the time to launch premium products.

They should have started low and built from there, and try to catch the social media zeitgeist on the way, but there is still time! They are certainly giving Instagram a good go.

Bear in mind that it took Amazon 15 years to turn a profit. I think London is just the wrong market for this type of company.

Absolutely. It looks like every major seller has stopped selling... for now. And buyers are waiting for news.

I can almost see the tumbleweeds. Isn't AI exciting.

I suppose now Mike Edwards is forced to disclose the ongoing carbon offset talks with Argo, and the upcoming new based skincare range with formulations optimised by data learned from their AI chatbot interactions. Anyone who can connect dots know it's happening, I'm just bewildered by the secrecy.

Don't you mean bye byes?

Kidding. Elsewhere, MS recently signed a big carbon offset contract, which tells me industry sentiment is shifting. If only Kingtide could speed delivery of... well, anything really

https://www.esgtoday.com/microsoft-signs-largest-ever-3-3-million-tonne-carbon-removal-deal-with-stockholm-exergi/