Member Info for Dingodog1

Presumably this is the "putting cash pile to good use" (or words to those effect) when asked what would be done with the cash/would there be extra dividends. Certainly a good way of reinvesting the cash. Will help grow turnover and hopefully profits in the years ahead

Has anyone reported DVRG or anyone associated with it to the FCA? Is that even a worthy avenue? Is there even a case to answer?

If deception/falsifications can be proven then surely justice should prevail? What has happened here over the past 9 months is unbelievable. From a botched raise last November to the complete collapse of a company once considered to be in a strong place.

Companies dont go under over night. People will have known. BOD, auditors, broker? There has to be more protection for shareholders.

Anyone else in the same boat?

A Q&A with the new BOD would be welcome. A clear the table (and air) of the old and hear what's to come.

Clarification on all the GB pumping is needed. As people say, CR etc. If they are dead in the water it would at least be nice to get confirmation.

8 months ago we were on the cusp of making serious strides forward. Finance (and the leak of the raise) hit the SP, but what happened to all the business? STC, the various mictrotox devices, china resources, labskin et al.

The company has gone from being an open book (potential-wise) to being a complete closed book with shareholders in the dark.

DVRG had a £30-£50m mcap a few years back with like £2m turnover. It now has £10m turnover and a large pipeline (all that deferred revenue which prevented £18m being hit...) yet the mcap is £4m!

Https://www.bbc.co.uk/news/science-environment-65626241

"Near real-time updates" of sewerage spills. Surely that could only be achieved with a water monitoring device. Certainly not students down man holes...

https://www.bbc.co.uk/news/science-environment-65484552

So, presumably labskin has little foothold in the UK, or at least, the Gov are happy to allow a biological alternative. Disappointing, both from an animal welfare perspective, and from a DVRG share holder's perspective

I continue to hold but i dont even know what irons are even in the fire anymore. A raise seems imminent and the triple digit growth year on year went out the door with GB. What a sorry carcus seems to remain. STC on hold, labskin presumably going the same way, BT? PD?

We need an update from the BOD. The smoke and mirrors have cleared, but what are we left with? What business am i actually invested in, and what can turn it around?

At one point DVRG seemed to be able to help a not insignificant amount of the worlds problems. It felt like a true unicorn just waiting to gallop into the sunset. And now what?

Oh. And the WHO have confirmed that the pandemic is over. Another kick to the DVRG ****nal!

Do we know the ex-dividend date? And could this be prior to today? Or must it be in the future?

It would be quite the rug pull if the BOD announced that the dividend were to be paid to all shareholders on the register as of, say, 31/12/22

Does anyone know what the distributable reserves are as of the latest accounts? Retained profits essentially. I am sure the YE2022 accounts will contribute additional profits, but to keep it simple, dividends cannot exceed distributable profits.

So, cash of £28m and distributable profits of £1m, means a maximum dividend of £1m.

There are other mechanisms they can apply, such as capital reduction of the share premium reserve etc, but it is worth focusing on the available reserves over the balance of cash imo

They created disributable reserves for the POLB spin off, so i assume they will have surplus reserves from that

Where is the turnover documented, Mullins? Thanks

MCAP of £15m with an SP of around 2.5p is what we will see in a week or so.

So, pre-Ukraine MCAP of about £60m will give us an SP of around 10p, whereas is was about 30p before.

Once the current noise passes i expect the SP to rerate, but nowhere near where it once was. I also expect the SP to get stuck in the 3p-4p zone as the warrants are converted and sold.

If the company needs to raise cash again at these levels then we will see even more dilution.

The only saving grace is an STC sale/JV for like £50m+. That would get the SP moving and will also provide the funding needed for the business to grow. The silence from the firm from an operational perspective has me fearing that the business has effectively gone into hibernation whilst the funding issue is sorted. I hope i am wrong and the £18m turnover is well and truly nailed on plus more.

If the BOD have misled investors through official RNS then some investors may have invested under false pretense. Surely this leaves the company/BOD liable? Surely the FCA should be getting involved?

I never felt that the loan would be repaid, i always felt that the debt would be converted into shares. But GB claimed in the interview after the RNS that the conversion would be at 20p, a premium to the share price at the time (16/17p).

Many ran the rule over the agreement at the time and in general it was felt to be a sensible move as it guaranteed funds at a time of global uncertainties and it could be converted at 20p. There were others that noted that it could also be converted at the average 5 day price etc etc. But still, that was effectively the same as a small raise to pay off the loan, albeit a loan with high interest. GB stated in no uncertain terms that it wasnt a death spiral agreement.

As recently as early September i said that i expected the £4m loan to be converted into shares, but the SP was 10p at the time, and the dilution would not have been so significant.

LTH have been screwed as they chose to go for a £10m raise to repay the £4m, and have extra capital, but further to this, the fact that this information leaked, which crashed the SP. If it wasnt for the leak the £10m could have been raised at 8/9p.

Who is responsible for this leak? Surely DVRG can sue someone? Or did the leak come from within? Yes TW was the vocal spokesperson of the leak, but who told him? Was it someone at TP? Surely someone is liable for such leaks, especially with extremely sensitive information that can be very damaging in the wrong hands. Will DVRG and the BOD be demanding answers, followed by legal action?

Fair point Happy.

Some saw DVRG as a unicorn for a number of reasons (STC, PD, BT etc).

They had visions of 100 bags and a billion market cap. If you believed that last month, what has happened with the financing and the SP does not change this.

DVRG may well still be a unicorn, but due to the recent dilution those 100 bags would now be 30 or so. Still a tidy return for any investor.

If the company becomes cash generative and profitable as the BOD expect then this should be one of the last raises. And who knows, maybe a share buyback could come down the line in a few years if DVRG all of a sudden took off.

I am not a happy LTH, and recent events hurt for sure, but i wont be selling at these levels and i still believe the company has a lot of potential. Unless we get any major contracts, it will take a long time for me to make my money back. I still may. The game is not over, as the recent financing ensures

Is this not a lie?

"This £25 million mezzanine loan ensures availability of funds for growth, avoids stock market fluctuations, eliminates the need for a discounted equity dilution of shareholders and the Glanaco acquisition underwrites our ability to take control of our supply chains and manage scale to meet the growing global demand being experienced by the company."

And then 6 months later they raise £10m at a massive discount to a hugely depressed share price

The mezzanine loan had terrible terms, but it meant that the dilution would only be limited to the funds borrowed. If they continued to use the mezzanine loan, albeit on terrible terms, there would have been no raise to leak and i am adamant that the SP would be a lot closer to 10p when riverfort converted the balance. The likes of TW would never have gotten down wind of a £4m conversion. But the £10m raise? Kept as quiet as a fart into a microphone

For the company to persist with the raise at 2p per share is terminal for the value of any shareholder who purchased over 10p, and probably lower

The new shareholders and warrant holders will flip their newly acquired shares. It will take months, if not years, for the flipping to stop (which will depress the SP) and the BOD will probably go for another raise before the SP ever gets back above 3p

Depends on the dilution of the SP following the raise (or conversion of loan).

If the shares in issue double, or even triple, then the a MCAP of £20m won't result in a 4 bag in SP.

We need clarity. Dilution at these levels will be catastrophic for existing LTH

Apologies, i wrote that on the train this morning.

In short, micro cap companies often need to raise funds and they do so at the expense of dilution to existing shareholders, and thus the SP drops despite the mcap remaining stable, or even rising.

Companies like MODE floated with a 50p share price and £50m mcap. The SP is now 4p two years later. Granted the mcap is down too, but it has been awful for investors

I hope UKSPAC defies the trend, but my gut feel is that whatever the business does from an operational growth perspective, the SP wont necessarily follow that trend. If they need to raise funds in the future and can attract an institutional investor who will stick around, then happy days. The risk is that if they did raise by these means that the investor would be the type to immediately dump the shares, denting the SP

Ambitions are cheap, what isn't cheap is finding the funds to facilitate such ambitions. I hope they raise all they would need from day one. Any subsequent raises as the months go on will dilute shareholders considerably, more so than we already are being.

My experience with small caps is that they almost always need to raise and when they do they always do so via "investors" who have no intention of holding. Instead, these new investors dump their newly acquired shares (always acquired at a discount) into the market, and thus damaging the SP. Very few companies ever achieve an SP in excess of a raise SP point as micro PI's can never stem the slide of the SP with their "few grand here and there" buys, vs the deluge of dumping by a retail investor

There are, of course, exceptions. But AIM in particular is littered with micro cap companies that offer no return to shareholders. I am not confident this will be any different

The dream of micro cap shares are the 20x+ gains (ARB over a period of two months in 2020/21), but most end up like Iconic Labs (look them up).

I personally always felt that t-rat tirelessly provided useful information, always supported by links and sources. He was and will continue to be a very helpful contributor, in my opinion.

Trills has already acknowledge he got it wrong. He doesnt have to say this on repeat. He bought into the (still ongoing, i must add) story and was an enthusiastic supporter.

As for Chesh? Not sure where he has disappeared to, but i personally saw him as an enthusiastic holder. I never recall him telling people to buy or making things up to sway opinion. I may be wrong in that view, but he is innocent in my eyes.

One thing is certain. Modern water, STC, labskin, rhino cloud et al are worth more than £6m, the present mcap. Heck, the H1 revenue was more than the current mcap and the forecast annual is three times the mcap.

So, the drop is well overdone. As clear as day.

The rumoured/leaked placing price, the silence of the BOD, the rumoured MBO etc have all combined to destroy the SP.

However, you would need to be ballsy to invest now as we all know a placing is coming. A placing COULD be at 20p a share (haha) but it will most likely be at a heavy discount so that the financier can dump their newly acquired shares. So, likely a placing price of 2p or so. And if £10m is needed, again, as rumoured, then the dilution here will be immense. We wont see a double digit SP for a long long time, and yet this time last month it was just that. Some here will have averages in the 30's, some even higher. I really doubt they will ever see a return

In the minds of many (if not every) LTH, DVRG has turned into a nightmare and GB is enemy no.1 (whether he deserves to be or not).

Where do we go from here? At some point he will have to surface. The show must go on. The tweets will start again. The proactive meetings will start again. The AGM and so forth.

At some point this needs to be addressed and i dont think anyone will forget what has happened today. Sentiment is negative. LTH (owners of the company) are angry.

The next steps the company takes will be scrutinised heavily. People knew of the impending news and thus the heavy selling over the past few weeks. Insider trading is illegal.

Something isnt right here. The FCA need informing, including in relation to the rumoured MBO.

If anything underhand has taken place (and i suspect it has) there needs to be action. It's one thing to lose my own money, but to see someone else illegally/immorally/unethically gain from that makes it all the harder. The FCA need to be informed so that they can move the magnifying glass over the company and all involved.

If this is all one big misunderstanding, and LTH are over reacting to the SP drop, then the company need to come forward and say something. Their silence is painting a dark picture