Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Can’t really get shafted from the price we were trading at. We have .155 in cash and trading below including a £5.4m deferred tax asset, the deal if it proceeds will be valued at minimum of .2p in my opinion which is still 40%+ to the closing offer price. Any more is a bonus, I’m personally hoping to see a deal in the .3-.4 range, think that’s realistic - .37 values us at £10m, £4m cash, £5.4m deferred tax asset and cost of listing etc
Let’s see
Now it’s a waiting game to see if the deal is concluded on adequate terms to LSAI.
I’ve had a very brief look and they do seem to serve a lot of the major retailers.
Be interesting to see what price the deal will conclude at, if it does conclude, would have to think it will be at .2p or higher!
That’s literally all it is a game of being patient, adding on any dips, which unfortunately I won’t be doing as I have more than enough already, and just knowing that these guys aren’t going to be doing a deal for less than their entry at 0.2p - so minimum upside from current offer price is 35-40% to 0.2p.
Factor in they themselves have been waiting for 2 years for a deal and if they want to see a minimum of 50% uplift for that 2 year wait you’d have to think a deal at 0.3p+ which is a bagger+ from this level
Hopefully we’ll get that long awaited news sooner rather than later.
Maybe, who knows. I believe we will see a complete new direction in the tech space myself
I personally believe they’ve kept verify running in the background to save them becoming a full on cash shell and having to do a deal within a certain timeframe or get suspended and potentially delisted, so I’m personally not concerned about revenue from verify as when RTO occurs it’ll get written down or sold out.
LSAI have cash of £4.1m equivalent to .155p more than I even expected and is now trading sub cash.
Also the deferred tax asset has increased to £5.4m
All in all, fair value on an RTO should be north of 0.3p as adding cash with the deferred tax asset works out at 0.36p per share - should be a bagger on a deal from here
Lol
Very annoying drop considering only £4K or so has been sold, but seems to have found it’s bottom again as there’s 10m BID at .12 so shouldn’t really be much more downside from here considering market cap is now yet again covered by Cash levels!
Final results should be out within the next 10 trading days.
Personally looking forward to seeing cash position, which considering Slade and Rae left this time last year, costs should be down. Would be disappointed if cash was any less than £3.5m or roughly .135p per share, likely will be slightly higher IMO.
Also looking for any sort of update on how things may be progressing with regards a target Acquisition, it would be nice if they state they are actively reviewing some targets rather than just stating still considering how best to create shareholder value.
Warrants have less than 3 years to be exercised now so would imagine they want to get the ball rolling ASAP on something to give themselves as much time to get the share price as high as possible before they are due to expire, although I personally believe they’ll be exercised miles before the deadline anyway to cash up the company.
Not long to wait
I would never rule it out, but like I previously said regarding this one, without any clear link it is as good as plucking pretty much any company out of thin air and guessing it may be them. The only link there is and I wouldn’t really even call it a link, is the fact Boohoo use this company, but that’s it.
A stronger link would be a board member of LSAI or a concert party member being a board member of potential target company
No problem Rob
Your shares won’t be bought from you, you’ll retain your shares on both scenarios and you’ll be able to sell them on market again after the RTO is completed, providing their is sufficient liquidity to do so. If after the RTO volumes remain poor, and liquidity is similar to now, then you’ll unlikely be able to sell many, I know I’d likely struggle to sell my holding in a month with current liquidity levels let alone a day.
If the deal is good volumes will pick up naturally and hopefully after RTO it'll run much higher than RTO price
Like I said in previous tweets, I got my .3p base case RTO price on the fact LSAI have £3.5-4m cash and £4m deferred tax asset, that alone should value LSAI as a shell at around .3p per share - if the management pull off an RTO at a greater price than that even better.
I’m no expert at reading financial statements but in the financials reported March 2022 it stated
Potential deferred tax asset of £3,977,000 (2020: £3,840,000)
The other way around it would be a full cash offer from the public company for the private company, buying the owners/vendors of the private company out and such wouldn’t need to issue any shares to the owners as it would be an outright buy out.
Where as my first scenario, the vendors in the private company would remain shareholders in LSAI and LSAI would remain with a health cash balance as they didn’t use cash to do the RTO but issued shares.
That’s the 2 ways of doing an RTO
Not the case.
The public company would issue shares to the vendors of the private company at an agreed amount and price.
For example, LSAI would negotiate what price they thought was fair for the incoming company and what price was fair for LSAI share holders, they would then issue shares in LSAI to the owners/vendors of the incoming company likely with a lock in for an agreed period usually 12 months from the date of completion of RTO, at the price agreed.
So if they valued incoming business at £10m and agreed 0.5p in LSAI shares was a fair price the vendors would be issued 2 billion shares in LSAI.
If they valued the incoming business at £10m at an agreed 0.4p in LSAI shares was a fair piece the vendors would be issued 2.5 billion LSAI shares and so on and so on.
I’m merely speculating on what price I think may fairly value LSAI as a shell. With the deferred tax asset and cash, .3 probably is fair value, that doesn’t mean to say they won’t do a deal at a much greater price, I’m sure the concert party and management will want a deal as high as possibly also considering everyone is fully aligned.
Not long to wait for an update now as financials due any day this month and also interested to find out current cash balance i anticipate £3.5-3.8m as of today so roughly .13-.14 per share worth.
What could also plausibly happen prior to RTO, which would show massive confidence to market and I’m sure a big spike in share price of management wanted the share price higher, is Wilkinson, Mahmud and Hughes exercising their 500m warrants each early to inject another £3m of cash in LSAI, although I reckon this is more likely to happen on or after an RTO rather than before.
3 pence would be lovely, but it’ll never happen in a million years, yes I meant .3
No problem.
Baring in mind everyone involved including Nigel are aligned at 0.2p, which he also reminded me of in the email, gives me encouragement that they will, eventually, being a deal that does create value and at an equal price or likely higher to their entry.
Can’t see the likes of Hughes and Mahmud having their money tied up for over 2 years and not making some sort of return on that investment. Think we’ll see an RTO at 0.3p+ I don’t see that out of the question at all. Obviously the higher the better and with the £4m deferred tax asset they have on the books and the cash levels I think 0.3p is very realistic
I don’t generally like posting emails that I’ve exchanged with directors but without copying and pasting he said there been lots of activity behind the scenes and they’d looked at over 20 targets some in significant detail, The difficult economic conditions of the past year or so have not made finding good deals any easier though.
He also said ‘I'm pretty confident that we'll identify a deal that creates value rather than doing a poor deal for the sake of announcing one’
And finished with, which I thought was the most interesting part of all - Thanks for your support, we'll do our best to justify that in the coming months.
Baring in mind this contact was in February so hopefully in news window now.
I urge anyone else to reach out to Nigel themselves, he is incredible responsive and usually replies same day!
Lots of ifs and bits and guesswork, but until we are updated it is simply just that.
I have a large holding for a very illiquid stock, but take comfort in the fact that the names on the share register didn’t get to the position they are in by injecting funds into a company to lose money. Something will be done and I sense relatively soon
Think I previously said, I contacted Nigel and he said the results delayed due to auditors backlog and nothing more, their work was scheduled for end of may, and results ready towards end of June hopefully.
Any delay into July and the company will be suspended, but it isn’t the be all and end all, as the shares will be relisted once the results have been released.
There is no time frame for the company to do a transaction, just to clarify that!
Nigel could have said about the auditors just to get me off his back, I’m totally not sure. Reality mine have recently released their results, so any link I thought there may be there may not be.
It’s all just a case of waiting to see what happens knowing everyone involved is aligned with shareholders at a higher price.