Member Info for Forensic505

Keeping and topping up:

REE

SML

ALK

All three on the brink of huge breakouts

Excellent question @starbright.

From a general legal standpoint, as Seraphim is the investment manager of both SSIT and SSIC, it would be duty and legally bound to treat both SSIT and SSIC equally and fairly. But the devil will be in the detail, as ever.

Unfortunately the documents for the C Shares published so far do not specifically address your question. What the information does disclose is that in SOME INSTANCES the C Shareholders will be investing in future rounds of fundraises for certain existing SSIT investee companies. In absolute terms, that should well be a good investment for C Shareholders, but that will only go to further increase the relatively higher value of the SSIT NAV come conversion. Yet another reason not the sell out your SSIT for new C Shares.

Your question is best directed to the management, I think. If you get a response, I would be very interested to see that, if you would be so kind to share it.

I’d love to be able to be in on the Hawkeye IPO. I suspect no opportunity there for UK based retail investors. Will keep a close eye on it in the aftermarket.

Big round of applause to Mark Bogget and the SSIT executive team 👏👏👏

Terrific post @addick 👍👏👏

@Cevodniya - you’re absolutely right. It was getting late - I got carried away.

Thank you @Howtofish

Exactly right.

This does rather exemplify my point.

Over the next 18 months SSIT will have a whole raft of these exciting announcements. All driving NAV significantly higher as the SSIT portfolio matures. The re-rate of investee companies as public companies via IPO will be a particularly potent factor. Eg HawkEye RNS today.

RELATIVELY SPEAKING: SSIC will barely have had the chance to get off the starting blocks. Its portfolio will be very young by comparison. With RELATIVELY far fewer opportunities for events such as IPO driven re-rating. It simply would not have had the TIME to acquire, develop and then formulate things like IPO events to anywhere near the same degree as SSIT. NAV will no doubt expand but RELATIVE to SSIT it will look like a tortoise compared to SSIT’s Olympic hare.

Therefore on mandatory conversion in 18 months time SSIT will be the dominant denominator in the crucial equation:

SSIC NAV divided by SSIT NAV

Lovely RNS this morning on HawkEye.

@wingnutter your sadly ignorant comments are not even worth responding to. You should be a little embarrassed with yourself.

Hi @Malvolio

It doesn’t matter at all how much is raised on the C Shares.

It’s all about relative NAVs: SSIT (the existing ord shares) v SSIC (the C Shares).

In a nutshell:

I strongly believe that the assets in SSIT NAV will benefit very greatly over the next 18 months. The investee companies are maturing very well with several slated for IPO. All investee companies will likely benefit heavily from the Space X read across during that period.

Whereas in 18 months the brand new investments in the C Shares pool of investee companies will have had very little time to develop and therefore the SSIC NAV uplift relative to the SSIT NAV uplift will likely be small.

On mandatory conversion of SSIT C Shares into SSIT Ordinary shares the conversion calculation is: SSIC NAV/SSIT NAV

Therefore the conversion ratio for the SSIC C Shares will be very low.

The C Share issue then effectively becomes a cheap form of fundraising for existing SSIT ordinary shareholders at the expense of the SSIC shareholders. Making the existing ordinary SSIT ordinary shares even more attractive than they were at 230p last week. It certainly makes no sense whatsoever for any existing ordinary shareholder of SSIT to sell their shares to buy C Shares. That looked enticing, but it is a value trap.

I cannot explain it clearer than that.

@DeepJoy1:

Likewise, I warmly welcome any contrary analysis.

I posted late morning on this, once I had finished my analysis of the documents.

Two points have emerged since then:

1. No one has contradicted my analysis and conclusions.

2. Since publishing here my views, the share price appreciated from a precipitous low, and in freefall at around 11am, of 183p, recovering by 9.3% to close at 200p as people checked their initial knee jerk instincts to sell the current order to reinvest in the C Shares. That was very tempting for all of us. But it is a mistake, as I very much hope that I have explained adequately below.

What was that song by The Who?…”We won’t get fooled again”.

We saw this on MRE day.

Short spine to 6.3p

MM shakedown for the Arsenal Bottlejobs all the way to 4.8p.

Exactly the same happening now.

Now is THE time to re-buy/add. It will be well into 8p and more later this week.

Hegel: “don’t be a dork. History repeats itself”.

Please read my technical analysis of the C Share issue below.

I am an investment banking lawyer. 40+ year City of London career with a bulge bracket premier USA Firm (London, New York and Tokyo offices)

My conclusion is that PIs are best advised not just to retain their current SSIT Shares, they are encouraged to take this opportunity to buy more current SSIT Ordinary Shares.

My technical analysis is in my posts of earlier today. I won’t repeat myself here. Kindly scroll down.

Like so many, my initial instinct was to sell some of my existing SSIT Ordinary Shares and participate at par in the new C Share issue. But, as tempting as that may sound, that is a grave and costly mistake. The existing ordinary shares will hugely dilute the C Shares when the C Shares HAVE TO convert in just 18 months time.

Of course do you own research as well.

Kind regards,

Forensic

* I will keep buying

Sorry got too excited doing all me buying down here in the bargain aisle !

This company is a disaster.

Out of the goodness of my heart, keep selling and will keep buying 🤣

Delighted to have been able to top up £20k at 5.78p an hour ago✊

@Ramptastico: “rocketing” - I saw what you did there 🤣

* incredibly accretive to SSIT current shareholders

Apologies for the typos, but I’m sat in the garden in the sun dictating these🤣

I will try and be more disciplined and review the typing before I send further comments!

This morning I sold my entire shareholding of LGEN4 £129,000. I’m reinvented every single penny into SSIT at 186-197p.

I think SS IT will close today at around 230p very possibly higher once the penny drops with the wider flock…

Why higher? Because this entire fundraising exercise using SSIC will be incredibly creative to SSIT current shareholders.

@Ramptastico - i’d rather looks like the market is catching up with us now, my friend!

Me too @Ramptastico

Yet another strong argument to favour investment/reinvestment in SSIT:

SpaceX IPO fever likely to go ballistic over the next six months. That should lead to high reratings of NAV of investments in the well established SSIT portfolio.

In the meantime, SSIC (the C Shares) NAV will have barely got out of its starting blocks in terms of investments and therefore has little to nothing to enjoy that Space X re-rating. Furthermore, the new investments that SSIC will be making will cost it more because sellers will be enjoying this SpaceX rerating factor rather than SSIC as buyer.

The upshot of all of this is that come mandatory conversion in just 18 months time, SSITNAV is hugely rated and reverse dilute the conversion terms of SSIC.

Again: today is a simply outstanding day to be investing in SSIT.