Member Info for Globex

Btw should say that 410m shares would only apply once all warrants redeemed, so that number represents upper max. They probably won't be redeemed in full for years, I have a bunch of them for example from chapter 11 but no plans on touching them for a while.

As the company gets cash for most of them I guess they could be thought of as a sort of ATM in meantime, with true share count / market cap certainty only from quarterly reports.

Valuation is a bit tricky, checking my notes there are 185m shares outstanding now + 180m warrants. Half of those warrants are redeemed for cash, so while share count goes up there so does company's cash (once redeemed).

The other biggie is the secured convertible notes for 45m shares - these mandatorily convert once price above $7.79 for 20 days (if price stays up would be 5th July). This for me is the real catalyst as will result in debt of ~$250m being settled, all sorts of scary covenants disappear, and proves to market it can be trusted with credit after chapter 11.

Total shares after all this done 410m, so you're right on the ~$4bn figure. But company's enterprise value is assisted same time through added cash and debt payback. Puts it at #3 mcap miner and deservedly ahead of Riot imo.

For where value goes from here who knows, it's no longer the mental bargain it was last year and after emergence. I have taken some profit this week fwiw, but letting most ride. The Coreweave deal is the game changer, those guys seem to have a bottomless pit of cash via Nvidia.

The fact they will be cancelling the shares within the next few months limits upside

Applied re-rate has been well deserved imo, up 50% now since I first tipped it earlier in month. Good month all round for smaller players, even relatively unloved names like Hut and Hive gaining traction now.

AI pivot has been a bit of a gift. Demand well and truly overtaking supply of the infrastructure means value of the sites can only go one way. Only thing is it has left those pure play miners lagging a bit by comparison. At the moment the sweetspot seems to be those that do both mining and HPC, Corz still the king here imo. But ultimately anyone owning these sites benefits, including those that only use them to mine, so as long as AI bubble carries on let the good times roll.

Yes Maxwell was a fraudster but remember a UK judge ruled fraud took place within THG too.

https://www.theguardian.com/technology/2020/sep/04/hut-group-cancelled-2011-flotation-after-multimillion-pound-was-uncovered

Before MyProtein acquisition Moulding only made it in the first place because he used a tax avoidance scheme - shipping media from Guernsey to undercut retailers who were proper UK taxpayers. Only way he was able to buy MyProtein in the first place was using leverage from that scheme, with his background as trained accountant.

Owning MyP enabled him to juice things up more, buy a hosting company and use that as platform for Ingenuity, suddenly he has a tech story to sell to people at the IPO, rest is history.

52 week high today and 35%+ year to date, by Reach standards this is positively perky, can't complain really.

Quite an encouraging update today, I think this could be an opportunity now Nigeria bad news now fully accounted for. They've done pretty well to avoid further downside given the catastrophic currency.

When they announce full Nigeria exit (and you'd think surely will happen by the end of the year) has potential to be share price catalyst. Whatever they realise for this I reckon market will be relieved it's over with.

Then there's the St Tropez sale, much more price sensitive but if/when it happens, assuming a decent price realised, would be another potential boost.

Yes shareholders with 1% or more required to disclose under takeover code, those are the ones numbered 8.3.

The 8.5 ones are "exempt principal traders", normally just brokers trading the shares.

Those were the days, China so annoyed about bitcoin they'd unban it just to be able to ban it again

Good question, Mad gave up his golden share over a year ago now - nothing stopped them from making move to premium immediately after. So it would have been part of FTSE250 and had corresponding index buys for at least a year. It's worse than that though - as they actually first promised move to premium in 2021.

The thing is aside from the initial boost it would have had from trackers, worth bearing in mind that if/when it does happen the algorithmic buys/sells that will follow won't alone come to the rescue of the share price. See how Asos still getting wrecked after making same move, how FTSE250 didn't help Yougov the other day etc. Trackers will only reflect how it performs naturally, whether up or down.

The company will have to trade its way out of this.

Agree excellent letter agree with all of it. Unusual to see this happening openly, should liven things up. The vested interests part won't be easy for board to respond to. Must be in direction of founders and their curious decision to roll over so easily.

Only snag is these guys are lack firepower, 1.9m shares sounds like a lot but not even 0.5%, they'll need bigger shareholders' backing if it gets as far as vote.

Totally agree, all shareholders should be given more detail on this sale.

In the segmented reporting luxury was lumped in with beauty so can quantify impact to the extent it's £43m of revenue being cut off there.

But for sale value all we have to go in is previous form. Last year they sold OnDemand and ProBikeKit which contributed combined revenue of £119m in the reported final full year (2022) for those divisions. Slightly different in that those were reportedly EBITDA loss making (but then so was the rest of the group). Anyway total value realised for those = £4m.

This time we have a much lower revenue division being carved off, so number might be similarly embarrassing and potentially why they don't want to draw attention it.

In normal circumstances the diehards would be along to police such blasphemy and tell you how makeup retailers deserve Nvidia type multiples, but you're probably safe with it being AGM afternoon. Board policework will have to take a temporary backseat to opportunity of being in presence of our Dear Leader.

Nobody in this thread has claimed Ashley has built a stake in THG. They'd be a bit silly to without the corresponding TR1. Try again.

Could be related to what RNS says about nutrition decline and market view of uncertainty of rebrand effectiveness, rather than trading venue.

Mike Ashley is certainly an astute businessman and someone you want on your side, but not necessarily a silver bullet, eg Hornby share price after Frasers tie up announced on 20th March or Boohoo/Asos over last couple of years even though he's built up significant stakes in both.

No. But for appearances sake they should consolidate the shares anyway (which may require a vote). Gets a bit ridiculous when share price has dropped below 100th of 1p, google finance and brokers can't really handle it and only serves to highlight the value destruction.

It's definitely not cheap but fair play to them, two consecutive years of 100%+ EPS, rare to see growth like this outside of software. Looks to have proper blue chip support too with JPM a major shareholder.

There's no profit, the company has cumulative losses approaching £40m

Could be time for Trev to be put out to pasture

They are still free to raise, see resolutions 6-10. Resolution 11 which failed only related to granting of share options.