Member Info for Hallowed

“Something about the word 'lucrative' in the email I received got my antenna twitching.”

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Got mine twitching too lol - ironically it would have been better had they not said that and instead given a generic reply that they can’t respond due to ongoing negotiations as opposed to repeating the same things in detail over again.

In light of everything we know about MATAD the responses read to me that the company has little leverage the longer this goes on for and so all it can do is keep repeating/re-justifying the same value story with nothing new to add (otherwise they would have had to RNS) - and so progress is slow and solely at the pace of the interested party and the company is simply waiting and the counter party knows this. Add in the continuing withholding issue with regard to revenues and MB taking on an external role at this crucial time indicates to me that the odds are stacked against MATAD for concluding a successful farm-in any time soon (if at all this year).

I could be wrong and if so, that’s fine but it’s important to understand how the Market interprets these things and hence why the SP is where it is.

Nothing new here, hence SP action by the Market - it is what it is but far more important to pay attention to this (along with key changes in fundamentals) than all the nonsense that gets posted here.

At this stage, it’s all about the farm out deal - without it they can’t develop the main field and would be forced to do another raise.

Given the recent SP action the Market remains unsure until we get more details. Let’s see if this will be a turning point for the SP or there’ll be further delays. We wait with bated breath.

A few observations:

The level of unconscious (or dishonest) posting is unbelievable. And many just keep repeating the same things which is irritating and a waste of time.

PIs tend to think they know more than the Market does – think that at your peril.

Too many are focused on just one trade/investment – the risk/reward is going to be stacked against you which is why most PIs end up becoming LT holders usually holding at a loss.

Now turning to MATD:

Many think a farm-in is guaranteed/imminent – I am not so sure. The SP action seems to agree…yes, we were told 2 months ago they’re in detailed negotiations but it doesn’t mean they will reach agreement – so we sit and wait and unfortunately more often than not this has ended in negative outcomes or continued delays. Furthermore, we ideally need to be in detailed talks with more than just one interested party.

PetroChina continues to withhold the 30% payment – again, we can only wait and see when this will end.

H2 re-test continues - in the absence of more regular updates, not ideal.

MATD SP is not correlated to the oil price - so oil price has no (real) impact here.

Renewable energy – yes, this will bring some additional one-off revenues most likely starting next year but again this is priced in for now.

So MATD is currently fairly valued IMO but I believe at this stage the downside is limited vs upside assuming they release positive catalysts. However, no guarantee this will re-rate soon. GLA.

I don’t post much these days but bought back in here due to recent developments.

As for MATD’s JV project in the renewable space, a new post on ZL’s linked in page shows the signing of a MoU with the EIB for EUR 1 billion …that is a major step in securing funds for renewables.

“Historic milestone for Mongolia’s clean energy transition 🇲🇳🤝🇪🇺

I am proud to have led the facilitation of this MoU of EUR 1bln between European Investment Bank (EIB) and the Mongolian Government. Together, we are turning Mongolia’s vast solar and wind potential into sustainable growth and climate leadership.

Today, the Government of Mongolia and the European Investment Bank (EIB) signed a Memorandum of Understanding under the EU Global Gateway initiative — opening up to €1 billion in financing to accelerate Mongolia’s clean energy transition and private-sector investment.

This partnership will strengthen our country’s renewable energy development, diversify energy sources, and create new opportunities for local and international investors to participate in Mongolia’s green transformation.

The signing was held at the EU–Mongolia Business & Investment Forum, and featured EIB Vice-President Teresa Czerwińska and DPM Dorjkhand Togmid.”

I see things haven't changed much, if anything gotten worse (as suspected). Reading the article reminds me it would take a team of specialist forensic accountants to understand all the financial machinations carried out by AZ - something he's been most successful at for far too long. Real shame.

"My average is multiples of the current SP.

0.2p would do it - break even"

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So from 0.0052p that's only another 3,800%.

That would take a re-hiring of key staff to run the platform, developing new business, start generating revenues in the millions of pounds and generate a CAGR of a minimum of 20%-30% and then raise debt financing to expand further. But alas, AZ's track record says different. The only thing of value left in the company are the IP rights to the platform? I wish LTH's to recover something but it looks bleak.

“this is no longer an investible business , just an opaque accounting excercise with questionable motivations.”

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exactly…talk about financial machinations, az has become quite the expert lol. it should be illegal but it’s not. i really hope genuine lths can recover something from this ****show.

The recent RNS’s show that SYME survives and the SP action reflects this relief.

The appointment of a new firm of Chartered Accountants as auditors indicates that they will have had sufficient evidence to confirm to them that any outstanding funding from TAG (about £2m from memory) is available to be tapped into on an as-needed basis (along perhaps with other potential sources).

Based on 2023 FS, the company burned cash to the tune of £3.5m per annum but this year it’s likely to be much less due to key staff members leaving and a reduction in operating activities. Unless they recruit replacements, who is going to run the IM model or has that become less relevant now moving forward if SYME is becoming more of a pure tech play (with evolving AI having more of a major role in developing companies)?

The big question still remains whether the company can finally start to generate actual revenues/profits this year vs potential.

To date:

- No IM completions with Banco BPM. In fact based on 17.12.24 RNS even that (first commitment of EUR 10m) is “now under review considering the original maturity date”. To me indicates agreed conditions are not going to be met and so further delays w.r.t actual WL IM revenue generation.

- KPI’s continue to remain poor

- New initiatives or new IM transactions never seem to get completed which puts into doubt whether they can get this IM business fully off the ground yet or not.

- Change in strategy, for example with the Italian neo banking group to a more traditional inventory financing model shows the continued difficulty of getting IM funding in any meaningful way.

- The main funding continues to be from AZ/related parties. What is needed is a fresh equity injection from an external source (and not just another round of dilutive financing) followed by a real prospect of actual revenues being generated soon after.

I still have so many doubts here but good luck to those who stuck with the company.

For now putting money into this remains a punt, not an investment or a risk/reward trade in the normal sense of the term.

(I’m one PI who learned the hard way).

"...it might be down to the regulator to declare the game over here."

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Indeed it might.

Whenever a top accountancy firm resigns as auditor, it is usually for very serious reasons..in this case perhaps the auditors could no longer rely on management representations re company funding moving forward. So if SYME can not appoint another top auditor, then the regulators would surely have to step in?

Either way, even buying shares at this current price seems a gamble until the company re-appoints an auditor which is not likely to happen until they sort out their funding requirements and none of us have any idea when that will be, if at all.

What a disappointment this stock has turned out to be.

I don't believe that the "true sale" concept when it comes to IM is an issue any more? Surely this is covered by relevant accounting standards....after all SYME already executed an IM transaction last year using traditional funding with an Italian tyre company.

"...only they haven't done any business yet , have they?"

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Exactly! Perhaps though it is just a question of timing as to when and not if first WL commitment from Banco BPM gets executed? Either way, it’s taking a long time and we have not been updated as to the reason(s) why. We can only speculate and that is never a good thing when it comes to trading/investing.

As for the independent auditors report, they gave their opinion that the financial statements present a true and fair view of the company's business..the only disagreement (i.e. where they qualified their opinion – see below) was to do with the timing of future funding and revenues...there in lies the problem. Until SYME start to generate proper revenues, who will fund them? I suspect more dilution and in the absence of announcing WL execution or major IM revenues, the SP could stagnate or go even lower IMO.

„We draw your attention to note 2 which indicates the existence of uncertainties in relation to assumptions about future trading and the quantum and timing of financing transactions that support the going concern basis of preparation“

"..but the stock is so tinder dry, that any spark of news will see this burn like a good un"

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I get that but unfortunately the probability of that happening is quite low.. as SP could be depressed for many more months...in practice, this could mean another placing and clearing the placing shares would take a long time to clear. limited any major upside....I hope it doesn't play out this way but who would have thought more than half a year on and no update re Banco BPM commitment...not a good sign. Let's wait and see.

Hmm…that’s just the spread. What makes you think SP has reached the bottom of this long downward trend.

"I'm invested and in the time being supportive of the mgt team so long as they deliver... "

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I too am invested but the management team have NOT yet delivered as clearly evident from the SP performance...the data shows we continue to be in a downward trend and even at the current SP there is still risk the SP could go even lower. It is what it is.

Hint: Google "Nuburu and Supply@ME Capital"

"The debate on hive was mainly about the model..."

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That's the most frustrating thing, they seem to (now) have a good business model in place, a huge target market and yet the funders are not willing to commit to allow the execution of IMs, for whatever reasons.

"Expect new Conspiracy Theories any minute now!"

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This is not about conspiracy theory nonsense...this is simply about the lack of liquidity in the stock due to the company's constant delays in generating revenues, even after announcing at the beginning of the year a binding term sheet with BANCO BPM for first WL commitment.

Six months on and they still can't execute which again puts into question AZ's integrity and indeed the chances of getting this whole thing off the ground in a profitable way (and that's not withstanding the past announced machinations with loaned shares which worked against the retail investors - us).

In the absence of major revenues and profits, we can only hope no T/O bid for the proprietary software owned by the company which seems to be the only valuable thing here but not worth even the current MCap.

(My mistake was to get back into SYME on the basis of what looked to be a promising start to the year).

We could easily continue to have more of the same..unfortunately. They will have to raise more cash soon via more dilution and any major re-rate likely to be suppressed with SP at all time lows. It is what it is.

* 0.012p