Member Info for Hallowed

“Hallowed - do you check any facts before you post??? 2021 revenue grew over 70% and this year a further??”
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Do I honestly need to answer that. It’s precisely that sort of unconscious thinking by most PIs (assuming you’re being genuine) that leads them to lose most of their capital especially on these AIM stocks that end up as a LT investment. (Been there, done that but no more).

“AGM likes to be a relaunch and go live occasion. Important month leading up to 30th June”
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Personally I’m not expecting any major moves in SP regardless of volume of shares taken up by PIs. AGM event is not a catalyst for the SP….so IMO the wait continues all the way into July.

“so long as big pharma keep writing cheques for £14 million at a time, then the SP will hopefully correct itself in time”
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If only. Sadly there is little revenue growth here and the SP is reflecting this. ORPH is expected to generate stable revenues over next few years and it’s valued accordingly by the Market IMO.

No near term catalysts to move the SP north of here. There’s hidden value in the company and eventually it could be taken over by a third party to extract that value (and management will provide usual excuses as to why t/o should happen) whilst PIs end up with a high opportunity cost having held the shares long term without any major rise in SP for the period held.

Sadly seen this too many times especially on AIM. It is what it is.

The thing about these loaned shares is that the period of the loan was agreed for a minimum of 2 years which means this could be (conveniently) extended?

Here's the original wording (RNS 29.7.20):
"The shares have been transferred to secure loans (the "Loans") to 1AF2 ("the borrower"), with a minimum two-year duration, after which period 1AF2 confirms that it intends to repay the loans. The Loans may be drawn in a series of tranches over one month and Lenders may trade pledged shares to diversify their portfolio concentration risks. Upon repayment, all 5,893,824,429 SYME shares will be returned to the borrower."

"At the end of the day the company is growing and making money"
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But rate of growth is falling and no spinouts likely to happen (orchestrated IMO) and so the hidden value can not be reflected in the SP....no imminent catalysts for the SP to rise and now quite possibly as a company with cash in bank, steady revenue streams, solid know how and hidden gems, it could be an attractive T/O target for a 30% premium and LTH get shafted. Happens all too often (and especially on AIM).

I say the SYME model works and you're saying it doesn't. Let's agree to disagree. GL trading SYME shares.

Last article concluded: "Balance sheet treatment can often be confusing, not least because the cross-border nature of many deals can introduce complexity. However, setting a clear goal at the outset of the transaction, and ensuring the appropriate legal, accounting and regulatory advisers are engaged early will allow a robust structure to be put together, which, if suitably balanced with the practical day-to-day requirements of the company, can achieve the desired result."
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SYME must have done their homework and now it is all about the timing of IM services via CB or WL revenues.

Another link for some bedtime reading for those who wish to widen their knowledge re "off-balance sheet" financing schemes (all legal it would seem).

https://www.simmons-simmons.com/en/publications/ckdyavfospix40900caazmbyy/off-balance-sheet-treatment
(Article dated 17.8.20)

And just to add a few links referencing non-traditional inventory finance solutions:

https://www.gtreview.com/news/europe/arviem-partners-with-erste-group-for-new-inventory-finance-solution/

https://ctmfile.com/story/monetizing-inventory-and-receivables

"No Hallowed, I'm not, you have it wrong and no amount of personal creativity will change that."
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From my own research, the concept has existed and seeing as we are living in a changing world and fintechs like SYME will serve the supply chain finance space...regulations will make the 'true sale' solution more accessible to SME's. It is happening. (Otherwise SYME has wasted a lot of time doing nothing).

Napalm, are you being deliberately narrow minded or what.

At the risk of repeating myself - 'true sale' method of inventory monetisation existed in the past as an alternative method to classic borrowing from a bank (pledged against the stock).

By your own admission, in a reply to Stevek, you've said this method of financing can work provided it is supported by creative legal wording of contracts (and we know both qualified lawyers and qualified accountants can be creative - but you seem not to be).

Napalm, you are at pains to restrict yourself to keep referring to ‘using the P&l’ for the sales - who said the sales has to go to P&l.

The ‘true sale’ solution is not about the sale going to P&l (only the fees paid go to P&l) that’s my understanding. It’s about the financing solution on the balance sheet by (temporarily) transferring stock to a 3rd party in return for cash and any liability gets recorded off-balance sheet. That’s a concept that has existed in the past and so must be workable.

Peak, I have to agree. As for this ‘true sale’ solution, it’s been around for many years as another form of off-balance sheet financing for inventory financing and so from both a legal and accounting perspective one would assume it must be workable.

Napalm never answered me directly when I asked if he had been aware that the concept already existed (although not a common source of finance, digitisation of the supply chain changes all that moving forward).

Glad to see that common sense prevailed and majority PIs voted 'no'. Goes to show when the many unite they can overturn the few. Just requires a bit of courage. Well done. Any revised bid or new bids have to be on better terms.

Agreed Peak. We’ve been kept in the dark for far too long. Either they’re going to delay another 12 months or we finally start seeing some real progress.

"Lets not forget that back in August 2020 the price went from where we are now to just shy of 1p"
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So what, different circumstances that lead to that orchestrated rise and it does not mean it will ever reach that level again (you have to be realistic).

"Think about where the company has progressed since then."
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Yes but that doesn't mean automatically a higher SP, as the only think that moves the SP are catalysts in the form of cold numbers and that has been lacking.

You also have to bear in mind the dilution since then - as there are far more shares in issue now (over 40b v say 32b or so back then). That makes a huge difference

Major IM revenue numbers (i.e. well in excess of £10m pa IMO) are needed to justify a price of 0.8p or above based on shares in issue which is going to rise even further - but that sort of revenue still looks unrealistic for foreseeable future (due to revised financing they want authorised for next 12 months) and even if they IM next year, the overall Markets could be down and that will put a damper on SYME SP. (I did not like that the warrants being exercisable at only 0.065p which is very low given the previous highs).

This is not going to be an easy recovery.

Things need to change dramatically if SP is to re-rate to a realistic level.

No worries. Even if Quadrivio released a tweet, the tie up is old news.

We’ve come to the point where after more than 2 years of funding arrangements and promised agreements not yet closed, the only news/catalysts to reverse SP trend is inaugural IM and revenue guidance for FY22 - anything less isn’t won’t do.

The business model and what’s driving their revenues/earnings is either ready or not. So far, it looks as though not yet, not even this year (sadly).

The wait continues.

I can’t see that an actual Quadrivio tweet references Syme …that was an entirely separate tweet by another poster from what I could see.

Aardvark...."With liquidity become tighter and tighter, how does a company with no capital expect to supply capital at a rate that anyone would find commercial?"
Elll responds...: "Suggest you sell if you are concerned. That’s assuming you are invested and have a vested interested.
If not invested your opinion means nothing."
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Elllltelinv, answering in the above manner doesn't do you any favours.

Perhaps direct your frustrations towards the man at the helm (AZ). The fact remains we have been taken for a ride and the question remains how much longer can we stay on the ride.

The poster made a valid point in the wider context of SYME's worldwide ambitions as they continue with dilutive financing due to lack of (material) revenues.

Don't hold your breath for TF, as that alone doesn't justify current MCap - even if they generated as much as £1m revenue in 2021 (we'll find out actual numbers soon enough).

So I assume there's 'some expectation' still built into SP for some sort of IM but if we don't get it soon, we'll continue to be diluted up to a max of 52.4b shares (form the current 40.8b, if they use the full £7.5m by year-end).

So any SP rise to get back to MCap of £200m+ levels, will require some serious revenue numbers for FY22, otherwise it's wait another year.

Not pretty.

SYME have gone somewhat quiet and so unsurprisingly LTHs wait (with a certain uneasiness). GL though.

You seem to be a bit of lone voice on this BB. Apart from a few TR1's (from a private company and one private individual), I don't see any catalysts here that will justify a re-rate in the short term.

Can I ask if you've ever before invested in BPC/CEG?

As for valuation...the company is currently being fairly valued IMO at about 1X gross revenue. As I said, I can't see any major catalysts here for a re-rate. Any "production accretive work" they do is hardly to going be material, or do you expect otherwise.

GL if you are a genuine PI (as these days there too many disingenuous posters).