Gerrymandering post from last evening.. if you missed it.16 Feb 2021 07:45
Speculation and unbelievable commentsMon 20:46
I have read some, not all of the comments and some are simply nonsense.
In particular I will comment on one claim that £65m went into Alltracel as utter rubbish. Alltracel raised £11m in equity and used debt to fund additions. When it was sold for £20.8m the US dollars was £1 = $2 and additional debt of $15m. So the deal is often referred to as $55m and even a cursory search would find the following https://www.irishexaminer.com/business/arid-20046029.html
As for other comments about Microsaic, there is some belief that it is possible to turn a company around with no investment.
MSYS would not have gone into Administration, it would have been liquidated. There was no money. There was no short term viable business model. If it had been liquidated, all the staff would be dismissed with no benefits other than statutory redundancy.
Had it gone into liquidation it would be possible to make an offer for the IP and assets of the company and the losses disappear. There is no tax losses, no people and no value as all the institutional knowledge walk out the door. The loss of the people makes it worthless. These are career scientists, software developers who wrote the software for all the microprocessors in the Microsaic machines, chemists, physicists, bio-physicists, admin and in general all the people who made the company valuable.
It is easy to say that they could be re-hired, but after 25 years of turning companies around, a liquidation means you lose the hearts and minds of the people involved. Why would they stay through the liquidation phase? Who would pay them? As far as they are concerned, nobody cares, so you lose them, for good.
£30m and 19 years of dedicated research and development has gone into Microsaic. People have careers in this company. The only problem was the business model was where it was commercially focused. It reminded me of Labskin when I took over Integumen.
Deepverge is on it’s path of rapid expansion and further evidence of that will be seen shortly, for those who have done research, it is obvious.
Turning a company, like Microsaic, requires investment funding. To acquire Microsaic, as a public company costs roughly £600,000, based on the recent total cost of acquiring Modern Water. Microsaic had no money, therefore where would that come from? Maintaining a company with 15 people is roughly a cost and loss of over £2.4m a year, see their 20190 accounts. Who would fund that?
So in order to save it from liquidation and then turn Microsaic, time and money is required. So 2 years money was raised, with the condition that they follow a business model formula that has been successful over many years.
I read the comments, and sometimes wonder how anyone cannot see what is obvious from a business perspective.
Perhaps that is why institutional investors took most of the placing. That is my last comment.
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