Member Info for Hedgehog100

The Nasdaq Biotechnology Index Chart is actually at about the same level as five years ago, and has consolidated for a few years:
http://www.advfn.com/stock-market/NASDAQI/NBI/chart

After a stellar first half of this decade, it's now due another great period in the 2020s (especially in the first half of the decade).

And FFWD is a superb play on this, especially at a huge discount to NAV.

Doggo, 31 Oct '19:
"Expect to see quite a future for Portage & Juvenescence.
Don’t forget the same team in both.
Little bit of portage history Jim & Greg invested just $7 million and gave a dividend to shareholders last year of $210 million."
"There’s 2 in the portage PF that are going to be very special companies. Neither is Intensity, a distant 3rd."

A belated thanks for that intriguing snippet, Doggo.

Could I ask which two companies they are please, and whether you think they will match the previous Portage success?

Thanks.

Six of FFWD's nine investee companies are largely/fully non-domestic, i.e.:
• Juvenescence - North America
• Portage Biotech - North America
• Factom - North America
• Cryptologic - North America
• Vemo Education - North America
• Yooya - China
https://fstfwd.co/portfolio

So FFWD is effectively a good hedge against Brexit creating weakness in sterling and the UK economy and stockmarket.

A bit like buying foreign shares, but without the extra costs, and at a huge discount to NAV.

(A weaker sterling will increase the sterling value of sales in US Dollars etc., and increase the sterling value of stocks priced in US Dollars etc.)

And if you're bullish on North America in particular, FFWD looks like an excellent way to get quality exposure to this, at a cut price.

In addition, note that the majority of warrants in MILA have an exercise price of 10p, and none have an exercise price of less than 5p.

From MILA's final report for the year end 30.6.19:

"At 30 June 2019, there were warrants and options over 15,825,000 unissued ordinary shares (2018: 15,825,000).

Details of the warrants outstanding are as follows:

Issued Exercisable from Expiry date Number outstanding Exercise price

16 October 2015 Anytime until 31 December 2020 4,400,000 £0.05
12 September 2016 Anytime until 31 December 2020 350,000 £0.05
26 September 2016 * 7 October 2016 31 December 2020 11,075,000 £0.10
15,825,000

* The warrants were issued conditional upon the Ordinary Shares to be admitted to trading on the London Stock Exchange’s main market for listed securities which occurred on 7 October 2016."

https://static1.squarespace.com/static/57a212373e00bec21a900640/t/5dbb15943f009f5d72dfc5ed/1572541847697/Mila+-+Final+accounts+FINAL+31_10_19+FINAL+FINAL.pdf

Also note that MILA floated just over three years ago at 5p per share, raising £1.05M. gross at that s.p.

Of the 23.2M. MILA shares currently in issue, 22.6M. were paid for at 5p per share.
Only 600,000 were not paid for: 200,000 each to each of the initial directors: i.e. under 1% of the equity each:

"2.2. On 3 June 2015 the Company issued 200,000 subscriber shares of £0.001 to each Director, being Mr Mark
Stephenson, Mr George Donne and Mr Anthony Eastman.
2.3. On 16 October 2015 the Company issued 1,600,000 Seed Shares at a price of £0.05.
2.4 On 28 September 2016, pursuant to Placing, 21,000,000 Placing Shares were issued conditional on
Admission, at a price of £0.05 per share to Placees."
https://static1.squarespace.com/static/57a212373e00bec21a900640/t/57ecf2252e69cf2c061d3081/1475146280985/Mila+Prospectus+Final.pdf

In some other shells the directors may own far more ... that they didn't pay for.

And at the current s.p. of 1.7p, the s.p. has fallen by just under two thirds from the placing level.
If it trebles (which it could potentially do in one day in the right circumstances), it's back to that placing level.

In contrast, some penny shares can fallen 99% in three years, in which case they would need to rise a hundred-fold from there to get back to the higher level.
So in terms so a fallen s.p., there are many far worse culprits than MILA.

GC,

I'm afraid that you are now just coming over as an embittered obsessive.
These boards are not intended for investors who have lost money to "let off some steam": if you are that traumatised then go and see a counsellor.
And your points are largely irrelevant fluff: a collection of 'nothing' trying to be 'something'.

But here are a few brief points in response:

• The "crooks" slur was largely against the current directors, so any controversy that a former director was involved in is irrlelvant to them.
• If you think that the two directors who left in March should have been 'sacked' for the aborted RTO, and say that they were indeed 'sacked', then what are you complaining about?
• There's no way that there would be shareholder support for delsiting (see the MOS vote against delisting recently), so why waste time and money consulting them about it?
• Shareholders love it when a mining shell in a mining sector bearmarket switches to something more bullish, so again, what are you complaining about?
• In the vast majority of listed shells, the directors are paid. In some cases the pay may be deferred if the company is very low in cash, and/or taken in shares (at a very dilutative share price).

I also note that similar complaints have been made in the past about Trevor Brown and FBDU (now IQAI): i.e. his payment as a shell director, conflict of interests, and past controversy.
But he delivered a top RTO, and the FBDU-IQAI s.p. has multibagged from when he became a director, to over 6p now.

" ... The current 3 goons (not forgetting those sadly departed ) are A) totally inept B) totally inept crooks ..... take your pick. ..."

Sorry Omerta ... or should I say Oscar Wilde.
I get it now.

Calling people goons and crooks is so hilarious ...

"If you are involved in a project at work, do you resign? And would you expect some compensation if you did?"

That should say:

"If you are involved in a project at work that doesn't work out ..."

In addition GC,

Two ex directors here took responsibility for the aborted RTO by agreeing to resign (albeit with some compensation) even though the collapse may have been the other party's fault: which CML's agreement to pay MILA rather than vice-versa suggests that it was:
"Mila has also negotiated a contribution of GBP37,500 towards Mila's cost from Capital Metals Limited (CML) subject to them completing a successful listing."

That's not usually the case when a RTO collapses., where the directors just hang on anyway, and also often there's no compensation to the shell from the aborted target.

If you are involved in a project at work, do you resign? And would you expect some compensation if you did?

There's no reason why all shareholders should have been consulted in advance before those resignations (which consultation would have increased the company's costs).

And as regards the change in acquisition strategy, which makes perfect sense to me, if you agree with it then what are you complaining about?

Shareholders will of course to get the change to vote on any RTO.

GC,

Do you work for free?
It's virtually unheard of for the directors of a listed shell company not to be paid.
The only example I can think of is AUCT, where nothing seems to be happening, despite having listed five years ago.

The MILA salaries are very reasonable, and I would prefer that the directors are paid to work towards a RTO, rather than not paid and put far less effort in.

Reasonable criticism is fine: silly, libellous name-calling isn't.

Omerta contradicted his claim to take responsibility by his silly "crooks" slur: which suggests that he suffers from cognitive dissonance on this.

Taking responsibility for your own losses means FULLY doing so.

"... The current 3 goons ..."

Omerta,

MILA has had just two directors since March, not three: that's been very clearly reported.

If you can't even be bothered to do the most basic research here, then why should we take you or your opinions even remotely seriously?

O.K., I'm sorry you and GC have lost money here. But I find it rather sad that losses seem to provoke silly name-calling from some investors, instead of taking responsibility for their own losses.
The obvious psychology behind it is that such investors have to convince themselves that their money was "stolen", so that excuses themselves from responsibility, however ludicrous the accusation.

And yes I believe the director's statement in the final report: why shouldn't I?
Their statements have been very proportionate and reasonable to date, and it is frankly ludicrous to suggest that they are lying.

For example, in the spring 2018 interim statement, the company was bullish about recommending their first transaction in the near future, and not long afterwards did so.

"The reduction of investment routes for smaller businesses following the continued uncertainty over Brexit has driven some extremely exciting opportunities towards Mila."

That phrase from Thursday's RNS highlights a paradox of shells.
A period of stockmarket jitters can effectively close down the IPO route for many companies for a while, effectively increasing the opportunities for a good shell ... and that shell's potential valuation.

It sounds like that is happening here, and that there could well be competing businesses vying for MILA's attentions.

Such competition would mean that MILA could take the pick (or picks) of the bunch, and also negotiate a better deal.

I would think-hope that an RTO here would be priced in the 3p to 4p range, and it could potentially be more in the right circumstances.

And of course after the RTO the expanded company will in effect be like a new issue, and as with any good new issue could itself do extremely well going forward ... including a potential big initial premium to the issue price.

I would prefer a situation like MILA, where the shell is spending more to arrange an RTO, than a shell like AUCT which seems to be just sitting on its cash, and nothing seems to be happening.

This following phrase from Thursday's RNS suggests that we could well get something by the end of the current half year, i.e. by 31st. December 2019:
" ... I look forward to reporting our progress to you over the next period. ... "

They've been seriously working on this since the last potential RTO was aborted in March, so as we're now in November enough time has elapsed for something to be announced imminently.

Here are some other key phrases from Thursday's RNS:

• "extremely exciting opportunities"
• "at least one of these opportunities"
• "a swift replacement"

The phrase "extremely exciting opportunities" is clearly very bullish, especially from a company that is not known for its hyperbole.

The phrase "at least one of these opportunities" means that multiple acquisitions are potentially on the cards, and also increases the chances that there will at least be something.

And the phrase "a swift replacement" indicates that we shouldn't have to wait long.

A non-resource and domestic RTO should be relatively quicker, cheaper, and simpler to arrange.
Whereas foreign acquisitions obviously increase costs, and resource acquisitions tend to have more complicated due diligence, and risk of abortion.

In addition, two other potential barriers to an RTO don't apply in MILA's case:-
• It's a 'new', 'clean' shell, as opposed to a 'dirty' shell that previously housed another business, which can have left some toxic baggage.
• It's very lowly-valued, including re. cash, so there is no problem of shell overvaluation putting off interested parties.

Barwickman,

Just because a company isn't currently traded doesn't mean that it's worth zero.

If it was, no private company would be worth anything, whereas some make vast profits.

"Expect to see quite a future for Portage & Juvenescence.
Don’t forget the same team in both.
Little bit of portage history Jim & Greg invested just $7 million and gave a dividend to shareholders last year of $210 million."

"Delisting from CSE and uplisting to Nasdaq."

" I’ve read there doing a 30mill funding but also just read there close to delisting how close I don’t know,"

In view of the previous return of Portage, I would't think that the 30 million fundraising will be any problem.
They will be queueing up to invest.

And the uplisting of Portage to the NSADAQ should provide a significant boost to FFWD.

It was a change of investment strategy to focus on technology that triggered YOLO's quadrupling this month to about 10p:

2nd Oct 2019 7:00 am RNS Placing and Investment Strategy
" ... Investment Strategy
The board of directors has conducted a review of the Company's investment strategy. One outcome of that review is that the board has decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT). ..."
https://www.lse.co.uk/rns/YOLO/placing-and-investment-strategy-isux13td1iyxled.html

Similarly, it was MMO's switch to technology that triggered its rapid multibagging :

tomboyb 9 Feb '16 - 08:23 - 619 of 627
"In case anyone has missed it - MMO moving to fintech area"
https://uk.advfn.com/cmn/fbb/thread.php3?id=33556304&from=605

Within a year MMO had more than 20-bagged.

And I believe this is why MILA has also been pursuing a new strategy, as detailed in its RNS this evening:

31st Oct 2019 5:00 pm RNS Final Results
https://www.lse.co.uk/rns/MILA/final-results-pf3qjqrpguvqr7l.html

It was a change of investment strategy to focus on technology that triggered YOLO's quadrupling this month to about 10p:

2nd Oct 2019 7:00 am RNS Placing and Investment Strategy
" ... Investment Strategy
The board of directors has conducted a review of the Company's investment strategy. One outcome of that review is that the board has decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT). ..."
https://www.lse.co.uk/rns/YOLO/placing-and-investment-strategy-isux13td1iyxled.html

Similarly, it was MMO's switch to technology that triggered its rapid multibagging :

tomboyb 9 Feb '16 - 08:23 - 619 of 627
"In case anyone has missed it - MMO moving to fintech area"
https://uk.advfn.com/cmn/fbb/thread.php3?id=33556304&from=605

Within a year MMO had more than 20-bagged.

A MILA after hours RNS this evening: they are negotiating some "extremely exciting opportunities" to RTO!

And they have been pursuing a new strategy, looking beyond the resources sector: this will almost certainly include the tech sector!!

31/10/2019 17:00 UKREG Mila Resources PLC Final Results

" ... Highlights

-- Ongoing appraisal of investment targets in regions with strong valuation or cash-flow growth potential

-- Mutually terminated a proposed reverse takeover of Capital Metals Limited
-- Broadening of investment horizons
-- Strong balance sheet position with cash balance at the end of the period
Chairman's Statement

Dear Shareholder

We have pleasure in presenting the financial statements for the year ended 30 June 2019.

Following Mila's re-listing and broadening of its horizons we remain open minded about which industries we might invest in while retaining our key criteria for delivering excellent value for our shareholders. The mutually terminated proposed reverse takeover of Capital Metals Limited, while disappointing, has driven our new strategy which we hope will lead to a swift replacement. The reduction of investment routes for smaller businesses following the continued uncertainty over Brexit has driven some extremely exciting opportunities towards Mila. Negotiations are already well underway on these projects and we hope that at least one of these opportunities can be Mila's first acquisition.

We formed the Company to undertake an acquisition of a controlling interest in a company or business (an "Acquisition"). Any Acquisition is expected to constitute a reverse takeover transaction and consideration for the Acquisition may be in part or in whole in the form of share-based consideration or funded from the Company's existing cash resources or the raising of additional funds.

I look forward to reporting our progress to you over the next period. ... "

https://uk.advfn.com/stock-market/london/mila-resources-MILA/share-news/Mila-Resources-PLC-Final-Results/81040036

"Portage Biotech Stock May Be The Mightiest Micro-Cap In The Market

By Modest MoneyStock MarketsApr 18, 2017 01:16AM ET

Portage Biotech Inc (OTC:PTGEF)

When I first introduced Portage Biotech back in September of 2016, PTGEF was trading at just over twelve cents a share, at which time I made clear my feelings that the stock was grossly undervalued using almost any metric of measurement. ...

When PTGEF first invested in Biohaven, the initial valuation of the company was $7M, and Biohaven’s last round of funding was at a $133M valuation. ..."

https://www.investing.com/analysis/portage-biotech-(ptgef)-stock-may-be-the-mightiest-micro-cap-in-the-mark-200183266

Portage's former portfolio company Biohaven is a sign of how successful its approach can be.

The current market cap. of Biohaven (BHVN) is over three hundred times its level at Portage's initial investment into it:
Market Cap 2.33 Bn, at $44.63.
https://www.biohavenpharma.com/investors/stock-information/stock-quote-chart

Four of FFWD's nine investee companies are in the biotech-healthcare sector(s), i.e.:
• Juvenescence
• Portage Biotech
• Emmac
• The Diabetic Boot Company
https://fstfwd.co/portfolio

If you were investing into the same or similar companies directly, you would pay full price.
But investing into them via FFWD, you're getting them for half price.

So if you're bullish on biotech-healthcare, FFWD looks like an excellent way to gain quality exposure to this, at a cut price.