Member Info for Hedgehog100

Last August David Smith did a series of investor lunches, introducing himself, explaining the company products and future pipeline and laying out his vision for the company.

Here are a few points from one of those presentations:
• His deal is largely equity based, so he is aligned with us.*
• Whilst StoneChecker has great potential, the real winner could be the brain scanning software of IB, which should be extended to other areas. Liver was mentioned as achievable with minor tweaks.
• His plan is to deliver revenues of $20M. to $30M. annual within the next few years on existing products but double that with ‘planned’ products.
• He mentioned the possible need to land grab in order to build the business quickly at which point they would probably be taken out by GE or Phillips who provide the hardware but have poor software that is 20 years old in many cases.

The thing that really stands out is $10s of millions of annual revenue within the next few years.

This is a measure of the company's ambitions, and in view of David Smith's track record they have to be taken seriously.

If they manage to achieve this degree of success, then the company's market cap. will dwarf today's level.

(* On 1 November 2018, 6,017,500 shares in IQ-AI Limited were granted under option to David Smith.
The shares are exercisable at 2.60p and the option will vest over 3 years, with 1/3(rd) vesting on 1 August 2019 and the remainder vesting at a rate of 1/36(th) per month on the last day of each month, until the shares become fully vested. The option will be exercisable for 10 years and will on 1 August 2028. There are no cash settlement alternatives.)

Please note an amendment to my post below (s.p. & market cap.), with apologies:

How has someone of his magnitude been attracted to a micro cap like IQAI?
(Current market cap. £3.73M., at 3.1p.)

The listing and structure of IQAI (ex Flying Brands) is set up to be a much large company.

I.e. its main market listing, as opposed to AIM.

And the appointment of David Smith to an 'umbrella role' over StoneChecker Software and Imaging Biometrics, both of which also have their own CEOs (i.e. Nick Stevens and Michael Schmainda respectively). -

06-Aug-18 07:00 RNS Appointment of CEO to the Operating Subsidiaries Company Announcement - General
"Flying Brands Limited (the "Company" or "Flying Brands") is pleased to announce the appointment of Mr. David W.J. Smith as Chief Operating Officer and CEO of the group's two operating businesses, StoneChecker Software and Imaging Biometrics, with immediate effect
David has a 30-year history of successfully building life sciences businesses in Europe and the United States, including Biocompatibles plc where he initiated the ophthalmology and cardiology businesses in a period that saw their sales grow from zero to over GBP40m pa, business development for Carl Zeiss in which he reinvigorated their mature ophthalmology capital equipment business to grow more than 15% pa resulting in sales in excess of GBP150m. In addition, the foundation of California based Tenaxis Medical, where having raised $22m from investors David led the company through product development, built a strong operating team, achieved regulatory approvals and secured the company's first sales. Tenaxis Medical was sold for $178m in 2014.
Trevor Brown, CEO of Flying Brands, commented: "I am delighted to welcome David to Flying Brands. I believe that the Company will benefit greatly from the breadth of his experience, not only from his proven ability to actualize strategic vision into strongly growing revenue, but also from applying his deep knowledge of the US medical market to our growing Artificial Intelligence product portfolio."
The Directors of the Company accept responsibility for the contents of this announcement."
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FBDU&ArticleCode=jrprb8z4&ArticleHeadline=Appointment_of_CEO_to_the_Operating_Subsidiaries

David Smith's track record does nothing but inspire confidence.
He sold his last company for $178M., and before that played a leading role in driving sales at Biocompatibles from 0 to over £40M.
(Biocompatibles was acquired by BTG in 2010 for £177M.

How has someone of his magnitude been attracted to a micro cap like IQAI?
(Current market cap. £1.56M., at 1.3p.)

Certainly not because he expects it to stay at this size for long.

From ADVFN:
Soupdragon5512 Jun '19 - 15:51 - 269 of 275
"StoneChecker FDA comment
Product was enhanced and resubmitted, FDA have no further questions, so now just in queue waiting for approval to come through.
They've used the most experienced regulatory consultant to submit the FDA and say that the CorTech deal shows how positive they are that they'll soon get FDA."

You can't over-emphasise the importance of that "no further questions" info.

The FDA seem to have come back endlessly with queries, each time stopping the '90 day clock'.

It's been a lengthy and frustrating process, which has hit the IQAI share price hard.
But now it looks like the process is all but over.

The FDA are finally satisfied, and it's now just the final admin. that needs to be done before their approval is given.

"CorTechs Labs leads the industry with its breakthrough quantitative analysis software enabling physicians to quickly analyze brain images and provide fast and accurate diagnoses, and effective treatment options for neurodegenerative diseases such as Alzheimer's disease, epilepsy, multiple sclerosis, and brain trauma."
https://www.cortechslabs.com/

It's a massive endorsement of IQAI's products, and of their deal-making ability, to have linked with a partner of this caliber.

And it shows that there is a crying need for IQAI's products:
" ... help solve important clinical challenges faced by our global customer base."

There are challenges out there that need to be met, and IQAI's products can do that.

And with the CorTech's team pushing them globally, the sales outlook is exciting indeed.

More deals like this should follow, to back up David Smith's very bullish sales expectations.

You're exaggerating the rate of cashburn, which as I've said is less than at FDBK, but with the difference that here it's not being wasted, and there is an exciting growth story.

What is clear is that fundraisings are not taking place at below 1.5p-2p, even if the s.p. is below that level, and that Trevor Brown has a big interest in continuing to back this.

The plan here will be to get the FDA approval (imminent), follow up with other positive newsflow over the summer, get the share price up, and then raise funds with a more compelling story.

I'm betting my money that they will succeed.

Look at TERN last year that rose from 3p to 20p within weeks, and then raised money.

There are many other such examples.

And your trolling will not stop it: TERN was trolled even worse, but the multibagging happened anyway.

Elartu,

Grow up, and stop being so silly and dishonest.
You are beginning to make a real fool of yourself!

And you still haven't answered my question to you on ADVFN yesterday: how massive are you Feedback losses?
For which you illogically blame Trevor Brown: because you HAVE to blame someone else to yourself ... because not to do so would mean that you have to psychologically face up to your own failings, which you cannot do.
If you spent as much time studying business and investment as trolling, then maybe you wouldn't have lost so much.

Here are a few more points:

• They weren't doing nothing with the shell: looking for an arranging a RTO requires a lot of work.
But we all know that a shell is not the same as an operational business.
And £125,000 for a main-listed board of an operational company is perfectly reasonable.

• Software can be worth millions, if not billions, and can cost a huge amount to develop. That drawfs the debt.

• Here's the overall trend of revenue acceleration:
2017: zero.
2018: £164K.
2019: more than double 2018 expected.

• You statement about the sales this year is false and misleading.

• IQAI's costs and losses are reasonable for its stage of development, and are smaller that FDBK.

• Do you actually know what a conflict of interest is?

You're not an IQAI shareholder, and you're raising points from years ago that no actual IQAI shareholder is concerned about, in a vain attempt to make trouble.
You know it, and we all know it.

Now will you please stop, or I will prepare a dossier to present to LSE, ADVFN, and the FCA, as your behaviour is not acceptable.

Your thesis also assumes that the CLN's will run the full term.

But within six years, anything could have happened: IQAI could be valued at $100M.+, it could have been taken over, and Trevor Brown could have converted his CLNs early.

You are taking the art of trolling to an entirely new level by trying to make out that a CLN issue isn't actually at the price stated!

But the overriding point about the CLN terms is that the conversion prices didn't have to be set so high.
Most penny shares, if having a CLN fundraising when the s.p. was 1.1p, would set the conversion price at a penny or less, not 1.5p.

They could certainly have set the conversion price at the current share price then of 1.1p, but they did not: they set it at a premium to that of nearly 30%.
Well done I say on showing such respect to existing shareholders, and integrity.

How many other companies are raising funds, via convertible loan notes or otherwise, at a premium of nearly 30%?

And Trevor Brown needs IQAI to succeed to get his money back, let alone make a profit.

Trevor Brown could have invested that money anywhere in the world, along with a good return for years, but he's chosen to invest it here.

This is akin to massive director share buying, from somebody who really knows what he's doing - a massive vote of confidence.

And as it's his own money, you can best believe that the money will be used wisely.

Elartu,

The fundamental deceit at the heart of your CLNs (convertible loan notes) thesis is that you are ignoring the fact that IQAI has USE of the money.
I.e. you're factoring in the potential interest being paid over six years, but IGNORING the potential benefit.
In theory, IQAI could loan out the money received, at 6% p.a., and buy back shares with the money: which if the buy backs were at 1.5p, would mean that the CLNs transaction was cash and shares neutral.

In reality though, the return to IQAI should be much higher, because the company is investing the money into its business, which should yield a handsome return.
Let's say a thousand per cent return, which is comparable to the return to investors at David Smith's last company.
For simplicity, I'll deal with both the CLN tranches together:

£518,500 x 1,000% = £5,703,500.
For 41,607,646 shares (17,965,677 + 23,641,979)
= 13.7p per share.

So using your own argument, I could argue that the real cost of the CLNs issue is actually 13.7p per share, on the above basis.

As I've said on ADVFN Elartu, your list of points is largely irrelevant fluff: a collection of 'nothing' trying to be 'something'.

And ones that you have generally been droning on about relentlessly, and have been discussed before.

I could come up with a far more negatively impressive list for virtually any penny share, if I was prepared to waste my time the way you do.

But here are a few brief observations regarding your points:

• Until mid 2017 Flying Brands was a shell, with no operations.
• Stone Checker Software (SCS) reversed into Flying Brands because FBDU was a shell needing a business, and SCS was a business needing a shell.
• The 4 million FBDU shares issued to acquire SCS are worth under £50K. at the current share price, for a business that could be worth tens of millions. Not surprisingly, FBDU shareholders voted massively in favour of it.
• RNS corrections are commonplace, and in IQAI's case the mistake was benign ... probably caused by a late change in the share price.
• The overall trend in revenues IS accelerating.
• There is no conflict of interest.

You are trying to invent issues where they don't exist, in a massively sad attempt to undermine the company.

For example, two years ago the company acquired, for shares currently worth under £50K., a business that could be worth tens of millions. It was democratically voted on.
If anything is surprisingly, it's that the price was so low.
And yet two years on, you (not IQAI shareholders) are continually raising it, not because you actually have any concerns, but in a vain attempt to try to cause trouble.

In conclusion, I would regard you as a very bearish sign for FDBK, and I suspect that you trolling activities against IQAI are actually putting people off FBDK.

I haven't actually said that any of that is libel, so its dishonest of you to suggest that I have. I have though referred to other libel by you.

It's also dishonest of you to leave out two thirds of you recent insult against Trevor Brown.
Your actual phrase was "Tedious little twerp", not just "twerp", which is very insulting, and is just a case of you projecting your own shortcomings and failures onto someone else.
And it makes your embittered, obsessive, and unjustified agenda against Trevor Brown crystal clear.
You made that post on Saturday 25th. May, and LSE have now deleted it from the IQAI list of posts, by it can still be seen by looking at the posts under your name.
It may not be libel, as you could use the defence of "vulgar abuse", but it's nothing to be proud of that you should have yet another post deleted on LSE, is it?

That said, an insinuation that someone is deliberately lying, when that suggestion is made as part of a long, ongoing campaign, could be viewed as libellous, so I think you are playing with fire.

And you need to understand: YOU are to blame for your massive Feedback losses, NOT Trevor Brown: your own poor ignorance of business, and poor judge of investments.

ChazC,

It's the FDBK shareholders who are worried about funding, which is why the FDBK share price is still in its one year general downtrend. Anyone with eyes can see that.

In contrast, the IQAI shareprice has stabilised over the last few months, and is an uptrend since the end of April.
That's because people can see that Trevor Brown has funded this (at a premium), and they expect huge gains over the summer after the imminent FDA approval for Stonechecker software.

What happens to IQAI (the business and the share price) after the imminent FDA approval for IQAI's StoneChecker software: which should be announced this month, and could be any day?

Well, the fact that FDA approval has taken so long shows how rigorous the process is, how advanced the product is, and also what a great achievement approval will be.
And one that will be monumental for IQAI's development, because America is such a vast and well-funded healthcare market, which is at the forefront of applying new technology.

This won't therefore be your 'average' good news: it will be gold-plated, company-transformative, 'talk of the town' news.

Therefore, I think that we can expect a very big immediate rerating upwards in the share price ... but that should be just for starters.
The general upward momentum could continue for weeks, months, and years.

And in terms of business, IQAI is chaffing at the bit to start selling StoneChecker into the multi trillion dollar US healthcare market, and has been investing into its business ahead of that, a very positive sign.

IQAI also appears to have a range of potential US reseller agreements lined up (see its 8.2.19 & 30.4.19 RNSes), which could be ready for signing once FDA marketing approval is received.

All this bodes well for a period of very positive IQAI newsflow in the near future, driving the share price to much higher levels ahead of the next fundraising.

Often the key difference between the success or failure of a company is STRATEGY.
And that's where an experienced NED (non-executive director) can be worth his weight in gold.

It's clear from relevant RNSes that Trevor Brown was key in the strategy development of both AVO and FDBK, to the huge benefit of both companies.

Moreover, he was also a strategic investor in both companies, just like at IQAI.

His business savvy is clearly extraordinary, and his judge of investments and investment timing top notch.
Coupled with a rare level of integrity (as shown by funding IQAI at a massive premium - and how many directors would do that), and what's not to like with him?

And another similarity with IQAI is that TB isn't taking the day-to-day lead on operations here.
That's under the overall control of IQAI's August 2018 appointment David Smith, who sold his last company for $178M., and compared to the $22M. it raised from investors:
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=FBDU&ArticleCode=jrprb8z4&ArticleHeadline=Appointment_of_CEO_to_the_Operating_Subsidiaries

David Smith knows who to drive sales from zero to tens of millions of dollars, because he's been there before, and has stated his intention to do it here.

So with Trevor Brown overseeing strategy here, and David Smith overseeing operations, it looks like a perfect combination, and one with formidable potential to create something big here.

Trevor Brown has been subjected to some libellous persecution from a troll with a grudge.

So let's "seek truth from facts" and examine his record shall we: the share price performance during his two previous listed directorships prior to here. -

1. ADVANCED ONCOTHERAPY (AVO) (formerly CareCapital): 28.6.12 - 30.8.13.

Share price rise from approx. 25p to approx. 92p: GAIN OF C. 268%.

2. FEEDBACK (FDBK): 13.1.14 - 8.6.17

Share price rise from approx. 0.85p to approx. 3.75p: GAIN OF C. 341%.

= AVERAGE INCREASE OF c. 304.5%.

In summary, on the key metric of share price performance, Trevor Brown has really delivered the goods: an on average QUADRUPLING of these two share prices.

(I've posted fuller info. in post 245 on the ADVFN IQAI thread.)

09-May-19 13:30 RNS Notice of AGM Results and Trading Reports
"IQ-AI Limited announces that notice for the annual general meeting of the Company to be held at 3rd Floor, Forum 4, Grenville Street, St Helier, Jersey, JE2 4UF on 6th June 2019 at 11.30am, has been posted to shareholders."
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=IQAI&ArticleCode=9ziiafa4&ArticleHeadline=Notice_of_AGM

Actually, that's not what I said at all.
I did mention that I had alerted LSE to an insulting post by yourself, which is actually more insulting that you are claiming, but what they do with the information is up to them, and I haven't made any recommendation or request.

A quiet word might be more appropriate, but it's not up to me, and I don't know the full extent of your previous warnings.

Elartu,

You can't see the wood for the trees, which is why you've lost so much on FDBK.

IQAI is investing into its business, ahead of the imminent FDA approval, and investors will always back an exciting growth story at a modest valuation.

In contrast, why would investors back FDBK at the moment?

Botak,

Your posts as a FDBK shareholder have credibility because they are unbiased and realistic.
But it also seems strange that you've held when you've thought this would go down.
On 11th. April you said this:

FDBK RE: Adrianz 11 Apr '19
"Disappointed ,,, Why ? That would be the smart move to have implemented and you come across as smart Cookie ! It was blatantly obvious a few weeks ago the sp of fdbk would go sub 1p, Being a Feedback plc groupie gets one frustrated and poorer of pocket ( on paper ) so nothing smart in steadfastly holding here ..."

Shareholders here seem to be selling into any rise, and while that's the case the downtrend will remain intact.

ChazC,

Interesting that you should think I may be Trevor Brown.

I know for a fact that I'm not, which raises the question: are the other claims of Trevor Brown posting also false?
Where's the evidence?

Elartu has been trolling IQAI so long with his evil, embittered nonsense that it's bound to have cheesed off multiple shareholders there.