Member Info for HenryA59

They could sell shares to bring their holding down below 29.9% (before the conversion) but that could also increase the dilution as the SP would potentially fall. Or ask for it to be cleansed by Take-over panel so no requirement to make a bid

You are right with regards the potential roll-over but b&c are the major event that we are all waiting for and should lead to the higher SP and therefore would limit/eliminate any dilution and as you say should allow Sym to repay.

My point was that the new investor, who paid 20p per share, must be expecting the major event to happen before 1 October otherwise if the SP remains at current levels then this increases their risk of a big dilution given the pricing mechanism for the convertible loan. If the SP increases then obviously not an issue but that is what we are now all waiting for

I agree but as the new investor I would be getting worried if the SP hadn’t lifted by then.

As we are nearly in q3, I guess India could also be anytime.

The more I read the RNS it sounds as if they have targeted a few big companies with Nbr possibly food manufacturers as it seems to also improve food preservation.

It would only take one big international blue chip to use it for many others to simply follow.

Sym has a convertible loan which expires at the end of the year. The conversion price is based on the 3 months prior to conversion i.e October, November and December.

Per the RNS:

The full terms are as follows:

· CLAs total drawn principal: £1.5 million (unsecured)

· If not repaid on or before 31 December 2025, conversion on that date

· Conversion price: 80% of the volume-weighted average share price for the 3 months prior to 31 December 2025

· Interest: 7% per annum, payable on repayment and/or conversion

· Repayment of the CLAs, in full or in part at Symphony's discretion

I have read the RNS a number of times and think the major event is in the Middle East and it may be linked to the new product Nbr.

But it may also just be Nbr generally (worth noting that Nbr incorporates d2w so utilities its existing technology). Plastic made with Nbr uses 25 times more Sym product than plastic made with just its d2w product, the cost is lower so competitive and the margin is the same and it uses 20% less oil based polymers, so even more green. This could be the wonder product. Just selling this to existing customers that use d2w would increase sales by 25 times (+£100m). Gross Margins would be >£50m (46%), Admin costs etc would stay unchanged so the operational leverage would be huge and net profit would quickly increase to >£50m. Thats before any new sales.

Maybe this is the big event. Watch out for updates on new contracts for Nbr

As expected its not the historic results that Leap have bought into, although it does look as if the company is/has moving/moved into profitability which is positive.

We still await the big event. This big event must happen in the next three months as the convertible loan starts pricing from 1 October and at current pricing would be a big dilution for the new investor.

They probably lost one client for whatever reason. The good news is that they raised £2.25m at 20p. The market is now waiting to understand why - what is the big event

I think they will be linked as the auditors will want to see the cash to sign-off the going concern

I think we all agree its something big. If its US then could be anything from Elon Musk to Coca Cola and with the US being a leader not a follower then many other countries would fall into line so would be huge 🙏🙏🙏

They definitely must know something we didn’t, all I am saying is it might not be the historic results - to pay such a big premium it is most likely a much bigger event like a new strategic investor+commercial contract. This could be Middle East (lots of oil companies/plastic manufacturers/users) or India (new certification haw been anticipated for awhile)

I don’t think you can assume it will rise to 20p by 9 June because of the pricing of the new subscription and the update/results. My guess is that there is something bigger in the pipeline that Leap have bought into. If this “something” happens then the SP must be anticipated to rise beyond way above 20p otherwise why pay 20p before this has happened and take on the risk that this may not happen. This “something” must also be a very short term event but could happen after 9 June so I think its a very interesting couple of weeks+

Well thats real now. Leap have paid 20p not just for a smallish subscription (£250k) but for the full £2.5m. No time extensions etc which was my concern. Serious news must be not far away

I would expect results and update RNS on 9 June, this is 31 days after the equity subscription and therefore would technically mean the new subscription fell outside the closed period (30 days prior to results)

Maybe the commercial revenue will be with a strategic investor. Interesting times ahead 👍

So we now know:

1) revenue for H1 are very strong/positive

2) R&D spend/costs will be or are lower

3) the combination of 1&2 is probably a nod to the company is or will shortly be profitable

4) the focus on commercial revenue is a hint at very near term contracts

5) the highlight of the jv with Indorama is a hint to expect another strategic investor in the near term

Great info. Well done for extracting before prelims 👏👏👏

Wow I am surprised. A closed period is not just about numbers, its about sentiment etc and the general rule to be safe is to say nothing. 😱🤯

Agreed but many companies self impose a 60 day closed period to ensure there is no risk of information leaking close to results day etc.

Yeah it could be but many companies have a 60 day closed period so 31 days would be pushing the rules to the very limits

Thanks. I would normally sell at x3 but the company appears to be issuing the bare minimum of information and this has been the case for at least the last 6 months. This keeps the share price artificially low (the 20p placing clearly demonstrates this) and allows friendly shareholders to continue to accumulate until the big news is confirmed/legally binding and must be announced. This seems to have started at the beginning of the year - they announced the Intertek microplastics report but not the biodegradable test for the Indian license - probably argued that this wasn’t new information as they have done all these tests before but actually big news as it forms part of their Indian license submission. This continued with bare minimum on the x7 SP placement but why would a professional investor pay 20p when they could have easily bought in the market. But a professional investor wouldn’t invest £2.5m without understanding the business and its prospects. And if the prelims are released before 8 June then this also happened during a closed period. I have never seen this and must have been signed off by the nomad. So, may be the company argued it needed cash (going concern sign off for audit) and therefore were allowed to bring an investor inside and were allowed to buy shares because of the x7 premium. The SP remains must lower than the placement price because the new investor is an insider and not able to buy in the market but the other friendly shareholders know the insider information must be good otherwise the placing wouldn’t have happened at 20p. So this all points to some big news in the very short term. 🤞🤞🤞🤞