Member Info for iWantThatOne

If the terms of the recapitalisation plan turn out particularly poor for existing shareholders then an offer for the company now might be a much better option, in which case the Board would be duty bound to recommend it. (Clearly they have no duty to prospective shareholders who would be thwarted if the recapitalisation didn’t go ahead) That seems to me the best situation for us existing shareholders - then the terms of the proposed recapitalisation would be adjusted (logically, at least) according to the value placed on the company by the offerer, and the Board can decide which avenue looks best.

It all depends at what price they raise the new equity. I’d be astonished if it’s at the (pre-suspension) 2p or so as the Board will argue the resulting mcap would overly disadvantage existing shareholders.

Pleased to see the Plan, need to read it properly. Good to see there is already a commitment to some equity investment, if I read it right.

It’s no secret the company was seeking a partner so if one has been found to fund the business then happy days.

Shandy, it’s the terminology that I take issue with and which gives a misleading impression of the business. Gross margins are perfectly fine at 18.4% - leading to gross profit of £25.0m. It’s the administrative costs at £18.1m that are relatively high for the current scale of the business and which result in EBITDA of only £6.9m. To say that PBT or PAT is then £1.8m or c1.5% of revenues, ergo “wafer thin margins”, is just not correct. This is profit, not margin. The solution, clearly, is to scale the business while continuing to trim admin expenses and reshape the business towards the higher margin stuff, all of which Wendy has said she is focused on.

Sharesforlife - lots of recommendations for your post, no doubt because we desperately all hope you’re right! But do tell us more……

Rubbish. As explained today in the investor prez, all significant contracts have inflation protection included. Also “margins are paper thin” - again, rubbish. c20% gross margins, which is perfectly reasonable. G&A expenses naturally are subtracted from this but cash generation remains at a good level.

The other thing that struck me today was how excited they are by the hugely enlarged 111 tender - as the only provider in the relevant framework they must have a terrific opportunity to win this. If they do I suspect it’ll have a very material positive impact on this year’s results.

You seriously think HUM has connections with Wagner? Ridiculous.

I wonder, would they keep the shares suspended even having raised some money? I’d have thought they would want to give investors the ability to trade in and out but what do I know? The market was rather disorderly before suspension, if that’s a consideration.

Also I doubt the company has had the money to prepare the treatment room and building, as that sounds like significant spend over and above the “keep the lights on” budget. I’d be amazed if first patient treatment doesn’t go back - that’s assuming they can keep going - but I’d live with anything that will keep the company going atm.

I haven’t re-read Hardman’s reports but I think they only said the project had been “technically” de-risked? Which seems fair. Unfortunately we still have more than enough financial risk. And once we’ve got through that (hopefully) we can move on to tackle the regulatory risk, the manufacturing risk, the ....(etc. etc).

A heartwarming story, Meldrew! Of course you could argue they’ve already put *some* money into the CLN, especially the Chairman. And they may not exactly have £2m lying around at home. But you’re right, there’s the opportunity for both them and us to become rich if they can keep things going. I reiterate - 250 investors paying £50k each would raise £12m and keep the lights on until year-end, in which time other fund raising would take place. And at the price funds would be raised right now, these investors would own a meaningful chunk of the company. I’d participate, because under this plan I think the company would survive. It can be done. It just needs this useless BoD to stop being fixated on a debt solution.

The Board have been one pace behind events throughout the last nine months since 230MeV. The short term measures they’re now investigating should have been underway three or six months ago. An offer to be bought should not have been sat on until the last minute (or possibly after the last minute). Reducing the nominal price to facilitate an equity raise should already have been in place. But despite themselves the Board can still save things - put in £2m yourselves, guys, to give time for the EGM to be called.

Surely Kenj’s option has legs - call an EGM and then raise £2m at the current price of 2p (=100m new shares) each month until the loan and/or other options come to fruition. Don’t tell me they couldn’t raise £2m. Anyone would welcome dilution rather than see their investment disappear completely. I suppose the solution would depend on what the other “short term but not immediate” options are - quantum and timing. If they just need to keep going for one month, max two to get there, then don’t let it fail now.

No mention of the strategic review or Nasdaq. No clue if that has come to naught. Just can’t believe this will end up going into administration, it’s hard to conceive.

The FT said that OAM was having to liquidate a significant amount of its investments due to redemption requests, so it’s plausible that their AVO sales are simply part of that.

It looks like OAM’s 5m share sale yesterday was snapped up in one go by someone - a little stake building? We’ll see. I also wonder if the annual results will be delayed a little whilst this plays out....Come on guys, just a little £50m investment from a partner in a convertible loan note and I’ll be perfectly happy.

Bit of a confused RNS. Larbey says “I am pleased that Bango is able to apply additional capital to progress the integration of DOCOMO Digital. The stronger balance sheet will assist in landing the next wave of major customers for our market-leading Digital Vending Machine technology”. So is it related to the integration or new business - which is it? And why would a stronger B/S be required for the integration to complete?

I’m sure this is all innocuous and will be explained early July - and after all, Larbey also says that progress has been “excellent”. Clearer comms would help though.

Just on Odey selling another 1m shares, none of us can be sure why but I’d note they’ve been selling down their holding in another tech stock, Bango. Yes it may be related to Odey’s internal problems but equally it could be a corporate reappraisal of tech stocks in their portfolio in general, or another reason. And if they did want to exit, I bet their 49m shares would be fairly swiftly snapped up if AVO can just get the funding sorted. It’d certainly allow us lot to buy loads more shares at a ridiculously cheap price.

A second conversion of the French loan into shares. When this was originally announced I naively thought the conversion into shares would only take place at the new maturity date. But no - they’ve effectively just converted £100k of the loan into shares at the current crazily low share price, thanks to the protection mechanism afforded them by AVO. No doubt they’ll now sell these in the open market - and who is to stop them repeating tranche after tranche until their loan is recouped early? Perhaps they had no alternative to this structure but I suspect this is yet more mismanagement by the company, which I’m getting heartily sick of. More fund raising is supposed to arrive this month.....tick tock.

What a curious RNS last night. The 12m warrants were awarded back in December “subject to the Company being granted the relevant share authorities at an Extraordinary General Meeting to be scheduled in the first half of 2023”. Now it says it has the relevant authorities and no EGM is required. Just a mistake or did something happen in the meantime?