Member Info for Kabaa

There is an £11m convertible loan note that can be converted at the vwap. At this price and market cap, that would equal approximately 1375% dilution.

The interest rate on the loan is 20% and the company has been losing money for years to the point they are delisting the stock in less than a month.

There is a 0% chance this will move like itsarm. There is no comparison.

Infact investors will be lucky to ever see their money again after October.

Unfortunately when a company delists from the exchange, a few years later it is very common that shareholders get utterly screwed one way or another. Absolutely disgusting behaviour often from the larger shareholders.

Pip56,

The 2 main holders have a convertible loan note of upto £11m which can be converted at the lower of either the previous 5 day vwap or 0.5p.

At this price, it would be approximately 1100% dilution.

I believe as it's delisting, there is a fair chance the vwap gets even lower, e.g. 0.1p, which would equal nearly 3000% dilution.

I have no holding here either but have also been watching the train wreck unfold over the years.

Do you think the 57% holders will get this out of the eyes of the public and strip the remaining assets then put it in to administration over the next fewnyears or will they convert their debt to equity?

The directors have a total shareholding of 400,000 shares which equates to around 800 quids worth. So they clearly have no skin in the game.

Either way, it looks to me like a terrible investment at any price. Enormous dilution at a very low price or administration.

No unfortunately they do own 57%. Of course the company would not make a mistake on this. Anyone can look for themselves on the website or in the previous rns's.

Also they can dilute the shares to own way above that and get the 75% they need to delist. They have con notes for around £11m with a 20% interest rate. If they just converted £1m of this into equity at the current 5 day vwap, they would have a lot more than 75% of the shares to pass the delisting. This seems very unfair to minority shareholders but the company has had a disastrous time in previous years and would likely find it impossible to raise money from anyone else.

There would not be convertible notes to the tune of 11x the current market cap if the assets were solid or were able to easily sell or liquidate for that price, especially with an interest rate of 20%.

As per my previous post, I believe this will be very high risk and low reward investment and it has been since the convertible loan notes were there.

People noting the NAV at 5p per share are not taking into account the inevitable dilution by the creditors or the risk the company would not get anything remotely close to that if it were wound up.

They do have 57%. Look at the website or the relevant RNS. They also have an enormous amount of con notes that can be converted into way more than 75% if they wish to.

The company is loss making for years, with yearly losses way above the market cap.

The company is dependant on its creditors who have £11m con notes at the lower of the 5 day vwap, which is currently around 0.25p and falling, or 0.5p. That is 11x the market cap, so 1100% dilution. These con notes also have a 20% coupon.

The NAV of £20m would never be achieved by an administrator and presumably no one other than the large shareholders want to finance this and only will do so on onerous terms.

I think you have a situation where either the shareholders will get very little or nothing back when the loans are called in, or the shareholders will be diluted many times over up on equity conversion.

In short, no, this ain't ever doing an Itsarm style rise!

There's a reason there has been very little volume traded in this in the past 18 months or so.

I suspect people buying in now, only did so because it dropped a lot in one day and they haven't read the news of the company in the past 2 years!

My guess is they will either shut the company down in the next 2 years or continue to lend money and dilution will eventually be ginormous.

If they do not have the 75% votes needed in the bag already, they can easily convert their notes to get it.

Any idea what price the tokens are trading at?

The results are staggering!

Craig is not the only one "brimming with confidence".

I'm amazed the valuation is still so low. I have a feeling this company is going to make a lot of people rich.

I'd like to think the cash equivalent would be less attractive than receiving the tokens, as would usually be the case in a deal like this.

So we may be pleasantly surprised that our tokens might be worth more than $4.47 per share in the next year or 2.

It wouldn't surprise me if they are a success and end up being worth substantially more down the line.

I think I meant 4.5 dollars per share and you meant 3 or 4 dollars per share.

Good to see you keep on top of this Puregypsum. From memory the tokens should be worth 45 cents a share? Or perhaps that was the cash amount to be given for those who could not hold the tokens...I think that will be a much more interesting payment when we eventually get them.

I re read the white paper the other day and it does seem the tokens will be used for more than just downloading music.

So are the napster tokens being traded anywhere?

Are they likely to go up in value in the coming years?

I thought they were just tokens to be used for downloading music. So can't imagine they will be very volatile in price. Any thoughts on this?

If ONDO managed to get 3m leakbots in the UK as per the rns, a further 15m in the USA and 22m in Europe and other countries that is 40m leakbots.

50 dollar revenue per year, £20 profit per year on each. Put that on a pe of 15 and you have a £12bn market cap. £120 per share. 500x upside from here. £20m market cap for this seems ridiculously cheap.

I don't think Portsmouth water and ONDO would be jointly revealing the pilot results to the water industry on the 6th June if the pilot was not an impressive success.

It looks like the leakbot will be rolled out across the UK along with Sweden. Might even get a bit of money too. It will be very exciting leading up to the 6th June to see what they say!

Was this not the main asset of the company?

Sold off to pay its debts?

No point relisting.

What were the new shares issued at?

Agreed.

A capped, oversubscribed fundraise for rapid order growth. Approached by a try holder. That will be Gervais Heddle or homeserve. Either way, they know the business well and want more of it!

They're getting demand literally all across the world for this, multiple countries, multiple insurers. So if the extra £800k helps then sign off on a £50m order then does the little 6m share placing matter? Of course not.

Chart has 50p written all over it short term and the fundamentals are a quick mid 9 figure market cap within 6 months. Aimho. Dyor.

If Earl has been posting all of that to get 20% then I think he's going to get a harsh lesson in 2023 on how the big money is made in small companies.

ONDO have just cracked a market 100x bigger than what they were doing before. You can bet your bottom dollar there are going to be a flurry of contracts that follow and many different insurers will want to offer their product. It's not just about the profit, it's also very good for the environment to not waste billions of litres of water.

The good thing here is that this company is completely new to the stock exchange and no one has heard of it yet with a £10m market cap. But that will change in the coming months and this company will be all over the news and the amount of RNS we will get for contract wins in 2023 will help get the word out for the company and the herd will follow in a big way a few weeks/months down the line...

For the person asking about Craig investing £220k at 12p last year, I recommend listening to the Sunday roast interview with craig in February. It is packed full of information with a lot of clues on how much potential this company has.

From the Sunday Roast podcast on 19th Feb, the profit for each leakbot should be around £20 per year with 60 dollars per year revenue targeted.
Breakeven should be around 200,000 units. The potential for the Swedish contract alone at 40% take up of 2m customers should take them massively into profit.
They have been in discussions with the biggest or very large insurers across many countries including Australia, Sweden, Japan and USA. The recent RNS suggests WNS can help them deploy leakbots at significantly larger scale across USA and many other countries.
The product is hugely popular with an almost 5 star rating on trustpilot.
The global potential for this could be hundreds of millions of units and this is already deployed in different countries with plans to deploy in many more.
10m units would be £200m profit,
100m units would be £2bn profit.
Put that on a p/e of 10 and assuming 85m shares in issue after warrant and options taken up, you have:
£23.50 and £235 as a share price. A 200 to a 2,000 bagger from these prices.
It has a tonne of patents on the technology too.
The company have said they are getting payments upfront for orders so people suggesting we need a capital raise are misunderstanding the situation here. There is no way management will accept money anywhere near this price after the contract wins in the past few months. Craig put £220k in at 12p in March 2022 and has said he's staying for the long term.
No wonder Gervais Heddle is shouting from the rooftops about this on twitter. He saw GGP go up around 800 times and was the ceo for most of the rise. It looks like he may believe ONDO has similar potential and this is one of the only shares he talks about on his twitter!
Will this be the biggest winner of 2023 and the most talked about share by year end?

It amazes me how these companies even are allowed to list on the stock exchange in the first place!
I've never seen one where the share price doesn't go to zero!
Great for the board to recieve salaries for doing nothing, everyone else loses their money.