Member Info for Kooba

Does no harm that leading retail brokers are asking what is going on though..might give the company a shove to explain themselves properly I guess.

Think they are just saying they the broker (AJ Bell ) hasn’t received anything. Since the company has not announce the method or amount that is hardly surprising!

Some of the broker replies slightly odd in the circumstances.

We got to keep some patents !

The funny thing as well as the cost of money arguments made , is that BT said that Samsung asked for the money to be paid in 2 tranches a year apart..he didn’t know why , but since Nanoco didn’t need the money they agreed to wait…now they have the money and a chunk of it is surplus to their requirements they ain’t so quick and handing it back to their shareholders as they said they would. If they don’t need it then hand it back..on the Samsung comment on delay who doesn’t need a years interest on £60m??

I’m not sure you should be telling me how to think..

I’m pretty up with events and am very aware of securities regulation and what companies can and shouldn’t be doing. The company is very well aware of the valuation holding no real enterprise value and the effect of a capital distribution…and they were very aware when they announced it back in June last year when the share price was the same as today.

https://www.edisongroup.com/research/returning-cash-and-investing-in-the-business/32434/

They haven’t been that old at predicting much and putting off a firm commitment made on the hopes of further commercial news i don’t get at all. They apparently don’t even know the end product or customer so how can they know future demand…if something is nailed on they would have to announce ..if not then they can’t delay indefinitely on the hopes of something landing surely?

Not saying they aren’t getting further orders…and rather hope the one commercial order is a recurring case not one off..but so little to go on everything is just guessing.

I’m not sure where the idea of them coordinating around contract news comes from..think they are just hanging on to the money for as long as they can.

They were fully aware of the implications of paying money out on the share price when they announced it 10 months ago or so…now changing plans because they might get another order doesn’t stack to me. In fact the impact of further commercial success would be far more pronounced after the distribution.

I’m sure they will make the payment , can’t see how they can get out of it however much they move the goalposts, but the way they have handled this is not going anyway to rebuilding shareholders confidence…quite the opposite.

Soon enough the results will be upon us

..set to be released on 27 March 2024.

So they will have to say something then.

If they had intended the big reveal with the results why not say so rather than dishing out “shortly “ on 8th Feb??

The FD “going to be announced before the end of the quarter” in line with commitment a new narrative suggests this might be the plan..it is not what was “firmly committed” to by the CEO.

He clearly told shareholders details in Jan and distribution shortly after receiving the second tranche , that was then moved to distribution in Q1 …now who knows.

To be fair Carlos quite a few fans were saying that the payout would definitely happen before the end of the quarter and the share price would jump on the news ( never quite understood that one!) and people who were concerned at delays were talking rubbish..so here we are weeks and weeks later and we still don’t even know how they propose doing it..let alone when it might be actually done.

I stand by posts whether things materialise or not ..it’s not a great trait wanting to forget what you said not long ago when it does not transpire…even more so if you actually were the one controlling those events!

“Shortly”..ie next week , it will be technically impossible to deliver a capital return in Q1 and at that point should inform shareholders of what the timetable actually is and why they did not meet their ‘firm commitment “ to deliver the return in the 1st quarter. The process was entirely in their control.

True 8th Feb

“Set to return capital to shareholders, in line with previous commitments, in the range of £33.0-40.0m. The Group will announce its proposals for the amount and structure shortly.”

So was still fully able to announce and deliver at that point the commitment made by the CEO with the final results in Oct.

“… a financially underpinned business and the ability to execute on our firm commitment to return significant capital to shareholders in Q1 CY24.”

So pretty unequivocal a return to be made in Q1 CY2024..never been mentioned that they would deem to tell us how they were to do within that timeframe ..it was to return capital.

Only with the post showing the FD talking about letting us know was that raised as a possibility.

The formal position is still the return will take place before the end of this month …if it doesn't they will have to explain the delay.

In reality HL can and will do very little , there is a clear and defined “firm commitment” to make a significant capital return in the first quarter but since they have failed to announce the mechanism or a firm timeline that has been approved by the board then it is not a regulatory matter. However if pushed there should be a clarification statement as to when they now intend making it actually happen and ideally by what means as the different options have different tax implications to pi’s and institutions and the uncertainty is likely having a negative impact on the share price in itself. Maybe that is the intention?

My point on a market share buyback or a tender to a lesser extent depending where pitched will not come off the share price , the company is merely buying back outstanding shares to cancel so there is not the ex entitlement adjustment you get with a special dividend. Sure the market cap will reduce but not the share price.

Well they could just do a buyback or tender…there is then not an ex adjustment in the price…it might actually have a positive impact…equally a split share income capital option disguises the distribution more. Only a straight special dividend would directly come off the share price.

Either way we end up with a business valued close to the remaining cash by the looks of things unless they can convince the market that this time there is genuine traction in their products..clearly something the market don’t place any value on at the moment.

Https://www.macrumors.com/2024/02/29/microled-apple-watch-ultra-canceled-for-now/

Who would put up the moolah?

Now , likely private equity if they could take it close to current levels.

Maybe pay 10p out and bid 20p for the operational rump? As things stand I reckon a fair few might not turn that down.

Push the business hard maybe new executives and re float on Nasdaq in a few years if they manage to build a sustainable business with decent market share for multiples of buyout.

If not they have the IP to fall back on and should get a more modest return.

You may well be right Nanonano , LOAM and RG held 38% at peak and could have headed something up with the board…now they dumped so many out not so much..and don’t seem to be buying back in for now however cheap the CEO thinks they are !

Post distribution they should have net £20m and have an IP portfolio worth upwards of £20m on a bad day so could be a good point to have made a move..but was just running something up the flagpole.

Interesting on Osram Apple seem to have backed off MicroLED ..like QDs a few years ago !

I have a hunch there is more to this than meets the eye..they will do the capital distribution in some form sure when it suits them but are they working on a secondary event around the rump of the business ex distribution. It will be a very small company that is fully funded , does it need to have shareholders and a listing? Could they be working on an MBO?? Would that make sense to the executives if not to long suffering shareholders??

Why would a management tasked with ..