Member Info for Kooba

In the UK, a company seeking to delist from the London Stock Exchange (LSE) requires a special resolution, meaning a 75% majority vote of shareholders who vote in person or by proxy, to approve the cancellation of the company's shares' admission to the Official List.

Here's a more detailed explanation:

Special Resolution:

The delisting process necessitates a special resolution, which, according to the Listing Rules, requires a majority of not less than 75% of the votes cast by shareholders who vote at the general meeting.

So with a majority of shareholders being private shareholders and i presume quite a few in tax sheltered settings that cannot hold private investments I’m not sure a motion to delist would go down that well.

Also the company under the scrutiny of a listing has not succeeded and has burnt large amounts of cash ..not much relatively speaking on the listing or PR ..mostly salaries and failed projects..so no clear path to creating value as a private company but certainly even less accountability. A number of recent investors seem more interested in the listing and cash than the business anyway!!

There has not really been any official update on the ongoing implementation of the strategic review since Nov 20th when the price ran up to 15p post results presentations and director buys..since then nothing. No trading update post half year end ..no updates on the apparently ongoing process to sell all the operations and IP. If there has been a change of strategic priorities under the new Chair and CEO i think they better tell the shareholders because it feels like there has been a change since the end of the year …perhaps they may address the share price ( clearly the senior management thought they were cheap at 14p…now almost half that) and where the company is at in terms of sale and in terms of its commercial ambitions at the end of the month with the interims.

Personally think the share price is a better communicator of where we are!

When there is a challenge they circle the wagons and try to in-still fear in the shareholders base to support them and make promises of commercial inflexion points or strategic reviews and selling the business to see them off…then deliver bugger all. Perhaps are running out of things they think they can magic up now though ! The attractiveness of the company as a cash shall falls on a monthly basis as they burn through the remaining balance sheet though.

It’s like they are laughing at the company that did lead innovation into cadmium free quantum dots…..all the way to the bank !!

Can’t help feeling they are not telling the full story!

“In response to this challenge, Samsung developed and patented the world’s first no-cadmium quantum dot material in 2014 and successfully commercialised quantum dot technology with its SUHD TVs in the following year to open a new era of quantum dot TVs. To this day, Samsung remains the only major TV brand to bring this technology to the market.”

This is a nice read on quantum dot innovation from our licence holder…came out yesterday

https://news.samsung.com/uk/real-quantum-dot-guide-10-years-of-samsung-innovations-redefining-picture-quality-standards

5 months since the initiation of the “at pace” efforts to find a buyer of the operating assets and IP with no official update on how that process is going aside from some comments by the new CEO of strong engagement back in December…the shares have almost halved since then…maybe the market is wrong this time !! Highly unlikely ..the shares are reflecting the reality of the fact the company is of no interest and has very few commercial leads and is burning £5m a year…the market cap is now in line with end of FY expectation of the cash position £15m…small negative enterprise value and back in radio silence.

They are on a retainer with a success fee..

The fact the company has not mentioned anything around the prospect of selling the business and recently focused any comms on the ongoing commercial prospects i think tells you nothing is happening.

They are also advertising for new positions at the company…i would imagine if they were close to any deal they would want to be keeping the cost base tight not expanding it again.

I’m quite experienced in equities…I have never come across a company who is actively trying to sell their assets fall precipitously before announcing a successful outcome that catches the market off guard.

They have been trying to find a buyer for 5 months and there is no clue as to whether there has been any serious interest at all or whether any buyers are in the process previously discribed by the CEO. The company has been effectively been for sale for a while been valued at cash , one presumes no one came knocking. I think the whole strategic review was just trying to get Kilkwood off their back and again promising shareholders an outcome by backing them that they can’t deliver…whether that is commercial success or a sale it keeps the wolves at the door and the gravy train rolling.

When this strategic endeavour fails I guess they will have another one which they have had time to prepare on how they go it alone …..again.

Well normal service resumed under the new management…they put serious money in at close to 14p so are 40% down on their recent purchases so at least get a feeling for the average shareholders plight here.

It would appear from the price that any thought of there being a premium offer for the underlying business was nothing much more than just seeing off Milkwood and the reality is they are just going to try once again to secure some commercial revenues….since just about any serious revenues would likely involve years of development ( apart from maybe the far east customer who is hardly committed to much at development revs of less than $1m a year!) so are we just back to square one …again? Seems that way! Trading with zero enterprise value and little evidence of any prospects of building any revenues.just going to chug through the cash?

Will be interesting to see what they spin with the interims in a few weeks.

I agree on the litigation front Nanonano..when i spoke to the company a few months ago i believe their is one primary potential infringer ( likely the one identified in the breakdowns they did post settlement) and that now they thought the historic level of infringement meant it was worth pursuing …this could still be peanuts relative to the Samsung case. Any litigation funder will look for tens times cost in going legal as a likely reward so the cost of going legal might not support action. They could still try to put pressure on an infringer but how likely that the infringer goes its a fair cop ? They will undoubtedly say see you in court in a year or so ..by which some key patents will be getting very long in the tooth.

Doesnt appear anything soon on the micro ledger front industry wise either

https://arstechnica.com/gadgets/2025/02/an-update-on-highly-anticipated-and-elusive-micro-led-displays/

Obviously something being done “at pace” is not defining a period but is definitely pointing to a process the being quick and not drawn out..what we are looking to achieve is a sale process executed in a less formal way that an official sale process for the listed entity.

“A formal sale process can typically take several weeks to a few months depending on the complexity of the transaction, the size of the company being sold, the level of due diligence required, and the market conditions; with key stages like initial outreach, due diligence, negotiations, and legal documentation often taking the most time. “

So extending to a few months in a FSP…that can be extended assuming there is interest and the process is progressing.

Here with our unofficial process we had already appointed CDX on 3 OCTOBER.

“The Board has appointed CDX Advisors LLC ("CDX") as its financial adviser. Work with CDX has commenced with a view to achieving the best possible financial outcome and to secure the long term future of the Group's IP and operations. The Board reasserts that whilst this process will be undertaken at pace, the Group's considerable financial resources mean that the trading business will continue to be supported to grow and not compromise its potential.”

So coming up to 4 months and not a whisper…have we moved to any more formal DD are potential buyers in the data room…nothing.

Interims out end of March hopefully and maybe after 5 months by then they might have to come clean.

The company has been going to industry shindigs presenting their academic wares for decades with nothing to show for it…going to more will definitely make a real difference.

Sure go to these things at shareholders expense and maybe get lucky …but past experience suggests this is not a business plan that leads to commercial adoption.

The complete lack of update on the at pace sales process almost 5 months from appointing CDX with a mandate and saying there was a clear process and lots on interest in Dec does not inspire confidence there has been any serious interest and that the process is progressing .

The share price is saying not much is going on at all…sale or otherwise.

A line needs to be drawn at some point on their strategic aims..and whether they can meet them…meantime another look at the ongoing cash burn of £5m a year plus needs reviewing.

If the main value is in the Ip maybe such a non productive cost base is an impediment to sale??

Maybe a cultural break in Gaza too before he takes that over???

On nanoco yes there are alternative opinions sammy but i was putting forward mine…your opinion on whether there are leaks i also disagree with this company has often seen price movement ahead of good or bad news..the sharp fall this year down 29% ytd with no new news tells me that there is not going to be any bid materially above the share-price that could be acceptable by the board…why are people selling ?

As to whether there is alignment in terms of what is delivered might be another matter..new appointments may see greater upside taking a long term view and spinning the dice again..most long term holders have had enough of chasing rainbows.

My take on the press release and article is that they are reenforcing the go it alone commercialisation strategy as the sales process is not moving in the right direction.

Saying they are still working with CDX without further comment on a sales process started well over 4 months ago strikes me they are teeing up a no sale …why else the press release all on commercialisation. Probably working out how they spin it and maybe add more detail on litigation hopes. Obviously just my take but it would say that the share price is indicating such an outcome rather than a large premium sale of the operating company and an orderly wind up significantly above the 14p the new ceo paid recently…i top sliced close to 15p and am not that tempted to add back yet…until they come clean on where they are on the strategic delivery.

Milkwood had total of 8.04% through shares and derivatives disclosed end of September any sale resulting in their interest dropping below 8% would have to be rns’d so officially they still hold that amount. They didnt use their whole holding to call GM as you do not necessarilly get voting rights when holding synthetic position like a cfd but you are still deemed to control the holding.

I would be shocked if they were progressing at pace with one or multiple attractive offers and the share price was drifting as it has …

4 months ago

“The Board has appointed CDX Advisors LLC ("CDX") as its financial adviser. Work with CDX has commenced with a view to achieving the best possible financial outcome and to secure the long term future of the Group's IP and operations. The Board reasserts that whilst this process will be undertaken at pace…

4 months and no update apart from some upbeat comments on the level of interest from the new CEO…there was a process progressing interested parties ..we have no idea where we are.

The drift perhaps indicates a move to accept a go it alone outcome to me.

Shares down 22% year to date after the new ceo and chair bought meaningful holdings…not sure the read through of how the sale process is going is that good.

Nice to see normal service has resumed.

“He clearly implied that he expects bids to come in and for something to happen within 12 months.”….not sure my interpretation of what at pace and theirs are aligned.. another 12 months when process has been ongoing for months already and was apparently well engaged does not appear to be at any pace at all.

12 months time…is another £5m of shareholder funds gone.