Member Info for Kooba

Good find pirate ..do you have a link to the Judgement?

Seems LOAM has failed in getting the case dismissed and it will go to trial.

Be interested in reading the full text.

Do some research sunshine then you might make better decisions.

“..will pursue an ongoing on-market share buyback programme of up to a total value of £3.0 million to provide a continuing value-accretive return of capital to Shareholders.”

continuing

adjective

UK /kənˈtɪn.juː.ɪŋ/ US /kənˈtɪn.juː.ɪŋ/

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happening or existing without stopping:

The fact that the instruction to execute the buyback was given to Cavendisk to act independently to fulfil the commitment that “ will end on the earlier of the date the aggregate consideration paid for Ordinary Shares under the share buyback programme reaches £3.0 million” or the agm in December ..begs further questions as to why it has stopped all activity for almost a month. This is not was was agreed or communicated.

On the basis it is now almost a month since the company inexplicably decided to halt the buyback they committed to as part of the capital return ..that was at the bottom end of what was promised. I just wondered what interpretation others made of there communication on the buyback? Does it indicate that they would just stop for long periods of time before getting half way through? If the price had run away i could understand maybe pausing but it is trading well down on what has already been paid ( value accretively!) ..the idea is that it is in shareholder interests to pursue the buyback..so why has it been stopped?

“…the Company will pursue an ongoing on-market share buyback programme of up to a total value of £3.0 million to provide a continuing value-accretive return of capital to Shareholders. The Share Buyback Programme commences today and will end on the earlier of the date the aggregate consideration paid for Ordinary Shares under the share buyback programme reaches £3.0 million and the date of the Company's next annual general meeting in 2024.”

“Without any prospect of orders ..”

It might be quiet and you might not believe everything the management forecast but i think there is a good prospect of orders and two clear customers they are working with , STMicro and i suspect Sony..who will be the biggest players in SWIR sensors i believe. So although it’s quiet and the timelines might stretch and they might miss their cash break even I think they will get further commercial orders in the near term.

The same fascination that led to many saying the shares would not fall post tender as ther would be no sellers and the buy back would only push the shares higher. Now over 25% down from those heady days only 6 weeks ago and being a shareholder i find it interesting what is driving the valuation of the company. The main factor appears to be the pulling of the share buyback as there is nothing but silence coming directly from the company to give any other influence.

The company decided to pay the minimum pledged as a capital return and keep more cash back than they said they would. They also committed to an ongoing capital return in the form of an on market buyback using £3m than would be value accretive ..on a continuing basis. It has stopped for no obvious reason..even though it is key to strategy and they say is in shareholder interests. You don’t want to know why? Sure it doesn't have an impact on the company delivering on its business strategy but not much to report there after the first commercial order now 7 months ago. Problem is there is not much to discuss apart from the shareprice itself just now …but i find the price action post tender fascinating indeed…and maybe some lessons were learnt by some?

As covered previously the volume was artificially boosted by 30% odd when the buyback was operating. Also when operating correctly working the bid in an order driven market you can advertise size and narrow the spread ( which has been wider than normal past two week) which encourages business. ..so is volume down because they are not operating and boosting liquidity or are they not operating because volume has eased back..maybe a bit of both. What they could do is effectively edge buy level up over a week or so to try to find a better two way market ..like this they will get nothing more done..maybe thats what they want?

Perhaps ,perhaps ,perhaps…lots of guessing and making stuff

But most of it is not how a broker managed buy back is done..they will just keep buying where they can to fulfil the instructions given which were related to shareholders that would be on a continuing basis until the money was spent or the AGM. Normally a managed buyback is agnostic to the price within the limits set out to shareholders and will participate in whatever is traded ..they were happy being a very large part of volume higher up ..but zero at lower levels.

Managed buybacks do not tend to just stop and start unless the shares breach the terms set out to holders..which they haven’t. Also as stated to shareholders there are no limits on the percentage of volume they can be ( most are limited to 20-30% of volume)

So the idea it is to let them find a level..bit late for that. Think they are going down ( algo or otherwise) not their job and a bit late.

Either the instruction was for only £1.3m and is done and yet to be refreshed..not what was informed to shareholders. Or indeed they can”t be bothered on lower volume or better volume days for now.

Either way the shareholders gave clear approval for a buy back and the company forecast a build in revenues and new customers..so they should get on with it if that is still the case as its in shareholder interests to do so apparently.

Truth is there is no obviously explanation for not executing the buy back for a single share in 15 trading days. If there is they should announce why they are not continuing as they said they would,.

All sounds FAB , but begs the question on the “Buy back in progress” part. It’s not progressing is it. For a large part of this month and with all your other positive points why not?

It is part of a committed return of capital and discribed as value accretive ..that means good for shareholders. Assuming Cavendish know the same as you only ..why have they stopped buying?

Knowing what you know and all those positives and having paid over 20p for the benefit of the company and only done 40% odd of the committed capital , would you just stop?

Context is important when trying quote BC..clipped pieces in isolation could be construed as misleading…but maybe you just didn’t read it properly??

“The price certainly should be far more value accretive at 17p than 23p where they previously bought stock. Rather annoying having paid what i consider the wrong price post tender that they are not participating now the price has correctly adjusted ..makes no sense at all and not in shareholder interests as far as i can tell.”

BC…i’d check your own posts too and own them if i were you.

I was referring to the company paying the wrong price post tender…do keep up. They stupidly were paying 23p plus post tender without allowing adjustment and the shares being allowed to find a price equilibrium …i was not buying any there as can be evidenced by my posts ..though i was was told by many i had got it all wrong then and the price would only go up….25% later.

Check my posts if you want to contend..first buy was 19p and have averaged into position mostly below 18p and down to 17p,

I think i will leave it there.

Or, in other words, you thought you’d caught the bottom with your latest buy and you’re miffed it hasn’t instantly bounced.

I prefer my own words and not some silly interpretation as it goes.

Since the stock has done exactly what i thought it would do and i have sold everything a 24p and replaced the same amount more that 6p lower and still have a lump of change ..no reason to be miffed at all..it all worked out pretty well thanks. Just can’t think of a reasoned case for stopping the buyback without explanation for 2 weeks…as i explained in detail.

Failing of that argument is why did they pay 20.6p average fairly quickly and aggressively for over 40% of the funds available post tender without there being a period to allow for post tender adjustment ..but it was deemed value accretive to do so…yet aren't buying almost 20% lower when they have a clear remit to do so. Remind me of Cavendish published target ? I know they are shop so its not an independent target but difficult to argue they think the shares are worth less than 17p when they have a 60p target.

So the takeaway is that Cavendish have decided to stop the buyback in contravention to the shareholder approved capital return to make an on market share buyback on a continuing basis Commencing on 11th April and ending when the £3m is exhausted or at the next AGM.

There is clear market expectation from comms that the buyback would be ongoing and without explanation no reason for the Broker lead buyback should have halted less than halfway into completion. The price certainly should be far more value accretive at 17p than 23p where they previously bought stock. Rather annoying having paid what i consider the wrong price post tender that they are not participating now the price has correctly adjusted ..makes no sense at all and not in shareholder interests as far as i can tell.

Fca handbook on buybacks

Article 4 Trading restrictions

01/01/2021

(1) In order to benefit from the exemption laid down in Article 5(1) of Regulation (EU) No 596/2014, the issuer shall not, for the duration of the buy-back programme, engage in the following activities:

(a) selling of own shares;

(b) trading during the closed period referred to in Article 19(11) of Regulation (EU) No 596/2014;

(c) trading where the issuer has decided to delay the public disclosure of inside information in accordance with Article 17(4) or (5) of Regulation (EU) No 596/2014.

(2) Paragraph 1 shall not apply where:

(a) the issuer has in place a time-scheduled buy-back programme; or

(b) the buy-back programme is lead-managed by an investment firm or a credit institution which makes its trading decisions concerning the timing of the purchases of the issuer's shares independently of the issuer.

https://www.handbook.fca.org.uk/techstandards/MAR/2016/reg_del_2016_1052_oj/chapter-ii/?view=chapter

“As set out in the Circular, the Company will pursue an ongoing on-market share buyback programme of up to a total value of £3.0 million to provide a continuing value-accretive return of capital to Shareholders. The Share Buyback Programme commences today and will end on the earlier of the date the aggregate consideration paid for Ordinary Shares under the share buyback programme reaches £3.0 million and the date of the Company's next annual general meeting in 2024.”

So continuing and will ends when the £3m spent or the date of the next AGM ie Dec.

“The Company has instructed Cavendish to conduct the Share Buyback Programme on its behalf on a broker-managed basis, with trading decisions taken independently of the Company. Due to the limited liquidity in the Ordinary Shares, a buyback of Ordinary Shares pursuant to the AGM Buyback Authority on any given trading day may represent a significant proportion of the daily trading volume in the Ordinary Shares on the London Stock Exchange and could exceed 25 per cent. of the average daily trading volume. Accordingly, the Company will not benefit from the exemption contained in Article 5(1) of Regulation (EU) No. 596/2014 as adopted into UK law by the European Union (Withdrawal) Act 2018.”

The reason for the buyback being independent of the company is so that any potential price sensitive developments would not impede the buyback ..continuing.

In the 11th April rns https://polaris.brighterir.com/public/nanoco/news/rns/story/rdlolpx

So there is no reason why it should have been halted as the £3m not spent and no reason why any potential price sensitive information should have leaked to the broker presenting them continuing their agreement to execute the buy back.

Knowing the share price movements here ahead of news ..and the actual share price performance it seems difficult to think there is any imminent positive news anyway.

So whilst it is of course possible that ‘something is going on doubt it ..and if it was from what the company have told their shareholders it should have no impact on the buyback .

Yesterday highest volume for a few weeks and longer if you strip out Nanoco double count.

It is clearly not a volume thing and definitely not a price issue why they are not “continuing” the share buyback they committed to. The price now well below levels paid ..if they are confident on delivering on their targets and that buying shares above 20p was value accretive why not be participating at 17p to further deliver that value? As said before if they do get further orders or further r &d partner that boost the share price how do they explain the failure to be buying the shares back when they had authority to do so?? I have asked the company last week what is going on..no reply. I’m afraid comms have not improved on a number of fronts.

Well the next step for Apple is Optic ID as used in the pro vision ..where they use near infrared ..but I thought that seemed a dead end for our materials?? Maybe not?

“In the same way that Touch ID revolutionized authentication using a fingerprint and Face ID revolutionized authentication using facial recognition, Optic ID revolutionizes authentication using iris recognition.”

“Optic ID results from the combination of some of the most advanced hardware and software we’ve ever created. When you set up Optic ID, spatiotemporally modulated eye-safe near-infrared light illuminates the eye, so that the Apple Vision Pro eye cameras can capture images of your iris. This iris image data is sent to and processed on the Secure Enclave and a portion of the Apple M2 chip’s neural engine that’s protected within the Secure Enclave, where it is transformed into a mathematical representation for enrollment. When you authenticate with Optic ID, the authentication attempt uses the same process to compare your iris to the enrolled biometric data to determine whether there is a match.”

https://support.apple.com/en-us/118483

Certainly there is selling volume so not sure the old no liquidity is that relevant. The company bought shares at 23.322p which was part of their return to shareholders and value accretive , now 25% lower where are they??