Member Info for Lothbury

Well Citi.. it’s like this: if there isn’t aftermarket support then the sp will halve . It’s up to the Board to ensure the new shares are locked-in from selling and flooding the market & for the Board to make arrangements for purchasers to be on the sidelines mopping up any sales. Citi; may I suggest you speak to your Stockbroker about the format of the deal and what they would expect the opening SP to be. Then please publish their advice here. Thank you.

RT003 : please explain.

There’s a plethora of regulatory matters that have to be done to the satisfaction of the LSA Admissions Secretariat before re-admission. I could see this remaining suspended for at least another 4 weeks until everything has been approved and agreed (including the valuation of Estadio by the Independent Directors and the company’s advisers who are there to protect us shareholders). Pure speculation that there is a problem.. God help us (the sp) if this doesn’t go through..

Morning Amtech : played Parkstone yesterday .. nice track; Greens a bit fluffy; great first floor balcony with views over Poole Harbour. Tough Par 3 18th..

I see my analogy to Robert Maxwell has been removed… and as for me operating with multiple names / that is so untrue and trying to disrupt fair and reasonable comment that RT003 and others don’t like. Please get hold of LSE managers and ask them if Lothbury operates under any other alias.. so, Citi and RToo3.. why don’t you engage is engaged and sensible debate rather than trying to post untrue statements that have absolutely nothing to do with the real debatable issues?

Because Citi; should the current shareholders of MoS agree to such a huge dilution to purchase a company that has no trading history? What will the share price be at resumption of Listing? If MoS were to diversify out of gambling in a years’ time … could they, realistically, get £60+ millions for the Estadio subsidiary? As you won’t elucidate on the “numbers”, I have reviewed the effects of the RTO and I am satisfied that the Mexicans (and the large purchases made by our EU friends) will end up taking voting and de facto Board control (if they so wish) of MoS by selling a company to MoS that has no trading record and a dubious basis for the valuation of Estadio. But, as I have previously said, much will depend on the basis of the independent Directors valuation basis for Estadio and any trading forecasts for both companies. I hope there will be a body of ready investors wishing to mop up any loose shares when trading restarts so the closing sp is supported and even goes up…

I agree “Leothecat”it’s a wee company becoming a fair sized sme. This company was going nowhere very fast. The Abdullah’s then put their own money to enable Petards to survive. They have been battened against many odds including the downturn in rail orders & Covid. It’s all turning round, be it much slower than many shareholders had hoped for. I suspect their new acquisition will prove to be financially exciting and I anticipate more company purchases with minimal shareholder dilution. Rescues and turn-arounds take time and effort.. we will be able to gauge the success when the next Trading Statement is released.

Rather than firing back quips like “do your maths or read this and that…”; Perhaps, Citi, you could enlighten us with your maths and be proactive and constructive? In doing your “maths” please be mindful that you do not get 100% shareholder turnout i.e the norm is that a company will only have about 82% of the available votes cast. That means the large block shareholders have a greater % of the votes cast. I m also mindful that this RTO helps Estadio because as of 2024, the Dirección General de Juegos y Sorteos (DGOJ) mandates that operators maintain audited capital reserves of at least US$2 million. Being a subsidiary of MoS this should now be achievable rather than the Mexicans having to subscribe to Estadio to establish the capital requirements.

Citi .. thank you for your clarification about the Reverse TakeOver and Suspension (which we both now agree upon) and clarification of where we may differ in our views. Your contention seems to be where voting control and, inter alia, Board influence will be after the transaction is completed. Firstly, let’s look at definitions. A RTO is a process whereby private companies (Estadio) can become publicly traded without going through the initial public offering and extensive dd. So, one has to question if Estadio were to seek an AIM Listing in its own right : would they be able to attract a valuation of £60+ millions? Now that the Mexican shareholders in Estadio become the single largest shareholder in the enlarged MoS .. they have taken control through the back door on a valuation that beggars belief and agreed between joint shareholders (the Mexicans and the Board of MoS). So far I can only see the justification for this huge valuation as a couple of magazine articles by an Argentinian company that covers South America and Mexico. So, the document to shareholders seeking their approval will be interesting when it comes to the valuation of Estadio. Mos have an option to acquire the Mexicans’ shareholding in Estadio. Perhaps we should wait to evidence the traction, income and profitability in this start-up before taking this huge leap of faith and hope in the future of Estadio and Mexico’s gambling addiction? However, my research shows that the Mexico gambling market was valued at US$ 11.37 billion in 2024 and is expected to reach US$ 40.64 billion by 2033, growing at a CAGR of 15.71% during the forecast period 2025–2033. Let’s hope that MoS can attract a large chunk of this business (this report was done this year but before Trump started to throw his toys out of the pram). Of the US$40 Billion the casino income represents 44% with a Compound Annual Growth rate of 15+%.

Good morning Citi : I was getting concerned that my analysis of the Suspension may have been wrong and/or misleading (judging from yours and others comments). I find it amusing that you won’t tell us all why my analysis is wrong so that we all understand what is happening and why. I said that the shares were Suspended as the deal was a “Reverse Takeover” and Rule 14 applied. According to you and others; I should get my facts right. Well, I have done just that and below is an extract, which I found this morning on the London Stock Exchange site, that supports my previous analysis and comments. If you feel that I continue to be incorrect or even the London Stock Exchange is incorrect : please let us ALL know why and your reasoning.

“…The Proposed Transaction, if completed, would constitute a reverse takeover under the AIM Rules and accordingly the Company would need to apply for re-admission of its shares to the AIM Market ("AIM") of the London Stock Exchange following approval of the Proposed Transaction by MOS's Shareholders at an EGM...”

Have a nice week..

Well Citi .. why don’t you tell us all as it seems you are harking on about my misreading of the Rukes..

Good morning. Citi, you are partly correct. The Board have no option but to suspend the shares as is required by their Listing Agreement with the London Stock Exchange under Rule 14. Mos acquisition of the interest in Estadio they don’t own represents 39% of the enlarged company on valuation basis… the balance of 74% represents £46.5m on the valuation. The question is … do the Mexicans or their “ friends” own more than 12% of the enlarged shares excluding the Settleemnt shares?

Morning Citi ..so we can all be enlightened about RTO’s; please elucidate on your comment that my posting is rubbish and where my comments are incorrect please.

It’s been Suspended at the request of the Board of Directors of MoS in accordance with the London Stock Exchange rules because this is a “Reverse Take-Over”. The effect of this purchase of Estadio means that control of MoS is now with the owners of Estadio and not the current shareholders. A Circular will be sent to us with an EGM Notice to approve (or not) the deal. If you approve then you’ve lost control of MoS .. it’s the Mexican’s plaything from then on. I’m hoping that the Circular to Shareholders has a robust case for the valuation of Estadio at £62million or they have people who will buy the stock that gets offloaded when the Suspension is lifted. This is Wild West time ….!

The combined Market Cap and valuation of Estadio Gana is £121,000,000. Let’s hope that Yogonet Gaming News article about the future of the Gaming Industry (and the lawyers political commentary, on Gambling in Mexico, in Yogonet’s 13th December 2024 edition) come to fruition and that MoS will be able to attract a significant part of the upturn to underpin an enlarged valuation. This is a “Reverse Take-Over” where the Mexican’s will be the largest and dominating shareholders. I doubt they will agree to allow existing MoS shareholders to buy any of the shares to be issued, as payment consideration, so that we can maintain our position rather than see a huge dilution. It all comes down to having a line of excited buyers to prop up the share price at the Suspension price and MoS will now have to prove its profitable and pay dividends (the hope value SP premium has closed with this transaction and valuation).

You’ve hit the problem in one sentence. Trump is crippling big companies and gold is now, for the first time, over $3,300.. Trump has taken on the Chinese and will loose : China is already crippling the world order in trade. Flew back yesterday and had a long chat with the CEO of one of the World’s largest data centres (USA owner but international). With the new license required for Nvidia to sell their chips he reckons a part collapse in A1 investment and huge cost increases. As an example : a data centre is 100,00+sq.m. They need a huge amount of steel to build these new data centres Trump wants in the USA. But the only places to get the high grade steel is Mexico and Canada…! So, to MS.. everyone is going to be cash flow poor.. we have seen a huge amount of tightening of domestic spend (now saving). I just hope that the Mexicans don’t care about anything other than spending their hard earned income on gambling…

Citi : it was tongue-in-cheek comment but, seriously, you just can’t trust what Trump will do next. Global recession; stagflation.. all very disheartening. BUT: trust gold - not the mighty Greenback.

All depends on what Trump says ..!!

The big question : Will the enlarged command have a market cap of £120 million?

Wait for it… the Mexicans or Swiss Fund Managers will subscribe, at a discounted sp and with an Underwriting Fee, to a Placing to cover the Take-Over costs. We will have a huge share base to be satisfied by MoS meagre profits … unless we can see the Mexican venture to suddenly be seriously profitable. The EGM document will be interesting reading.