Member Info for LOTM-13

Hi gggg21,

Both Sure Ventures & MFAI, will have received there Getvisibilty cash, they've already told the market the amount they were going to get, if it hadn't happened or the amount had changed materially, they would have had to tell the market. Neither has said any more. You'll get an update from both companies in the coming weeks.

Yes that exact article is why is there was a very cautionary note to the foot of my post of 7th June 19:39 etc.

Which is why having that cash backing of £2.6M plus possibly £0.15M from a Sure Ventures dividend is good to have, given MFAI is currently valued at under £5M.

Its also part of the reason (the true value of IR) that made Sure Ventures discount its own valuation of IR by 20% when calculating its quarterly valuation at the end of January.

https://www.cbinsights.com/company/infinite-reality/financials

With IR (Napster) not intending to IPO until 2026, it is going to leave a lot of room for speculation as to its valuation until then, that's for sure, a real risk verses reward situation.

Someone believed in its valuation enough in January 2025 at a price tag of $12.25 Billion to plough $3 Billion of actual cash into it...... 6 months after someone else put in $350M of cash at a $5.1 Billion valuation - the same valuation that got Landvault its $450M price tag.

So everyone is going to have to make up there own minds as to its actual value.

LOTM

The smart thing for them to do, would be to start doing a share buy-back right now.

They could use some of the cash from the Getvisibility sale to buy back up to 10% of the shares currently outstanding. Even if they started with just a £0.5M buy-back program (out of the £2.6M received) that would reduce the current 544M share count by quite a bit. They might even get that number down to close to 500M shares.

Then they could do one of 2 things once there results come out depending in which is more tax efficient for them. They could then declare a dividend of X amount followed by a share consolidation that accounts for the amount paid out (as an example a dividend 0.2p per share & the share price 1p the share consolidation would be 4 new shares for every 5 currently held). Or if a capital re-payment is better taxwise return 0.2p per share that way & do the same share consolidation.

That would distribute about £1M to share holders on top of the £0.5M share buy-back & leave them with 400M shares in issue.

I know lots of people don't like share buy-backs etc (& I hate share consolidations other than done this way to ensure the share price reflects what would have happened normally), but in MFAI's case both of the above actions will enhance the NAV of the remaining shares substantially. It will also boost any further valuation gains from the portfolio during the exit phase even more.

They can then put in place another share buy-back program & either just buy back more shares or use set parameters that activate it, like if the MFAI share price is below X price they buy back the shares or if the company's share price is at a discount of over X% to its NAV figure the buy-back kicks in.

LOTM

Been doing some more digging around regarding Napster ( Infinite Reality)

https://www.youtube.com/watch?v=u3idIYL98S8 from 2 months ago CEO saying no IPO until 2026 !

https://www.youtube.com/watch?v=P-sjvgCHOJc from 1 month ago talks about the $15.5 Billion valuation

https://www.youtube.com/watch?v=ZIiubPFYPhw building an HQ in Florida.

SVV1 had a 7% holding in Landvault before it was sold to IR (Napster) with Sure Ventures owning 25.9% of SVV1 & MFAI owning 23.8% of Sure Ventures as well as its own 13% direct interest in SVV1. Giving it a blended holding of 13%+5.3% = 18.3% in SVV1 (increased slight by the further purchase of shares in Sure Ventures in August 2024).

This was when IR's (Napsters) valuation was increased to $5.1 Billion.

Based on that valuation, the disposal had the potential to generate proceeds for Sure Ventures PLC of circa $ 8.3 million depending on the value of iR shares. For Mindflair proceeds of circa US$6 million depending on the value of iR shares for its direct holding. Which if you then project onto the blended figure would come out at about $8M to MFAI at the end of the day.

Or if you want to look at it a different way MFAI effectively owned just over 2% of Landvault (18.3% of 7%).

So if Landvault was valued at $450M out of $5.1Billion IR (Napsters) valuation at acquisition then it made up 8.8% of the overall total. Therefore MFAI's holding in IR (Napster) was effectively 0.1765% of it (2% of 8.8%).

Given the acquisitions made since then by IR (Napster) for equity as well as the & $3Billion funding round, MFAI's effective holding in IR (Napster) will have been diluted further, but there is no way of telling by how much further. In the meantime IR ( Napsters) implied valuation has risen 3 X ( if you use the $15.5B May figure) or even more if you use the $18 Billion figure that is being talked of as part of this supposed June dividend distribution.

I'm pretty sure the dilution suffered will have been less than 100% on the IR (Napster holding) but have no idea how much below that figure you can risk going, so will stick with it until more information becomes available. Even with that 100% dilution on the $15.5 Billion figure it would mean a 50% uplift to the original implied proceeds figure to MFAI of $8M. Meaning IR ( Napster) would yield proceeds of $12M plus to MFAI ........ but caution needs to be applied given the scepticism out there regarding the true value of IR (Napster)

LOTM

Hi Schlum,

No, the last financials said they had £2M at the end of Feb 2025 & an annual cash-burn rate of £3M (£0.25M a month effectively).

I accounted for all 3 things you listed in my current £0.5M figure.

So the £2M means an 8 month runway to end of October & the £0.5M would add 2 more months onto that taking you to the end of 2025. However you need to also factor in redundancies in case they couldn't fund the business going forward etc & the cost of extra staff being taken on due to the workload.

With an annual cash-burn of £3M+ they need to get repeat revenue cash of £2M+ coming in to cut the shortfall to £1M or under otherwise we'll be looking at share placings etc which will dilute investors shareholdings significantly. The bigger the gap the worse the placing terms would be etc.

LOTM

As to the NAV figure, it would currently have a pretty wide range because of Napster (Infinite Reality).

If you go by the basics, the MFAI is valued at under £4.5M & will have current cash of £2.6M plus another possibly £0.15M from that future Sure dividend.

Sure's share price of £0.85p means MFAI's 1,816,790 shares are valued at £1.54M on that basis not on Sure's NAV.

The value of SVV1 is anyone's guess currently & as it moves up/down so does that of both MFAI & Sure.

Napster in Sure's Jan update was valued at $12.25 Billion in there calculations, but they also discounted that $12.25 Billion by 20% since then the implied value of Napster has apparently risen to $15 Billion & if the $18 Billion talked about for June 2025 we're to be true then another up lift to the SVV1 fund would be coming (provided there is any liquidity for the fund to exit through). If it turns out be valued at under $10 Billion then SVV1 might have to lower its own NAV figure accordingly.

An interesting few days / weeks ahead a real risk reward situation, but with cash backing thanks to the Getvisibilty sale (rather appropriate name in the circumstances)

LOTM

LOTM

Could they get around the rule by having JD Sport buy it directly instead & thus be able to offer a much lower price for it I don't know

LOTM

Now known as Napster....... B_Positive

No I hadn't forgot about it at all, or MFAI's other 2 direct holdings which aren't part of SVV1 as far as I've gathered from my research to date, so no way of telling if they have been told to find an exit strategy or not yet.

However Napster is controversial to say the least, is it real or not? I guess that question might get answered before the end of June or it might not. Its proclaimed its going to pay out a big dividend etc in the next 2 weeks without providing any further details.

LOTM

TTS,

You can't "offer" to buy the company for less than the highest price you bought shares for in the last 12 month's. So that November placing bites Pentland in the backside in that regard. They could buy stock in the open market to get to 30% before making the offer which would lower the overall purchase price slightly & then they still need to fund the business going forward as well, but that wouldn't be an issue for the family who control Pentland.

LOTM

B_Positive,

It all depends on the sum of the many parts !

They should have quite a high cash balance currently, unless of course they have started to re-invest some of the £2.6M they received recently (or need it to fund commitments already entered into regarding SVV2 & SVV3).

The other key point is that SVV1 is now in "Exit Mode" to quote a director of Sure Valley, so that means that the 10 existing investments in SVV1 will have been told to either seek a listing somewhere so the seed investors have an exit route available to them or to seek out a buyer for the business again so the seed investors can exit or find a different group of ii's who fund mid stage development companies by giving them additional funds & buying out the seed investors at the same time.

How much more or less these 10 investments end up realising compared to there current book/carry value is anyone's guess.

LOTM

TTS,

Yes I'm sure Pentland are one of the parties they'll be speaking to along with several others no doubt, but I don't see Pentland buying them because they would have to offer 11p a share minimum because of AIM rules.

We will hear something soon because they are going to need cash from somewhere to run the business before the end of June.

They can't do a placing or right's issue until the strategic review is over either.

So that would leave them the option of borrowing money from someone in the meantime to keep the business running while the strategic review continues beyond the end of June.

A big 3 weeks I'd say, where good or bad news could come out. Fingers crossed its good news & soon

LOTM

Sadly No interest from investors TTS, THRU is currently totally forgotten about & off everyone else's radar's as is the way of things.

There going to have to say something via an RNS soon because there cash runway is running out ........ tick tock

LOTM

Hi All,

Only found Aptamer last week, really like what I've seen so far & have bought an initial holding which I will try & add to when I can.

At the moment doing the sums, with the £2M of cash at the end of Feb 2025, plus the announced deals which will likely contribute another £0.5M+ to that amount, that currently gives them a cash runway to around the end of November 2025.

There 1st goal has to be to build up the repeat business so that revenue covers there annual running costs or at least reduces it dramatically to under a £1M net difference by the end of Jan 2026. Especially if they are starting to hire staff again to deal with the increasing workload that the business is generating with all its activity & thus increasing that £3M burn rate.

So I would like to see at least another £0.5M of cash producing deals announced in the next 3 months & at least £0.75M of cash producing deals over the following 3 months as well. If they can achieve that then they really are on tract towards break even at some point in 2026 & that's before taking into account future royalties.

LOTM

This might be of interest once its available to listen to ............ I mean we're going to hear directly from NEXT

https://www.linkedin.com/posts/thruvision_our-very-own-stefan-hale-spent-yesterday-activity-7336657711750606848-U2ms

Our very own Stefan Hale spent yesterday evening in a London studio with Professor Emmeline Taylor PhD and Steve Teatum recording a new podcast about internal theft in the retail sector for the upcoming Retail Crime Uncovered series. Can't wait to hear it!

Victoria Balchin

CEO | CFO at Thruvision Group Plc

11h

With Professor Emmeline Taylor PhD, Steve Teatum from NEXT and Thruvision's own Stefan Hale to record a podcast focused on internal theft for the upcoming Retail Crime Uncovered series. Also great to meet Sinead Garvan who is also featuring on the podcast. Coming soon...

LOTM

YTeeBack,

From the 10th April RNS

"Mindflair plc, the company investing in next-generation technology focused on AI, is pleased to announce that further to its recent announcement on 10 March 2025, the sale of Visibility Blockchain Limited ("Getvisibility") to Forcepoint, a global leader in data and cloud security, has now been completed and it expects to receive £2.6 million from the sale shortly. "

The transaction completed, therefore cash from it went to all of MFAI, Sure & SVV1 accordingly, they don't have to tell you its in there bank accounts, if they hadn't received it they would have to tell the market as it would be a material amount of money.

I'm sure you'll hear a lot more about it in the next month via MFAI's results & Sure's NAV update & the results in late July.

LOTM

Hi Rebs438,

You forgot to include the dividend that they will eventually be receiving from Sure Ventures from there 23%+ holding of it.

So of the £1.52M SV will get it will likely take £0.5M to pay off there loan & the interest on it, if you then allow another say £0.3 -0.5M for working capital etc then that would leave them between £0.5M & £0.7M to pay out as the dividend of which MFAI would get 23% of it & by the sound of it other payouts might be in the pipeline to .....

See the announcement below for confirmation details if you want.

https://www.lse.co.uk/rns/SURE/cash-sale-of-getvisibilty-yjgla3o6vjuqtep.html

"However, the Disposal is expected to generate a gross cash inflow to the Sure Ventures PLC of £1.52m"

"Sure Ventures PLC will use this cash inflow to pay down the debt drawn from its loan facility, ensure sufficient working capital is in place to continue its strategy and then look to pay a dividend to shareholders. This will be in line with the expert tax advice sought and rules relating to its investment trust tax status.

Gareth Burchell, a Director of Sure Ventures PLC, said:

"This is an excellent result for Sure Ventures PLC and its shareholders. We would like to congratulate the Sure Valley Ventures team, the founders of Getvisibility and all connected with the execution of this sale. The proceeds will be used to clear down our debt, keep cash to avoid shareholder dilution and then pay a dividend to shareholders which the board will announce in due course.

Importantly, the message we wish to send shareholders is that SVV Fund 1 is now in "exit mode" and now we have cleared our debt and made provision for the future, any further exits will see increased returns by way of further dividends"

LOTM

TTS,

It might be down to my dyslexic writing style as well.

LOTM

TheTradingShack,

I'm absolutely not trying to insult anyone.

There is no better place to try out such technology than a location where people are very resourceful in trying to find ways pasts obstacles in them doing so, if you can fully pass that test your onto a winner.

No-one knows the success rate of Series 81 or when there are failures whether that's down in part to the technology needing more refinement or operator error etc etc.

We all await news & there are no games.

LOTM

Hi Bobat123,

You've been around long enough to know that Investec are a MM in THRU's shares, all they do is report every trade they carryout, they're simply making a market in the stock, they are not building a holding in the company or anything like that.

This needs news & volume to move it ............ no sign of either happening currently.

TheTradingShack,

I think you need to re-read the post ....

"We are excited to announce that this week saw the installation of a Thruvision 81 Series system for the first time in a UK Prison.

The deployment will be used to screen inmates for contraband and weapons, to disrupt their movement within the prison and make it a safer place for both inmates and staff.

Thruvision 81 Series is perfectly suited for use in prisons and custodial facilities:

・Detects metallic and non-metallic items concealed in clothing including drugs, weapons, cell phones

・Supports rapidly deployable ‘pop-up’ screening at different locations within the facility

・Completely safe, respectful and compatible with GDPR – can be used to screen juvenile subjects

・Detection-at-Range technology keeps staff and inmates safe

Thruvision has already been deployed in a European prison service since 2022 and has been successfully used to make a number of seizures of contraband."

They talked about moving it around inside the Prison, they may on occasion screen those coming to visit people inside ( or the prisoners as they are about to leave the meeting area, but my view is its to disrupt the movement of anything already in there until it is used up or found via the Series 81 screenings.

LOTM

TheTradingShack,

Its only a deterrent as long as it catches people if no-one is getting caught then those who have managed to sneak something past it will know it doesn't work properly & it therefore over time is no longer a deterrent as word of mouth about it spreads :( ...... you want the exact opposite to happen then people will be much more wary of being caught. It also depends on the consequences of getting caught. If it only adds a few days to a sentence or such like then there isn't much incentive to not risk doing it again is there.

Anyway I hope it does its job properly & gets installed in a lot of Prisons & other places to

LOTM

TheTradingShack,

Yes I know it was installed (or rather located since its totally mobile) within the Prison 2 weeks ago.

My questions was ........ is it performing as expected ? has it caught anyone wrong doing / or caused the movement of illicit goods to slow down dramatically compared to before it was put in place ?

Those are the questions investors want to know the answers to, because if the answer to both or particularly the 2nd one would mean that the likelyhood of the 81 series being rolled out to a lot more of the UK Prisons increases substantially, if its not making much of a difference then why would the prison service want to spend more money expanding the operation, it wouldn't.

The outcome of these 1st few weeks of its installation might have a big bearing on the outcome of the strategic review especially as the company only had an announced cash runway to the end of June etc.

LOTM