Member Info for LTbeliever

Good point MInded.

High Reward-High Risk; most PIs here have been burned (more than once!) but someone, starting from a zero base, can afford to take a small punt.

The Co saves money for its clients, providing a hard-to-get service (micro-engineering); it has potential financing issues (and possible dilution) and a crooked CEO and not-so-diligent NED (who is already down by over 300k).

So, as Newuncle said, Caveat Emptor.

A lot will be clearer in 2-3 days, when the AFS will be released.

The mkt will judge these and the SP will react accordingly.

People can then decide whether to get out (those still left standing), or get in. IMO

Mkt cap is now 600k appx, if SP rises (for whatever reason) to eg 2mln, and funds to be raised are - say - 500k, then that's a 25% dilution. That's a good scenario BTW.

The irony is, the higher the SP goes, the less dilutive any potential fund raising would be, hence the more the SP should rise if the Results and the Outlook are good.

As a way to make amends, Gerry should exercise his options now, at 0.10, inject cash in MSYS and suffer an immediate 90% loss; sounds fair, doesn't it?

I guess all that remains now is to see Gerry being dumped in a police van for fraud (stealing MSYS cash to cover up his accounting fraud at DVRG); NBurton locking the van door as a "thank you" for losing him 96% of his 200k investment.

BTW 277mln shares dumped at 0.07 (4% of the co) must be a big reason for the crash; my only question is, who bought them?

MSYS doesn't have the cash, Sol, and DVRG may still have other skeletons in its closet.

Best solution is for someone big to buy MW's business soon, DVRG's administrators to start repaying MSYS debt, and MW to continue in business.

NU,

The RNS qualifies the "need to raise funds", they assume the worst case scenario i.e. no sale of DVRG's businesses.

It's quite reasonable though to consider that DVRG has been trying to find a buyer for Labskin since February and MW from April; given the right price, a buyer could yet emerge.

Sol,

MW/Glanaco have various long term contracts out there, and to deliver on these MSYS' services will be required (on 30 day terms). We have to see if Niger and Gerry can negotiate a decent repayment deal IF someone buys MW's business.

For me, the most important thing is that the Auditors will issue unqualified (on going concern basis) Fin. Statements for 2022 and also going forward to early 2024; it means that MSYS can cover it s running costs on a month-to-month basis.

But as they say, the devil is in the details so let's see by the end of this week.

As a minimum, GJB and NBurton should waive their Directors' fees for 2023.

From mid-April to end May, MSYS has used up 150k cash, i.e. 100k per month. Assuming we will get the 200k R&D refund by September, this gives us about 8 months of cash (excluding cash inflows from "the pipeline having grown substantially since update on 18 April 2023, excluding any prospective revenue from current DeepVerge contracts.").

Also, very importantly, MSYS "expects to notify, later this week, its accounts for the year-ended 31 December 2022 with the financial statements having been prepared on a going concern basis."

3-4 more days to wait.

DVRG - "The Board has therefore taken the decision to no longer support the ongoing costs of these businesses, and is seeking to realise whatever value is possible through the sale of one or more of the Labskin, Modern Water and Glanaco business units."

Let's hope they can sell it fast, and pay MSYS some of the debt...

At least the AFS will be released on time for MSYS so we can look at the Revenues and profit margins.

GJB has presided probably over the quickest destruction of shareholder value in the history of AIM!

And put MSYS in grave danger. What is NBurton doing?

Anyone would, koz we'dn't be lining our own pockets!

NU, this is from the H1 22 interims:

"Statement of Cash Flows: Cash fell £902,136 from £3,464,876 at 31 December 2021 to £2,562,741 at 30 June 2022.

The main... reduction was due to cash used in operating activities... increased to £997,506 ....Cash absorbed by operating activities before working capital movements improved by £309,342 to £579,451 ..... However, this was offset by working capital movements amounting to a net increase in cash absorbed of £418,055 .... The largest component of the working capital movements was due to an increase in trade receivables by £485,413..."

So, cash for opex in H1 22 was 579k, i.e. about 100k pm (excl. Wcap movements); I'd assume that (ignoring DVRG issues) oper. performance in H2 22 and H1 23 cannot be worse than that; hence why I say that MSYS could be at least at cash B/E on a monthly basis, now.

NU, it'd be higher.

Remember that at 30 June 22 (see interims), DVRG owed MSYS 600k, and 31 Dec 22, it owed 1.5mln (down to 1.4ml in Apr.23); meaning that out of the cash outflow of 1.76mln, over 9 months, 900k was used by Gerry to finance DVRG on the sly; so, ignoring other WCap spending (eg stock building or Trade Creditors' increase other than DVRG eg Kingfield), the opex outflow for 9 months was a maximum (could be less) of appx 900k i.e. 100k per month.

This also assumes (so things can be even better) that there is still a net cash outflow monthly; with GMargin at 60-70% and credit terms of 30 days, MSYS could be even cash positive on a monthly basis.

But, alas we need the RNS to confirm it.

Delays probably due to DVRG debt? DVRG has been paying a small amount monthly since January, should we assume it will stop now or soon?

Would MSYS prefer to suspend shares or release AFS with a big provision for the DVRG debt (which may or not, realise)?

Or is the delay due to Auditors having to decide whether MSYS cash/order book /expenses still allow a going concern status, minus all the DVRG debt?

NU,

Yes, 2mln was just the pipeline (Q1 remember, so could be 4mln for H1, some of it turning into sales) but unlike DVRG, selling equipment and systems that need months for completion, MSYS sells - under the new model - mostly services (recurring) that save money for its clients.

But, only the Audited FS will shed light on these matters, if and when we get them.

At this SP level, and low volumes, it doesn't take much to move the SP; there's probably a big SELL order pending; question is, are people selling due to fear of what's to come, or do they know something else?

Gerry is damaged goods in the City so nobody would touch him with a bargepole, let alone finance him to buy MSYS or finance any of his future enterprises. NB is already down 80% since 16 months ago when he sank 200k in MSYS;

Therefore, I still think (very low probability though) that MSYS is Gerry's last chance to make some money (as a CEO and a shareholder) before his retirement; the only way to do that IMO is to keep MSYS public (if possible - we will soon know) and to make it profitable this year (which was very realistic before the DVRG debt "revelation").

Few days more and the mystery will clear.

Let's not worry about things we cannot control i.e. everything :)

Clock is ticking, tomorrow morning it'll be 7 days to 30 June.

IMO, if we get the audited FS released on time, it will be a huge relief for the Mkt and s/holders; it will indicate that MSYS is still a going concern, irrespective of what happens to DVRG's debt; I suspect the delay is due to the DVRG F..k up messing up our audit.

Existing holders can either sell out, average down, or stay put.

I see no other alternatives.

Yankee,

The devil will be in the details of the RNS, if issued...let's cross that bridge if and when we reach it.