Member Info for LTbeliever

https://www.investegate.co.uk/deepverge-plc--dvrg-/rns/1st-uk-deployments-of-microtox-pd-in-wastewater/202203280700081523G/

I think GJB has not realised that cost of capital is rising and focus should be on liquidity and cost-reductions until 1-2 big products take off.

Maybe someone who thought he had an inside tip? But traded too early?

I hate to be a spoilsport but I'd guess volume is too low to trigger their limit orders and/or algotrading. IMO
We shall test my theory at the next positive RNS.

Maybe the buyer is Helium, NU? They changed their mind :)

DRB,
i think the order (sales, to be clear!) is for kit of varying sizes and therefore sales prices; this is why the Co needs to wait for mass production first (of the miniaturised kits in Cork) before delivering (and this is the biggest risk IMO i.e. non-delivery); if it was the standard type/size, it would not need 7-8 months for delivery.

As per the RNS, these are real orders; the only question is, will DVRG be able to produce and deliver the order to the clients by the end of this year? A lot rests on the mass produced Mtox PDs, earmarked for production by "end of H1" ie by June. Let's hope for no further delays.

the geest of it is - we need both orders and Revenues, asap.

Yeap, but that's for delivery in the current year (i.e. up to end of 2022); last year this RNS would have kicked the SP up by 20%, but in this climate of "shoot first, ask later", the market wants to see the cash flowing from deals; this is the difference now, the market is more demanding.

I think the market is treating all jam tomorrow stocks with a huge pinch of salt; until last summer it was ok but since then we have had 50% or more drops on most tech stocks etc; DVRG is treated as such UNTIL such time it has some real revenues to show; unfortunately, the market (and investors) are losing patience because we are getting a lot of hyped news but no real substance (revenues).
Until this changes markedly, the SP will stay in the doldrums; but, if revenues are forthcoming, a quick rerate is not out of the question. IMO

RB,
Last available figures (H1 21) indicated 130k in service and consumables i.e. average of 20k+ per month; however I have reasonably assumed that Month 6 sales' figure is much higher than M1. So, again assuming that eg M1 had sales of say 10k, M6 could have had sales of 30-35k. Therefore, monthly revenue in 2022 (Service/consumables) could easily rise to 50k now, rising more in H2 as more units are installed (eg water mon.).
Consumables will rise, steadily IMO, month to month, because a) more units are sold so the installed base increases on a cumulative basis b) the more uses are created for the units, the more consumables required;
I think that both MSYS and DVRG are moving to a service model so probably DVRG will prefer to pay a fee to MSYS, rather than a lump sum for the units, so we will see in May if gross margins are rising.

My wishful thinking re the lack of RNSs is the following:
1. there is already a steady stream of service fees, maybe 50k monthly (extrapolating from H2 2021), hence the lack of an RNS;
2. Similarly, re the 5mln MWater order, over at DVRG, I would assume that - in anticipation of the mass production launch in the next few weeks there are regular small orders/purchases by DVRG, not big enough to warrant an RNS but rather substantial cumulatively. All IMHO of course.
3. Or absolutely nothing is happening (!!) in which case why would Nigel spend 200k of his precious cash?

I emailed them over the weekend.

https://www.bbc.com/news/science-environment-60761972

what is MSYS' team (not) doing about this?
We should be on Sky news, informing everybody about our services!

PC, thanks.
And don't forget that MSYS is also moving to a service fees' model;
For example, DVRG announced recently that instead of selling kit for 1m USD, it would receive USD2.4 mln over 5 years, it shows that you have a captive client for longer, and for higher margins.
I will not be surprised when we get news on Revenues, we will see higher margins for MSYS and a higher proportion of service fees Vs one-off kit sales.

NU,
I understand you...but 25 mln is the facility, hence the commitment by the lender; DVRG are using 4mln so far.
Yes, high interest but at 12%pa, if all facility drawn down, it means they wait 8 years just to get their initial loan back from DVRG. So, the lender bears a lot of risk if they get it wrong - IMO

Just bought another 2mln for myself...DVRG borrowing 25 mln (RNS today) means that production of Microtox PD will be ramped up big time in the next few weeks; I assume with orders in hand, meaning orders for MSYS too.
I'm biased of course but if DVRG is ordering small but regular lots from MSYS, gearing up for April's launch, I would assume that no RNS needs to be issued, right? Big assumption on my part of course - DYOR

People are scared to invest 2-3000 quid in DVRG at SP of 12-13p BUT someone is lending DVRG 25 mln UNSECURED (albeit at 12%pa); with a war going on in Europe, interest rates going up, liquidity drying up globally etc.
Either the lender is clueless to lend to a firm with no profits OR...they have done their homework and know they will get their money back...with lots of interest AND/OR equity participation.
If this is not Bullish, I don't know what is!
GLA

Pluses
1. Confidence of Lenders - they have seen numbers, projections etc before parting with 25 mln
2. Zero risk of dilution
3. No time wasting by management worrying about cash raising
4. stronger negotiating position when dealing with counterparties

Would be nice to know if Glenn's Share options are still valid or not. Plus, news of a contract or two.
At least we are saving 3 months' of Glenn's pay, but I can't say if good or bad right now.
Increasing NEDs in the BoD and adding expertise should be good I guess. Especially if they buy some shares! :)