Member Info for m007j

Is this a tree shake by market makers?

We said Harps! People who say negative things should not be allowed to post. Only positive comments needed - makes for a better discussion.

We need to hear from davethechef on this! He has been a long-time bull and knows the story well. Come on dave - what have you to say? Is it good value at current levels? Would Warren Buffett be buying now if he could?

Why would anyone give Burt more money (has has already raised £9m since listing in London in 2021) to carry on with his flawed strategy? Soft drinks is a volume business. Yet Burt wants to be selective regarding the establishments in which his products are to be found. The only way this company can raise the new money it needs to survive is with a new CEO and a new strategy.

This article is behind a pay wall. Does it say anything about Costain?

Makes perfect sense, right davethechef? If you are New Zealand based company you pull out of Australia to focus on more competitive markets like the UK. Burt, the master marketing guru. I guess you will be adding to your shareholding soon.

Also davethechef is waiting for news that the company will soon break into the UK! Which although Burt has repeatedly pointed out is the most competitive market in the world when it comes to premium mixers davethechef somehow believes this will prove to be the salvation of the company despite it have so far spectacularly failed in other much less competitive countries.

The brand certainly has value but only in the hands of a new CEO with a new marketing strategy. Otherwise the brand will continue to be loss making for another decade (I remind you that although the company listed in London in 2021 it has been going and loss making since 2012 when Burt founded it). I am not sure why anyone would pay a premium to the going share price. Surely it would make more sense to allow it to go into administration and then buy it from the administrator?

I don't see why any investor would get involved in a fresh equity raise by the company. Even at 0.5p. Not with Burt still running the show as CEO. Since listing in 2021, the company has raised just under £9m. And yet it remains loss making and annual revenues are not any higher than they were back 2021. This is inexcusable!

I think it was Einstein who said "Insanity is doing the same thing over and over again and expecting different results". Are investors really going to give Burt more money to carry on doing the same thing. The company may need to part ways with Burt if it is to raise the money it needs to keep going. And the new CEO will have to come up with a new marketing strategy. Because the existing one is not working.

Another statement from Burt with no financials or figures. Just many words. Soft drinks is a volume business. So what were volumes for Q4 2023 vs 04 2022. Burt does not say. Why? Is it because volumes are so strong and he is a meek man and does not like to boast. Or is it because the numbers are not very good at all? And it is better to hide behind vagueness.

Could this be a takeover play? Surely the active fund management sector is ripe for consolidation.

Feels like countingcards has lost his away somewhat after that preposterous suggestion. Just like the company I am afraid.

Countingcards

If the company is trying to flush out small investors by making misleading statements about their progress in China and the US then that is market manipulation by the company and its directors and that is illegal. I think it very unlikely the company would do such a thing. I think it is more likely that they are actually struggling to get traction in these markets and therefore need to raise more money to cover their fixed costs.

If you read the RNS statement carefully you will see that Aviva did not participate in the last fund raising. Aviva have had a stake in the company for over 2 years. The statement said they had increased their stake from 8.2pct to 8.5pct. The investor who participated in the fund raising was one player who took a slug of 29.7m shares. We do not know who that investor is as yet. It has not been disclosed. But it should. I bought it is PepsiCo or Coca-Cola or a PE firm like KKR because if it was I reckon the company would have widely broadcast it. It is likely to be some penny share punter like that bloke Myles McNulty.

Countingcards you are one of the few shareholders who is happy about the way things are going at East Imperial. It is good to be an optimist although sometimes costly.

Slip slidin' away

Slip slidin' away

You know the nearer you're to administration

The more you're slip slidin' away

Slip slidin' away

Slip slidin' away

You know the nearer you're to administration

The more you're slip slidin' away

From today's RNS regarding the Capital Reorganisation: "As the Company is not permitted by law to issue shares at an issue price which is below their nominal value, the Company's ability to raise funds from investors is limited due to the proximity of the mid-market price of the shares to their nominal value. Whilst the Board's objective is to achieve the highest possible issue price for the Company when issuing shares, it is cognisant that, given current market conditions, the Company may be unable to issue shares at a sufficient discount to their market price in order to attract further equity investment into the business".

Suggests the company expects the next fundraising in April will have to be done at below 1p.

When you have a gross margin of 30% and fixed costs of £2m per annum you do not need a finance director to tell you at what level of sales and average price per unit you become cash flow positive. Surely that is GCSE business studies stuff?

Cash flow positive (promised to be in Q2 2024) has been delayed indefinitely. From las week's RNS: "Establishing the US base and distributors has taken longer than expected, and with sales in China also growing slower than expected, the Company's cash flow break-even point is now expected to occur later than anticipated. Therefore, the Company requires additional working capital to finance operations during 2024".

Also, expect another fund raising in April. From last week's RNS: "The net proceeds of the Placing will provide the Company with a cash runway until April 2024".

Bottom line - East Imperial remains heavily loss making and that is not going to change any time soon as Burt fails to increase sales of his product. Let me remind you of the revenues the company has generated since listing:

FY 2021 Revenues: £2.8m

FY 2022 Revenues: £3.2m

H1 2023 Revenues: £1.2m (meaning FY 2023 revenues are unlikely to exceed £3m)

That is pretty poor. I see 3 possible scenarios going forward. (1) Burt pushes on with his strategy until investors get fed up of funding him to generate losses and the company goes into administration (most likely scenario); (2) Burt is removed and someone who knows what they are doing takes over with a new strategy (unlikely to happen while Burt is the biggest shareholder); (3) someone buys the company (this is most likely to happen after it has gone into administration).