Member Info for Misterh

I only wish that Basu exercised the same discipline with corporate capital as he does with his personal finances [allowing significant dilution of his own stake with a piffling uptake of new shares]

It's hard to believe that the OO was so heavily oversubscribed when it should be easy to buy in the market well below this in the days to come.

I wonder how long £8m will keep the lights on? Not long given their track record and prodigious cash burn.

Next placing at 0.5p?

Must be odds on to trade well below placing price as people start to realise their mistake and cut their losses.

Always a big red flag when directors don't put their money where their mouth is.

Is there light at the end of this long, dark tunnel or are we subscribing for another sucker punch? Past history suggests the latter.

Watch out for the 'good news' RNS likely to be issued just before the subscription closing date in an attempt to shore up the SP.

Better to remember that the KMK printing press is currently in overdrive and near ready to spit out another 160,000,000 shares.

Any market suddenly flooded with ultracheap paper has a tendency to tank.

May be best to see what happens after May 26th.

Of most concern is that '50-60% is to facilitate the restructuring of the group's debt'

I was of the impression that debt restructuring was something usually undertaken as an alternative to outright liquidation.

As unpalatable as this deeply discounted placing is, there is little alternative other than to vote it through for fear of something far worse.

Another miscalculation by management. Why waste money on an open offer when it's obvious such a placing would precipitate a collapse in the share price and that hardly anybody would take it up.

Basu can afford to fritter away £5k on near worthless paper. Even with KMK's prodigious cash burn this should keep the lights on for a further 18 months by which time he may be ready to retire.

Laughably optimistic tipsters and brokers need to revise their price target by moving the decimal point one place to the left. 2.6p seems far more in keeping with this outfit.

If it were true that current cash levels were sufficient to see them 'trade successfully through FY24' and that they were expecting a raft of material contract wins in the near future, then why not wait for the SP to recover before the placing.

I am forced to conclude that either:

1. Management are inept and collectively have zero financial acumen between them.

2. The possibility of a liquidity crisis in the medium term could not be ruled out.

3. One third of the company was given away for a song to a bunch of cronies.

I would be interested to hear from fellow aggrieved shareholders for their opinion on this.

I hope that Basu doesn't have the effrontery to further insult us next week with a video clip saying that the company has reached an inflexion point and is on the cusp of greatness.

RNS 7.2.19
£20m at 25p
'The Company anticipates significant growth opportunities for its flagship medical imaging products and D3S in the nuclear detection division. This has been evidenced by the new medical imaging contract announced on 28 January 2019. The contract is with an existing OEM customer and is expected to be worth a minimum of $58 million over a seven-year period. The Directors believe that the medical imaging and nuclear detection markets are each worth in excess of $100 million per annum.'
RNS 12.2.21
£13m at 15p
'While the Directors believe that current cash levels could see the business trade successfully into FY22, they consider that there is limited capacity to exploit new opportunities and that the proceeds from the Transaction will help the business scale up and accelerate new commercial opportunities across all markets, as outlined below, as well as providing strength to the balance sheet.'
RNS 5.5.23
£8m at 5p
'While the Directors believe that current cash levels, supported by cash flow forecasts, could see the business trade successfully through FY24, they consider that there is limited capacity to capture short-term growth opportunities and that the proceeds from the Transaction will help the business accelerate revenue growth and win market share, as outlined below. The proceeds of the Transaction would also strengthen the balance sheet to facilitate the Group's restructuring of its bank debt.'
KMK are clearly having a drink in the last chance saloon. Do consider this before taking up the open offer as it could easily end in tears.

By any yardstick, this is a massive dilution at a jaw dropping discount. The inability to raise any further debt finance suggests the company has reached a point of desperation. Not to forget the loan notes raised in Aug 22 [£2.74m] need to be repaid early next year.
I am sure that whoever is providing the capital will be extremely keen to dump the shares on the market at anything over 5p to make a quick return [perhaps after the next tipster spouts more hyperbole]
The slow drip of tuppenny ha'penny contracts just doesn't cut the mustard. With such dire margins each is barely enough to fund the staff Xmas knees up.
If Basu doesn't deliver this time it must surely be curtains.
Lamentable.

Meant to post extract from today for comparison.
'While the Directors believe that current cash levels, supported by cash flow forecasts, could see the business trade successfully through FY24, they consider that there is limited capacity to capture short-term growth opportunities and that the proceeds from the Transaction will help the business accelerate revenue growth and win market share, as outlined below. The proceeds of the Transaction would also strengthen the balance sheet to facilitate the Group's restructuring of its bank debt.'
Do they really think we are that naive?

Extract from RNS of 12.2.21 with placing at 15p to raise £13m
'While the Directors believe that current cash levels could see the business trade successfully into FY22, they consider that there is limited capacity to exploit new opportunities and that the proceeds from the Transaction will help the business scale up and accelerate new commercial opportunities across all markets, as outlined below, as well as providing strength to the balance sheet.'

Really poor form putting this out before close on a Friday afternoon and very disappointing to see that Basu isn't even subscribing for enough shares to avoid dilution.

Would have to be a complete mug to subscribe at 5p per share. Next placing in 18 months time will be for 2p.

The significance of these milestone contract wins is only just starting to be fully appreciated by the market.
The IC article is bound to attract a number of new investors over the coming days and articulates the potential upside very well.
For the first time in many months I am once again feeling sanguine about KMK's prospects.

At this bombed out price, it must be a distinct possibility. As one of the very few companies producing CZT detectors, Kromek must surely be in the cross hairs of a few predators. Not to forget that Canon paid $335m for Redlen not that long ago.

Sure, the results were disappointing and the Dutch WT a blow but the sell-off seems extreme.
The onshore assets in Scotland alone have to be worth 13m and the Dutch gas fields a conservative 6m. Add this to the c.12m cash remaining after decomissioning liabilities and there appears to be an awful lot in the price for free.
The sell tip in the IC was at 32.5p. Anyone selling this morning at 23p is getting a dire price in my opinion.

It's often said that a rising oil price is an effective transfer of wealth from the West to the Middle-East. Were it not for the pair of clueless, anti-business clowns in nos. 10 and 11, it could mean a transfer of wealth to our own treasury. They wouldn't scruple to sell their own mothers down the river if it meant winning extra votes.

Sadly, there is little reason to feel positive here. The interims show us that the only significant beneficiary of the gas operation is the Dutch treasury. Even a major gas discovery would likely result in very little dropping to the bottom line with such extortionate tax rates. They will happily cream off the profits and when the wells run dry, we will be saddled with all the decommissioning liabilities.

The numbers here are truely depressing. An eyewatering 12.79p loss per share says it all.
The only beneficiaries are the Dutch Treasury [we bear all the exploration, operating and decommissioning costs and they snaffle all the profit] and the richly rewarded senior executives.
Given the rapacious and anti-business nature of our own dear Chancellor, I think the book value of the UK assets also need a serious haircut. If Labour ever took control, they should be written off completely.
Very hard to see any bright future here.

It beggars belief that a low cost gas producer can post a material loss following a sustained period of stratospheric energy prices. The Dutch asset has proven to be essentially worthless and would probably be more lucrative if it operated as a charity for impecunious, retired clog makers and dyke workers. Why anyone would risk CAPEX in such a punitive fiscal regime is beyond my comprehension.