RE: Tick Tock Boom!!!5 May 2018 20:01
The following is from an article by the Independent September 2015, Satellite Solutions Worldwide's current market cap is �58m, and so you get the idea of the opportunity at hand......BIG things to come for Bloc imho from their current market cap of �2.78m and only 36.5m shares in issue.....36.5m!!!......Gla :-)
ps Rod likes it "Worldwide"...;-)
Taking on a shell saves on traditional listing costs, as well as the advisory fees normally doled out to brokers, lawyers and PR firms, as there is a lighter workload than with a normal IPO. That means these companies never completely disappear, but instead regenerate � often on several occasions � to extract some value for the remaining shareholders.
And there are some pretty high-profile names making a killing from taking on down-and-out shells. The property tycoon Nick Candy is a regular investor in shells that move into the tech sector. His best-known investment to date is the AIM-listed Audioboom, the audio clips platform which hosts a weekly podcast with the comedian Russell Brand.
This is a good example of the different life stages that shells go through. Audioboom started life in 2005 as the Off-Plan Fund, which provided financing to housebuilders. The property downturn triggered by the global financial meltdown in 2008 forced a change of direction. A move into the waste-to-energy sector followed, and it became Cholet Investments. The company was unable to secure a suitable acquisition in waste, so it acquired the environmental innovation group One Delta, which also flopped. Searching for new opportunities, it opted to buy Audioboo, which became Audioboom, from radio content producer UBC Media.
The restructuring specialist Rodger Sargent played a major part in the reverse takeover � where a smaller company takes over a larger one. Mr Sargent and the former Leeds United boss Chris Akers, his long-term business partner, are big players in the shell game. Their first and biggest success story was Sports Internet Group, which they sold to Sky in 2000 for �301m, at the height of the dotcom boom.
Their latest venture is Satellite Solutions Worldwide, another company that started life as a shell called Cleeve Capital. Another Nick Candy-backed venture, it has also just bought Gigaclear to target UK homes without access to fast broadband, and Sat2Way to do the same for France.
So how do they make money on shells? Mr Sargent explains: �We have a joke that we would never invest in a company that has ROI [return on investment] in it because we�re not looking at percentage returns, we�re looking at multiple returns.�
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