Member Info for MrMagorium

I have seen a fair few companies recently sell their operating business at a vastly depressed price. Examples include inthestyle(ITS) and purplebricks(Purp).

My real concern here, is if the management here were to follow a similar process.

ITS was trading at circa 6p and dropped through the floor, it's now at circa 0.3p. Which gives an indication of the magnitude of how much a company's market capitalisation can fall, on these arrangements being announced.

Thinking about EISB, I just hope that doesn't happen here, as investors can end up losing a fortune. The WH Ireland broker note seemed to indicate a raise would be required on the path to profitability, so I just hope this situation isn't a reason to take the business private on the cheap.

Really worried that this "imminent" announcement of funding is taking weeks. This feels like a real concern to me now... May have to consider my position.

I've snapped a few up over the last few days... few reasons why I have. My interpretation of what I see below.

- MCAP 1/10th of Sales (400 mil market cap, on 4 Billion Revenue)

- Highly possible that Frasers could look to increase their current stake at this level.

- Has access to a 350 mil revolver, banks don't hand out such arrangements to distressed businesses.

- BOD seem to indicate a raise won't be necessary currently.

- BOE expect inflation to fall quite quickly, to around 5% by the end of this year and then meet their 2% target by late 2024.

All in all, hopefully this can do well from this level!

AIMHO, DYOR, GLA!

Sure, it might be worth more as a cash shell. But that's still only going to be what someone is willing to pay for it. If BOD confirm 0.2p on windup, or zero on them retaining a listing, what is stopping PH from offering 0.2p following a no vote and a retained listing?

Realistically, there needs to be another party interested in the listing, for this to be worth a decent premium IMO.

So if shareholders have a choice between zero, or what PH offers. Why would PH offer anything in excess to the 0.2p quoted as being the best case scenario for Shareholders? Feels to me like a ploy.

Hopefully an imminent because, because the note from WH Ireland highlighted capital would be required at this stage. If they have sat on their hands until this point; that's a real concern... They knew they would need the funding. Market feels to me, like there is a signal for a raise around the 1p level, but if they manage to obtain an arrangement of favourable debt finance, I think this SP could rebound favourably. Feels like a real knive edge point though... and markets hate uncertainty.

IMO hedgehog ramps any cash shells they can find to try and make a quick buck. When they see a company doing well they start advertising their own interests on the BB, whilst talking down the potential of the company that has naturally started to realise value. That's up to them, I just think it's slimy, because a good company speaks for itself. It says a lot about the integrity of a person when they follow that approach.

Agree with them though that this company has a better cashburn than NZI because the directors don't appear to be taking fees. So could be a good company. Haven't researched the directors backgrounds, or intended targets, but I like the fact the BOD aren't milking it.

Not invested by the way, but Hedge advertised on a board of a company that I had an interest in. I do hold a position in NZI. Not doing very well on that one unfortunately!

Had a think about this yesterday evening, put yourselves in the feet of PH.

If you knew there was an upcoming vote, where there is a strong chance of a vote against delist; the BOD here have confirmed that the is a zero return for shareholders.

So if you were PH, why wouldn't you wait until that vote before making an offer to shareholders? If indeed they pursue that route.

That way, the choice for investors is either zero, or whatever PH offer. Is there a ceiling on that value? Their purchase so far has cost a mere 15k, listings can cost much much more. That's a small sunk cost for such a large business.

I hope everyone makes a few quid here, it's just sometimes good to take a back seat and look at things from another perspective. I've fallen fowl to 'dream' scenarios before, that don't materialise.

IMHO. DYOR.GLA.

I recall you posting similar articles on (NZI). That went through the floor. Maybe you sold out there, and decided this was the next illiquid vehicle to take a stake in.

Why not just let him post here. If the SP does, dare I say it, 'multi-bag' from current level, he's going to be left with egg on his face. He is after all stating what everyone already knows, but he's not paying much attention as towhy the SP is still trading at massive premium to the zero, or 0.2p scenarios that have been RNS'd.

Not accumulating enough then, because I can get 1mil shares at the current bid of 0.45p lol.

In your own mind you may be doing the right thing, but everyone has their opinion and is entitled to it. You seem to have spent a lot of time posting here to not have, or intend to take a position.

Other than a timeline update not a lot else has changed here. PH bought 10% and that position doesn't appear to have changed. Nobody knows their intent, but why would they make a purchase if there wasn't some form of intention behind it.

What worries me, is this BOD. No idea what unscrupulous actions they may have up their sleeves.

He's the hero Gotham deserves, but doesn't need right now lol.

I can buy a decent size quite easily at present, so the demand appears to have dropped quite significantly.

EOA is this a tip that needs you to Join the dots? Is it a no Brainer?, I see your **10 bagger alert** signal and that to me is a sign to run in the complete opposite direction.

Why would PH take 10% if it's worth nothing lol.

Its the cheapwst cash shell I've ever seen! Sub 500k!

0.5p for 1 mil sell now!

Can sell a million at 0.4801. Who wants these?

Then clearly they should be considering an equity placing as opposed to debt finance? But then that would require CEO to stump up cash to maintain his % holding.

Trouble is Sharebel, PH are just a shareholder at this stage, they aren't actually in control of the company, the BOD in place are Ex-ITS and have their own agenda.

This is the same BOD who would have been party to the turd that got served to shareholders previously.

Do you think the current BOD really want new directors casting their eyes over the accounts, to see how the business has been managed over the last few months? IMO, I don't think they do.

He regrets his sell and now wants back in at a lower price IMO.

Roger was also talking about a fever tree takeover at 10mil lol, then decided to sell up and start talking about administration. Not sure why people do that in all honestly. Should just make a decision and stick to it. Not good for integrity.

I bought a very small position today as a punt. I was seriously doubtful they would get any debt finance in the current climate, mainly as they don't appear to have the capability to cover interest repayments, and coupled with them having very little in the sense of security by way of fixed assets. That indicates to me if they do get debt, it could be the typical mezzanine style death spiral finance distressed businesses take on, with the associated warrants and covenants.

But... maybe just maybe they end up with a favourable deal which can see them through to positive FCF.

GLA.DYOR.DYOR.