Member Info for mugginsthedog

It was only a day or two ago that Pilgrim was accusing a shareholder of being a day trader. As it happened the shareholder had been an investor for 2 years. So sad.

Sorry that the lobotomy has not worked Pilgrim. Keep taking the meds.

Newuncle - you can pretty much ignore what Pilgrim says, it is clear that he is not the sharpest knife in the block. He always has a go at anyone who makes even the slightest suggestion that all is not well. Rather desperate and sad.

Paul - good to read some thoughts from someone who has actually read the post - rather than critiscms from those who have not even bothered to read it.

Your comments are spot on 'There is a question over 'Why there is not a rush for the technology' and 'Why there is not a rush from Institutional Investors' both remain unanswered.'.

Unfortunately the fanboyz seem unable to address these simple questions but endlessly go on about imminent huge contract wins - which sadly never happen.

Firstly, I think that the webinar was more balanced than the AGM presentation.
The revenue guidance for the year was welcome. However, before GB became MW chairman, MW previously was doing over £4m turnover. The growth in revenue appears impressive but acquisitions, such as Rinocloud, make it difficult to assess underlying revenue growth.
We know that DV has good technology, which has never been in question. The issue is how it will be commercialised? I am not sure that we are materially further on understanding this as virtually the entire presentation was on technology, manufacturing and product development. It was extremely light on commercial, contracts and the like. Waste water monitoring for Covid et al looks very interesting – but we have known that for many months. If it is so great then why have there been no contracts? There have been posters on this BB forecasting contracts for months but nothing. Why not – is it a tech problem or an incompetent sales team? Or is it simply that the best sales people have left (and they have) and no one has replaced them? Either way, even the best technology does not sell itself.
I am increasingly underwhelmed with the breathalyser. An interesting idea but I got spooked when GB said that there was ‘no rush to publish results’. Really!? The technology is not been trialled – only that trials are planned. That is very different. The breathalyser needs a larger organisation to get behind it and the failure to land a credible partner in the sector to get it to market says a lot. Without a large government contract or a big partner then there are real credibility issues. For a company that goes on and on about partnering the lack of an appropriate partner is a real concern. If we cannot land a big contract or commercial partner then dump it – it is just a drain on resources.
There was mention of working with Unilever but there was little or mention on what. If it was substantial presumably it would require a RNS.
There was a subtle movement on the funding situation. Previously we were assured that there was funding until at least 12 months post MW merger – which might reasonably take us to early 2022. That has changed to ‘funded well into 2021’. I expect that this will more likely get worse than better due to increasing capex requirements. Although revenues are up it seems that cash outflows are continuing and with the completion of the acquisition of MW, which is heavily loss making, I expect a heavily diluting fund raise in the first half of 2021 despite assurances to the contrary.
Overall I do not think this was a shambles, unlike the AGM, but I do not think that it will attract strong high quality institutional or retail investors. That requires contracts and big partners.
What will put off institutional investors is the award of share options to non-exec directors, which is contrary to best practice, and the unearned MW shares for 2 directors. Neither either are illegal but they look terrible.

Paul - the BoD are not complying with best practice and this means that they struggle to attract institutional demand for the shares. Already the shareholder base looks very light on institutional investors. Succesfully bringing these on board would really crank up the SP but they will never come on board if the company continues with this unacceptable behaviour. Presumably being unable to attract institutional investors is why GB is reduced to taking his chances effing around on twitter which attracts a certain type of investor, rather than going to long term investors who can follow on with new investment.

Paul - you are very generous!

While I am always happy to see success being awarded I am afraid here it is all about rewards for failure. The latest options do not comply with best practice, the pricing cannot be justified, there are supposed to be vesting conditions for the award but these are not stated. The note was issued outside hours (unusual but not unique) suggesting that they were hiding something. To be frank this, combined with 20m/12m of shares, just stinks.

No doubt the GB fanboyz will just pillor me but I have to say it how I see it.

If the company does not get some pretty significant orders then I fear that if you sell, as you mention, the SP will be even lower.

Sloppy - an interesting point. Makes it even more bizarre that GB spends some much time effing around on Twitter!

The 'countdown' was an ill judged attempt to lure a certain type of investor in and it clearly succeeded. It was a pathetic, counterproductive ploy. Rather than the NXDs giving GB a slap for unprofessional behaviour they have rewarded him (and themselves) truckloads of options. All over and above the outrageous 20m and 12m shares in MW/DV.

Totally unacceptable at any time but worse given the recent performance of the company.

This from the other BB
'DjbrandonI invested on the back of your outrageous pumping of the share. I have lost money.Will you compensate me on the back of the profit you make from your options? That would be the decent thing to do.Thought not.Whilst I admire you for your efforts in trying to make the business work, you have to bear personal responsibility for encouraging people to invest with your "countdown". That was a massive error for which you suffer no pain, but I do. And a short time later you get awarded options so you make money even when the share price is well short of my breakeven point.Justice?'

Paul - sadly, judging by results, the focus seems to be on BoD fat cattery rather than on product development and sales. Tragic really and I am getting increasingly concerned that this company is going the same way as MW - great technology but terrible commercialisation.

An interesting ‘late’ RNS announcing option awards.

Two of the recipients of options are non-executive Directors, Nigel Burton and the Chairman Ross Andrew. This is what the UK Corporate Governance Code Guidance on Remuneration (which AIM companies should follow) states: ‘remuneration for Non-Executive Directors should not include share options or other performance-related elements. If, exceptionally, options are granted, shareholder approval should be sought in advance’.

The UK Corporate Governance Code states that the remuneration for Non Execs should not include share options. The ABI and NAPF guidance are also against awarding options to Non-Execs.

Nigel Burton also received 12m MW share (converted into 1.2m DV shares then worth £480k) at the same time as GB’s 20m gift.

It really is snouts in the trough time.

The continuing collapse in the SP ends any notion by the GB fan club/apologists that all is OK at DV. I am getting more than a little tired of forecasts of new sales, contracts or SP rises, none of which is based on any facts and certainly does not happen.

Instead we get a CEO who states that ‘There is no race to publish results’ for the virus work. No race!!! Has he not seen that our competitors have raced past us in new developments and won massive orders globally while we fanny around. There is a pressing need to get product to market.

No wonder the SP is collapsing with this level of complacency.

It seems that we have a company without a clear strategy, the risk of a dilutive new year fund raise, lack of new sales/orders, little or no apparent breathalyser technical progress despite being assured that it would be quick because everything was tried and tested, no news on Uni of Aberdeen level 3 tests, terrible PR, no ability to write an understandable RNS, departure of entire MW US sales team, messy MW takeover, unknown route to market for breathalyser (even if they ever get a working product) etc etc.

During all this the CEO and his chums have managed to get themselves a nice little earner including 20m MW shares (rolled into 2m DV shares) for the CEO worth £800k (not £80k as supporters had suggested) now worth rather less following SP collapse. Whilst this is not illegal it is certainly not in the shareholders interest, is not good practice and is underserving given the companies performance. It really is snouts in the trough time.

One would expect that any CEO would be spending all of his time resolving a companies clear and pressing problems, however, ours seems to spend his time aimlessly effing around on twitter or joining another BoD. The most recent being Parity plc, joined on 29.4.2020 – another easy £45k/year. Except that Parity signed an agreement with DV in December 2019 to provide information. Anybody spot the potential conflict of interest?

Perhaps we should be encouraging our CEO to focus on sorting out DVs all too apparent problems?

OK – I confess I messed up. In haste I confused Microtox BT and Microtox PD. An error, but an understandable one and, I suspect, I am not the only one. The RNS is confused and confusing – even the breathalyser is called different names in the note than in the quote (PBM vs PBM Hale – I presume that they are the same?). There are a whole bunch of other questions. Is deployment the same as a sale? Similarly is shipment the same as a sale? Are these tests or actual sales – there is an important distinction? We were previously told that DV had everything it required for the breathalyser so why the need for a new breathalyser?

There are a few other unanswered questions. As per the RNS from 24.9.2020 the next phase of the Breathalyser (Microtox BT) testing was ‘transition to the University of Aberdeen containment level 3 laboratory, to undergo tests directly on the virus’. I am a bit surprised that there is no comment on the success of this. I presume that it was successful or they would not be progressing to human trials. If the tests lab tests were successful, and that would be significant news, and I would expect that there would be positive SP sentiment, so why is this not mentioned?

As others have stated there is lots of jargon but little clarity. There could be good news here but it is virtually impossible to say with any confidence.

This is the RNS from 24/9/2020
‘Microtox BT has undergone extensive internal testing and will now transition to the University of Aberdeen containment level 3 laboratory’

This is the RNS from today;
‘Microtox PD units, retrofitted with AI based optofluidic pathogen identification scanners, are also being shipped to the University of Aberdeen CAT3 laboratory’

So no progress then.

Paulcon- thank you! However, I do hope that ultimately you are right and the SP goes up as I am a shareholder. This will only happen if there is a clear strategy, focus on sales and finances and a CEO who spends less time effing around on twitter. Even so the 20m share award, given the performance, is legal but is simply unacceptable.

Retire - you really are clueless. You previously said the award was worth £80k!!!! Not sure why you do no not just admit that you got your decimal point in the wrong place - its an easy enough mistake to make with the share consolidation!?
He got 20m shares which were worth £800k and are now worth £400k following SP collapse. Either way not bad for sitting as NXD for a few moths and then merging with your own company. As others have said there is no way that this can be in the shareholders interests.

Retireby40 - I am afraid that you are talking rubbish about the number of shares. You really should do some basic research before you go around bad mouthing people. Here is the MW RNS from 10.11.2020;
'Gerard Brandon is entitled to receive his salary of £50,000 per annum for the two years from 4 March 2020 in Modern Water Shares at an issue price of 0.5 pence per Modern Water Share. Upon a change of control, these amounts fall due to be settled, to the extent not already settled, by the issue of 20,000,000 Modern Water Shares at an issue price of 0.5 pence per Modern Water Share.'

So he received 20m shares worth, at the time of the merger a little over 4p each. 20m @4p = £800,000. Worth rather less now but either way not bad for merging with a company that you already control!!

Davde - no I have not ignored the cash raise. The cash is included in the cash position at 30.6.2020. Per MW interims cash at 30.6.2020 was £800k after raising £1,819k from share issue (page 6). The £800k figure is included in my financial analysis earlier. I do not think that there was an additional significant capital raise, perhaps some small warrants, but please correct me if I am wrong.

Nothing to do with me. The departure of the US sales team was mentioned on MW Board by another poster - almost all other posters said he was talking rubbish. I was sceptical of claim, however, I checked (via LinkedIn) and indeed virtually all US sales staff had set up on their own. I can find the posts if you are interested.
The same poster also said that MW could not produce reagants but I could find no evidence either way (although that could explain orders but no sales, but as I say I really do not know).

Paulcon - I always respect your views. However, I do not believe that all DV shareholders are aware of this. This is a post from DV ADFN this morning (when he says CEO I think he means Chairman);
'Well I have just read the terms and conditions of the warrants(which I missed from 10/11/20) that TP and the CEO of Modern Water have been agreed prior to the merger. There surely can not be any shareholder who excepts that this is in the interest of shareholders. 7 mill at 5p stinks to high heaven and once again their snouts are in the trough. The guy joins the board then months later raises funds at massive discount to share price Terms of give away warrants etc agreed & then bingo, his own company buys it but not before he hypes it into outer space for others to benefit. MANY WAYS TO SKIN A CAT as I have said for some time.'