Member Info for mugginsthedog

Good point Chesh.... Let’s hope the new team are better! After witnessing the terrible MWG management team it perhaps makes one overtly sceptical

Some interesting points made here (apart from Lobotomy Pilgrim who has hopefully managed to block himself).

Retire – I was talking about the breathalyser but rereading my post I agree that is not clear. Hopefully the waste water Covid testing will take little additional investment and there appears to be a route to market. However, the sales team at MWG have never been very good at making sales so let’s see when/if orders start to come through, it has been a bit quieter than hoped on the sales front. It will be very interesting if they do start to get sales as the size of market is large. However, I do not agree that the breathalyser is anywhere near ready for sale and will likely require significant investment. As an example Gates has spent over $100m on a new home Covid test and even he has struggled to get it past the regulators. The idea that DV will be able to get approval easier than Gates seems unlikely.

For sure DV need a commercial partner for credibility.

The SP has been weak since the AGM presentation. It is clear that the market was underwhelmed by the apparent focus on Covid testing. As others have noted the Covid proposal is very much at the Proof of Concept stage and will require £millions to complete as well as months of work. As a result there is real credibility issues for the company and management. In my view this will not change until the following has been achieved;

• Funding. The merger with the loss making MWG and the ongoing outgoings from DVs existing operations will likely mean that new funding will be required. However, the scary bit is the amount that will be required to move from PoC to a marketable Covid product. To give a feel of what that might be you only have to look at what others have spent to do something similar which has cost many tens $m++. Management has claimed that the current partners can provide funding but this is a joke and further undermines management credibility. Additional debt funding looks a stretch (the cost of the last debt was some of the most expensive I have ever seen). The only other alternatives seem to be huge equity raise or working with a bigger partner (see below).
• Market Access. DV has little or no access to mass consumer markets. It needs a big partner, or government, who can provide this. Others such as Avacta have successfully achieved this. By bringing in a big partner will demonstrate that the proposed testing solution is credible as well as bringing in urgently needed funding.
• Credibility. This is an asset that is sorely missing post the car crash presentation and Q&A.

In the absence of big sales orders the SP will continue to languish until these uncertainties are resolved IMHO.

The abuse posted on here against individuals who have an alternative perspective is sad. Yet these are the same people who acted surprised when the SP crashes. Perhaps listening and thinking rather than Immediately going on the offensive might be a more productive strategy?

For clarity that is half the 20m shares that the merger triggers for GB

Agree with half to a marketing team. How about the balance to the staff who have done all the hard work?

Pilgrim - sorry to hear that the lobotomy has not gone well. Any idea how SKIN will fund itself?

so 1.7m to staff 20m to GB. Hmmmmm..........

Matty - if I had tanked the SP by over 50% I would be too embarrassed to take the shares, so yes. An award for failure

or alternatively GB give the 20m shares to the staff who have done all the hard work while he is fing around on twitter

Surely nothing to do with GB receiving 20m MWG shares (converted to DV shares) on the merger? I think that he should either wave these shares or give them to charity

Serendipity- this is probably the most sensible and insightful posts that we have had.

Neal - what a foolish comment, no one is crying. There are a number of posters who are trying to have a rationale and sensible conversation. If you have nothing constructive to say, perhaps better to say nothing?

Deb - I agree that there are some significant funding questions. For GB to suggest that DV is funded well into 2021 is simply not credible

Thanks Truffle. There are a number of important issues that have not been properly answered and that is reflected in the SP and general scepticism. It is good that there are more and more people asking these questions rather than blindly accepting what they have been told. This in the long term will be good for DV. In the meantime GB and the BoD need to pull their socks up as they have badly let down their staff, shareholders, partners and stakeholders.

Serendipity - thanks, it really is extremely difficult to start a sensible discussion without the usual suspects shouting you down with inarticulate comments and loutish behaviour

I fear that GB believed his own publicity.

Computer this is an excellent summary

K3VMC – many thanks for your considered comments. I may not agree with them all but clearly a thoughtful position and a sharp contrast with Pilgrim who seems to have had an extensive lobotomy.

I take it that you agree with the other points that you have not commented on ie the presentation and Q&A were a disaster, GB needs to focus on sorting problems and less time on twitter, he has over promised and under delivered, they do not know their markets etc.

• I raised the toothbrush analogy because that is how GB described how the tester would be used – as if it was part of your morning routine. That is patently not the case.
• Agree with your point about the subtleties of wanting to be able to provide proof rather than displaying symptons.
• MWG was only founded in 2006 so patently has not been testing for 30 years. If you looked at the MWG BB you will see that virtually the entire MWG sales team left and set up on their own earlier this year. Presumably this is one of the reasons that sales crashed in the half year.
• Do not be mistaken, the costs to get the product, and all the other ones that they are working on, anywhere near market will be massive. There is no way that DV or the current partners have the financial clout to do this. They need a big swinging dick to take this to market.
• Unfortunately you do not seem to understand cash flow vs tax losses. MWG has tens of millions of tax losses as it has lost money every year since 2006. The real problem is that it has a cash outflow of £2m++ each year. I expect that this will accelerate following the 62% collapse in sales. I do not think that DV has the resources to cover that as well as complete the development of all the projects that it is working on and cover admin and other costs.
• To the best of my knowledge neither DV or MWG have access to the retail market. To start from scratch for a tiny company is practically an impossibility. That is one of the reasons it needs an appropriate partner. To be honest I expected an announcement about who that partner would be yesterday and I expect that the market also expected it which is one of the main reasons that the SP fell. To bring in a major commercial partner would be a massive boost and provide some credibility.
• As I have said previously MWG is selling practically nothing so I would not expect much help there. The existing distributors have no knowledge of the retail or similar markets.
• The shambles of the last 24 hours is likely to put off any potential partners which is why the presentation, Q&A and subsequent SP collapse is a real catastrophe for DV.

Looking at the BoD yesterday they were as surprised as anyone by the presentation and subsequent Q&A session. I also wonder if the DV BoD were aware that the merger of MWG and DV triggers the issuance of 20m shares to GB. I thought that is what is called a massive conflict of interest? I wonder if there will be some BoD changes as a result. Change is required

I am looking forward to GB getting off twitter and focusing on strategy and execution