Member Info for Myfairlady

O&T - that is a fair argument but odd that they reference Nuuvera as part of that argument which has a market valuation so is what it is. Would be great to hear from the Board why they think the NAV should be higher for some of the other positions and on what basis they have come to that conclusion.

Agree Phoenix. Also doesn’t doing a share buy-back at above the current NAV per share actually decrease the NAV per share?

notaflipper - the legal provision isn't cash, it is merely an accounting provision, hence the need for this loan

Mengha - look at the volume on Wed-Fri and look at all the rounded sells. Do you think the 40% drop is due to another reason?

Death spiral funding rarely works out well

Companies can join the Standard segment of the Main Market with a very small market cap of under �2m - look at TOOP, PPHP, STHP, FHP etc etc, the list is long. This market cap here should be much higher than that though with the Sentiance investment

But Mengha, the revenues aren't pouring in. Any major contact win for DA would be announced and there's only been one on 31 August for less than $50k per annum

Came out on 7 Sept

I see the website has now been updated though to make it all clear, so Travia owns 13m through Innovation and 10m through DJ3. Fair point about the Call Design shares

I was replying to Olivia

He no longer owns the 10m under DJ3 Silivon Valley though

Olivia - you're double counting the 13% that Travia just sold

Should be "you will have the same number of shares..."

John Lewis - you will not lose your shares. You have the same number of shares as you do now but in a private company. You are being given the option if buying more in that private company at 2.8 along with Woodford. However if you do want to invest more, it would be cheaper to buy them in the market at the current price.

sure - there is always going to be a cut to the financier but i was just making the point that they actually want the share price to go up as they make more that way although I'm guessing that is largely out of their control and the fact that they have to sell some shares each month may create some downward pressure. That's not always the way. KEFI has had a similar deal in place since Feb and the share price hasn't been obviously impacted. When Amur first did one a while back, the share price more than doubled. There are many examples of the share price going south too but provided the number of shares to be sold each month isn't too high, it should be manageable

Spikey - they make more money if the share goes up as they only hand over 75% of the upside above the Benchmark price

Why convert? Because you convert at 0.1 and sell at 0.25 or 0.3 and make a few quid!

That sort of thing yes. Don't think it is officially short-selling as no stock is being borrowed, think it is just selling, probably on longer trading terms, in advance of exercising the warrants. But that's just semantics really. Similarly, the percentage return is sort of how you want to define it really. Personally I look at how much is at risk. One point the share site didn't make is that the £50k is more at risk than when buying shares as if the share price never exceeds 47.5p he loses the whole £50k whereas if he bought shares he would be in the money at say 45p. So it's a bit comparing apples and pears.

Say the share price goes to 60p. He asks a friendly broker to sell 1m shares for £600k. To settle the transaction say 2 days later, he exercises 1m of warrants at 47.5p costing £475k. Forward selling goes on all the time - you can sell up to T-20 so there could actually be quite a delay between the sale and the exercise of warrants if you wanted as you only need the shares to complete the transaction. He only does this once he knows the shares have been sold. For a fee between the broker and the company they can sort out the various cash flows so that the CEO just pockets the difference. Anyway, I'll leave it there - up to you as to what you think is going on - good luck.

He will tell his broker to sell shares knowing that he can exercise warrants to complete the sale. He doesn't need £2.4m - he merely pays that to the company out of the proceeds of the sale of the shares.