Member Info for Newuncle

Direction of travel...

July 22 rns

DeepVerge plc (AIM: DVRG), announces a significant reorganisation of the Group. As from 7 June 2022 the Health / Life Science (Labskin) and Environmental Divisions have been separated and now run independently of each other. The Board notes recent interest and increased discussions with Tier 1 skincare corporations, US drugstores and venture capital backed companies, some of whom are clients, and is exploring a range of options to meet the unprecedented demand for Labskin services and the accelerating growth of Skin Trust Club.

Fionan Murray has stepped down from the board with immediate effect to concentrate during his notice period on maximising the value of Skin Trust Club and Labskin Division, in line with the announcement on 20 July 2022 that the Company is exploring a range of options to meet the unprecedented demand for Labskin services and the accelerating growth of Skin Trust Club

Sellers gunning it again 2x5k just now

SB,

i am pretty sure that was the plan at the time but events have determined differently.

If RS had secured the whole $25m then I would like to think he could have repaid the CLIN first. Having only received $10m, taking out $3m for the CLIN would be irresponsible now as far as the business itself is concerned. Hard to call the bottom here now given the "gap" to 70p. Current MCAP £17m so if you have a view that the MCAP could easily drop to say £10m then that's a potential @65p share price......give or take. Just a view because right now I really don't know how to value TNT's MCAP anymore other than by simple shares in issue x price.

Plus the VWAP terms show an average of 5 days will be used so could be worth keeping any eye on that too

HH,

Agree very quiet, however, the sellers tend to wait until later in the day to ensure their trades have an effect, keep an eye on them from 3pm to the close.

I can just imagine the discussion RS had with CLIN reps before signing the loan terms. You guys won't do anything to trash the price will you? Of course not, what kind of people do you think we are and don't believe everything posted on PBBs about us being greedy self interested vultures who destroy company values but where we still make amazing returns in the process, that's others not us, we're the good guys, the VWAP is just in the terms as a standard para in all out agreements, of course we will never use that....now if you would just sign here please sir...(fingers firmly crossed behind their backs)....

At the end of the day and just like many others who have been forced down the CLIN road, its not BoD that suffers but their PIs. Nothing new there of course. The irony of the comment by RS after 30 Jan news below:

Today, I hope that our share price reacts rationally given the above context.

Can anyone define "rationally" for me?

I just the math on this too fwiw:

The subscriber will not be obligated to provide the second subscription, if the market price of the Shares is below £1.60 and does not recover to above that level within three months after the subscriber notifies the Company. The proceeds from the second subscription will not exceed 6.4% of the Company's market capitalisation, without the subscriber's consent.

MCAP £17,000,000.00 6.40% £1,088,000.00

So that suggests that far from an additional £7m being "available" via the CLIN, the real number would be closer to just £1m. And of course as the SP is below £1.60 the CLIN has zero obligation to provide any further funds to TNT.

HH,

I thin that TNT may be forced to simply issue more shares to compensate the CLIN if the SP falls below the 110p floor level. I have tried to show an example below but perfectly happy if others have a different take and can let me know why I have got it wrong as I am groping in the dark now:

£100,000.00 £1.10 90,909
£100,000.00 £0.90 111,111

Well here we are, latest sell trade at just 111p. Inevitable I suppose as CLIN were targeting this level (however they managed it they got it in the end and quickly (what a happy co-incidence for them).

Guess the ball is in their court now as to if/when/what they choose to take as their first drawdown of shares against the £3m loan. Or they could of course sit and wait it out to see where the bottom is?

No date confirmed, meant to be Feb but with Tintra's record on meeting self set deadlines...........no forum for the Q and A, usually people could be submitting questions well in advance.

Well I guess that's that for now then, well done to those sellers who have rained on our small but happy parade here.

Got to be Helium dumping now surely?

If you can take a long term view and don't need access to the money committed you could make an absolute fortune but there's alot of caveats that come with that. RS will be burning money at a huge rate going forwards and in excess of $100m will be needed over time to make it all a reality. Classic High Risk v High Reward share now.

T.Rat

Thanks for sharing, pretty much aligns with what I have seen too but whilst there's a load of beautiful descriptive PR, I still have no idea where they are at in bring it to the wider market. Only thing I found was that they are in an asthma study trial lasting 2 years, no start or end dates though.

MHL,

RS said he wanted to avoid that route as he felt he would have to give up to much of the company to raise funds via the markets (oh the irony of that view now eh) and wanted to attract HNWI LTH who had previously paid premiums for stock and warrants. The CLIN was meant to be a parallel finance option at the time, not so sure it's that any longer.

What RS should have done (benefit of hindsight) was continue raising funds in the smaller tranches he realised a year or more ago without any issues. Instead he closed that funding round claiming all was going so well he didn't need more any time soon. If only he had maintained a slow and steady approach this whole CLIN business could have been completely avoided and I think he said as much in a recent RNS without being too specific.

Now we are where we are. On the hook of a CLIN. Next news on funding has never been more critical imo fwiw.

TT,

Yes it is annoying we have sellers at these levels. I know that our friends at Gerry's fav finance provider continue to sell down their interests in both DVRG and MSYS and they had substantial positions are were happy taking big losses on their recent sells it could still be them exiting. I would like to think shorters have had their pound of flesh here already so would surprised if they are still around but who knows. Of course the annoying thing about shorters is they can simply close and reload regularly until the well runs dry so there no limit to their activities unless providers won't take their positions. In these markets the MMs certainly seem to pay more attention to sellers than buyers when setting their prices.

T.Rat,

Nice piece.

TBH i had pretty much given up on the whole breath test thing as it seemed to be a never ending test and development project.

Are you able to establish its status now? ie is it available to buy and use by medical community either in the UK or elsewhere or is it still subject to x,y z clinical trials taking xxx time?

Any information would be greatly appreciated.