Member Info for Newuncle

Surely these guys will be asking the same questions and looking for action?

Directors Deals for Cornerstone
Announced Traded Action Notifier Price Currency Amount Holding
16-Mar-22 15-Mar-22 Buy Gareth Maitland Edwards 18.00 GBX 81,967 471,688
10-Mar-22 10-Mar-22 Buy Gareth Maitland Edwards 16.90 GBX 24,033 389,721
10-Mar-22 10-Mar-22 Buy Gareth Maitland Edwards 16.90 GBX 24,033 389,721
10-Mar-22 10-Mar-22 Buy Gareth Maitland Edwards 16.90 GBX 24,033 389,721
07-Feb-22 07-Feb-22 Placing Judy Amanda Happe 26.50 GBX 11,320 19,516
07-Feb-22 07-Feb-22 Placing Julian David Wheatland 26.50 GBX 18,868 43,461
07-Feb-22 07-Feb-22 Placing Gareth Maitland Edwards 26.50 GBX 37,736 365,688
07-Feb-22 07-Feb-22 Placing Elliott Michael Mannis 26.50 GBX 18,868 218,720

Capital Currencies

The Acquisition is anticipated to be earnings accretive from the current financial year. It is also expected to expand Cornerstone's presence in its core target market and, in line with the Group's stated strategy, increase revenue generated by direct clients. By bringing Capital Currencies' clients onto Cornerstone's technology platform, the Group expects to benefit from the rationalisation of payments to banking partners across the combined organisation as well as recognise other synergistic savings, such as in compliance costs and overheads.

Cash as at results sign off £280k

I am guessing cash burn for 6 months = £330k.

They can call on a clin for up to £350k to 31 Dec 22.

Hopefully that's enough to see them through to December.

Fast growing revenues which hopefully will deliver high margin business.

All subject to the company not looking for more acquisitions that need to be funded.

Maybe he has the same spin doctor as Boris has. Just don't talk about the bad news only the positive and everyone will forget about the cash flow and just keep buying the bs.

Proactis interview with Julian out. Only 5 mins long. Comes across like a paid PR media ad. Do companies pay for this airtime as the questioning seems to be only about giving the CEO an easy ride. Anyway watch and see what you think.

Any chance that Richard might want to look at buying out distressed CSFS on the cheeeeep? Mcap there is less than £2m and they are running on financial fumes.

HH,

Share price won't matter a jot to the company trust me. Of course they would like it much higher so they could raise more money for acquisitions instead of actually having to work hard to make they have deliver so that will be a challenge. However, if they do go down the riverfort style finance route then all they will do issue a huge number of new discounted shares to give to riverfort in exchange for cash. Riverfort won't retain the shares because they are not investors they are in it to make their cut form the financial deals they complete. So if CSFS decide to raise say £1m the Riverfort will say fine but at a 30% discount for xxx shares which they will sell down via a friendly broker (they always have a friendly broker to manage these sells that the like of you and I could never get access to. If the share price was to drop even further than the discount then they simply take more shares to make up the value, its a win-win for them even if a plc sees it's crash further and they can do this many times over before anyone pulls the plug ie when the NOMAD resigns. The the plc can either just close down and delist or as has happened be taken private by the management who then blame the market for not valuing their business. Any PI shares are either worthless or traded on a matched exchange which is so bad that the shares are virtually worthless still.

All of the above is IMO and could be entirely academic if a business angel was found and decided invest here with £m to deliver the technology etc or another related company made a bid for the company of course. Personally I would love to see TINTRA plc but the business but I am not really sure that they actually would need or want it? Wish I could get the two CEOs (Julian and Richard to have a chat).

But why be a seller of a stock on the cusp of great things? This is where Gerry's words and presentations don't marry up with the actions of a major shareholder. If that major shareholder believed in the MSYS story then why keep selling on the cheap? Helium are not financially constrained and have plenty of other significant holding elsewhere that are not being sold down and MSYS is a tiny % of their portfolio, something just does not add up unless Helium like selling at a loss when they might double their money in 6 months?

Helium might not let the shares do much for a while yet though, they seem to like selling these

MSYS 621,505,375 9.770%
Jul-21 -73,155,699 548,349,676 8.620%
Sep-21 -49,618,648 498,731,027 7.840%
Jan-22 -74,856,027 423,875,000 6.980%
Feb-22 -43,750,000 380,125,000 5.976%
Jun-22 -74,856,027 304,125,028 4.781%

I estimate their holdings to be worth around £230,000 now

Not sure the business will have much left at this rate either MCAP now just £1.7m

SmallFish,

I was going to not post today after that last shambles of an update. Re your points below, all valid, Julian will always find someone who loan the company money and was was said yesterday he has very little skin in the game himself so his pain will be very small (his holding is actually tiny, Julian Wheatland 43,461 shares = £3,477 (maybe he knew what was coming?) . Future loans could be obtained by death spiral houses like Riverfort who specialise in CLINs for companies like this where money is loaned to provide working capital in exchange for shares which can be converted at heavy discounts on a regular basis. The number of shares and their conversion price would be adjusted is the value of stock falls so the lender is never out of pocket and can still make tidy profit from the shares even if they fall 50% from the original load deal price because the company would just increase the number of shares and the price for conversion each time. That's why its called death spiral financing of the absolute last resort as existing shareholders can get diluted into oblivion especially with companies that have such a small MCAP in the first place. I really hope that the Roast guys do get Julian to have another meeting asap to explain what's gone on here as they were really bigging CSFS up on the back of the very recent interview he gave them but somehow I don't think Julian will be available for an interview due to other commitments etc. It was Julian who also commented about the £5m MCAP as unbelievable at the time and the market pricing the company wrong, well I wonder what he would have to say now after his RNS update tanked the shares and MCAP by 50%.

Does seem to offer good value, might take a while for the market to catch up though.

fyi

https://www.microsaic.com/wp-content/uploads/2022/06/msys_FY_21.pdf

LTB,

I like the cut of your gib, nice. Few weeks might be a tad optimistic but I too would like to think it can't stay like this. I just wish I had spare cash to buy all the bargains out there.

Alot of sells showing up today on the back of both a good RNS and AGM Presentation. Selling at the bottom as the company should do well this year IMO fwiw.

A. Very upbeat presentation msys looks well set up to deliver.

Totally agree, CSFS would have known this long ago and did nothing but allowed all kinds of positive coverage from various 3rd parties and we even had the CEO talking up the company and complaining about the poor share price following the previous placing. He knew he would have fess up about the business running on fumes and needing to raise cash for working capital but sat on this update until the last possible moment to tell his investors. Credibility zero now.

Still only talking around £30k worth of shares sold but >£2m wiped off the MCAP which was hardly challenging in the first place.

8p now, my god this is painful.

MCAP now just £1.9m, yes it really is valued at just £1.9m.

Julian has now created so much uncertainty that people are dumping at any old price they can get. Still no one knows when or how much CSFS will be asking for if they ever can raise funds, at this rate chances look slim and if they do get a fund raise away god knows what price they will have to accept and why would anyone risk their capital in taking the shares? Julian might be forced to go for a death spiral type deal instead to raise any cash. The man has well truely made a complete mess of this RNS update.