Member Info for NickE

Interview (3)

TW target

150p but could go much higher if deals are signed. Listed all the positives v the one negative that a bit of funding (he suggested £1m) might be needed and Dec would be prudent.

INCENTIVES

SA has bought three times when allowed to.

Incentivised with options at 80p and a second tranche at 120p

CASH BURN

About 250k a month but costs will reduce as a couple of internal studies will complete. So probably about 200k per month. TW suggested it might be prudent to raise 1m in Dec but if Croda launches early next year and if there is a multinational deal this year then there would be no necessity to do this. SA ‘fine for cash but never say never.’

Interview (2)

ACNE STUDY RESULTS

Multinational deal for this and other products. Would like to get a deal before end of this year. Is it possible? Yes although dependent on results from the study being very positive.

TOOTHPASTE

Phase 1 done and very positive

Phase 2 – end of this summer.

Results should be in the next two months.

Probably an easier multinational deal to do as only 4 or 5 major players in the market.

PSORIASIS

Point made that the share price was 80p on the basis that the product performed pretty well. It actually far exceeds expectations so SA cannot fathom why the share price is 25% of when positive results were less clear.

MULTINATIONAL DEAL

SA said it would make a nice Christmas present to get a deal before year end and added no reason why they shouldn’t achieve one. Presumably could be different companies for each if acne, psoriasis and toothpaste but, equally, one Company could do a mega deal for all three and other products.

WOUND CARE

SBTX have to access the bulk lysate from Croda

SA emphasised that it was quite cutting edge and complex as in effect you are putting someone else's bacteria into another individual’s wound.

It would mean full clinical trials but the intention would be to get a major player to fund trials and give SBTX a large downpayment. I think TW speculated 10m plus.

The market is massive and current treatment for the likes of diabetes-associated wounds is unsatisfactory.

Personally, I wouldn’t expect anything from this for this year.

Elric did a good summary of the points from the recent interview. Here are my notes - no direct quotes as I don't want to infringe on Tom Winnifrith's work. I would thoroughly recommend anyone with a holding listens to the interview but the filters won't let me put a link here. I think it is only £1.39. It's worth it as Tom asks the right questions rather than some of the fed lines that the likes of Proactive tend to do. Also, they were just notes for my own purposes so no guarantees I have got everything correct.

No more OPTI sales of SBTX shares this year and potentially going forward as OPTI may be profitable in 2024

CRODA

Invested heavily in SBTX partnership with £5m spent on a machine alone. TW speculated they may have spent up to £10m. The study alone will cost circa 700k. I am not sure if this just relates to the new study on the enhanced findings. Such an investment means they must deem the partnership with SBTX as very material. The amount of investment bodes well for product launches.

Bacteria scaled to 1,000 litres

The delay is due to enhanced claims that will enable a higher price to be charged due to the enhanced findings and associated claims being scientifically validated from the study .

The development deal with Croda expires in November but SBTX agreed a six month extension.

SA was simultaneously disappointed but excited by the delay – the latter being due to the extra enhancements that should be validated by the study. Talking to Croda about other products. For further deals SA is minded to have strict time controls with penalties if the dates are exceeded.

When will it be marketed? Testing should be until calendar year end. Launch should be Jan next year with commercial revenues coming in back end Q1 / start of Q 2

POTENTIAL REVENUES

Zero cost so passive income of 10% plus royalties. In other words 100% margin

Metryxal range circa 275m per annum but will be significantly more due to enhanced claims. Could increase to 375m to 400m

TW speculated £25m income for SBTX. Deemed by SA not to be unreasonable based on revenues but by no means first-year figures which could be circa £2m , £3m or so. My note that would equate to breakeven and even profitability from this revenue source alone.

OTHER AREAS – SHAMPOOS

Intention is to create formulas without the toxicity that is in existing products such as Zinc Oxides. I assume, although it wasn’t specified, that this relates to dandruff treatments.

Regarding the potential acquisition, I queried whether it would be better to grow organically but balanced my view with the observation that an acquisition would presumably make SBTX more attractive to a multinational.

Stuart reiterated he wouldn't over-pay and confirmed that an acquisition enhances the prospects of an optimum deal with a multinational. The associated revenue streams and a reversal of the SBTX science into acquired products would help demonstrate the versatility of the sector and IP.

The bottom line is that SA has a big company background and experience in acquisitions to ensure any purchase is good for shareholders. He appears to have a commendably cautious approach to this.

My main point to him was that there appears to be a lot of good share price-enhancing news to come and, if equity is going to be used in any purchase, wouldn't it be better to secure an acquisition with a stronger share price?

Perhaps the SBTX's relatively low share price is part of the reason for the fairly lengthy due diligence in addition to the answer given to TW that a) they won't overpay and b) the due diligence has flagged up one or two contractual areas of concern (presumably with the target's customers).

Simple15, a sensible approach.

It's a decent salary but he is not a greedy CEO like so many.

I believe SA has options at 80p and 120p and you don't get many stocks where the CEO is incentivised as four times and then six times the current share price.

He also rejected the B2C business model for psoriasis and other pillars at a short-term detriment to his finances.

Lastly, he seems a very switched-on CEO with a background with much bigger companies and he is conscientious in answering shareholder companies. There are a lot of companies I would avoid because of the CEO but SA is quite the reverse.

I think he has been hampered in terms of PR and highlighting the remarkable positives in this Company but to do so would only create liquidity for the sale of OPTI sales of SBTX stock. With OPTi out for this year it's in effect an overhang gone.

I would recommend listening to the paywall interview on the Tom W website. I'd like to see SA do an rnsnon with the same information as provided in the interview. It's not a gripe as such as any investor who wants to have a material investment isn't going to balk at paying £1.49 to access it. Also, nomads can be so and so's in terms of what CEOs can say in formal announcements to the detriment of retail investors and this is a legitimate way of by-passing that. It will give a broad and detailed understanding and TW doesn't shy away from asking searching questions.

Best wishes for a speedy recovery Elric. Always enjoy your research and especially on this stock.

Elric, the 80p plus point was Stuart's although I think it is a good and fair point. Obviously, markets were kinder to small caps then as well but that will return at some stage.

I have to admit, I don't fully understand the reference to subscriptions of 25k. If you are saying that was because SBTX were going to sell AxisBiotix PS themselves with a subscription model, I'd contend that the decision to switch to a multinational licensing approach because of direct approaches and interest might be worthy of an even higher share price than was previously achieved. Well, if not now then certainly on conclusion.

That was a good pick-up and subsequent initiative on Optibiotix, so having sorted OPTI out with a 400% plus share price increase, can you please do likewise with SBTX? Any time in August is fine if you're not busy!

I asked a few questions on Stuart and I was impressed again by how conscientious he is in replying with honesty and detail where he can.

I asked about AxisBiotix PS and, whilst it wouldn't be appropriate to copy an email, he made the following point:-

The share price jumped to 80p plus just on the hope that the AxisBiotix PS product might work. The fact is that it works beyond any expectations anyone may have had.

Not only has there been validation from a FTSE 100 multibillion pound plc that the SkinBiotix Technology works but (and I will quote a small extract here) "it will change the face of cosmetics forever (excuse the pun). The science we are progressing is simply game changing, the Microbiome is a very hot space at the moment and we are a pioneering company therein."

Buy and hold seems to have gone out of fashion, but I think his comments highlight why that approach should reap significant rewards here. Elric mentioned he believed that Croda's publicly stated excitement about the additional benefits of Skinbiotix could have been released as an rns by itself and I think that's fair comment. Presentation of factual information and associated PR is important.

The non-material Reach/RNSnon by Optibiotix was one of the best bits of PR I have ever seen, I don't like to see a company over-hype and raise unrealistic expectations but that release was just complete detailed information rather than hype. I hope SBTX will do something similar or engage with whoever constructed the OPTI RNSnon/Reach.

Toyin, I did get a reply and an excellent and helpful one at that. I certainly get the impression that, unlike far too many AIM CEO's, he has shareholder interests as his main priority.

He has a background in M&A and I sense he is aware that acquisitions can make or break a company. I can see he is very aware of doing extremely thorough due diligence on the potential acquisition however long that takes and that is something to be applauded. I'm not a shareholder yet but very likely will be. I'd be very reassured that the Company appears to be in cautious, capable and conscientious hands. Buy and hold seems to have gone out of fashion with so many small-cap investors but getting the entry timing right with a stock like this and holding for a couple of years should reap rewards.

Thanks Clio, I appreciate the helpful and balanced replies and I have put some queries to SA. We'll see if he gets back although I am not confident he will do. I'll also have to listen to Elric's interview again if it is still available because, rightly or wrongly, I came away with the impression that he was confident that a multinational licensing deal would be signed well before now.

In light of what you say about further validation/enhanced range studies being required prior to what would be a company-changing deal, I'd agree Croda looks like the most realistic and medium-term prospect for a re-rating.

There remains the possibility that SOH hasn't yet finished what appears to be almost forced selling to raise funds for OPTI but it's definitely a stock that could significantly reward the patient and it's around or approaching a good risk-reward entry price. At some stage sentiment towards small cap AIM shares will also switch for the better. Good luck to all holders.

Thanks Waggy, definitely one to add to the bull side of the case. Very positive.

Toyin, yes I'll do that, some companies are good at replying and others aren't but worth a try.

I like the potential prospects of SBTX and it looks in the buying range now but there are a few question marks.

1) SA in an interview with elrico (was it late last year?) highlighted that sales were low as he had changed strategy and had received interest from majors that led him to believe that a significant licensing deal was going to be much more lucrative than direct sales.

Simple question: given how SA depicted the significant interest that led to the strategy change, why hasn't a deal been struck and with very little update on any substance on any licensing progress.

2). So little feedback from. Croda on how they are progressing in terms of their relationship with SBTX.

3). The potential for an acquisition was announced many months ago but again little has happened. I don't really like companies that try to grow by acquisition and f SBTX really has the potential to do lucrative licensing deals then this is a distraction and potential dilution as well.

4) Will Optibiotix continue to depress the SBTX share price by selling shares.

5) SA stated in his interview with elrico that he didn't need to raise funds. He then did so and justified on by saying it gave him cash for an acquisition. Well, the reality is that with minimal revenues and in the absence of a licensing deal he really did need to raise funds for working capital. So another CEO who hasn't been straight.

SA speaks well but as yet there is little in the way of delivery.

That said and one global or significant regional licensing deal and the value of the Company will multiply. That's the conundrum for investors. How likely is it is the (literally) million dollar (rhetorical) question. It's a mystery why one hasn't been concluded given the relayed (by SA) significant interest that led him away from focusing on direct sales all those months ago.

I am neither bearish or bullish but just weighing up SBTX as a potential investment as the current share price is potentially enticing albeit with the caveats outlined above.

One thing I'd add is that TRAC are capable of coming out with an eye-catching announcement that pushes the share price up significantly and enables funding at a much higher price. They might be waiting on something hence the later than anticipated results. They do need to deal with these short-tern loans though and until they do it's too high risk for me but post funding at around current share price levels I'd be a buyer.

This company has so much going for it. Innovative on a tiny budget, it achieves trials with majors and has managed to restrict the shares in issue to around 60m hence the tiny m/cap.

It does need to be properly financed though. It has a 500k debt facility running at 24% interest per annum that expires in Dec (with full repayment of their borrowings) and convertible loans that have to be repaid within months as well.

I think a £1m plus funding to get rid of all these loans and convertibles with enough cash to take them to profitability is needed. Not easy in the current market.

T42 IOT Tracking Solutions PLC Financial Update

15/12/2022 1:30pm

UK Regulatory (RNS & others)

T42 Iot Tracking Solutions (LSE:TRAC)

15 December 2022

t42 IoT Tracking Solutions plc

("t42" or the "Company")

T42 Financial Update

t42 IoT Tracking Solutions plc (AIM: TRAC) (" t42 " or the " Company "), the provider of global shipping container tracking solutions, announces that it has raised c. US$611k (gross) through a combination of debt and equity subscriptions, and arranged settlement of a further c. US$328k of supplier debt through a convertible loan, as detailed further below. The new funding will be used to strengthen the Company's balance sheet as well as to support its future growth.

Debt Facility

The Company has, through its wholly-owned subsidiary T42 Limited, entered into a loan agreement ("Agreement") with CSS A lpha Global Pte Ltd ("CSS") for the provision of a 12-month secured US$500,000 debt facility ("Facility"), to support manufacturing commitments and working capital needs. The Agreement provides, inter alia, for interest at 2 per cent per month, with 9 monthly repayments starting 3 months after drawdown. Security is by way of a second charge on assets, a personal, guarantee from Avi Hartman, CEO, limited to 20 per cent of the loan and a deposit with CSS of 3,000,000 new t42 shares ("Deposit Shares"). In addition, warrants for a total of 2,976,185 shares in t42 have been issued to CSS, exercisable at 7p per share over 5 years. The Facility includes representations and warranties by the Company that are customary for an agreement of this nature. The Agreement is subject to Mr Hartman not resigning as CEO of T42 Limited during the term of the Facility. There is no penalty for prepaying the Agreement at any time.

Convertible Loan

The Company has issued a GBP265,000 convertible loan note ("CLN") to a supplier, to be applied in lieu of settlement of a supplier debt, assisting with the Company's cashflow management. The CLN bears interest at 3% per annum, payable quarterly, and is repayable by 31 December 2024. The CLN is convertible at 9p per share at the discretion of the holder. In addition, he Company has the right to enforce conversion of GBP100,000 of the CLN in the event t42's share price exceeds 12p and the balance if the share price exceeds 15p.

Equanimty, I'll go with HAA superior knowledge to mine and say 44% of NPV but with the caveat that the NPV % valuation is likely to be significantly higher once listed on a Saudi index based on Amak's valuation. I think a Saudi listing will make a very positive contribution to the valuation and investors will understand that and even start to factor it in prior to a listing date. It could get interesting if there is only a relatively small float on a Saudi exchange. I wonder if there will be a share consolidation as well.

Tw.G. I make the warrants issued as follows but please check the announcements for Dec 2021, Jan 2022 & April 2022 to make sure I have got the figures correct. I've rounded all the warrants issued to the nearest million:-

April 2022:- 275m + 75m to Tariva the broker (the broker warrants are stated as exercisable at .8 with all the others being 1.6p) giving a total of 350m warrants

393m warrants exercisable for shares at 1.6p from Dec 2021 / Jan 2022 announcements

So I make it 793m warrants in total all exercisable at 1.6p aside from Tamara's 75m warrants exercisable at .8p shares. But as I say, please do check

Really interesting debate on the likely and potential values post TK funding.

I am not sure how many miners trade in the Saudi indices but it would be worth looking at the % to NPV that they trade at. Clearly, Amak trades at a much higher % but does this apply to any other miners listed?

I think all we can project at this stage is that post-listing on a Saudi exchange, Kefi with its Saudi interests is likely to trade at a significant premium to what it would do if it just traded on AIM.

Trading at 44% of NPV would indicate a circa 5.6p share price but there will be more shares in issue when, as anticipated, the 1.6p warrants are exercised.

I can't believe how poor the Eddison's note is in terms of projecting value. Quite bizarrely it appears to be based on a dividend valuation model.

The other factor is of course the NPV is likely to rise with further exploration results.

2011 link but granted it's interesting. It's still irrelevant though given the Presidential Decree. With references and links, it's essential to put the dates unless the intention is to mislead about the current status and future prospects. Also noted are the desperate effort to give the thread a negative title when there are many other positive quotations despite the 'documentary' having a biased slant.

A previous long-time objector who assumed MIN / Loyalward were "sworn enemies" says he met someone associated with the project and was won over as shown in the clip. He states after being invited to see the plans he "realised they were proposing all the things I had been proposing for years."

What is key though is that after long discussions, project adjustments and numerous appeals an irreversible Presidential Decree was issued and, like it or not, the project is on track to go ahead with highly sensitive proposals that use just 0.5% of the leased area for development.

What I find amusing is that the detractors (of MIN) chop and change from the leased area being categorised as harsh worthless scrubland to an idyllic scenic location that shouldn't be touched.

This link was interesting but a date should have been added as it's irrelevant in the context of whether MIN as an investment is going to be a success. There has been a lot of misunderstanding (deliberate or otherwise) lack of understanding of what a Presidential Decree amounts to. It's irreversible and unappealable.

There have been a lot of posts (here and elsewhere) deliberately trying to mislead in order to try and dampen sentiment in order to buy in cheaper. All the recent news suggests that commercialisation of the project will move ahead rapidly once the Foundation discussions are agreed and formalised. This should be reflected in a corresponding buoyant share price. The detractors will not like that one bit for whatever bitter reasons motivate them. Review the share price and news released by the end of January and let's see.

****nal, I'm a realist and there is no doubt MIN have disappointed over the years. The past can be a pointer to the future but not always. It may disappoint you for whatever perverse reason but things are finally coming together for Minoan. Anyone who has noted the recent appointments and their 'money where their mouth is' investments will not be surprised if 2023 turns out to be a highly rewarding year for Minoan shareholders. You're free to take a different point of view but sometimes it pays to have an open mind. It's all in the recent news releases and anyone who chooses to dig a bit deeper will know that for once these are not empty or premature words. With MIN right now, never has the cliche 'do your own research' been more apt.

It's also clear that you are one of the many usernames that include 'mudbath' who is clearly driven to mislead. Some posts elsewhere have been highlighted as fictitious and have been deleted by 'mudbath', but it will be interesting to see if he tries to get LSE to delete the post where he suggests Minoan is a con. It's pathetic and libellous in equal measure and I hope he pays the consequences. Morally, he is no better than the CLP on the Tern thread and that's about as low as it gets.