Member Info for Otherwys

First! So, off the back of their first royalty deal DUKE announced a dividend of 2p per quarter: that's dividend payments of �900k pa from annual royalty income of c. �950k. A little bit stretched perhaps, but since then they have announced further deals with Lynx which are estimated to bring in another �840k pa. They have tied up all their original investment capital, they have a strong pipeline of opportunities and will be looking to raise more capital quite soon. The DUKE model is as follows: raise capital invest capital in royalty deals increase dividend share price appreciates because of increased dividend raise more capital at higher share price rinse and repeat... Having invested all their available capital, and having a dividend that's now I estimate just under c. 2x covered by income, I am expecting DUKE's next move to be the announcement of an increased quarterly dividend. Based on last dividend announcement having been towards the end of September, I think we will see this land just before Christmas. How much they will increase the dividend by is anyone's guess, but here are some indicators of what it could do: 0.5ppspq (current div) gives yield of 4.8% at current share price of 42p 0.6ppspq = 5.7% yield (or 4.8% yield at a share price of 50p) 0.7ppspq = 6.7% yield (or 4.8% yield at a share price of 58p) So here is a share with both income and capital growth potential. I am very happy to have found this still on the ground floor, and I will be adding as and when I can. DYOR, GLA and hope to see some other investors on this board in due course! Otherwys

Personally I think a lot of people were looking forward to a significant rise in the dividend once capex started to fall. I'm not sure if this announcement effectively delays that by another 18m. I agree it's good news for the mine, and of course makes sense financially to do it now, but still for me I'm not surprised at the flat market reception this announcement has had. GLA Otherwys

onefineday, No, a name change is not the same as a merger or takeover, it's a purely administrative matter that doesn't require any shareholder input. I am sorry that your holding in this company has been wiped out. But it didn't just happen out of the blue last month, and if you've been reading the company announcements over the last year or more you will (or should) have noticed the clear and very stark statements about the company's financial position. You were warned; if you chose not to heed those warnings and salvage what you could when you could, then that is on your head. Yes the Board badly mismanaged the company over a period of years, but they have not been pulling the wool over anyone's eyes about the financial situation; pretty much every RNS over the last year has referred to it in black and white. I repeat, I am sorry for your loss - I've been there myself with other shares - and I hope you can learn (as I did, the hard way) to read everything a company you're invested in puts out very carefully. Transalp - the patents were held in the operating subsidiary, not in the listed holding company; they have been sold to Meditor (see the October RNS) and I am sure Meditor will be actively pushing the technology. That is, after all, the reason they provided the funding via the CLN in the first place. To me, the details and circumstances of the CLN (as published by RNS at the time) were the biggest warning to steer clear or get out: it was pretty obvious then that Meditor were going to be the only winners from IEH. Again, it was all there in black and white, published by the company for those who took the time to read every detail. Will anyone be held to account for this? For what? The Board made public all the problems they were having and what they were doing to try and resolve them. It seems to me to be an open and honest admission of failure, but I see no evidence of fraud or anything underhand. Poor management yes (not a crime); entering into disadvantageous financing deals yes (but the deals were approved by shareholders in General Meeting, were legal contracts and therefore binding on the company, and as they said at the time, they didn't have any other available options) - again not a crime. What I take from this is a list of names of Board members, and if I ever see their names on another company board again I will avoid like the plague. But I don't expect any official action against the directors, because in legal terms I don't think they've done anything that they could be brought to account for. Take it on the chin, learn what you can, and move on. Sorry guys Otherwys

Startnet, To answer your questions directly: In theory your shares should have some value and be tradeable under the new name until the company delists. In practice I don't know who would be buying under the circumstances so you may not be able to place a trade. Once the company is de-listed again in theory they still have a value, but without a market to trade your shares on you won't be able to sell them. Once the company is wound up, in theory if any money is left after paying all creditors the leftovers should get distributed to shareholders; however under the circumstances there isn't going to be anything left over for shareholders. Kind regards Otherwys

Hi SoR, DUKE has recently announced its second investment, into Lynx Capital which is underpinned by two further companies (one a signage manufacturer, one a warehousing/logistics provider), so three not one, with another expected before end of year. Which given DUKE is <1 year in is not bad. APF is all in mining so when commodities cycle turns so will APF (and I accept that at the moment it's looking pretty good for commodities). Yes DUKE will be raising more capital, that's their model :) If it was cruise ships I'm interested in perhaps I could find a listed riverboat company, but it's the ambition of a diversified royalty stream I like more than any individual underlying investment. Best of luck! Otherwys

Hi SonofRobin, Not trying to start an argument here, and of course you're right they are very different beasts. APF only invests in mining royalties, which may take years to turn from investment to income (BKY won't be in production for a year for example). They are then subject to commodity price fluctuations - which are serving APF very well at the moment. DUKE invests in established businesses (specifically not mining), and gets an immediate return. So their riverboat investment is already returning c. 12% to DUKE which is what's allowed them to pay a 5% div already. The DUKE model is effectively: 1. Raise capital (done) 2. Invest capital (done) 3. Announce dividend increase (maiden dividend paid October off the back of their first investment, they now have.a second which I expect will drive a dividend hike for the next (January) dividend 4. Share price appreciates to accommodate higher dividend 5. Raise capital at a higher share price 6. Invest... Etc. To a certain extent APF does the same thing of course, just a different focus, and (in my opinion) with higher risk. You may not like the DUKE model, or the idea of investing in boring "old world" businesses like riverboats and signage manufacturers, and that's fine. But it is a proven model, and getting in on the ground floor magnifies the eventual return. Anyway, I just wanted to bring it to the attention of people who have already invested in.a royalty business in case others might be interested too. Best of luck Otherwys

If you like the royalty model can I suggest checking out DUKE Royalty? Recent entrant to the market, good institutional support, directors heavily invested, already invested their first �15m and paying a 5% dividend. Strong pipeline of deals. I was invested in APF until recently; switched it all into DUKE as I see significant growth and dividend growth there. And yes, that's in spite of strong Kestrel revenue and anticipation of APF hiking their dividend early next year! As always, DYOR GLA Otherwys

...received my allocation of open offer shares from Halifax. Now apparently have to wait "up to 10 days" for reimbursement of the (small) balance owed back... Time for me to consider a new SIPP provider methinks!

Lack of track record? Why would you choose an untested startup robotics solution when you can use one of the three that's tried and tested by 100's of companies already? Any newcomer will need to have a startlingly better proposition I'd say...

I am a bit concerned about the idea of an in specie distribution of CAI shares; some of my KRS holding is in an ISA, single listed ASX shares (I.e. CAI) are not eligible to be held in an ISA. so what happens then? The rest of my holding is in a SIPP with Halifax share dealing; I would need to check but I'm pretty sure Halifax don't offer trading services for ASX shares. So, if I end up with a chunk of CAI shares I'd be a bit stuck - would lose tax wrapper status and would probably end up with a paper share certificate... Would honestly prefer KRS to sell the shares and give me the cash; or if the Togolese ever give us that damn license, use the cash to fund our long-awaited manganese mine... Mind you, if KRS announce an in specie distribution of CAI shares, that should force the KRS share price up between announcement and distribution dates, so may give an opportunity to exit with reduced losses (albeit I'd be surprised if that realised full value of CAI shares for me).

" IP value divided by number of shares plus Meditor's CLNs converted to shares, hence the heavy buying." The CLNs are convertible at a price of 8pps, at the sole discretion of the CLN holders. Meditor will not convert below 8p, they'd lose money by doing so. They will carry on taking their 13% interest for as long as the company can afford to, and as soon as the company defaults Meditor will take over the operating company which holds all the IP - which is their security under the terms of the CLN. The company can't do anything with the IP without agreement of the CLN holders; and why would Meditor agree to IEH selling or licensing the IP to get out of this hole when they know they will own the IP outright in a matter of a couple of months (at current cash burn rate)? IEH is dead. If you want to try and catch the dead cat bounces to make a few quid, I wish you luck, but anyone buying this in the hope/expectation of some white knight riding in needs to do their homework on the situation a bit better IMO.

Beebong got banned from LSE bulletin boards; don't know specifically why but it could have been any of a number of reasons (including potentially his behaviour - flooding this board with repetitive positive posts effectively drowning out any contrary views or discussion). This was shortly after I asked him to state his position (invested or not, how heavily and at what price, any connection with the company) - which of course he refused to do. He did continue to post on A D V F N as ibug (at least from the pattern and style of posts I assume it was him!), but ibug went silent there when the doomsday RNS was released. Speculation on that site is that he was a paid ramper... who knows. I hope anyone who invested in IEH solely on the back of Beebong's posts has learnt the biggest AIM lesson - DYOR!

In gambling terms, this is a million to one long shot. The company tell you in so many words the shares have no value... Oh well, it's your money. Best of luck.

"is everyone loaded up think this share might shoot up !" Seriously?! Please tell me this was posted to the wrong board...

"IMHO the company knew all this before announcing all these collaborations." So did you; the company announced in RNSs in March and again in June that they didn't have enough cash and were looking at options but there was significant uncertainty about the future. I agree that the BOD have badly mismanaged this company, but they have not misled investors about the company's precarious financial position.

For all investors here.

Silverfox, "You wouldn't think entering a partnership with TCP would be on the cards if there wasn't funding to keep going at the least " I have little doubt that this company will continue in some form - it has a great IP portfolio, good products and tie-ups. My concern is more about what the solution to the funding problem will mean for investors (and hence for market sentiment/share price): suppose for instance all IEH could find was an offer of the money they need in return for 90% dilution to existing shareholders? Or worse still, what if no funding can be found and IEH defaults on its CLN obligations, in which case Meditor and the CLN holders end up owning the operating company (not the listed shell) with all the IP, products and tie-ups, and existing shareholders get diddly squat? I hope these remain hypothetical worst case scenarios, and that a good funding solution is found which enables the company to move independently to profitability; but until I see what that funding solution looks like, this remains too high risk an investment for me. Hopefully not much longer to wait anyway! GLA Otherwys

I don't think it's sales figures the market is waiting for, I think it's a funding solution that keeps the company alive longer than 12m (given cash balances and cash burn per June RNS)

Thanks RP; doesn't specifically mention a new loan, nor does the 30 June RNS, just future financing required with no specifics yet; is there anything you've seen/heard that suggests a loan is on the table, or was that just speculation on your part as to one possible outcome of the funding discussions? One interesting part of the 30 June RNS is: "Paul Heiden, Non Executive Chairman, also intends to step down from the Board by the end of September 2017, subject to the satisfactory conclusion of the current financing activities." Which would suggest that the Company expects to complete financing discussions by end September; so hopefully we will hear something concrete about funding from the Company itself before the end of this month (although these things do tend to drag on). GLA Otherwys

Sorry RP666 did I miss something? What is this "new 2 year loan" you mention? Thanks Otherwys