Member Info for phenomenonnick

Oh and the GUN parallel is arguably to confuse correlation and causation!

I’m voting in favour of the conditional placing and indeed everything except resolution 3, the one which allows further share issues over and above what’s been announced. I’m undecided about that one. 25% seems a fairly modest allowance by AIM standards so I’m leaning towards voting in favour.

Correction it’s £410k not £470k

Brokers yes. I’ve yet to see accountants and solicitors take shares even at the scruffy end of the market. And a £470k raise given running costs and abortive costs implies broker etc taking shares already. More importantly though, you can only take shares if it works. If it doesn’t, as with Securlynx, the advisers still need paying. At best you get reduced fees for an abort, but they’re going to want to know there’s some cash to pay them if it doesn’t go through. You would want this anyway - suppose they uncover something awful in the due diligence. If covering it up got them paid but screwed us in the long term, but hiding it stopped us making a big mistake but cost them their fees, they’re in a pretty invidious position.

Hi Peer, I don’t think £270k is enough. The actual cost of these deals almost always seems to be at least £500k or so. Ok they don’t need all the cash to do the deal but not having enough makes them less attractive than shares like KIN or MORE which do. Plus there’s got to be £60-£80k of running costs for the next six months, and whatever some of the idiots on here say they will have spent SOMETHING on due diligence on the Securlynx acquisition - hence needing to raise £80k in Jan. Even if £30k of it hasn’t been collected yet! Not convinced the existing BOD deserve the benefit of the doubt in having another go at an RTO but wasting a few months on a boardroom battle is a luxury we can’t afford. I’m wondering if we have the right advisers - surely they should be able to find something decent.

DB - it WAS an investing company, looks like it's now a Cash Shell, so there's a 6 month deadline.

Feel free to use the filter. I know I will.

What was the lie? What’s the stitch up? They’ve screwed up, not stitched anyone up. Whether they’re the right BOD to find a new RTO target is another matter, if someone else wants a go I’d strongly consider them. But no-one’s been stitched up, they’ve cooked up an RTO. It’s a risk which is run. If you can’t handle the risk perhaps you aren’t cut out for micro cap investing.

Barring the novel spelling of knee jerk, I agree with willec. This is a shell at a decent price. As with all formal Cash Shells (as we now are) there's time pressure. Everyone involved is aware of that and can hopefully do a deal. If it doesn't happen, that's the risk we run. They screwed up with Securlynx which looked rubbish from the start I felt. But the idea they're "shafting" holders or there's a "scam" to be "in on" or not is just ridiculous. Let's keep a sense of perspective. Hamish is no Warren Buffet for sure, but he's no Bernie Madoff either.

I'm pleased they haven't gone ahead with Securlynx, it never looked great. At the new valuation it seems cheap, not sure if the loan to Securlynx is recoverable but hopefully the �500k to Oyster is plus they have some cash - presumably a fair chunk wasted on due diligence on the Securlynx deal though. Fingers crossed they find something better - HH's credibility has taken a bit of a knock on this but at least he's stumping up some cash, he's got an incentive to make it work this time.

Almost all of it’s in free float. 84%.

Remind me why we think six months is relevant?

I don't think so. What rule were you thinking of?

Think that’s what stu said. And it may hit the share price in the short term, but, to quote a playe in a rather larger negotiation - no deal is better than a bad deal!

Hi draft - I meant it’s not a cash shell in the strict sense of the AIM rules, it’s an “Investing Company”. This means it isn’t subject to the strict timetable that other things I’m involved with are - see KIN for instance. That said this one does look like a right disaster. Sounds like a massively overvalued acquisition and based on the terms of that last £80k fundraising they’re pretty desperate. Thankfully I didn’t have too much at stake here, but doesn’t bode well for the likes of Gunsynd where I’ve got more. Must say I’m tempted to buy 20% of a cash shell instead of 2% of 10 cash shells, and get more involved. How hard can it be to do better than this lot?!

More alarming for me than the consolidation is the authority for the directors to allot new shares to anyone they like, at any price they like, up to a limit which is more than 100% of the existing share capital! I'm all for them doing an RTO or some other transaction which results in new shares being issued, but I want to be able to consider a specific proposal. I don't want to find I've been massively diluted for them to spend money on a lousy investment. Again.

Agree we are overdue an update. Surely the 6 month suspension deadline doesn’t apply here though? We aren’t a cash shell!

Lol I'm still in too - upped my holding when I could buy for less than cash value!

Haha indeed. Points 1, 4, and 5 are essentially the same thing said 3 times; point 2 is wrong, in that the shares were trading at a huge premium to cash, the premium is now tiny. Now looks a much better bet than before. I do think point 3 is valid. The directors should have bought at the placing, and having not done so, should buy in the market before they become insiders.

Wow destitute you're a cynical chap! Pumped up 20% to reward placing holders? I have to say I've bought into two private placings and it's not been my experience. In both cases the placing was at a discount and the shares quickly sunk to below the placing price. This is a cash shell priced at a small premium to net assets. Looks like this one has more active trading than most but there's clearly potential for it to do well if the new thing that gets found is exciting. If not, given it's backed by cash the downside really ought to be limited.