Member Info for preciousmaj

How is it a complete failure of a company?
Am I missing something in this update?
Oh I see you're looking to buy back in according to your posting history NuckyT. Makes sense.
Why post if you think the company is a failure?
Why would you want to buy back in if the company is a failure?

Thanks Dungiven123.
At Crystal Amber's estimated net asset value of Allied Minds, the share price would be around 49p.
I think fair value is greater than 49p.

The Fund expects the Allied Minds board to proactively seek to realise the inherent value of the portfolio in a timely manner and return proceeds to shareholders. It should be open to any structure that could achieve this objective including, if considered appropriate, reversing Federated Wireless into a Special Purpose Acquisition Vehicle (SPAC).

Over the period, the share price of Allied Minds declined by 10%.

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25 January 2021 Update
Allied Minds plc ("Allied Minds")

Following its initial investment in the fourth quarter of 2018, the Fund focused on securing a major reduction in the excessive parent company costs of Allied Minds: ongoing HQ expenses were running at an estimated US$17-20 million at the time. These have now been reduced to approximately $5.75 million per annum. In response to concerted pressure exerted by the Fund, Allied Minds ended its extraordinary practice of paying management 10% of gains arising from any successful individual investment, without taking account of the losses incurred on other investments in the portfolio (the "Phantom Plan").

In October 2020, Allied Minds released its interim results and referred to the "underlying strength of the portfolio". Spin Memory was described as "the preeminent MRAM IP provider […] transforming the semiconductor industry". Reassuringly, it was stated that "Spin Memory has made significant progress against its key operational objectives since its last funding round". Allied Minds'43% shareholding in Spin Memory, based on that last funding round, was valued at $77 million. This compares with its $44 million cash cost since 2006. In July 2020, Allied Minds invested a further $4 million into Spin Memory. Spin Memory's carrying value therefore comprised around 35% of net asset value. After 15 years, Spin Memory remains a "pre-revenue" business.

Following this update, the Fund held detailed discussions with the board of Allied Minds and expressed its concerns.

On 4 January 2021, Allied Minds announced that due to COVID-19, the required testing of Spin Memory's chip had been delayed for nearly nine months, that this delay had affected Spin Memory's ability to secure new customers and that as a result, this, coupled with an unexpected loss of a government bid in late Q4 2020, Spin Memory is now facing liquidity issues. The contemplated funding round is expected to be at a far lower valuation than its carrying value.

On 15 January 2021, Allied Minds announced that its Chief Executive had "decided to step down from the board with immediate effect." Going forward, the portfolio will be managed by the three non-executive directors. The Fund welcomes the streamlined management of the portfolio, in which three companies comprise more than 90% of the latest reported carrying value.

The Fund notes that the current 28p share price compares with an estimated 26p per share carrying value of the 36.6% holding in Federated Wireless together with parent company cash of 6p per share. Holdings in BridgeComm, Orbital Sidekicks, TableUp and Spark Insights are together valued at 12p per share. Whilst there is uncertainty as to the current value of the Spin Memory holding, the Fund estimates that at least 5p per share could be achievable. Overall, therefore, to trade at the Fund's estimated net asset value of Allied Minds, the share price would have to increase by 75%.

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Have you been in touch with IR to raise your concerns and what has the response been?
I'm pretty new to ALM, my average is probably lower than most here so can understand the frustration of long term holders but I'd be interested to know why you're still invested in the company if you have little confidence in the Board realising value for shareholders?
I hadn't visited this bb until a few days ago and read the comments about a potential delisting. I had the same fear after the update on 4th January. I contacted IR and asked them to clarify this via RNS immediately, its only been around a week since my last communication with them but I think its important that this is announced. I'll keep communicating with them but would like to hear what concerns others have so that I can raise these?
I agree their salaries are pretty excessive for what they do - I will raise questions in regards to this but welcome news that Joseph Pignato has stepped down - he was paid a total of $1,543,000 last year including bonuses. Also bonuses should only be paid in shares IMO to align interests with shareholders. Its also worth noting that Non-Executive Directors will now sit as Board members of the portfolio companies and its only fair that some of their remuneration is now awarded directly by these entities.

I received the following response from IR last Friday:
"Further to your enquiry - the company has no intention to delist, rather is intent on managing all expenses prudently."

People should contact the company before jumping to conclusions. Maybe they were looking for a lower entry.

The company is really undervalued atm, just federated wireless is worth more to ALM than the current share price. I'm expecting a rerate soon.

I think there will be an announcement tomorrow morning stating that shares will be suspended.

Massive difference between your opinion and fact.

How can you be so sure that a ''New nomad'' will be announced tomorrow?

The RNS on 4 December stated:
''The Company is in discussions with a potential replacement nominated adviser and broker and is currently undergoing the required due diligence process with the proposed party, targeting to complete the process prior to 6 January 2021. The Company will keep the market updated on progress in this regard.''

Have there been any update on progress?

As far as we know there is no ''New nomad'' - if there was confirmation of a new nomad carrying due dilegence then the share price would be much higher. We're possibly a day away from being suspended and possibly a month away from being delisted - the point being made is that I'm surprised that the sell off hasn't started already.

This stock is as high risk as you can get IMO:
''Pursuant to Rule 1 of the AIM Rules for Companies, if a replacement Nominated Adviser is not appointed by 6 January 2021, the Company's shares will be suspended from trading on AIM and, if a replacement Nominated Adviser is not appointed by 6 February 2021, admission of the Company's shares to trading on AIM will be cancelled.''
That leaves today and tomorrow to resolve this before suspension.

I feel that the main issue that the company is currently facing is lack of cash:
''As at the date of this report, the Company had drawn down £2,950,000 of the increased Polo Loan Facility and the Company currently has approximately £105,500 in available cash resources, which along with the remaining £550,000 of the Loan Facility the Director's believe will only be sufficient to fund the Company's cash requirements for the next six months, assuming the Company's currently forecast cash costs. The Company is exploring other financing options, and is confident of securing additional funding by the end of January 2021(the "Additional Funding"). .''
The lack of cash may well be the reason for the resignation of Strand Hanson. The worrying thing is that they could have facilitated a raise.

The issue of financing needs to be resolved along with appointing a Nominated Adviser, the two go hand in hand IMO. If the company estimates to sort finances out by the end of January then that may be when they appoint an adviser unless they're able to appoint an adviser now who helps the company raise funds by the end of January.

I'm surpised that the share price is holding up so well, the current market cap is nearly £9m, which is pretty high with the threat of suspension from the AIM by tomorrow and possible exclusion by 6th February.

Happy New Year to you all.

We will see how things pan out in 2021.

''I wonder at what price?''

That's a difficult question to answer Goonerpete and depends on the amount and level of dilution. I think a good outcome for shareholders will be 10p+, achieving the same price as the last raise (13p) will be fanatastic for shareholders. Anything below 10p will be devastating. The company needs to ensure that there is a clear use of funds, if they say that funds will be used to achieve debt finance to develop the Lixus licence then the level of dilution will be irrelevant as the SP will increase due to a clear path to monetisation. Its also worth noting that the company may advise of a clear use of funds then change their mind like they did after raising $7.5m in 2014 to ''fund a new venture opportunity'' that never materialised, some will say that this won't happen again as we have a "New Board". I have decided to wait for the details.

Please address the bank balance SC, not me

Thanks

“No need, all was said in last RNS.”

Apart from the end of year bank balance.

I feel we will have an equity raise before the final results are announced.

Is anyone expecting a Pre-Close Operational Update by tomorrow?

RBGP and ALM are certainly great value at these prices, I have added to both holdings recently.

Feel free to comment fan club - ignore the haters

whimax - filter me if I bother you

No problem whimax.

I disagree with most of your assessment though. Why do you say it could be 6 months before the new acreage is formally awarded? Chariot have already added the new acreage to their website and the award looks like a formality.

You also say it they could have 18 months to shoot 2d seismics. You clearly haven’t been following my thought process in full so I’ll ask you to read my posting history. I can’t understand how you have missed my timeline of events as you’re responding on the same thread. The Chariot board will not want to wait 18 months to shoot seismics IMO, also my thoughts are that GREATER LIXUS will get farmed out together so why would you think that I will agree to Chariot being a completely different animal by then?

I don’t follow why you feel that the longer we go without a raise, the less likely it’s going to happen. The longer we go without a raise means chances of it occurring are greater because the bank balance is decreasing. I don’t understand how you think we have enough cash too, please elaborate on this. I have forecast the bank balance as at 31 December 2020 and potential future commitments that you must’ve read - it will be interesting to understand your viewpoint.

BouncyDeadCat -

Been saying this all day but you’re clearly a little slow so I will repeat again. There is no OLD and NEW board, Adonis has been involved since IPO in 2008 and has been pulling the strings. The 2 new boys have been planted for marketing appeal because of their youth, enthusiasm, drive, ambition, etc, etc.

You can call my views negative all you like but you must be worried about Chariots cash position yourself. It would be pretty naive of you if you didn’t.