JV speculation12 Feb 2020 14:05
I've read with interest lots of posts on here and elsewhere with regards to a possible JV. I've been invested here virtually from the start and have ridden the highs and lows. I have good comms with GS, we speak at least once a month. Whilst those conversations never reveal anything market sensitive (unless I wanted to me made inside) my feeling is that the company are progressing exactly how they envisaged when they first set up. The recent board changes suggest to me that perhaps a little more than a JV is in the offing. The company has always believed that once everything was established they would be taken over. The picture is imho becoming clearer. The potential lender is pretty much known now and their business is massive. Personally I expect some sort of JV before the end of Q1 and when the figures start to be confirmed I'd expect a takeover within 12 to 18 months. The key here is the initial finance which will be expensive so it makes sense to JV with the lender to mitigate the costs. The fund is returning market leading amounts and is generating a massive amount of interest. My conversations with GS he stated at least 10 calls a day of which 6 or 7 are from significant investors and require his input into the conversation. Remember the initial investment into the fund is $250k so if the call requires GS involvement then the investors are looking to put in a lot more than $250k. Those calls are on a daily basis so the demand is there. that's my take on it all and why I hold nearly 3% of the company and will continue to hold. Timeline as I see it is finance and initial AUM announced by end of Feb, JV confirmed end of Q2 and takeover within 12 to 18 months. Price at each stage would be a complete guess but finance and AUM could see anything between 9p and 20p depending on AUM thereafter it's how the market perceives it but I would expect any takeover to be in excess of 50p
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