Member Info for Rachel2

I will be sad to see this company go. Have been shopping here for years and have noticed 'sales' almost permanently. Much better quality clothing than M&S.

Now a share for the day traders. Very sad.

Of course, my point being that this deal needed help getting over the line. Not saying its a bad deal, just trying to introduce some balance to the posters getting rather excited.

Why would the BGF sell £5m worth of loan notes for £3.5m if they thought this was a cracking deal? Why not do a debt for equity deal on the £1.5m!

29th share - you mean this is guaranteed :)

I am concerned that the share price may drop significantly when the new shares are issued. Any thoughts on the market cap post deal?

I agree that Burford should be more open and address the claims directly. It would be great if they would get round the table with MW. If there is nothing really amiss, then it should become obvious. I am a Bond holder here, so concerned. However, I do not dismiss entities such a MW bringing issues / governance to the market. They are also aware of the risks of making statements that could cause losses if negligent.

Canon - If its a reverse then you will get most of your answers in the docs that have to be produced. BTW you don't get much if any from circa £250k costs.

Not sure I understand your stance on MXCP - experienced team of financial advisors and 'criminal negligence and gross incompetence by MXCP'?

Sadly too many AIM companies are filled with NED's who don't stand up to poor Exec Mgmt. I agree that there should be some kind of penalty on the NED's, but I do not expect to ever see it.

I don't think they have had too much time. Negotiations can take quite a while if a number of parties are involved. Might need to get tax advise, maybe even HMRC clearance. Who knows. However, I agree with you that we have no idea about dilution or the price being paid for the acquisition. AD4 have to do a deal IMO. The other party will be aware of this.

LB28. - A company is valued at: value of equity + value of debt ???

Look, I get the short term trading opportunity. However MXCP are relatively tiny for a PE house and have at least two problem investments. Don't kid yourself, they would allow AD4 to go bust. No PE house will give unconditional guarantees. BTW, I am not saying AD4 is a hopeless case, just that it looks highly valued today with dilution events on the way.

Can't see why this should fly. Reading the RNS, it screams dilution to me. After all, the enterprise value is circa £6.5m today for a business producing zero EBITDA and with declining revenue.

It's not a 'free hit'. This company has serious issues backed by investors who recently have been shown to have made very poor judgements. At least they have bought in an exec. chair that's good at fudging numbers :). Maybe his numbers will result in getting the company sold at a good price

Have a holding in my SIPP, showing 50% loss. Should I sell?

Been in Uxbridge store to buy a kettle, usually don't venture onto the floor selling household. Stock levels look low. A real shame, I fear the worst.

It looks fairly priced to me. Growth in share price should come about from proving synergies are possible. It is too early to tell. My view is there is more downside than upside potential in the price in the short term.

They have very poor revenue recognition policies which I suspect create poor behaviours / decision making. In the end it completely confuses investors. The leadership have not bitten the bullet and provided clarity. Very disappointed in the new CFO.

I agree, but they are not growing @ 30% 'organic growth' pa. You also have to be very careful about definition of organic growth. Time will tell. I have worked in software companies for over two decades, I know most of the creative accounting (legal) tricks. I really like this company btw.

I did, I noticed the circa £47m of debt :). Giving an Enterprise value of circa £600m at share price of 200p today (more than 3x revenues). For me, that requires an almost flawless execution which we don't have at present.

You may be right, however even on a fully adjusted eps this share is still trading on circa 20x. Still too high for me at present.

I am invested here, and well down. I think you sum up the position very well. Looking at the cash flow I fear a very poor RR policy or worse. Everyday, I consider cashing in :(

They look like sales to me?