Member Info for richred_uk

Per the latest TR1 I can see for M&G (25/11/22), they have no shares out on loan.

BlackRock (TR1 dated 8/12 was cancelled 9/12 and reverted to the 11/10/22 TR1 - confused yet?) have 9.91% of the company held and 1.99% lent out, totalling 11.9%. The cancelled TR1 increased the leant out shares to 2.86% and the total holding to 12.05% .

Thanks - per page 19, 5.5 pence dividend and the 7.5% is total return, so NAV/ revaluations, reduced borrowing etc. makes up the difference.

"at least a 4.5p dividend paid aiming for 7p per year."

Can I check this #? I am pretty sure the target was 5.5p per year rather than 7p. With all the bad news doing the rounds I'd rather not have missing divi targets added to the mix :)

"SYME provide the cash"

Technically SYME provide cash from investors. They aren't providing it from company funds (at this point). They are more like a broker for pawn brokers.

The bit I am really interested in exploring (aside from whether this would count as an IFRS15 true sale which I am sceptical about) is the value of the funding. I suspect/ believe/ anticipate that any sale from client to SYME (again technically a stock holding company owned/ operated by SYME) will be at a loss. So the client moves from having a debt on the balance sheet by traditional funding routes to having a loss on the P&L by the SYME route. I wouldn;t see this as an attractive trade, but I am intrigued enough to follow things and find out more.

TBH if SYME does spend most of it on the technology development, a 5 year payback doesn't seem unreasonable - when I asset finance plant loans, they are usually over 4 years, so if you look at it through the asset development lens, 5 years isn't unreasonable.

"Be under no illusion as to the significance of syme moving away from CLNs to a traditional form of borrowing at an interest rate of 3.2% - no further dilution , no waiting for BPM to off load shares :)"

1 - where are you getting 3.2% - it is 2.75% above EURIBOR, and EURIBOR is currently 2.693% (https://www.euribor-rates.eu/en/current-euribor-rates/) so I make it 5.443%. Note this is still infinitely preferable to another CLN for holders as long as the company can make the interest and capital payments as they fall.

2 - I note that you now accept that Venus are offloading shares by implication of the second part of that quote.

For clarity, I do think this is a positive step by the company, and it takes out 3 months of cash burn, assuming that last year's figures included investment in the platform that this loan will cover.

"I wonder will another CLN come into play as we know Venus are taking no more shares."

Venus could still take more warrants at 0.065 pence, but I don't think they are covered by the VWAP 85% thing that the actual shares were, so there's not a lot of money in them at current levels (15% if you can sell at 0.075). I assume but haven't checked that the warrant exercise is totally in the hands of Venus and Syme couldn't 'force' their' exercise. I'd have to check #'s on the warrants to see how much they could bring in.

"8.5m from Vechain funding will generate revenue for syme as you well know :) but are ignoring"

I forget whether the 8.5M is £, € or $, but they are all pretty similar right now :)

At 3% (upper end of fee scale per the initial IM RNS), that 8.5M would produce 255k annually. Per the Interim Results, the 6 months Jan - June 22 had a negative cashflow of £2.3M, so the ANNUAL income from the 8.5M would cover 2/3 of the MONTHLY cash burn. It would help for sure, but I wouldn't sit back and assume that getting the 8.5M out there in funded IM's puts the company on an even keel.

"we have a further 8.5m funding from Vechain alone :)"

I'm fairly sure that 8.5M is reserved to be used for funding IM transactions and can't be used by the company to pay their bills/ cash burn.

Omni Holding @ 26/7/22 (RNS 1/8/22) 1,560,430,000 3.684%
Omni Holding @ 6/10/22 (RNS 11/10/22) 1,332,981,688 2.835%

They had to issue the TR1 as they crossed a % threshold, most of that is down to dilution, but they have also reduced the absolute # of shares they own between the 2 RNS's

The new shares aren't actually issued until tomorro w, but in any case, I suspect they have been forward sold so won't go through the market as a visible trade. Will watch out tomorrow though.

"Nobby, what evidence do you have that Venus (& its investors) have sold any shares?"

The prospectus

The lack of TR1's

BEST = VWAP

56,617,688,143

Plus an extra 2.1 billion warrants at 0.065 pence. Be interesting to see if that price can hold as I don't think the BEST applies to the warrants.

Of course as Venus were issued 8.7 billion new shares, watching the TR1's will also be interesting.

I wish to complain about this thread what I participated in not an hour ago from this very board.

Yes it is

"Thanks Richred - you are also betting against SYME."

Incorrect but then most of what you post is.

Fewer shares or less money.

Thanks for that find apunter that looks like hard reading and I won't pretend I am going to follow the detailed maths, but it does look like a worthwhile read and might explain some questions (and doubts) I have about the concept behind IM.

"I don't even post here anymore ... its really disappointing"

No, it's not.