#XSG 257mln shares November 2019 *market cap £3mln at 0.95/1.00p *cash at end of Sept 2019 £2.4mln * looking to raise £7mln via 1p placing (500mln shares )and an open offer (199mln shares) =198% new shares
19 pages PDF circular on XSG webite has a few main points~ ( points 1-3 below)
1 ) Finncap has CLOSED the book build at set price of 1pence ( see 4.5 on page 10) 2 ) Finncap acting as sole broker for the placing and has conducted the book build 3 ) IPO group (20% currently) and Entrepreneur Fund ( 7% currently) plus managment are supporting the placing and are "related parties ". It is unclear at this stage who else is in the Finncap book build. 4) Clearly appears to some to be a cynical attempt for underwater funds who are in at 10p (November 2018) and £2.25p( Nov 2015 ) to get cheap stock and 3 directors who held 500k or NIL now get 5mln shares each. 5 ) They are exiting cash hungry direct operations and moving to licencing model = staff cuts from 148 in 2018 (£9.7mln in staffing costs!! ) to 60 by end of 2019 so should save over £5mln. Key markets already signed up are the 2 largest users of water, India and China . 6 ) Because the fund raise was signalled 3mths ago at 8p+ the City have been able imho to short knowing they can close in a placing. 19th November GM Shareholders as of October 2019 • Blackrock 20% (they took 20% from woodford in October when Woodford went 33% to 13%) = 51.4mln and prob sold 7th Nov 2019- Link solutions holdings RNS 15th Nov from a trade on 7th Nov which matches the large trades on 7th • IP group 17.5% = 44.975mln (supporting fund raise) • Woodford 13.2.% = 33.92mln (now controlled by another II or sold into the market?) • Invesco 8.2% = 21.074mln (Woodford used to work for them and imho sold their £190k at 0.9p on 1st Nov) • Entrepreneur Fund 7% =17.99mln (supporting the fund raise) • Jupiter 6.5% ( July 2019 from 0% to 6.5%) = 16.7mln ( prob sold Friday 8th Nov Huge sell volume last 2 weeks Sell of 21,225, 348 on Friday 1st Nov = 8.2% = Invesco Sell of 43mln+9mln Nov 7th = Blackrock imho More sells late Nov 7th = 1 or 2 other II
Shares not in public hands as at 25 October 2019 = 73%
Shares in issue as at 25 October 2019 - 1,171,971,322ordinary shares of 0.5p each
1. Market cap fallen from £40mln cap (2.5p) to £6mln cap (0.55p) in 6 weeks 2. Cash $9.2mln as of Nov 11th 3. Woodford had 25%+ in H1 2019 which created a drag. Linkfund took 19% (c.200mln) as of 17th October 2019 which left Woodford with less than 5% on 15th October ( 50mln shares approximately ) and volume Monday 11th 80mln+ 4. Fell 75% on November 11th on what appears to be a misunderstanding of the breach. It is a revenue breach NOT a debt/going concern breach "include certain financial covenants which are tested periodically. One of these covenants is a trailing 12 month revenue test which is scheduled to be tested as at 31 October 2019 " ....
This was the original loan " first half of 2019, we have achieved a number of milestones in order to help secure our future success. Pivotal to this was the credit agreement with MidCap Financial LLP, which has allowed us access of up to $20m of debt financing, meaning we can begin to implement our ambitious growth plans."
5. last accounts Sept 2019
Group EBITDA* loss of £3.6m (H1 2018: £3.5m)
· Cash balance of £10.1m (H1 2018: £12.2m), post-$7.5m drawdown under a credit facility secured for up to $20m to invest in meeting growing demand for products