Member Info for RKBeekeeper

2018 Review: 9 PBV Monitor Part 1

This PBV Monitor I believe will be the key to enhancing our NAV and a very clever move by FG in my opinion.

Almost at the end of December 2018 we were informed about our 10% initial stake in PBV Monitor. FG took a £278,750 stake of 10% in exchange for 35,365,389 CLP shares. This was at a premium 21% to the share price the previous day.

“PBV Monitor ... an Italian company specialising in the acquisition and dissemination of data for the legal services industry, utilising proprietary market intelligence tools and dedicated search software”.

“Over the past four years, PBV, trading under the brand of “PBV & Partners”, has assembled and analysed the activity of over 8,600 law firms worldwide and over 100,000 business lawyers in 100 jurisdictions, producing approximately 43,000 articles that have regularly been published on the Global Legal Chronicle (globallegalchronicle.com), a trusted news source for lawyers and businesses, available in English, Italian and French”.

“PBV processes approximately 12 thousand corporate transactions per year. Relevant information such as details of the law firms, partners, junior lawyers and corporates involved in each transaction and the size of the deal is stored to offer the users of its web platform (www.pbvmonitor.com) an accurate and informative environment, with tools and preliminary insights, to effectively identify and compare law firms”.

“As part of the investment agreement, Clear Leisure will be granted a seat on the board of PBV, will be appointed as exclusive advisor to PBV regarding the possible sale of PBV from 1 January 2020 for a period of four years will be entitled to a 4% commission fee on the proceeds of any sale”.

How I read this investment is that CLP will increase their shareholding up to 29.9% of PBV Monitor and as stated in the RNS, FG will be our appointed director from January 2020 and with the possibility of a sale within four years then CLP will receive 4% of the proceeds. At our initial investment of £278,750 that puts an immediate value of £2.79 million on PBV Monitor and this is before any real income is achieved through the subscriptions.

RKB

2018 Review: 8 Initial Coin Offering

In early May 2018 FG informed us of his intentions being involved in a Proposed Initial Coin Offering.

“The Company is also currently assessing the opportunity for an Initial Coin Offering to be launched via a newco, initially 100% owned by Clear Leisure. It is anticipated that the funds from the ICO will be used to develop larger data centres in East and South-eastern Europe, mainly for the use of multi-crypto currency extractions, but also to host new blockchain based applications. It is the view of the Board that following completion in the next few months of a number of final verifications, involving, regulation, tax treatments and jurisdictions with clear legislation in crypto-currency mining, an ICO can be launched soon thereafter. The effect of sales of tokens at the ICO will not be dilutive for Clear Leisure shareholders, while potentially raising a large amount of capital to further future operations”.

I believe if FG could have launched an ICO he would have done this by now. There may be valid reasons for a delay. Such as BoD busy working on other projects or there may have been unforeseen hurdles. All we know at present that this Newco company is not operational (just yet)

RKB

LtAxis

You used to have a previous ID and you advised us on a different share what it was, so you are being honest with some things?

You were negative about the Bonds on 7 January 2019 where you said “although undeniably a good balance sheet exercise, is just exchanging one form of equity for another.” Which you failed to mention the massive improvement on our balance sheet which is in our favour (as stated in the 2018 Review 5 Post Euro Bond Conversion) the not insignificant sum of £1,781,609. But have to give you credit for your honesty for admitting in the same post that you did profit from trading.

I again admire your honesty from your post on 3 February 2019 where you made a loss on your CLP trade at 0.062p for a £1,000 loss. But then 15 days later you say “You’ve got to be impatient or fed up to sell a million @0.58p” So if I am reading this correctly it is ok for you to sell almost a million but not someone else? Oh two days later you bought 1 million at 0.61p (a little less than your sell at 0.62p)

Six days later you say we are over-priced at 0.6p are we still accumulating at this point? Two days later you inform us that you sold 822,341 and 1 million and after charges made £5 again I have to admire you for your honesty as you moved in and out and made £650 on another trade elsewhere and that you may or may not put back in here. Now for others not up to speed what it looks like, LtdAxis has a core holding of 4 million and a pot of 1.5 million to 2 million to trade and with his positive / negative comments hopes to trade this pot. So just to be crystal clear I (RKB) do not trade. Like LtdAxis I believe Clear Leisure is undervalued and eventually the market will wake up.

I will cease if you will likewise. I am happy to debate and answer questions but when you flip flop it has consequences. You cast doubt over my holding? Personally I have 11,350,000 with family 13,980,000 or 2.31%. If required I can screenshot and tweet and I can also do the same after any re-rate to confirm my holding.

RKB

PS and my average is 0.1652p that is over 2.5 times less than the current mid-market price, this average is because I have ignored all my profits from 2 years ago in Summer 2017 and the bitcoin spike. To save your calculator over heating my actual cost of my 11.35 million shares is £18,752.46p so if I wanted to I could trade every day for a few months and make money but that is not me.

PPS RMR1969 my loyalties are here not there.

PPPS Chinaman1 You have 9 posts that are there for all to see. How appropriate your nom de plume.

You obviously do not have a clue. If you had done your homework you would know that the debt had interest on it which the lenders are still due. If you default on your sheep farm mortgage then apart from being in deep stuff you are still liable for the mortgage and any other sums due.

You are no doubt aware that there are big Arbitrage Firms in the USA who go around buying debt at 10 or 20 cents on the dollar and then often when they have secured this debt they actually control the company. FG was almost there but the system was / is not honest and I am beginning to think that way about you.

We have an unsecured creditor position of €8,211,897 after the other not secured creditor but ranked above us for €165,718.

You obviously want to rubbish our First Charge Creditor Position of £2,434,870 and sow a sheep load of stuff about our unsecured creditor position of £7,456,361 beginning to lose respect for your de-ramping.

RKB

The €1,368,414 money is in the escrow account and I detailed in the previous posts where you could find it in the previous Annual Results and also that the cash is now not recorded on the most recent recorded accounts.

I have detailed notes in my study but I am not going to attempt to retrieve them to give the exact explanation about this €1,368,414 cash.

From memory Clear Leisure had to set-aside €1,368,414 to contribute to certain infrastructure when they first applied for planning permission and as you are most likely aware we were “given” this permission but then the local “not in my back yard brigade” got on their horse and cart and kicked up a fuss even although there was over 24% unemployment in the region.

In the UK a House Builder has to set-aside some money often for roads but sometimes even a contribution to other amenities. The €1,368,414 is hard cash and I can confirm this cash is in the hands of the Liquidator. You only need to ask PR (that’s Christian, the one who has me blocked so I can’t call him or text him but I don’t normally call him and I certainly limit my email communication with him as it appears he is like Peterhouse and has long arms) Previously I had to use my wife’s phone to call him and I left a voice mail to say that as he was not accepting my texts or phone-calls I would just call FG direct. What happened? He called me immediately on my wife’s phone as he did not want me to contact FG direct, why? What is the purpose and function of “Financial PR”? It appears not to accept calls or communications from a shareholder who has just under than 3%.

I think most LTH are now aware that there could be something that is not quite right with AIM. Brokers, Nomad, PR and anyone other than shareholders are all in what I would call a club that serves only one purpose. When you have realised that then you will know what you are up against.

So in conclusion there is money for the Land Auction and the money from the Escrow account in the hands of the liquidator and the reason why the Italian Ministry is a smaller unsecured creditor than Clear Leisure is because they think with their legal system in Italy they can do what they have been doing since the inception of the European Union and take, take and take what they are not entitled to.

RKB

PS The REAL REASON for the liquidation of Mediapolis is the Legal Claim of €45 million against the bandits who messed up on the planning certificate and as Mediapolis was the instigator of this €45 million legal claim it now falls to the liquidator to pursue. Oh who employs the Liquidator? Is it the people that were being sued for €45 million (yes) as that saves all you non researches getting up off your seat and doing what most should be doing when you are invested in AIM shares and looking for value.

2018 Review: 7 Mediapolis SRL Part 3

Clear Leisure is / was all about Mediapolis and the “Suspended Dream” and FG has done so much work to secure the First Charge and get the debt brought down through prudent buy-back of debt at over 80% discount.

At every turn in the events of Mediapolis various “events” (for want of a better more appropriate word and to prevent me using profanity) have conspired to thwart FG at almost any cost.

As stated in previous posts above we have through our Clear Leisure 2017 the First Charge for €2,678,357 and as the Liquidator actually has (or should have) the funds from the Land Auction of about €1,762,537 (after 10% costs as detailed in various RNS’s) and the money from the Escrow account as detailed in the past 5 or 6 years annual accounts of €1,368,414.

This means that the cash held by the Liquidator is a minimum of €3,130,951.

What is our First Charge creditor position? It is €2,678,357.

Now do you understand why I disagree with the provision in the Six Monthly Interim Results for a loss of €720,000? Prudently this should be there and most likely will be there for the Annual Results but as soon as the funds are received then this “paper loss” will have to be reversed.

RKB

2018 Review: 7 Mediapolis SRL Part 2

In my opinion I do not think we have made a loss of €720,000 because we have the first charge and as such are the only secured creditor. When a company is liquidated the secured creditors are paid first and then the unsecured creditors get what is left. So if we only receive €1,762,537 (€1,958,374 less 10%) then we are still due €915,820 as a secured creditor. This €915,820 has to be paid before any unsecured creditors.

So after our secured position there are the unsecured creditors. There are at least creditors ranked above any unsecured creditors for the sum of €165,718 so they have to be paid after our secured position. Then whatever funds are left, that gets split between all the other unsecured creditors.

CLP has an unsecured creditor position of €8,211,897 (yes over €8 million) and then there are the bandits in the form of the Italian Ministry for €2,798,620 and others are due €372,345. What many seem to forget is that there is €1,368,414 held within an escrow account. This €1,368,414 used to be recorded as cash within our accounts over the years but last year it was removed due to the Mediapolis liquidation. If you look at the Accounts for 2016 note 21 on page 29 you will see cash detailed as €1.37 million. Then if you look at the Accounts for 2017 note 21 page 45 cash at bank €0.

So now the Liquidator has net cash from the Land about €1,762,537 add in the cash in the escrow account of €1,368,414 total €3,130,951. Then there are the ten Sardinian Villas which I believe were in our books at €5.5 million. There is no mortgage attached to the Villas because if there was then they would have had a first charge on the Villas and the only explanation for this that I can come up with is that some of the debt that FG bought back at 80% + discount was debt on the Sardinian Villas. Using a conservative value of say €4 million then this can be allocated to unsecured creditors. One day we will find what the Liquidator is doing with the Sardinian Villas but I honestly believe we will receive a substantial part of any funds from any sale. I have not made any allowance on our balance sheet as this has still to be concluded / communicated. You can attempt to work out what we may eventually receive at some point which I would expect it will be this year.

RKB

PS Our First Charge of €2,678,357 (£2,434,870) will be paid in full because the Liquidator has net cash from the Land of about €1,762,537 plus escrow account of €1,368,414 total €3,130,951, this is about £2,836,319 which will repay the First Charge, the next creditors for their €165,718 (£150,653) and this leave about £250,796 (£2,836,319 - £2,434,870 - £150,653) for all the Unsecured Creditors which CLP are the main one. (Don’t forget to factor in the ten Sardinian Villas)

2018 Review: 7 Mediapolis SRL Part 1

This probably is the most controversial topic at the moment in Clear Leisure.

As we have not had a definitive conclusion to the Mediapolis Land Auction I have not included any “improvement” in our balance sheet basically because we neither received proper title to the Land from our First Charge held by Clear Leisure 2017 or the cash from the Auction because we are still in dispute with the Courts to this “stitch-up”

If you want to ensure that I am not bias in my calculations then there was a provision provided for within the Interim Results published on 28th September 2018 of €720,000 which FG said “extraordinary loss of €720,000 due to the prudential partial write-down of the value of the first charge on the Mediapolis land”. So you should note this and subtract from the positives I have detailed above and the further positives I have still to allude to.

Background to Mediapolis: Originally this was to be a Theme Park with Hotels, Media Facilities, Designer Shops, Electricity Sub-Station and many other things. The Land was valued at substantially more in our Books over the years but what we have to accept (in my case, reluctantly) that we may have to accept the funds from the Land Auction from July 2018 where the Liquidator even although the Court appointed surveyor had assigned a value of €3.86 million decided to place a value of €2.61 million and then further “fixed” (in more ways than one) at 75% minimum so he was able to “accept” the sole bidder’s offer of €1,958,374. Disgraceful in my opinion but that is what happened.

FG appealed on various occasions throughout 2018 and still at the time of this Post it has still not been resolved.

There are some positives with Mediapolis Srl. We have our First Charge on the Land as the only secured creditor to the value of €2,678,357 so even although we have a bidder who we assume has lodged funds to the value of €1,958,374 and we know that there will be about 10% of charges to the liquidator and a few of his buddies. So now you can see why FG made a provision of €720,000 but should there have been a provision made?

RKB

Good afternoon Easychair

I can’t recall at present how much I mention the ten Sardinian Villas but I will be posting shortly a three part post on Mediapolis later this afternoon.

Unfortunately Mrs loaded with cold so I had to do the mental music class this morning where most of the participants were female (only one male, me) and my head is thumping but as soon as I can settle granddaughter I will post on Mediapolis.

RKB

Well done Max, I knew you would know what it was currently at and what is our current Market Capt? £2.57 million

So with just the Debt Conversion, Justin Cooke partial settlement of £500K (the other £650K comes in on the interim results for 2019 so we can’t add that officially to the pot even although it has been banked) and the Euro Bond Conversion and the 7% Bond Conversion we are at £2,514,016 (before expenses) which equals our market capt.

Petrol Station: The drivers who pay 18p a litre more than others are unaware they are paying £9 a tank more because they are putting in £10 of petrol at a time. They do not look at the price they look at it from a different angle, I need petrol; don’t want to pay too much so I will put in £10 worth. How short sighted many of these drivers are. Maybe if they stopped and observed they would make some money.

RKB

Observation & Research

Posters who know me will be well aware that I observe many things and I do extensive research i.e. I checked out Havelock Europa in Dalgety Bay (did not like the rubbish all around their buildings) checked out West Trust for their new line of Indian food products in a large super market and the items were all broken and they had only a tiny shelf space, checked out Stoddard Holdings the carpet manufacturer and obviously checked out Clear Leisure in Italy.

Locally the closet petrol station is selling fuel at £1.43 and the local supermarket is selling fuel at £1.25. This is a difference of 18p a litre. I filled up yesterday about 50 litres cost £62.50 but I could have paid £71.50 a difference of £9 for about a tank of fuel.

Why from my observation are drivers paying 18p a litre more? Is it because they are lazy? Do they not observe the other suppliers prices? Do they just not care and are prepared to throw money away? Is it because of a better service at the more expensive petrol station?

I believe I know the answer and may post it later. When it comes to Clear Leisure I observe that many are basically lazy, not doing any real research and are just waiting on others to do it for them.

Over the past few days I have posted a distillation of some of the 2018 RNS’s and have been asking you to note certain positive figures that will impact on our balance sheet and if you had been really observing then you would have had the calculator out and done some additions and the figure you would currently be at is actually a significant figure.

RKB

Hello Timmit

It is interesting when you actually start to compare various Annual Reports and can logically deduce something. I do not disagree with your thoughts as I believe FG would have had to have paid the legal fees for Justin Cooke / Fortune Cookie successful claim a while ago. FG did mention this case over three years ago and it was settled in 2018. I do not think with my knowledge of the legal profession (through my self-employment experience and with my solicitor daughter) that they would not have wanted their cash long ago and probably at the minimum in 2017.

Sorry but have to differ a little on your assumption “This would mean that most of the £1.15M settlement might make its way to the bottom line in H2 2018” Reason I beg to differ is because we only received £650,000 in December 2018 and the balance of £500,000 in January 2019. Therefore the only figure that will be in the results will be the actual cash received of £650,000.

Also as we were not informed that any loans were repaid at the end of 2018 there is a strong likelihood in my opinion that for once FG will actually show that we have cash in the Bank that belongs to Clear Leisure (and not in an Escrow account for some numpty who is being difficult in the Liquidators office)

If your logic is correct then there will be no more additional expenses for the legal fees for the Justine Cooke case, which will assist our bottom line.

RKB

2018 Review: 6 7% Bond Holders

This is another nice little improvement to our Balance Sheet.

In October 2018 FG issued the 7% Bond Holders (not to be confused with the Euro Bond Holders above) a conversion notice. There was an outstanding balance of £65,000 of these Bonds and FG issued them with 1,625,000 shares. This basically was FG converting these Bonds at 4p a share. Another way to look at it is that the share price was about 0.8p on 5th October 2018 and would you believe 500% is 4p? Well now when you see where FG is coming from and where he is going, he was not going to let £65,000 be repaid in full.

This conversion at 4p takes place before the €2.1 million of the Euro Bonds are converted. Again it is like FG has done a placing and took the proceeds from the placing and repaid the 7% Bonds. If he had placed at 0.8p then he would have had to issue 8,125,000 shares but he only issued 1,625,000.

So what FG has now done for our balance sheet is issue shares with a Nominal Value of £4,063 (1,625,000 * 0.25p) and this results in an improvement to our Balance sheet of £60,938 (£65,000 debt less £4,063) now technically this improvement of £60,938 is like having two FG’s on our BoD because as you know he receives £60,000 salary paid as Cash of £30,000 and the other £30,000 paid in shares. Note this £60,938 for your own calculations.

RKB

2018 Review: 5 Euro Bond Holders Part 2

Then in September 2018 the amendments to the conversion of the Euro Bonds were approved and in October 2018 FG issued a notice of conversion to Bond Holders who had to do nothing and their Bonds would be converted to shares or they could object and they would retain their Bonds for a minimum of 4 years and maybe forever.

The average 10 day share price was 0.75p and 500% meant a conversion of 3.76p (this is actual price as there were calculation in Euro cents) Some Bond Holders did not object to the conversions and €2.1 million of the Bonds were converted.

Now we arrive at the really interesting bit where we actually see hard evidence of what FG actually achieved. FG issued almost 51 million shares (50,992,826) to wipe out €2.1 million of debt. What that really means is that £1,909,091 of debt was converted into shares but FG only issued 51 million shares when technically there should have been 500% more shares issued or 255 million shares.

Now as our nominal share vale is 0.25p when you issue the above shares there is an increase in the Nominal Share Capital but this increase is only £127,482 and when you put that on one side of the Balance Sheet you remove from the other side of the Balance Sheet £1,781,609 (£1,909,091 less £127,482) note this £1,781,609 for your own calculations.

Another way to look at this partial removal of an Albatross is to do a placing (normally at discount to current share price) and use the proceeds from the placing to re-pay the debt. FG did not issue 255 million shares it was 51 million and our balance sheet has been improved in 2018 by about £1.8 million.

So in just three “reviews” we have;

“Review 2 Debt Conversion” you will recall you were to note the figure of £171,469.

“Review 3 Court Claims and Counter Claims Part 3” you will recall you were to note the figure of £500,000. (Remember we are not including the £650,000 received in January 2019 as that is not part of the 2018 Results)

“Review: 5 Euro Bond Holders” we have £1,781,609.

RKB

PS this is now looking interesting as there are still a few more positives to add in to your calculator.

Oops the link for the Albatross should not have been included with the Bitcoin posts.

https://www.merriam-webster.com/dictionary/albatross

2018 Review: 5 Euro Bond Holders Part 1

What FG has managed to achieve with the Euro Bond Holders is unbelievable in my opinion. He has by some astute moves managed to manoeuvre what I would call an Albatross. An Albatross is often described as a deep concern or burden. The reason why I say this is an Albatross is that we had €6.9 million of Euro Bond Debt on our balance sheet.

I need to re-cap some details about these Euro Bonds.

On 31/12/15 FG managed to reduce the interest rate from 9.5% to 7% and to a new Maturity Date of 15/12/17.

On 30/12/16 FG managed to reduce the interest rate from 7% to 1% and to a new Maturity Date of 15/12/18.

Then during 2018 FG set about with a carefully thought out plan to remove this Albatross. In May 2018 he held a meeting with the Bond Holders to move the maturity date by 4 years to December 2018 and have the option to convert the Bonds into shares.

Then in August 2018 FG called another Bond Holders meeting to change the conversion terms to between 125% and 500% of the 10 day average price. Some Posters still do not really understand why the conversion was set at 125% to 500% but this is all to do with the original conversion price of 15p. Obviously the chance in the past of converting Bonds at 15p seemed inconceivable and as FG has bought debt at about 80% discount (sometimes at 88% discount) he was not going to let Bond Holders receive all their money back so he devised a good business plan (in my opinion)

Looking at how this conversion would work on certain share price figures may help you to understand what could happen at a particular share price.

If for 10 days the average share price is 3p then the Bonds would convert at 15p (3p x 500%) if we won the lottery (not likely) with the share price 12p then again the Bonds would convert at 15p but this is because the conversion factor would be 125% (12p X 125%) So for FG to really made sure this Albatross is dispatched he would most likely prefer a share price of 3p but as we LTH know that has not happened yet (watch this space and this month)

RKB

2018 Review: 4 BitCoin Part 4

In Mid June 2018 we are informed that the “Miners” are now in Serbia, but in Customs but that the company expect that upon arrival within the week it is expected to be running at full capacity.

Unfortunately the price of Bitcoin has tumbled to $6,794.

A month later we receive another RNS which informs not on Bitcoin but changed slightly to “Update on Cryptocurrency mining” and this is when we find out what our “miners” have actually being doing (capable of doing) which is, “as at 19 September 2018, the mining datacentre, Miner One Ltd, has extracted approximately 0.454 Bitcoins and 17.045 Litecoins in pool mining mode, of which 0.193 Bitcoins and 7.244 Litecoins are distributable to Clear Leisure”.

Now we have some actual data to make an informed choice on what our “Crypto Currency” company may contribute to our income stream.

As at 19th September 2018 the price of bitcoin is $6,346.

0.193 X $6,346 = £942 (using $1:30 to £1)
If the price of Bitcoin had been at say the 9th March 2018 value then it would have been worth £1,315 (0.193 X $8,858)

As for the revenue of the 7.244 Litecoins we have mined I am not able to establish a price for last September but a conservative value would in my opinion be about $100. Using this then we would have had revenue of about £556. In total £1,871, which is a start but I believe it becomes harder and harder the more bitcoins that are mined and it is at this stage I am beginning to wonder why we are in the mining business. This is not hindsight on my part, in any business venture it has to be established, hurdles have to be climbed over and after it is operational then it has to be evaluated.

I believe the next RNS we received was six months later in March 2019 when we were informed that our Serbian mining operations were being put in a care and maintenance.

I admire FG for his attempt at producing an income stream from Crypto Currencies, it was brave and it could have been a different story if Bitcoin had continued to climb in value.

RKB

PS as at 8th June 2019 the Price of Bitcoin was $7,975 which may be the tipping point where FG decides it is time to put the electricity back on in Serbia, who knows? Maybe we will find out later this month.

https://www.merriam-webster.com/dictionary/albatross

2018 Review: 4 BitCoin Part 3

Early May 2018 FG gave us a Bitcoin mining update. “The Company’s Bitcoin mining data centre is expected to be shipped to Serbia within the next week, as the testing phase, conducted in Italy, has now been concluded successfully. It is expected that full capacity Bitcoin extraction will commence within a few days from delivery to the site. The Company and 64Bit Ltd, its joint venture partner in Miner One Ltd, have agreed in principle to expand operations with at least two more multi-crypto currency data centres, with slightly higher processing power than the current units, requiring a new overall investment by the Company of between approximately €150,000 and €200,000; the same amount will be contributed by the other partner. The two new data centres will not need the computer server infrastructure developed for the first centre; hence their cost will be considerably lower. Details of the extraction projections for these two new mining data centres will be disclosed as soon as practical”.

At this particular time in May 2018 it was still looking good as the Mining Data Centre was about to be shipped to Serbia, testing in Italy had been successful and the extractions of Bitcoins was expected to commence within a few days of arrival in Serbia. Also CLP along with their Partner are going to acquire more powerful “miners” which does look promising and the price of Bitcoin on 2nd May 2018 is now reversing upwards at $9,112.

RKB

2018 Review: 4 BitCoin Part 2

About three weeks after we were informed about our new business adventure to “mine” Bitcoins we are informed that the first computers were acquired and that negotiations with an electricity supplier are at an advanced stage. Unfortunately the price of Bitcoin is beginning to fall-back from its recent highs.

In early March 2018 we are informed that the “Miners” (computers) have completed their testing and the Mining Mobile Unit (MIU) is operational and is ready to be shipped to Serbia as soon as the other “Miners” arrive.

“The Company can further confirm that the first fractions of Bitcoins have already been extracted in ‘mining pool mode’, where the available Miner One computing power has been pooled with other crypto currency miners and taken a portion of the mining results. This approach assures a continuous daily stream of fractions of Bitcoin mined, instead of waiting for the full 12.5 Bitcoin reward of a block, if and when mined”.

“The results to date would indicate that the joint venture will likely produce more Bitcoins and at a lower average cost than originally envisaged. A DCF valuation over a period of five years, assuming, as at 8 March, mining profitability, mining difficulty, Bitcoin price, projected hash power and miners typology, estimated cost of energy and an 8% discount rate, generates a current valuation of €389,000, as compared to the Company’s initial investment of €200,001”.

We are also informed that the Company has ordered more mining computers, “Miner One has now placed an order for a number of Baikal Giant X10 units, currently one of the best performing and most profitable multi-crypto currencies miner machines available, as well as an additional order for a number of Antminer S9 and L3+ high-performing mining machines. The use of Giant X10 and L3+ units allows for the mining of different types of cryptocurrencies, which from time to time can be easier to extract and can be easily converted into Bitcoins, increasing the potential productivity of the MMU”.

“Negotiations with the low-cost energy provider, located in Serbia, are now nearing completion and, when the next batch of miner machines has been delivered (expected within the next 10 days) and installed, the MMU will be shipped to the Serbian site”.

So in just over two months this on paper is looking promising but again as stated above Bitcoin price is falling as at 9th March 2018 $8,858

RKB

2018 Review: 4 BitCoin Part 1

There were four RNS’s during 2018 but I believe it would be helpful to re-cap on the first mention of this new business adventure that we were first informed about in late December 2017.

“Clear Leisure (AIM: CLP) is pleased to announce that it has established a new technology venture (“Newco”), supported by its largest shareholder, Eufingest SA (“Eufingest”). Initially, Newco will comprise two investments: the Company’s 4.53% interest in Geosim Systems Limited (“Geosim”), the 3D mapping company; and, a proposed Bitcoin mining blockchain data centre, further details of which are set out below. Newco, a wholly owned subsidiary of Clear Leisure, will seek to add other Information Technology (“IT”) focused businesses to its portfolio followed, in the longer term, by a possible stock market listing of Newco”.

“An opportunity has now arisen for Clear Leisure, with Eufingest’s support, to participate in establishing a Bitcoin mining blockchain data centre in a UK incorporated joint venture company, Miner One Limited (“Miner One”). The Board believes that this will be an ideal asset to include in the proposed new technology venture. The projected capital cost of the envisaged data centre is €400,000, of which Clear Leisure will contribute €200,000 for a 50% interest in Miner One Ltd”.

“The joint venture partners project an extraction rate of about 20 Bitcoins per year at a cash break-even production cost of US$4,752 per coin compared to the current bitcoin price of approximately US$15,500. Actual Bitcoin recovery might be higher or lower than predicted depending upon mining difficulty, hardware effectiveness and actual energy consumption”.

So what FG is aiming to achieve is “mine” Bitcoins with the goal of extracting 20 Bitcoins per year. Now this new business venture at the time appeared to be a good move as Bitcoin hysteria had pushed the price up to over £10,000 per Bitcoin.

RKB

PS Bitcoin price has fallen from end of 2017 to 19th January 2018 from $13,791 to $11,295

All in good time, refer to original post and the one where Max also posted yesterday to see where Ondaland comes in my distillation.

RKB