RE: Hold for gold14 Apr 2023 17:25
Can't disagree with any of that Brighty. My big doubt is in david Budd's ability to see GDR establish themselves in all of those markets with the products GDR has. There is indeed massive money to be made in the next two years but there are many unscrupulous organisations out there who would happily see and contribute to GDR struggling if there's a reasonable chance of they themselves realising most of that revenue.
I have looked closely at the way the Chairman operates, Ian Gilham, and I was convinced a buyout would occur at some point soon. However, the route for short term finance that the Directors have chosen has set alarm bells ringing - and be honest, not just for me. On reflection I would have been far happier with a straight forward raise and Gilham/Budd maintained control of the company, even if it had meant 25% dilution. Now we have a company with 7% of the company in their hands who can ask for more shares later on if the sales don't materialise and stabilise the sp, and they will get far more if they hand over another £3m. They will also be rewarded with a huge number of warrants.
It all might still come good but I hate the feeling that a major holder now can make far more profit out of GDR even if it starts to slump. In fact, the more it drops the more they will be able to grab more shares and ownership of the company later on. RF are no fools and, given no other deals looked better to Budd, will have been in a very strong negotiating position knowing GDR was only weeks away from running out of money to even keep the lights on.
My negativity stems from being here for far too long and being witness to several dismal failures to sell any product - that's the commercialisation of GDR's products that Budd told us years ago he was entirely focused on. Going well thus far? er nope.
Anyway, if it comes good great. I'm just of the opinion things turning out well have taken a turn for the worse thanks to this finance deal and Budd and his sales team just being too slow with everything. We've known about the NICE evaluation for months and months but several Distributors still aren't even registered so there won't be any sales for at least a couple of months but that's a guess as i don't know how long it is likely to take to get them registered and then get products off the shelves. It's not going to be 2 or 3 months is it.
Next thing for me is whether or not Budd draws down the first instalment of the further £3m available from RF. My guess is he absolutely will because one of his biggest priorities is his own salary and he will not want to see any of that eaten into. Good grief he hasn't even bought any shares himself other than when the Directors were forced to buy a % of each of their annual salaries. I bet that hurt Budd!
Hope for a better week next week.
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