Member Info for RyeSloan

Callaway already have a graphene ball (Chrome Soft) and have done since 2018.

I wonder who they work with and how DCTA’s patent / partner differs from the Callaway offering?

Fund raising has been based on NAV previously. But as we saw today the NAV is now clearly not reflecting underlying value.

But basically no one knows for sure! My thoughts are its unlikely any institution will pay full SP for any fund raise so there is a very good chance any raise will be a a healthy discount.

But I’m happy to take a short term pain there as I trust any cash raised will be used sensibly to drive large future gains.

I’m sure when it happens we’ll see lots of crying about ‘dilution’ which will mis-represent what an investment company does when it’s raising cash.

So in other words I have zero idea really but be prepared for any raise to not be at current SP!

Yeah I get your point...diversification will be needed to ensure we back the winners for sure!

But on the flip side I think we also need funds to average up along the way with the ones that are clearly on the winning path..wouldn’t complain at us looking to maintain 5%+ in Blue Nalu all the way to IPO for example. That will ensure maximum returns on the winners as well.

Either way £27m is not of the scale envisaged or required I would have thought so hoping and expecting for another slug of cash to land sometime soon.

Thanks Dazzle...always good to get validation of my occasionally wonky maths! :-)

While it will be great to see some of the holdings go through further funding rounds and see that impact the NAV positively that also means we still need to get more cash in the bank (as they have spent most of the last raise) to ensure we can participate and maintain our holding percentages.

I’m unsure if the huge premium helps or hinders there (better than the SP being at a discount last time around I suppose!).

Did I read the RNS correctly today in that while the valuation policy does not allow an adjustment until the underlying company has completed a fundraise round that they expect BluNalu to have a value of £13.4m compared to the current valuation in the NAV of £6.2m as soon as it completes its next funding round?

If so I think you can see why there is a premium here (although still a rather rich one!) as essentially the NAV is not reflecting either the current value of the assets or indeed the, most likely, higher value some of these will have in the very near future through their funding rounds (and that’s before you even consider the long term valuation prospects!)

Wow..149p paid today...the SP has sure rocketed here!

Been a looong wait for me in this and I’m not sure it will hold this rapid climb but no doubting the ambition of this company.

I always thought they would get bought out at one point...probably by one of the big chemical companies they are JV’ing with. Maybe a bit early still for that but once Hull is up and running and proving it’s worth we might see some action on that front.

Could be a very good 2021 at this rate!!

Not sure why you wouldn’t...kind of like drinking beer in a micro brewery and a clever way of showing off just how clean the meat is. As you say compared to having dinner in abattoir it’s rather different!

Cracking investment this one...these guys are well on the road already and are leaders in the field. 2021 and beyond is already looking unbelievably exciting here.

Buy low sell high? ;-)

You are right of course the premium is steep (well slightly less steep after today!) so tough call to come in fresh now for sure.

The story is there though and we’ve seen just this week that the money is starting to flow into cellular so don’t wait too long to get involved!!

€8.9m reduction in net debt was very good to see.

Considering these results cover the CV19 impact then I think they are very good indeed.

As we know 2021 is shaping up to be transformational in terms of capacity and margin so this company clearly going places with a quality IP protected product.

Plenty more to come here beyond the already visible 2021 improvements with the JV’s so a very solid long term hold for me on this.

I suppose it depends on what you mean by commercialisation but I believe they are looking to go to their test markets in H2 2021 using the output from their under construction pilot plant.
From there I would expect them to incorporate learnings and look to go full commercial in 2022 with a full scale plant. With the long game being multiple plants delivering multiple species across multiple regions, as per the recent deal with Pulomone.
Jim has also been clear that regulation of clean fish products in the US is more streamlined than other meats due to only one federal agency being responsible so again the path there looks clearer than what other companies / products face.

So in other words seeing us back BlueNalu even more looks a very smart idea and could be very lucrative for us in a relatively short time...starting with that NAV uplift at the next funding round!

So we have more than doubled our investment here...in one of the companies that seem to be leading the race to come to market. Happy with that!

And, while I only read it all quickly, we appear to have done so at a level that IF their next funding raise is at the level expected will provide us with a c20% boost to the NAV. If my speed reading and calcs are correct then I’m also rather happy with that!

While no doubt IPO is the turbo charge I don’t think it’s correct to say that until they do we have nothing. As we have already seen funding rounds value the companies on an implied basis. As they go through the rounds the value of each should increase and therefore we will see uplift on any money applied in earlier rounds.

For the winners in the portfolio that means we should be marking big gains on seed financing when they are doing A, B, C rounds....that journey alone could see substantial value added well before the IPO turbo’s come along.

Genuinely blue sky possibility here...with the associated risk of course!!

Sadly there was no financial obligation due to the SP being below the offer price...hence the near zero take up by PI’s.

As it is they raised £10m which was a rather large percentage of AUM so clearly the funds were available via public markets.

The news letter today is pretty upbeat and mentions material NAV increases in the next few months...if and when that comes to pass I don’t think there will be any problem raising further monies.

Would be good if the BoD could give some indication as to what the target capital figure is...I assume they want to raise even more to carry on investing in the portfolio as the funding rounds progress and I’d be interested to hear what they think the scale of our ambition is on that front.

Either way this is a cracking moon shot bet and I’m more than happy to have locked and loaded a nice chunk of shares at current prices. BlueNalu alone could propel this to some serious heights!

Yup great to see they got £10m away.

I’m a bit confused as to the Broker shares thing. I would have probably supported a rights offer but this appears to need me to contact my broker etc and being a lazy so n so that sounds a bit like too much effort!

Long and short of it though is we have increased NAV by 40% and the firepower to get back into the market over the next few months. Will be exciting to see who they back, hopefully at least a couple will be previous seed investments going into the next round.

Thomson has always taken his percentage figure from the IPO price of £1.

Still doesn’t get him to 150% right enough but maybe he wrote the article when it was at it’s all time high compared to the price published alongside the article. And quite whether any PI could have accessed the IPO price is another matter...

Well 6.5p paid today....all heading in the right direction again!

Not gonna try and understand how it has went from 5p to 6p on such low volume but sure ain’t gonna complain!

It’s a welcome rise to at least NAV and now a small premium to buy.

Crucially the SP to buy is now at the minimum price the BoD stated for a fundraise so I’m hoping this walk up of the price was all part of the cunning plan to get some extra cash in the coffers!

Touch more than 1% is it not? With the uplift the book value must be about £0.5m so on Net Assets of about £20m that’s 2.5% of the NAV.

But as you say it will hopefully be a grower and it would be rather nice to see a fund raise soon to allow us to continue investing in these companies as they go through the funding rounds.

I don’t think it does really, nor the giving away of the 2% royalty for a mighty £2m but the upside is that BCN is back to a pure play in Sonora and really that prize is more than big enough.

In other words it’s an odd deal but ultimately no one will care if they finally get their proverbial finger out and crack on with getting Sonora financed and built!

Just as likely to be honest... I’m probably just a bit over keen to get the funding issue resolved so looking for any clue that might be imminent!