The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The £10 was a very silly statement and think people got ahead of themselves a bit. Would've meant £700m mcap without any plan on a revenue generating product. I was always targeting a £80-100m mcap , but has been reassessed due to the inevitable dilution increase at a lower price to pay for the 50% GSX and CLN pay off. I imagine they will need £5mil for all of that, which at say 10p would be 50m additional shares (130m total shares out). Obviously this is an assumption that the funding will be through placing and no warrants issued (Incentivisation to buy the share). They may have another funding route, but who knows. Im personally thinking we will find out by mid March and then the GSX RNS will come out a week later to hit end of March. This will trigger a lot more news (Juno, NFT, GSX expansion news in ME etc). Not sure how the SP will perform but would be stunned if we aren't significantly higher 20, 30m perhaps?
San
Took a look at the questions and had a stab, based on assumption and a few discussions had with the team
What has happened to the £24m of investors funds? - Was this during pgce days? No idea
Why doesn't the company have any significant assets? - They will do once GSX goes through. Nothing right now
When are the 2022 accounts being published, they were signed off at the AGM in January? - Really not sure about this one. Do they have till the end of the financial year to finalise to align with tax implications?
What work is being done in the background to build an infrastructure for the business? - The existing infrastructure is there for the GSX, but additional funding will be needed for the NFT product. Remember VLRM will have 3 products
- NFT
-GSX (Future Bridge
-Juno Fund Management
How many employees does VLRM have? At the moment just the board, but once signed off will have JUNO, GSX staff and an option to utilise GSX group employees if they trigger 20% ownership of the group.
When is GSX going to complete? GSX has been approved and will only complete once funding has been agreed. I believe partial payment has been made, but the rest needs to be funded. That is currently what is causing the pain
What happened to the Bridge? - GSX expansion to ME is the priority as the current products listed on the GSX are limited in their value for trading. From what i have pieced together through discussions, ME expansion will mean start up companies floating allowing share trading (Cant do that right now on GSX). That will happen first and then the bridge to allow those companies to have their shares traded in a tradeable token.
How are they building a blockchain based Fiat and Crypto asset exchange? This hasnt been issued yet but
What happened to OTC? I believe that the OTC ticker was allocated, but not sure whether the priority is hosting on a bigger European exchange first. There isn't much value in hosting in US when there is no demand here.
As you can tell, no fact on the above and just my thoughts.
San
I’m still here Mustard, just a bit battered and bruised. Don’t post on LSE and am not in telegram groups as it was taking over family time so came off it. Awful position at the moment and fair play to you guys for calling it right on the sp predictions . Disappointed on how this is managed and lack of director buying
I do think the SP will rise significantly from here but my exit strategy has reduced. Was always hoping for £1 but very difficult now. Suggest investors see where it is at the end of March (Q1) as that’s when funding, GSX and NFT news is set for. Miss those targets and there will be blood on the streets… more than currently
Switch off and enjoy the weekend
San
There is no change to strategy. The Strategy is still the same, but the approach has changed. The end goal in the strategy is to convert the GSX to a digital trading platform, but expansion will come first (New Approach). The NFT platform is a new product to be hosted so as to add some portfolio diversification (its always better to have more than 1 product offering). Both opportunities are exciting but the platform probably has more by way of valuation increase as i see it
San
I would say many companies touted big 2022 and could never forsee the below
- Ukraine Russia War
-Cost of living hike
-Energy price hike
-Civil unrest in the public sector
-Inflation Rise and sharp interest rate rise
-Political instability in the UK - Numerous PM's
-Loan to protect the pension funds
-Collapse of Crypto
On VLRM specific issues i think nobody couldve predicted how long it would take to get the GSX approval. Also the above had a knock on effect with the CLN being converted and forward sold.
You have to take note of all the other companies that have been hammered over the year. VLRM has followed the downward TREND . Some examples for you ON 12 month performance across sectors. Have also added some "stable shares into the mix"
ARGO -84%
GGP -45%
EUA - 81%
TESCO - 20%
CINE -90%
TESLA -68%
LLOYDS - 5%
FACEBOOK -60%
Alliance Pharma 47%
San
Yes didnt add the NFT platform as that is unknown right now. The others i mentioned are definitive, if you make an assumption that we take the 20% option like we did for the GSX. Will cost money, but should give us engineering / development resource if we go down the gatenet hosted infrastructure route for the GSX conversion and NFT hosting
San
At the moment it is there only tangible asset. Hopefully not too long in this quarter at that will no longer be the case. VLRM will own a national stock exchange with 2500+ products hosted, an Asset Management company with x amount of existing clients and 20% of a group building blockchain hosted nodes and utility tokens. Im not sure the value of £7m will be accurate after that, but who knows where the market will move this. Like ive mentioned before the 2 key reasons we are down here is because of the CLN destroying any movement North and the liquidity in the market. Latter should flip this year if you believe the moderate improvement forecast for this year. The second point needs to be addressed
San
Dont know and not really part of my investment case here. If Vinanz does well then great, but the NFT marketplace and the GSX expansion and conversion are the big plays here. Really dont know why they bought the miners. Very silly move in my opinion and think it was during the mining Hype period.
San
GSX posted a $12m revenue so VLRM will be revenue generating. I believe Juno and GSX group are also revenue generating (Statement i picked up on a few months back), so once the deals go through (Q1), VLRM will be revenue generating like Argo. Im not sure if they are profit generating though as i cant find a breakdown of figures. However, if you look at the MCAP valuation to revenue then its entirely possible that this can do an ARGO. The gap between where it is now to what the mcap should be with revenue generation and PE ratio is sizeable and will eventually be plugged. This however doesn't incorporate financial points that could throttle this move North (CLN, Further funding through dilution etc).
San
San
San
I know the RNS back to back so understand the company points. I have added some interpretation from the wider market into the mix to provide a reason why I think they have gone down the route of expansion before any conversion. My opinion like yours about RP having a UAE number…your hypothesis is much stronger and has a vast amount of substance
San
The second part of your post is conjecture and i would argue that the Gib Gov would never had allowed an individual to buy their national stock exchange and then run off to UAE to milk a salary. Anyway, your first point is a fair one, but if you look at the current products hosted on the GSX then i can understand why the strategy is to expand the GSX to host floated companies before any conversion to digital trading is initiated. If you look at the GSX currently, it only hosts debt bonds and a bitcoin fund randomly. The product demand wouldn't be there right now, unless crypto investors want to buy into a stable bond. There isnt much value there, other than volatility protection and using that bond as a guarantee on a loan (not ideal in the current financial market to get more debt even with a stable bond). The value will come through security purchasing to ride the stock and crypto volatility (big risk/ bigger reward).
Personally, i believe the NFT play is much bigger and will add significant value to the MCAP. The RISK is on how this will be funded. Thats the investment case here
San
Groupplease you may be right, but at the moment it feels like the CLN is happy to hold this in the 10p range. Notice that sells dried up when the buying stopped. Obviously this could change at any moment and we could drop further, its anybody's guess. Based on timeframes posted on the RNS, we should see a nice bit of news flow this quarter
-Deal sign off complete (GSX, Juno, GSX Group %)
-GSX Expansion plan (ME Start up hosting )
-NFT Plan
-Funding agreements
The latter is the biggie here. How will funding be completed and will it focus on killing the CLN off? Any placing will be at a significantly discounted rate, unless they try and mimic TNT (Although reading between the lines there is a CLN at a discounted SP on vwap) . They could use GSX revenue for a bank loan, but not sure whether this will be acceptable? Could also get a sponsorship or ME investor at a % of the company ? Lots of possibilities, but a big outstanding question that needs answering
San
Chimers, its a good point . My average is 26p i think, but that's irrelevant as i traded it to make profit to buy more shares and take out original investment and some profit. As it stands i have lost a lot of paper profit, but am up a few fold over. Hindsight is a beautiful thing, but as long as you are happy to switch off on SP fluctuations and stick to exit price then means nothing really. Suppose its all down to risk appetite, personal circumstance on investment etc. For example, my average price is heavily impacted by my LISA that i just forget about till i need it when im 60+ years old
Obviously different situation for others here
San
According to the share register David Lenigas holds 7m and that hasn't changed since last year. That was updated recently to show the new nominee holders. Posting a higher share holding on the books is a very risky thing to do if he gets investigated. Not saying he hasnt done this though..
San