Member Info for Sanboy

No they aren't based on how i have read it. They are buying 49% of VLRM for 10m, which is the interest rate or annuity against that 200m. I dont believe that 200m will ever sit on VLRM's books. I am happy to be corrected as im an amateur when it comes to understanding of these complex financial agreements

San

It cant be valued at 400m as they dont own the 200m from what i gather. They get the annuity payment which is interest given to them. This is why it wont show up on the books as cash liquidity as stated on CHAT GPT, as its not a tangible asset owned by VLRM. I may be completely wrong but nobody seems to be able to explain this agreement.

San

I suppose the question that needs to be answered by investors or potential investors is whether they believe that VLRM will get 200m in the bank ready to spend on product development.

It seems impossible to most that they could get a 200m investment for a conversion of 49% of the company which is currently valued at £20m. Further to this, 10m yearly interest payment to the receiver not issuer also seems implausible. Why didn't the qgphotonics invest directly in VLRM through a share and warrant based deal? If they are already expecting to dilute shareholders, then why not complete a direct deal? This would've given VLRM direct capital, would've given qgphotonics 49% of VLRM at a cost of £10million and would've meant not dumping $200m into the transaction.

Now if you look at the company giving $200m, plus 10.5m year annuity you find the following

- A Cayman Island based company

-A company with a go daddy website that was set up in July this year

-A company with 2 employees that seem to have no experience based on linked in profile

-A company that have no company accounts available or detail on customers / Contracts

-No proof of 1 billion asset ownership

I hope im wrong for LTH, but this seems like a massive red flag, and if this agreement falls through like the DMC agreement, then VLRM could be accused of artificially inflating the share price which the FCA will have a keen interest in. As said i hope this is a fantastic deal for LTH (Unfortunately that means good for the board) and they can get some money back/or even make some money

On a side note on funding, im in a mining company that has a proven mine so commercially viable. The mineral value is into the £1 billion sphere and they are struggling to get an investment of £20-30m on a joint venture agreement. VLRM agreement is 10X that without a level of certainty on returns that this mine has... Am i missing something?

San

Well their ecosystem is based on Firblocks, Tokeny and Antier solutions that will all be using cryptobased public key solution. They will need to be advising/guiding potential clients on this. Can you imagine $325m issuance and asset tokenisation through a platform that could be compromised pretty quickly through Quantum processing. 10 years away they reckon, but i would suggest its closer than that with Willow out last year driving sector progress

San

Ahhh NIST, i know them well :) . They are talking about standardising algorithms which will add a layer of protection on top of the existing crypto based algorithms. They do the same with lockdown guidance on Server infrastructure through Group policy (Directory Services), but at what cost is that to say Fireblocks who VLRM are using? If you go on fireblocks they have a good response to the impending technological advancement tbf.

I think its a concern for any long term investor here as it will reshape the landscape.

San

Interested to know thoughts from investors here on tokenisation and Quantum. From what i gather Quantum computing works by enabling multiple processes /problems to be resolved at a fraction of the time of a standard computer system. This i imagine will kill off the crypto mining sector (Vinanz), but also it will pose a threat to any tokenisation systems that have crypto methodology embedded as it will crack any security algorithms pretty quickly. Granted this technology is a few years away (Google did release willow last year), but for those invested here long term assume they want to know VLRM's position on this? I think there is some technology being developed to protect blockchain environments, but im not sure how this would work and at what cost.

Bit of a nerdy question, but i work in the IT sector and the sector is already looking at incorporating technology into existing infrastructure :)

San

Thats the problem DB, the RNS' are pretty loose

San

I would be very surprised if it goes higher based on the current MCAP, which is unsustainable based on revenue uncertainty. Momentum and short share supply has helped jack this up, but it will drop at equal speed if shares get dumped with no buying momentum. It would be good to get some anwers from an investor DB on the investment case here. Im generally interested to know and not trying to catch anyone out

San

Looking like momentum dropping here as is always the case with these type of shares. In fairness VLRM has held higher than i had expected, so the bottom is now higher than what this got to. However, the concern for most on here is that there is nobody actually answering the question around how revenue from these agreements will be sort. Assume im a potential investor, how do i make a valid investment case without knowing future revenue figures on these contracts, whether revenue is ongoing or a one off fixed payment, what is profit margin on each contract, what are the overheads, what does the future pipeline look like for both engineering development and contract awards.

I was invested in this during the bridge and had a bit of an understanding on how tokens would bundle up unique assets alongside a "passport of ownership" and host on a VLRM bridge (GSX purchased). The revenue would be transactional and hosting aligned, so it would be ongoing residual income through tokenised trading, alongside a hosting fee. It would be good for somebody who is invested to explain the commercial and technical mechanics as the RNS doesnt really explain these points

San

It would be good to understand VLRM actual revenue from these contracts. Does it work on a % of transactions or is it a fixed hosting fee? The last RNS talked about 325m, but thats the funding requirement to kick start the trans oceanic gateway in guatamala not anything that will hit VLRM coffers. Also be careful as thats a very shaky project looking at the history and there is no certainty that any funding will be easy to obtain. I believe VLRM will only receive some revenue upon completion of the 325m issuance, but Cimbom can correct me on that as he posted on here about the concerns

San

Nice rise, but a 20M mcap cap is eyewatering and have assumed that even you don't believe that current value. Few more contracts and some money coming in could make that double digit SP sustainable.

San

Not sure why they moan at me. I asked for an EGM on behalf of share holders to remove the free shares that would dilute their investment. These free shares were rewarded for nothing.. Well under the guise of the "we saved the company" banner. THEY DID NOT SAVE THE COMPANY, SO STOP BELIEVING IT!!!

Anyway, a nice rise for shareholders and any short term traders looking for a quick scalp. Missed this one today for a quick trade but all good. Be careful with statements about contracts. As CInbom mentioned, there is no certainty with that contract as its based on Issuance which could be a painful process, especially with a project that initiated in early 2000s. Also there is no detail on the revenue stream. How much money, for what, what payment structure etc? These need to be provided so a sound investment case can be made.

Maybe questions from the group to the board?

San

Cimbom i did attempt to look into seeing whether i could find any accounts for COINGT, but only found the setting up in January and a news article of the raising of $325m. The concern for me is the lack of clarity on the deal valuation for VLRM. Do they get a % of the issuance to cover any transaction or hosting fee?

I did have a read up on the plan and its been raging on for around 20 years. They want to set up ports and a connecting railway and motorway between each side of the country which would be a significant infrastructure project. Interestingly Mexico have done the same called the The Interoceanic Corridor of the Isthmus of Tehuantepec at a cost of $7.5B

More clarity is needed on the contract agreement such as Timeframes, fees, projected revenue etc, before you can really see this as an investment opportunity. Good that VLRM are out and about selling themselves though

San

You sound a bit triggered by me. Not sure i've said i'm the best and not sure i want anybody to hang on my every word. As for being a chancer, i think everybody in the world is a chancer when it comes to business or investments in some way or another. As for Patrick, the guy was never my cup of tea, but feel free to ask your investor relation director what happened the weeks leading up to big Pat and Richards demise. There is a reason why there is no audit report that was promised. As for me destroying the SP, i warned everybody i was selling and so were the consortium as they refused to have an EGM to remove the free shares issued. Not sure i was underhand on that as i told everyone. The board are completely to blame not me. Looks like i sold at the right time today hey ;)

San

There is the flip.. Once Peel flips then thats the market turn. May be worth a dip in for a trade if it drops back further but only until close.

San

Jesus you are a silly sausage. I never tell people to buy and i certainly don't tell them when they should sell. I only share my investment case. If you have got yourself into a bind here then its your own doing. Have you got any clue as to what you have invested here? Do you understand the mechanics of the blockchain and how tokenisation works? Can you interpret the accounts and understand Market cap and PEx ratios? Based on your structured responses on this forum i don't think you do. I would love to see your investment case on this... Assume you've written one up and evaluated before diving in here

San

30p+ would be 75-100m valuation, which is more than double the 38m initial tranche through of COINGT. This isn't VLRM revenue as they will be paid a small amount to host the issuance, with transaction fees perhaps? Again i will be happy for the lth on that but that's quite an incredible surge over such a small time period. Maybe 10p, but it will need more news than this. Expect a sell off at the end of the day if the market has played with this rather than have big confidence in the agreement.

San

Dom

Im not a doom and gloom, im a realist and will call out when something is either positive or negative. I wont pump this up or deramp this to get a buck or 2. VLRM has posted a good news story today, but there are bits missing to this like revenue to VLRM for example. They are still in a precarious situation with cash and i think the next round of accounts may be telling. That said, seems like a few contracts potentially in the pipeline that might move this forward. There needs to be better visibility on those contracts, specifically the benefits to VLRM

San

Nice % close on that and new set of golf clubs on the way :) Good luck all

San

Seems like a positive update and market likes it. Good luck to the LTH who stuck with this. Long way to go but a bit healthier. Nice little trade open, but still big concerns about the money position and the actual revenue stream for it to be a longer term investment.

San