Member Info for Sanboy

I dont believe thats right, unless you can point me to where its confirmed in the RNS

San

Yes people they own the bond but they dont own the principal which underpins the 200m bond. Once that bond matures the assumption is that it will be removed or rolled over to continue the interest payments. The equity will remain in QGP control meaning VLRM cant draw down from it.

San

By the way the only outstanding warrants (Bar the new 20million) are 5 million at an exercise price of 0.001 . These are held by 2 non executive directors who are still active members of VLRM. Not sure what/who Gary is identifying as disgruntled warrant holders? Again happy to be corrected if i have that wrong.

San

Sub 10p. My value is 6p and randomly a trade went through at that price. I dont work at Peel trust me

Just on justification of the sub 10p valuation, if you currently look at the company valuation, £31m at 0.12p against a pre dilution level. Once you add double the dilution from the subscription fees then you are looking at double the mcap, so £60+m. Obviously this isn't including the 20m warrants and the legacy warrants to the non exec directors.

I would probably look at a £15m -£30m valuation at the current juncture as no actual revenue has been received. At the higher point you are looking at a 6p SP price on 487,932,742 shares in circulation. It seems a bit weighty at the moment

San

**Correction the principal is never owned by VLRM**

Gav there were a shed load of investors on the TG group / Twitter talking about a 200m + valuation, along with Gary himself. Its incredibly disingenuous to make that statement when the Bond is never really owned by VLRM. I think it is a good deal for VLRM because it generates revenue which can be utilised for the company. The downside you should be looking at is the warrant dilution and where they have gone to. However, its the name of the game with penny stock companies... The money has to come from somewhere!

As mentioned there could be an opportunity here below 10p, but i want to see whether any conversions happen over the next 6 months. Do you reckon i will be allowed back in the TG group if i become an investor :)

San

Looking tidy over the last few days of trading. Got a big position in this

San

Yes it matters as it means a gross over estimate of the valuation. Investors are talking about 200m in the pocket and no RNS is making that statement

San

Gav you really need to get that confirmed in writing as i dont believe that is the case. The 200m has a maturity date but there is nothing in an RNS that says the principal will be transferred. I believe the bond will mature and it will be returned to QGP or, like you said, rolled over.

San

Yes i think its a good deal for VLRM, but i worry that investors arent understanding what VLRM are getting. The Warrants will be a painful cycle if VLRM cant move the SP forward and impatience could mean early conversion and sell off. The 200m will mature but there is no monetary value for anything to be transferred. QGP would need to sell off all assets backing that financial instrument to pay off the "bond" when it matures and that isnt the case here. I think the maturity will mean a call back or a revision of the bond to a greater sum ($1billion) or a like for like replacement (200m)

San

Gav just reading one of your comments about 200m. Can you confirm directly about maturity on the note and 200m transfer, as i think that isnt the case. I believe that 200m will be used solely as income generation and will never be transferred over as Cash equity.

San

Thats the issue though Gav, the MD hasnt pumped $$$ into it. This an asset backed funding agreement not a straight transfer of 200m. Its affectively a "corporate bond"or call certificate valued at 200m which is backed by the value of the assets which i believe are fundamentally based on collateral valuation? Happy to be corrected on that. This effectively means that for a 100k lump sum, 230m subscription shares and 20m of warrants at 0.001 exercise price, VLRM have received a "corporate bond" of such that they call off the royalty and claim the economic value of the bond, but cant be claimed as spendable 200m cash. This is why the 200m valuation of VRLM is completely disingenuous.

I think this is why the share isnt pumping to a higher valuation as the good part of the deal is the revenue, but the bad part is the dilution. The 200m doesn't factor in this deal other than to act as a balance sheet exercise for future listing. VLRM's aim now is to utilise that revenue they are receiving to grow the company in the sector

San

Tbh on the face of it, it looks like a good deal. Revenue generating off an asset backed funding agreement is really good for a fledgling company, but i just don't know why something doesn't sit right. It could be the fact that im a bit of a cynic, but the 20 million warrants at 0.001 exercise and no lockin agreement would make me feel uncomfortable, especially when they have gone to the Director of QGP and Illiquid (Also linked to the director of QGP). I worry about the fact that the corporate advisor just resigned during this deal, which leads me to think that they weren't happy with some of the due diligence potentially (Just my assumption). Really want it to work out for the LTH and might have a sneaky dip on a longer term view rather than trade if the price drops below 10p. I want to see if a conversion RNS is issued over the next 6-12months as that will be telling imo.

San

What overhang and legacy warrant holders?

San

Why is it dropping on no sells. I think the majority are buys. Is there a worked sell coming through or have the MM's being bodging up the mid price and they are all sells?

San

Thats against the QGP shares not the warrants which are directly assigned to Pieter and Illiquid... happy to be corrected

San

But nothing is stopping the warrants being dumped on the market quite quickly. Selling 10m shares at 20p is £2m, which isnt bad for a 10k price (0.001p exercise price)

San

Correction 20million warrants at 0.001 to Pieter and Iliquid. Pieter is MD of both......

San

So if i have that right. Notes, backed by assets have been transferred into a holding company, but not 200m direct cash injection. The transfer of that paper will give VLRM 15m a year as a coupon which can be invested in growth. However, 243m shares have been allocated to QGP, wheree 1.44% can be sold each month and 10m warrants at 1 0.001 exercise price with no lockin agreement.

San