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£2.6m loss, £1m loan maxed out at year end with £120k cash on the balance sheet, oh and Ciclitera took home over £500k in fees & bonuses - that is very heavy for a company at this stage of growth. Not all rainbows and unicorns as some would have you believe!

ColdFishPie, nobody sane or honest would try and put a positive slant on the current state of affairs. They raised £300k to pay £150k penalty to terminate an agreement that they were delighted to announce only 6 weeks ago?! Given that incompetence I wouldn’t be too confident of the R&D credit arriving on time!

£155k of bonuses paid to the exec team in 2018 alongside £392k of salaries - as stated below, a placing of £300k for ‘working capital purposes’ is simple to pay their salaries. It’s a disgrace and I think VAL should be suspended until they sort their financing out, all PI’s should escape now with what they have left.

Themis, funny how you forget the 80m volume yesterday and multiple 5m / 3m buys?

The darkest hour is just before dawn, EHGOS can’t go on selling forever. They have converted £835k/208m shares in the last 12 trading days and had sold 127m of them as of yesterday. Unsurprisingly the market cannot absorb that volume of sales in such a short time, hence the share price is down in the dumps. Clearly the plan is to get rid of the conversion shares ASAP so that they don’t impede the positive news of the Iconic Labs official launch, otherwise it wouldn’t make sense to convert so many at once. To put it in context, between 6th March and 20th May they converted £985k worth of shares - that’s 50 trading days @ an average of £19.7k per trading day. The last 12 days have seen £508k sold @ an average of £42.3k per day. This is a huge increase and surely signifies that the end is nigh.

Yes no change in number of shares in issue - he means consolidation of significant shareholders

Thom_1987 your posts are also just **** in the wind - are you even holding shares?

Jarv55, really simple question for you; do you understand the difference between mandatory and optional?

Jarv55, the £635k on 27/09 was not a conversion, it was a subscription... I did find the 19th March RNS which wasn’t posted on LSE for some reason, so removing the £635k we have the same total of £1.82m converted. This ties in closely to the amounts subscribed for; £635k on September 27th £1,358,231 on 6th March Total subscribed for £1,993,231 Less Converted; £1,820,000 Leaves £173,231 remaining (which I believe is the final batch of £200k). The difference of £26,769 must be related to the theoretical conversion price. So apologies @Stavros, I agree that Blue Ocean exercised early & that we only have the final batch to go!

Stavros, if you’re right then where are the other £265k worth of shares from the mandatory £1.635m tranche? Also the RNS on 6th March is specific on 6th June. I hope you’re right, but where is the RNS to state that Blue Ocean exercised early?

Thought I’d summarise the situation for the benefit of everyone; Number of bonds and warrants; The 27th September RNS has some of the answers we need; Part 1: “The first two drawdowns of the Bonds (totalling £1,635,000 in aggregate) are mandatory” So £1.635m worth of bonds must be exercised. To date I have; £1.62m in 2019 29/05 - 265k, 170k 21/05 - 400k 29/04 - 320k 21/03 - 210k 14/03 - 115k 08/03 - 80k 06/03 - £60k Plus £50k in 2018 06/11 - 25k 31/10 - 5k 23/10 - 10k 22/10 - 10k So we are definitely done with the mandatory amounts, the only anomaly being the additional £50k in 2018. This ties in very well with the dates in part 2 Part 2: “but the drawdown of the remainder of the Bonds is not mandatory, although the Investor does have the right to require the Company to draw down any two of the remaining tranches.” We can see from the 6th March RNS that the investor has enforced their right for drawdown; “£265,000 to be subscribed for and paid to the Company on 6 June 2019; and III. thereafter, following the 6 June 2019, one further tranche of £200,000 to be subscribed for and paid to the Company on the date which is 40 days after the 6 June 2019 (or the next business day)” So we definitely have £265k to come on Friday, and a final £200k on around 15th July. So another 50million shares on Friday, then a 40 day break before the last batch hit in mid July. That will then be it for the bonds. It will leave around 350m or so warrants that can be exercised over the next 5 years - I think that these will be kept for a while and sold when the share price rises. So in summary, it’s true that the death spiral bonds are almost done, and given that £835k have been exercised since 21st May, I doubt the next batch of £265k on Friday will last long. Then we should get a decent rise!

Re overhead levels, the latest WH Ireland broker note yesterday confirmed that central costs were less than £100k per month, so yes our year end cash balance should be around £2.2m A few more thoughts from me; 1. Cutting Wanda & Vortex was a game changer, 95% of cash burn was related to these entities and they remind me somewhat of a typical AIM company that endlessly requires placing money. 2. The new 29.98% shareholder Melvin Lawson no doubt saw the plunge in NetScientific’s share price as an unbelievable opportunity to gain influence and exposure over 5 companies, 2 of them have been tactically transferred to EMV Capital who can fund them going forwards, the remaining three have huge potential. 3. With the blockbuster news from ProAxsis, does anyone seriously believe that we couldn’t raise £5m at say 20p per share? I’d argue strongly that the company is now in a much stronger position than last April when they raised £4.6m at 48p per share. Finally, in their initiation of coverage last October W H Ireland listed around 8 companies outside the main 5 that NSCI had an interest in - I’ll list them later on. Very interesting times here!

Link the the journal if anyone is interested; https://erj.ersjournals.com/content/early/2019/03/15/13993003.00303-2019 And to highlight how well connected the lead researcher is, the footnotes at the bottom state; “Conflict of interest: Dr. Chalmers reports grants and personal fees from Glaxosmithkline, grants and personal fees from Boehringer-Ingelheim, grants from Astrazeneca, grants and personal fees from Pfizer, grants and personal fees from Bayer Healthcare, grants and personal fees from Grifols, personal fees from Napp, personal fees from Aradigm corporation, grants and personal fees from Insmed, outside the submitted work.” Also @Jimzi, not sure if you have seen this research note from Edison? https://netscientific.net/wp-content/uploads/2017/12/Commercial-progress-across-portfolio.pdf Valued NSCI’s ProAxsis share at £8.1m in Dec 17, sadly they haven’t uploaded 2018 financials to companies house yet so we can’t see what their revenue was last year, but they were confident of >£1m. I’d say after yesterday’s news that the value of ProAxsis alone is higher than the current NSCI market cap.

Some more info on the news today; https://www.dundee.ac.uk/news/2019/dundee-scientists-trial-pregnancy-test-for-chest-infection.php “Professor James Chalmers, GSK/British Lung Foundation Professor of Respiratory Research at the University and lead author of the study, said, “We believe that this is the first study of its kind to show that you could take a test at home to find out if you are at risk of a chest infection. “Although we need to conduct more studies to see if it can be used more broadly by the NHS, the NEATstik could help diagnose people with chest infections much more quickly, saving GPs and consultants valuable time in assessing patients for treatment.” I don’t really think the enormity of this news has been digested by the market yet. A box of 10 NEATstiks retails at £250 https://proaxsis.com/product/neatstik-box-of-10/ With the ageing population in the UK you can only imagine the demand for a test like this, the revenue potential is off the charts! What do people think ProAxsis would be valued at if it was on AIM? I think a minimum of £10m based on today’s news & the fact they are already revenue generating...

I’d expect an operational update next week tbh, once they know the total amount mined and the BTC equivalent value on their balance sheet/how they are performing against their end of Q2 target of 400BTC equivalent in crypto. It’s has been a long month, but a transformational one for Argo. If things continue to progress to plan I think we could realistically double the current share price by the end of June.

Yep, all looking really promising - although you wouldn’t have a clue going by the trades - only 2 decent buys so far today! But with the fundamentals looking strong, I think we’ll fly on any volume (just like Vela is today)

My favourite extract from the 18th April RNS is below. A nice period of calm consolidation at present, before we get confirmation that they have executed their strategy (fingers crossed, but the 2m Director buy gives a good indication IMO) “For example, prior to receipt of the Requisition, the Company agreed to purchase 1000 Bitmain Z11 mining units for a total consideration of £1.3m to be deployed in May 2019 to mine cryptoassets on the Company's own account. Based on the Company's conservative projections of mining difficulty rates and current cryptoasset prices, the Directors expect to generate the same value of cryptoassets in approximately nine months. · In conjunction with the other measures adopted by the Board, the Board expects the Company to significantly increase revenue from mining as principal. As a result of this hardware purchase the Board currently expects to generate in the region of £500,000 of cryptoassets during May (based on a price of BTC of £3,935 (the prevailing market price as at 15 April 2019) against a cash operating cost for the Company of approximately £280,000. · Moving forward, with additional prudent hardware purchases based on the Company's conservative projections of mining difficulty rates and future cryptoasset prices, this operating margin is expected to widen. By the end of Q2, 2019 the Company is projecting to have the equivalent of 400 BTC of cryptoassets on its balance sheet, which at £3,935 per BTC (being the prevailing market price as at 15 April 2019) equals approximately £1.57 million.”

At its current price of £6865/$8700, and with Argo set to mine 130 BTC worth of crypto assets this month, May revenue could equate to £6865 x 130 = £892,500 This compares to £760k of revenue for the last 6 months of 2018.

Hey Mikk2k2, thanks for sharing. That’s $15,000 revenue I assume? Any idea on profitability?

@Andinio, found the below article, its very interesting given that Argo received the Z11’s on 1st May, so must have been in the first batch. Seems like we may have purchased a large part of the current supply - and paid over the opening market price too...? https://www.google.co.uk/amp/s/cointelegraph.com/news/zcash-exercises-restraint-as-the-antminer-z11-release-approaches/amp “Sold out in 20 minutes According to the manufacturer, the first batch of new miners was sold out just 20 minutes after the presale started, and some users believe this could be an orchestrated strategy designed to increase the price. It is noteworthy that, even after the tag “Sold Out” appeared, the price continued to increase. On the official forum, Zcash moderators raised an entire discussion to find out who managed to buy new ASICs and for how much. Users replied with numbers ranging from $1,048 to $1,366, and at the moment, Bitmain’s website has the Antminer Z11 listed for $1,384. Buyers will receive their first devices between April 20 and 30, as stated on Bitmain’s site. Despite the fact that the main sales are oriented to those who want to mine Zcash — the most liquid coin using the Equihash algorithm — it will be possible to use the Antminer Z11 to get other assets working on the same principle. According to WhatToMine, miners will be able to switch powers for mining coins such as Komodo (KMD), Zcash Classic (ZCL) or Horizen (ZEN), although the solution will not be as profitable. Community’s reaction While some users are calculating the return generated by the new model and rejoicing at the coin’s price growth, others are still concerned about the “fact” that the first batch sold out so quickly. Some suggest that this could be a specific group of people — or even a country — in whose hands the network’s hash rate could now be concentrated. In general, in the community, as well as in the Zcash headquarters, few seem to be concerned about the potential threat from Bitmain.“