Dc2 Apr 2024 15:37
it’s a leap of faith at lvcg on if you think dc will land one of the strategic investors or not. given there are two he is chasing, the odds are better than if there was only one option. the majority of the debt was converted at 3p - he could easily have totally wiped out shareholders by converting that much lower and he did prop the company up to get it relisted with a personal own and guarantee - he could have let it stay delisted and proposed a much lower conversion price for his shares. it’s still revenue generating and with op costs totally slashed, should make a profit this year which is better than 99% of aim companies. the mcap is only £2 million - which is nuts as the loose bricks alone are worth £6 million - never mind all the models. so he could sell the bricks, pay his loan back and there would still be enough to pay back shareholders twice the share price.
so while it’s not great, and there are still issues, it’s not all bad and could have been a lot worse. dc is a ****. of that there’s no doubt. but there are even bigger ****s out there. consider the following in the last couple of weeks alone where the directors have taken being ****s to new levels of ****ishness:
horizonte minerals #hzm - restructuring of debt “unlikely to be a positive outcome for existing shareholders”
loop up #loop - cancellation of listing
bidstack bids - administration and ceo buys it out of admin.
supply @me capital syme - it’s just a money laundering scam
bens creek #ben - drawdown of working capital facility (death spiral finance). ceo paid himself £1.4 million for losing £24 million.
c4x discover holdings #c4xd cancellation of listing
itsarm #its cancellation of listing
soundrel #snd - delisting
byotrol plc - cancellation of listing
molecular energies plc #men
and watch out in the next couple of weeks for the following
superdry #sdry - dunkerton was going to buy it out, now a placing at a very material discount and only in the condition that it’s taken private.
genedrive #gdr - after a year of death spiral finance has run out of cash
#vast resources - where to start. remember i warned you about vast at 9p - massively in debt, no sign of any fantasy diamonds - so a massively discounted placing, administration or delisting.