Member Info for Silverblade

Having looked into this Culpepper is correct in that you cannot hold private company shares in an ISA - so it appears the final payment post delisting would be outwith the tax benefits of an ISA in relation to capital gains in addition to the loss of those funds from your ISA shares account. Something which might impact on individual positions as to whether to hold or sell. SB

Hi Sinkenken. Good points. On the first point - the reason for delisting appears to be sound in terms of some cost and regulatory benefits - but given there is no appetite for an RTO and the decision had been taken to wind the company up then a delisting was inevitable anyway post July - and given the timings on winding the company up may run beyond that they are probably just sorting it out now. At the point of delisting we will not be able to trade any shares we retain in the company post tender offer - so we would be ‘locked in’ until the company makes its final payout. We would be investors in a private company which remains subject to company law - and it’s major shareholders who have made their position pretty clear - maximum cash payout please. I don’t see any risk to this final payment other than the caveats on price and timings. On your second ISA point - not sure - I have not been an investor in a fully delisted entity in a tax wrapper - I’ll see if i can find anything out - and there is the potential to raise the issue as part of the investor dialogue at the general meeting. ATB. SB

Hi Culpepper. I guess I was suggesting that the company was likely pessimistic in estimating the costs to close its trading operations - which are now the costs to wind it up full stop - and as such the savings which are being made have already been reflected in an increase in NAV from 9.6p at first tender to 10.4p at second tender and that pattern may continue with the final payout. At that point there will be c.80m shares so a $1m upside in distributable cash adds a decent gain to NAV. But the opposite also applies if costs are higher! Interesting on see if IIs tender their full entitlement. SB

norrab - you thinking of holding to the final curtain to see if there’s any more increase in NAV once everything is done and dusted - not that it will possible to sell all holdings at 10.4p in current tender if fully subscribed. SB

Leadership - correct. SB

Frazzles - I can't provide advice - but if you held shares on 1st October 2021 you have already had one capital return via the tender offer which paid out $80m of the $120m+ GD proceeds to shareholders - with some holders able to redeem a significant % of their holding at that time. Moving forward, what is clear is that mmx as we know it will cease to trade on 31st Jan (Note this is different from closing the business) - with somewhere in the region of $37m in cash (including the escrow) which equates back to a net asset value of c.9.6p. I believe there was also a sum set aside (c.$20m) to cover legacy costs associated with winding down its trading business - and this is the area where I previously suggested there could be an under or overspend - preferably the former. There may be other unforeseen costs - or potentially upsides in concluding arrangements. If they elect to 'close' the business - there will be a further capital return (or possibly more than one) - which based on the current known position could equate to 9.6p per share in total and assuming no under/overspend on the $20m set aside. If they attempt to use the business as a cash shell and develop a reverse takeover - there will be a requirement to leave cash in the business to provide funding for a new venture partner - the scale of which would be dictated by the cash flow needs of the new business and could still allow a further capital return. None of this needs to happen immediately post 31st Jan - the company has six months before it would be delisted from AIM at which point liquidity in its shares would be impacted i.e. you would hold shares in a company with no formal means to buy/sell your holdings . As I said - not advice - but the way I see it. Hope this help. SB

So - into 2022 we go. As far as I am aware the transition services we provide to GD end on 31 Jan - and the company is still in the process of winding down its operations - budapest is being terminated through ICANN so assume there was no buyer for that geo. Hopefully Miami and Boston should also now have been transferred to GD which should reduce Escrow to $12m (locked up until 31 March 22). If the 31 Jan date remains - and there is no reason to think anything otherwise - we will no longer be a trading company end of month and move into life as a cash shell. We should expect an update on the way forward in next few weeks - covering future capital returns, net asset position allowing for costs incurred and anticipated (under or overspend of the c.$20m set aside to close down business operations) and any indication or appetite to progress an RTO. SB

By my reckoning, the addition of the Nordalk business will take's SRC's average monthly turnover to c. £40m. Full year 2021 should be £270m+; with 2022 looking at £500m based on a 5% organic growth rate. If the business can achieve its target 20% EBITDA we are looking at £100m of earnings in 2022. It will be possible to add further small scale acquisitions without breaching a 2 x EBITDA debt ceiling - with the scale of free cash flow in future years adding considerably to the companies ability to pursue further consolidation opportunities. SB

As a relatively new investor here I found Randy's analysis very useful. We are in a bit of a bear pit for now - and clearly FDA approval and lack of a timetable is casting a shadow - but for me there is enough potential here to hold despite the recent share price retreat and cash burn - neither of which has led to any panic buttons by major investors - indeed quite the opposite by two directors. SB

Hi Sunday - good to hear from you. Can't add much more than hucks - mmx2 still seems a bit off - and who knows whether it will ever happen. From memory we have about $36m in cash (that includes the $12m escrow) available to be returned or used for an RTO - and I think there is another $20m which was being used to pay for deal expenses, tax, staff severance etc - so I guess if they spend less there may be some upside, or vice versa. The ongoing services being provided to GD end in Jan 2022 - and by then the company is required to advise the market on a course of action - effectively wind it up and return proceeds or transfer to a cash shell vehicle which has six moths before it gets delisted from AIM in July 2022. Hope your crypto investments are doing ok - atb. SB

Hello posters. Many moons ago I had a look at CNIC at 40p and decided another domains business presented a better investment case. Not the greatest decision I ever made. So after a bit of consideration, research and market analysis - and despite a disappointing outcome elsewhere - I have taken a smallish position here built up over the last three months or so - which does appear to have been reasonable timing for a change! Looks like a quiet but well informed board and looking forward to seeing what the company can achieve over the next 2/3 years - both in terms of the recent strong organic growth and acquisition pipeline using the strong cash generation. Looking forward to the Q3 results in Nov together with the two scheduled results presentations. Silverblade (SB)

Good luck with BOO and AO hucks. Don't think you are being disloyal at all. One of the problems I think a few of us experienced here was having mmx as a disproportionate holding in our overall portfolio - that was certainly the case for me as I sold elsewhere to average down here. And when the business performed the way it did - the risk became quantifiably larger and we all went through some tough times and soul searching - cut and run, take the losses or hang on for dear life!! It was sometimes difficult to hear the truth - to see the level of mismanagement - but we all got duped - even SJL and I have a lot of respect for his honesty and transparency at the time given the sums involved at his end and the pack of lies he was sold. As we have said before - there's a bit to go here - lets see how the next six months plays out to see if the book closes or starts a new chapter. I sleep better at night knowing I don't have a chunk of my savings in one company any more - and after all is said and done I still came out with a profit - small given the timeframes and emotional roller-coaster, but its there! ATB to you with your future investments - and all others who hung around! SB

Better late than never eh Hucks - and leaves you a decent wee % of the business! Should get some holdings announcements in next few days which may clarify why we managed to sell 88% - from memory canaccord and hony were the main parties not to declare their intentions. Another quarter left providing transition services then that’s a wrap for domain style mmx - a 15 year journey so far - we shall see if there is another chapter being written. SB

I tendered 100% of my holding and based on what has been returned in cash and shares I appear to have have sold c.88% - a lot higher than anticipated and not entirely sure how works back to their calculation! SB

Morning all

Interactive investors have processed cash return in both isa and trading accounts - money in the bank! I also seem to have been able to tender a higher number of shares under the excess entitlement than anticipated which was a good result at the price. Hopefully other brokers process payouts today. SB

Hopefully not long now Hucks - brokers have a little bit of work to do finalising individual returns based on excess entitlements where applied for. More importantly - how much price drift will we see with our remaining shares - and at this price are they worth a further punt?!! SB

You do like your ollie's don't you hucks! Off topic - but I was listening to a recent interview with Christopher Mills of Oryx (one of our II's) and North Atlantic smalls caps fame - his track record is very impressive - I think they are in about 7p average on mmx (c.40% return) - which is small beer return compared to his other investments which have made stellar returns in recent years - he is a real value led investor and some of his tips are food for thought. SB

I think our future will depend on who is actually at the rudder.....Captain 'steady as she goes' Farrow or Captain 'sailing to the new world' Turcan......! In the meantime lets see which broker transfers cash first.....possibly end of this week. SB

If you offered to sell excess shares it looks like you will have managed to sell c. 2.5% over the 69% offer entitlement ie c.71.5% will have been purchased at 9.6p. SB

Leader - think of this as an extended settlement period - if you sold your shares in any stock exchange stock through a broker you would have to wait two days for the actual cash to appear in your account. In this situation we will be told tomorrow how many shares have been tendered in total and we can work out what that means for us in respect of our individual positions - with the cash being returned on 11th October / there may be a slight delay at individual broker level. All appears in order imo. SB