Member Info for Silverblade

Hucks - a long time ago in a galaxy far away I looked at mmx and cnic as potential investments - and we know how that particular episode is ending! I have continued to watch cnic acquire, fundraise, integrate, grow, hire - and create what is now becoming a business with scale - and few direct competitors. Yes they appear to be heavily reliant on advertising but they do appear to have a plan and are delivering decent numbers and as you noted are being followed by some decent investment advisors with high expectations. If they continue….who knows if they will remain independent or get taken out - either way it could be an interesting 2/3 years ahead. I will probably continue to buy at the current price. Interesting comment on Mrs Hucks shares - was her account updated to remove 69%. SB

Cheers Hucks - as you noted previously the reality is whether we tender 100% or 69% the outcome is likely to be c.69% given you would think the majority will take the 9.6p on offer - so looks like we are here for a bit yet! Touch of irony - the payout will be almost a year to the day since the RNS highlighting the revenue treatment problems surfaced - which drove the already subdued price sub 5p. I will keep an eye on shell - I took a small holding in CNIC despite a promise to myself to stay away from domain stocks! Its up 30%......SB

Hucks - tender offer close at 1pm today. We will know result on Monday 4th. Turcan is the only director who stated he would not be tendering shares over his 69% entitlement - so my bet would be IF anything happens on the RTO front it would be driven by Lombard. It will be interesting to see what happens post tender outcome and whether Turcan (or others) continue to purchase either for a 10% profit based on a 9.6p payout or a cash shell play. 15% profit on 2/3 of my shares after 10 years. Not the greatest.......but I've hard worse! Money in the bank w/c 11th October. SB

Hard to disagree with your logic or predictions Hucks! On the plus side according to the RNS originally issued yesterday by a certain Mr Toby Hall and Mr Michaels Salazar......details, details.....the company has slashed its costs, is closing down its loss making subsidiaries, has $10m+ in the bank and generated almost $4m ebitda in H1 2021....and with all those positives decided to sell itself to the only bidder in town....! Probably for the best. Fingers crossed one of our large holders forgets to tender their shares! SB

I would also expect the shares you 'tender' will disappear from your holdings before end of week; payment is due 11th October together with the return of any unsold shares. SB

The formal closing date is 1pm on Friday 1st October. However, in order to process tender applications through crest by the 1st Oct brokers will set earlier deadlines; Interactive Investors for instance requires a response by 11.59pm tonight - others may already have closed applications. We will know on Monday 4th Oct the outcome - and how many shares above 69% were purchased (or not if the offer was fully subscribed) if that is what you elected to do. SB

kitkateat - in the spirit of being open I have tendered my entire holding in both trading and ISA accounts - I don't expect to be able to sell 100%, but hoping I might be able to sell a bit more than the 69% guaranteed at 9.6p. Based on the current share price I cannot sell any decent volume for more than 8.8p so being able to get a decent volume out at 9.6p works for me. The markets are a bit volatile - and I would not be surprised to see a bit of price drift post the capital return anyway prior to the next stage whether that be an RTO or a final payout. IF I should be lucky enough to sell 100%, I will more than likely reinvest; with the realistic outcome I will remain a holder anyway and see what comes next - I don't see much risk here. ATB SB

All tender documents now available to review on mmx web site - covering both UK and US investors. Nothing new - but provides paperwork for non crest holders. SB

Interactive Investor has now posted the corporate action event in trading and ISA accounts - have given until close of play 28th Sept to confirm how many shares are being offered for sale - as we know subject to scale back if the tender is oversubscribed beyond the 604m. SB

Just head back from company - circular will be on web site asap. As discussed previously - two ways to tender - if you have a paper certificate it will require a signed form of acceptance to be returned with your share certificate to Computershare in Bristol; if you are on Crest - brokers will progress through a corporate action acting on your behalf under a TTE - Transfer to Escrow Instruction. There is reference to making contact with brokers but this is clearly already making progress in the background; I'm with Interactive Investors and will update when they post details. SB

Don't disagree with that point Culpepper. It is possible that the issue of the tender circular is holding up proceedings - I have asked the company for an update and will report back anything I hear. There is still 13 business days to go so plenty of time before 1st October deadline. SB

Welcome to the board David. FWIW and imo my thoughts 1) No reason to think price post payout would vary much from previous few weeks - remaining shares will still have a 9.6p net asset value; 2) 875m shares in issue so 271m left if full take up - there may some options to be sort out behind the scenes; 3) On top of the $80m capital return the company has said it will retain $24m cash plus $12m in escrow (so in total that's what is being used to calculate the 9.6p net asset ($80m +$24m+$12m = $116m/871m shares = 13.3c or 9.6p). In addition it has made a provision for tax, fees, bonuses, severance payments - I have seen not seen an actual quoted figure but there is a belief that a c.$20m provision has been made for such costs. If they spend less - good news assets go up; if they spend more - it comes out the $36m. The only other point to make is whether there are any issues with full release of the escrow monies. 4) Depends on events in point 3 above.....however I would think any material cash upside beyond the 9.6p net assets would be limited (and would also note limited downsides) - with any future premium tied into the promotion of the business as a cash shell vehicle and securing a successful RTO target. SB

Hucks - if you are with HL (and therefore your shares are on Crest) - I'm pretty sure the corporate action will be automatically processed - and I also think the form of acceptance relates to paper certificates only. There is reference to a circular being issued which should confirm the exact process - expect that to be issued in few couple of days. And yes - assuming we take up the tender offer - look's like we will be left with c.1/3 of our current shareholding (maybe less - depends who takes up offer); and options are a) sell remainder at price post 1st October for a full exit; b) hold and see what happens over coming months; or c) take the gamble and reinvest!! SB

Thanks SKK - that's really appreciated. Its been quite a journey.....10 years+! I hope current events work for you. SB

Evening Hucks. If your shares are held in Crest - I assume there will be a corporate action posted on your account/s in the next few days which will confirm how many shares you are entitled to tender and asking you to confirm the number you wish to tender; together with an option to sell additional shares if others don’t take up their full allowance. If you hold paper certificates - it’s in the mail! SB

Leadership - I'm pretty sure the tender offer will come through as a corporate action on your trading account - they will ask you how many shares you wish to tender at 9.6p - it will be that simple imo.

Kitkateat - sorry i just noted you were looking to sell 50% - only thought would be - if you thought the shares would trade at c.8.5p post tender offer (ie where they are today); and you could sell 66% to 9.6p.....you could always sell and buy back in. I as said before - there's possibly a bit to go here! SB

kitkateat - firstly its good that we now have the clarity on the process. Pretty straightforward in one sense; and not so in others! There are still a number of moving parts here; and for those who invested in the 'mmx' dream there may be a drive to get out as much as possible at 9.6p, leaving what remains to get a further pay-out at some point next year. For those who like a bit of risk and are tantalised by the thought of a RTO spiking the price in the short term (next 6-12 months) and becoming an investor in what would likely be an entirely unconnected business - there is some optimism here. If you review the directors intentions it might provide some guidance as to who is planning to hang around. As for me.....I've been pretty open that my average price here is 8.4p - so after 10 years I'm to going to take up the tender offer - possibly even look to tender more than my entitlement - if for no other reason its a premium to the current price. But I'm going to remain a shareholder - and see what comes next - I don't really see much downside from where we are moving forward - and I'm happy with the risk profile. How about you?! SB

Leadership - its pretty much exactly what was recently being discussed....the company is offering to buy as a minimum 2/3 of your shares at 9.6p. You decide if you want to sell less or more - and if you try and sell more and others don't sell their full entitlement, you might be able to sell more than you 2/3 individual offer. IF you only sell your 2/3 entitlement, you will be left with 1/3 of your current holding post 11th October - its not a cash shell at that point its still a trading business with commitments to GD until Jan 2022, $13.4m in escrow ($1.4m will be released when final gtld's transfer) and a reasonable slug of cash allocated paying budgeted liabilities as it winds down its operations. Does that help? SB

Culpepper and kitkateat - i think we are roughly all saying the same thing - we might be able to tender (sell) our shares at full NAV of 9.6p - but there is a cap of $80m so that implies 2/3 of your holding could be sold at that price (unless others don't sell and those that do can therefore sell more - investors prerogative and all that...). And the remaining 1/3 would be priced at whatever discount the market places on those shares - which is currently c.8.3p. The 6.6p is just the value per share for the entire issued share capital based on the $80 capital return - but it is essentially the value per share which is being distributed. Hopefully! SB

Evening Braces. I was just quoting from the RNS at the time of the deal being announced which referred to the capital return being completed in early autumn - with the sum of $80m being the total return - which works out about 6.6p per share. My definition of early autumn is pretty soon….SB