Member Info for Silverblade

In some ways i'm surprised there hasn't been more II purchases - there is a reasonable chance there will be a small uplift as the deal completes closer to the value of cash within the business at that time. SB

Morning Sunday and Hucks and Kitkat. In some ways the accounts weren't all bad - part of me was expecting further write downs - but I think the Godaddy deal would have gone south pronto if there was a rerun of the ICM write off fiasco. Its a disappointing end to what was a simple and easy to run business which had good potential to generate decent shareholder returns - i like to think that's why we invested...!! A missed opportunity. Lets see what comes next - its not the return we all sought - but maybe mmx2 can help soothe the pain. I don't expect SJL will be able to post if he is indeed in touch with the business - at least we should half a full half year of earnings to add to our cash position and maybe a bit more. ATB all. SB

Not sure I agree on the positive response to these results Ezza. Our revenue declined, again. And continues to do so into 2021. Our core revenue is $14.5m - partner payments at $2.2m remain high reflecting the deals made to purchase certain domains - the main protagonist is likely law which is now noted as declining in revenue yet we are still paying high payments - another london anyone? We have 2m DUM's - but 1.5m are work and vip - which are very low renewal and likely low cost - and that is after promotions to shift some volume and even bulk sales reneged on paying hence the previous write offs. Of the remaining 500K core DUMs', 50K are london (which we have lost as an RSP so that will fall away in July - good riddance - although no mention in accounts). So what does that leave us with? 100K adult generating $7m?; 350K generating say $6m? and $1m from vip/work? Cost reductions are good - but mask the underlying growth problem. Yes we are cash generating - but after 14 years in business that's probably not that great an achievement? There are some issues in the accounts on impairing the carrying values of investments in subsidiary company's which raises further questions on accounting treatments - and for all this TH and MS received a $135K bonus in 2020.

On this basis - i think the GoDaddy deal is a reasonable offer for the company's assets - and on review benchmarks well against the recent uni auction sale based on our numbers. The sooner we complete the better imo. SB

All good here Hucks. Like you, sunday and others I hope the company is prepared to use its position as a cash shall wisely and to explore opportunities to bring a company to the market. My only caution is where our II's view will lie - but perhaps they have already given a positive signal given the previous reference to looking at acquisitions. I also hope SJL is part of those conversations - his proven record as an entrepreneur speaks for itself - and if there is to be life after domains - i'd like the business to benefit from his thoughts. SB

Hello Hucks . Good effort on yesterday's purchases! I think your assessment is not far from reality - i think that's what we are all looking for here - c.6.5p ($80m) paid out and leave the rest ($30m) - pretty much as per the boards previous notification that it will return a proportion of cash post deal completion and explore alternative acquisitions as a cash shell. In the real world the shares should trade post deal and payout (assume at 6.5p) at a slight discount to net assets of about 2.5p - so lets say 1.5p - although there are examples where companies in this area trade at a premium to net assets based on the anticipation of a 'deal' - which would lead to a combined value exceeding previously separate entities - particularly so where the cash vehicle is being used to take another company public - I guess similar to an IPO. That said the II's might conclude they don't want to risk the remaining c.2.5p per share and just run the operation until March 22 and close doors. Maybe more on that next week - but I doubt it. The conditions precedent - china aside - should not present an issue imo. As for bonuses - i think the $20m transaction costs will allow for management rewards - but within the bounds of what is appropriate - different if the company was being sold in a higher bracket where higher rewards may be more justifiable. Wonder what wee gems we will uncover in the accounts next week! SB

Perhaps Kitkat - i think these are purchases at these prices and volume - but its a tight spread and I don't think it makes any difference ether way to what's going on in the bigger picture. SB

Dot London Partners have appointed Centralnic to provide registry services to .london. News article claims deal was won from Nominet - not sure where that's coming from given it was mmx as the RSP who paid $13m to dot london in guaranteed revenue over the last four years in what must go down as one of the worst commercial deals in domain history. SB

Looks like peeps taking the 'gamble' the sale goes through and there's a bit of upside from here. SB

Hard to disagree with anything you said there Sunday!! I do think our revenue business is more than 3x stronger than uni and we should have pursued a different strategy to the GD deal - at least some indication there was a degree of competition involved in the sale process. But against that - credibility, bad debts, write offs, accounting issues, management reshuffles - sadly they impact on valuation. On that basis it’s not the worst deal going - it’s just a disappointing end to what could have been. As for Guy - shocking chairmanship over 14 years. Assume he survived due to L&C links - which might make it tricky to remove him. That said - he should tender his resignation post sale imo. He was a buyer in the low pence 10+ years ago - he is likely the only shareholder who will make a decent return - albeit over a lengthy timeframe. Results should make for some interesting reading!! ATB SB

Another strong day for sales - lots of volume in vip and work plus almost 600 premium adult registrations / great release doing well so far. We could have a few months of this release revenue adding to our cash position so let’s hope we can generate some good numbers adding to our net asset position. Would be interesting to know what uni got for their 50% share of .country - and who was buying. SB

See Domainnamewire news - Frank Schilling’s UNR business sold 23 top level domains in auctions last week, grossing more than $40 million. On the face of it this makes godaddy's purchase of mmx for $120m look bargain territory imo - although don't have data to compare revenues - but pretty sure our revenues are significantly more than 3 x Uni given implication business is worth 1/3 of mmx. SB

In all this recent excitement - in the background mmx has proceeded with its great domains release. Early days - but in addition to 25k of VIP, we have seem decent sales in fit, london, casa, luxe (700 collectively today alone), miami (800 today) and fashion (300) and cooking (500) in last few days - with quite a lot of premium sales. Every bit of revenue will count in the next few months prior to deal closing as it drops to our bottom line. Hopefully we will secure some decent adult block sales as well to push up our cash position. SB

Agree with Bobat - yesterdays 12m+ trades all appear to be buys. The current price spread is very tight - you can sell 1m+ at 7.06p; 7.1p to purchase. Still quite a gap (20%+) between current price and net asset value post deal - but understandable given lack of clarity (so far) on plans. SB

Fair points kitkat - that's why its good to talk to see if there is a bit of mutual interest. As Sunday noted - there is no reason those conversations cannot commence now whilst the deal conditions are being addressed. SB

Morning Sunday. It will be interesting to see if the business engages with SJL - I certainly hope so. The next few months should be spent closing the deal and developing a clear strategy - is there a genuine appetite from II's to operate as a cash shell and progress a RTO - and if so - what opportunities/sectors are we looking at - and what level of cash are they prepared to leave in the business. $130m - $20m transaction leaves $110m, less £12m escrow leaves $98m. Do we leave $18m (which will hopefully end up as $30m with Escrow release) and pay-out $80m - pretty much the initial 6.5p predicted payout. SB

I don't think it will come to an Aquis listing - that's just a back stop if required - we will either have progressed a RTO or been wound up by then - point was we have a bit of time on our side. We should get an update when accounts are issued - probably limited though. SB

kitkat - there is a bit more time here than you think - we are carrying out transition services to GoDaddy probably until the end of the year so will remain an operational company to that point - and six months thereafter following AIM rules - so middle of next year before we would be required to leave AIM - and there is a alternative UK based trading market to list on (Aquis Exchange) if have not progressed a RTO as a cash shell by that date. SB

Hardly Dr_K . c.600K was a bed & isa transaction. SB

Strangely - the key vote to sell the assets only received 400m votes - 45% of the outstanding shares. Not sure whether this was apathy or timings, but seems strange to pass such a significant resolution with less that 50% approval. Nothing disclosed on the Q+A - its likely to go quiet for a while now as the various conditions precedent are dealt with. SB

Good to hear you’ve made a return somewhere Sunday - I do wonder what could have been done with the capital I’ve had locked up here for 10 years - and the rest of us in the 8.4p investors club!! I hope the business has a dialogue with SJL - he is our largest private shareholder and quite frankly has often been the only source of honesty on what has been occurring behind the scenes at mmx. Let’s get tomorrow over and see where we get to in the next few months - hopefully some proper communication for starters.....SB