Member Info for Silverblade

Ram and bakky. I'm now starting to question my assumptions on how the share options work in practice. We know 2017 Award is for 3m shares each, from a base price of 9.375p up to full vesting at 18.75p. I had assumed if the 20 day average was above 9.375p, then the 3m options can be taken up at 'nil price paid'. However, if that's the case - what's the point of the upper price. What is more likely - as alluded to by ram - is the 3m is proportionate ie the 3m is a max award if the share price is 18.75p. If the price is 9.375p, then perhaps the 3m is pro rata ie for each 1p over 9.375p c.330k shares are awarded . Does that make sense? SB

ram - if they have 3m shares, and the share price is 10p at the time of the results, they get £300k, not £50k. SB

If its a tender offer to purchase shares then theoretically any shareholder would want that to be at a decent premium to the current share price - or why sell? The company itself would have to decide at what price it believes it was demonstrating value both for using its cash resources and taking shares out of circulation - probably justifying it through the increased eps. So imo both management and institutions would like a higher share price, even although less shares would be surrendered at that higher price. SB

Wonder who will claim it :-D SB

bakky - i think the share price will move very quickly if we can present the type of numbers performance we are expecting and couple that with a shareholder return. Decent buy at the close - lets hope for much, much more of this. SB

We are probably three weeks away from Y/E update – and even the most pessimistic amongst us are probably anticipating a good to strong performance. What will be interesting is the level of detail provided ahead of the formal results in late March – particularly given the base share price requirement for each of Toby and Michaels 2017 share options (3m each) is 9.375p based on average 20-day price prior to publication of accounts to 31 Dec 2019. Full vesting is 18.75p – the highest price of any future options. Let’s assume the team want to secure their earn outs (previous year lapsed) and are going to deliver a stellar performance which takes us into double digits in time for Tap and Sundays release. SB

Reading between the lines our CMO is clearing trying to differentiate our business model v our ‘competitors’ - and the resilience of businesses to cope with any downturn (The more we talk about the R word the more likely it is to happen....). Let’s hope the Rick S fellow is short of the mark or all new top level domains are in for a bumpy future / lucky we’ve got our fingers in lots of domain areas. SB

Well reminded ram - cost cutting measures were implemented as well as renewal/sales growth. Plus the $2.8m accounting adjustment - so we should be looking at c. $10m EBITDA for 2019 assuming the write down benefit accrues this year. SB

I guess CNIC are doing in public what VC do in private in relation to funding growth via debt. Debt remains cheap at the moment - although CNIC appear to be working on a relatively short 4 year plan - but I’m not a fan of loading a company with debt given the potential for a global downturn in 2020. It’s been another difficult year for mmx shareholders - and its hard to fathom exactly where our results will come in. I suspect we are trading just above expectations - likely down to a reasonable volume in adult-block - plus we know Q3 sales were above last year and continued to trade well in Q4. What goes that translate into - imo 5% over fincap estimates would be a good performance. SB

Let’s hope for once that this ‘good’ news is treated as such and the reduction in our cash balance isn’t treated as weakening the company. Accompanied by the trading well comment it would be nice to see a positive price reaction to the end of this saga. SB

Adult domains look steady to me - any major drops would have been signalled by now surely - SJL was clear that its a major cash bonus at this time of year, which seems to align with his rather expensive xmas shopping list! And yes lets all hope any delays are not because we have found another .skeleton in the cupboard. SB

Some good points being made. In relation to .London - perhaps there was a last minute push to grab some extra cash by London partners so that can't be ruled out. If the company stood its ground what's the worst that could happen - we have already made the accounting provision for the losses last year - so we retain the $5.1m cash and don't get the $2.8m accounting benefit of doing the deal. Add in cash and profit from H2 to the H1 balance and we're going to be sitting on a pretty decent cash pile ($11-$13m?); which would assist any tender offer being made next year. So worse case probably ain't too bad after all. As for trading - Toby stood up in November at the Mello conference - and as reported by glasshalffull - all costs now covered by renewals, cash generating, organic growth, innovation and adutblock going very well, dividend policy review year end. I don't sees any situation where Toby delivers that feedback and six weeks later we get harpooned. So scenario 3 appears very unlikely. Which leads us back to the main point - what's really going on behind the scenes - is the company just waiting to finalise its year end before issuing a strong trading update in late Jan with the perceived benefits of good performance; and if so - why no AGM announcement - or is there more industry consolidation afoot; and what value does that represent for shareholders? Either way it could be an interesting few weeks. SB

I’m not going to dismiss 007’s thoughts entirely in relation to something going on. We are not used to good communication at the best of times - but by mmx standards the lack of any update whatsoever since sept does raise a bit of suspicion. Good corporate governance requires an AGM - even if it’s only to sign off last years accounts - and if there is no movement on this soon then suspicions will continue to ramp up. SB

bakky - where did you get your info on the +/- 10%. I wasn't sure if that was official guidance or 'best practice'. There are many area of business performance where an RNS is required - just had not seen that particular advice before. Profit warnings are certainly to be avoided. There may be good reason for the AGM delay - possibly linked to .London being resolved, or not. For a sales and marketing led business we don't half avoid updating shareholders...SB

007 - i am interested in your query. Did you request such an update recently and your query is on the basis of the received response? I do not believe we are in any closed period related to publication of accounts as the expected trading update in January does not fall within the definition of closed periods.
Is it just me or does the lack of any updates whatsoever seem increasingly odd? SB

Tap - i'm not going to disagree - it is disappointing that we find ourselves where we are. Its not an excuse - but it does appear symptomatic in the domain industry. Time for change eh!! SB

you are 100 % correct on the website registrations bakky. We now have more on nTLD stats and that doesn't count xxx, so something ain't working. Maybe SJL can have a word with Guy Elliott when he's playing golf with him in the Florida sunshine early next year. Maybe they will have something interesting to discuss, speaker specifications aside. SB

....one of many questions currently unanswered. Why no news on adultblock, AGM, .London, blockchain launches, current trading, domains registration numbers on mmx website which no longer refresh, results of shareholder discussions. I don't think given where we are that its unreasonable to expect better communication than this? SB

You said it bakky. lol. I often wonder what we would have to talk about here if the company actually surprised us and made us some money. Suspect we will get notice of AGM in next couple of days - previous years have just been a formality to approve previous year accounts. This year - probably the same - although it would be an opportunity to introduce a resolution addressing some of the much discussed shareholder return options, although as has been opinioned here there may be some balance sheet issues precluding a distribution at this time. It will probably remain silent on our other dark lord, darth buyback. Or do the major shareholders throw some money into the pot and try and take the company private on the cheap - the .org saga cannot be going unmissed by those in our line of business. We do appear to have had a decent trading year - but another horror show in actual share performance. At least its gluhwein time of year! SB

SJL - being the nosey type i had to have a look. And here was me thinking bang and olufsen was expensive. mmx is going to have to hundred bag before I'm in the market for Meridian speakers! Still no news on .London or adultblock sales or buyback or shareholder initiatives or AGM or anything for that matter......maybe they are going to wait until the trading update in January to let us know how H2 closed out. Looks like we will hold 7p this week - and that's the first time in 12 months we have managed that - despite what appears to be some 1m sales. SB