The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Ria
Even with a 50% growth rate in revenue for the whole year RTOP trades at 20 times prospective revenue for a loss making company with a material uncertainty over going concern.
What a joke of a company.
Year end accounts due by Friday which will give news update
So Board get approval to issue more shares but at what price…
Strangemartian
Even 10 pence equates to £6 million or six times revenue which shows just how overvalued RTOP was at its IPO.
RTOP is now down to only 80 times revenues.
Revenues which have remained broadly static for last three years as set out in the Prospectus.
Excluding related party sale to SYME revenues in last year would have dropped 30%
RTOP is simply overvalued and in a crowded market.
One for traders who ramp after they have brought in and whilst they are selling.
Avoid
Valuing a company at 100 times revenue (if you include SYME revenue which were for a non RegTech project) is highly optomistic.
When you discover that is has big powerful rivals like Recnology where new CEO used to work makes it look even more optimistic..
The new CFOs salary in his last job equates to 15% of revenue unless you think he moved a pay cut.
One for traders and eternal optimists.
maidit308
you really should read the august prospectus.
iconic never owned any of joe media which was and is wholly owned by greencastle.
greencastle are running *** star news and up to £25,000 of monthly revenue they keep 100%. iconic get 20% of any monthly revenues in excess of £25,000.
david sefton has got a convertible loan notes in iconic worth £750,000 as part of the cva settlement.
so your making stuff up when if you had read the prospectus perhaps you wouldn’t have lost so much cash.
Newuncle
Tintra still has some around £240,000 of convertible loan notes owned by Tintra Trust I believe which can be swapped into shares at a 10 pence price. So 2.4 million shares at 140 pence profit for RS if deal proceeds. I think 5hese are the two be issued shares.
Strangemartian it’s current trading an over 100 times revenue of £1,098,000 a third of which came from a SYME contract.
Interims are due 3 months after period end I.e by end of September so not long to wait for news.
If shareholders vote down AGM then Tern will be forced to keep selling down Wyld shares to fund ongoing costs and its stake in Wyld will be diluted by not taking up its rights.m
Tern will also lose 75% of its £0.9 million stake in InVMA in Q2023.
It will also continue to get diluted in other holdings as well.
The valuations of its portfolio companies aren’t booming so I don’t see an easy exit sale other than Wyld.
At AGM permission was given to 180 billion shares now that would 18 million shares.
At least some millions of those should be issued soon per CVA.
Behaves h
Nope investor has ducked out and given a $3 million facility.
Sharer stated that there was no conditionality on subscription so why hasn’t he enforced the investor to cough up.
Looks highly dubious to me.
I note Tintra haven’t said if CLN lender was repaid the $2.5 million due on 4 August.
Binksy86
One Iconic issues shares to finalise CVA which will happen very shortly as permission was granted at AGM Iconic it will be in a position to do a deal.
Peak
Why have you brought RegTech at over 60 times last year’s revenue?
Flava
As you note the warrants are provided free and grant an option to lenders to get loan repaid in shares.
As a lender being given a free option if Wyld’s share price takes off is potentially valuable and if it doesn’t then you still have been paid 5% upfront plus 1% a month interest. That is over 17% per annum ignoring compounding effect plus a free option.
Pretty attractive terms which other Wyld shareholders including Tern aren’t being offered.
End result is more dilution of Tern’s stake in Wyld even if Tern somehow scraps together the cash to take up its rights.
Tern is facing a massive liquidity crises as are many of its investee companies and it won’t end well for Tern shareholders.
Deacs1970
It’s only trading at 60 times revenue - what a bargain!
Occam
The $2 million subscription promised in March 2023 hasn’t arrived yet either, supposed to come now by 31 August at latest.
Time will tell.
Sharebel
Small free float stock you say.
389 million shares in issue and just 5% not in public hands per Tern AIM16 disclosure.
The Board in total own just over 22 million shares
Hmm
Banksy1984
Interim accounts showed cash of £92k and net liabilities.
This isn’t going to fly once consolidation and new shares hit the market