Member Info for Theanalyzer

TwoGoodToDie

You’re getting a bit ahead of yourself.

Nuburu need to complete their due diligence exercise on Tekne, get valuation opinion (although AZ got Madtax to say RTOP was worth £60 million so that step should be easy),obtain US GAAP numbers for Tekne circular, get vote through plus raise $8.4 million in cash to pay for the deal.

Dr Jan

Versarien has a tiny market cap which could spike on news which is why there isn’t a lot of short interest even with the hugely reduced cost of borrow.

I see that Peel Hunt has dropped its holding again.

TwoGoodToDie

Nuburu can’t even pay the few million it owes Supply on a timely basis, how will Nuburu raise the $8 million in cash to purchase Tenke which is around its current market capitalisation?

How will Nuburu pay down existing creditors of $36 million plus the $23.5 million of Notes it will issue if Phase 2 of acquisition goes ahead?

Tekne itself is undergoing a financial reconstruction accordingly to Framework Agreement in the 10Q and needs €50 million of liquidity including letters of credit.

Typical AZ to hype revenue and back orders and scale of entire defense industry but not clarify how he Nuburu will raise the cash. Credible companies making acquisitions specify how they will fund them when they announce the bid. Having a $100 million Shelf Registration in place isn’t the same as actually having raised the cash by the way.

You have been drinking too much of the AZ kool aid

TwoGoodToDie

Italian Companies have to file company account# at Italian Business Register perhaps Steve looked them up on that site

TwoGoodToDie

You keeping dreaming of the future.

The sad reality is that Nuburu is drowning in debt. The 20% purchase of the defense an SAAS company cost $25 million all raised by debt. The $23.9 million preference shares switched from mezzanine equity to a liability on 31 January 2025.

The deficit on shareholders equity was $37.8 million at 31 December 2024. Nuburu has just announced its going to write off $6.1 million of inventory, right of use asset and fixed assets following the default of lease. Yes it was a default, read the recent 8k filing. Shareholders deficit could now be nudging $50 million or more depending on what happened on patent sale.

After lease related write downs there will almost no assets either except for the $420,000 loan to insolvent and suspended Supply @ Me Capital.

In simple terms anyone reversing into Nuburu writes of $50 million day one that is a big loss of value for a proposed $125 million deal.

Why would any credible company want to reverse into Nuburu with its train wreck of a balance sheet?

There is also the fact that the deficit means it is not in compliance with US listing rules either, it has just had to restate its 2024 accounts and delay its Q1 financials due to material weaknesses in its finance function led by AZ as the Principal Accounting Officer.

Why would the Italian government consider Nuburu an acceptable owner?

TwoGoodToDie

Your wrong again the lease was extended to 30 June 2025, Nuburu were in default and freeholder just $489,000 judgemen. It’s all in the Nuburu filings.

TwoGoodToDie

The loan from 1800 Diagonal is only $188,000 at present, so Nuburu have not yet raised $3 million just under $798,000. They also owe cash on previous building of $489,000 to landlord and are in dispute over a $500,000 invoice so not all the cash can be sent to Supply in any case.

The interest on the $500,000 loan from May to November 2025 is $256,000, over 50% interest in just over 6 months and it’s secured against existing deposits. Only the truly desperate pay that sort of interest rate.

You need to research death spiral lending. The lending isn’t long term and they convert loan into shares which they then dump. To get repaid Nuburu just has to remain listed and able to issue shares.

One aspect often overlooked when looking at VRS is the £1,981,000 of deficit attributable to the minority interests in Gnanomat, 2DTech and Cambridge Graphene which represents the minority share of losses in Graphene subsidiaries not funded by minority shareholders. At last year ended this meant overall VRS had net liabilities because of these unfunded losses. I suspect the minority shareholders will never pay these losses.

A cash sale of Total Carbide at net assets of £1.13 million would be beneficial and save current ongoing losses of £600,000 per annum but this won’t make much of dent in debt mountain represented by Innovate Loan which with deferred interest is heading towards £6 million. Versarien doesn’t expect to sell Total Carbide for more than this because it wrote fixed assets down in value in last year’s accounts to reflect likely sale proceeds. Net of costs.

Personally I think Versarien is a value trap for shareholders because of the scale of increase in Graphene revenues to repay loan looks simply to large a gap to bridge.

Steve Ward

Nuburu currently owe SYME £1.13 million with another £1 million due in two week time.

TwoGoodToDie

I see Nuburu couldn’t file its 1st quarter results on time.

It’s also fessed up that 2024 accounts were wrong by possibly over $500,000 of under recorded charges.

Finally it’s had to borrow more cash on a very expensive loan and enter into two more convertible loans note to raise cash albeit not enough to pay Supply what it is due.

What a shambolic mess.

Why would Italian government approve an y takeover by such a company?

The entire Klarian investment return didn’t even cover the Catenai operating costs in the period it was booked.

CTAI will need further funding to pay operational costs because Alludium isn’t going to be paying dividends or IPO in short term.

TwoGoodToDie

I simply gave an example of an entrepreneur desperate to keep their dream alive who overstepped the boundary between being over optimistic and committing an offence in citing Elizabeth Holmes. I could have cited Trevor Milton of Nikola.

Your view is that AZ has stayed the right side of the line and as you say has never faced a court case. He does make a lot of announcements and commitments that he fails to deliver on but I am sure that he is just being over optimistic, some may disagree with me.

TwoGoodToDie

In my view AZ is an unsuccessful entrepreneur. TAG owned a stake in a failed insurance venture Darwin in addition to RTOP and Supply which aren’t exactly successful businesses.

He is prone in my opinion to overstating progress on Supply I.e deals are announced before they have completed which then never get finalised. He scrabbles around for funds to keep it running and deals often involve companies he controls or is associated with.

Entrepreneurs are prone to optimism.

Sometimes like Elizabeth Holmes of Theranos infamy, they can turn to fraud to keep their dream alive.

Steve

The $1.35 million was payment for first 20% of the SAAS company believed to be RTOP.

TwoGoodToDie

Nuburu haven’t raised any money yet.

I think you find that the S3 restricts amount they can raise as well to 1/3 rd of public float.

Steve Ward

The S3 shows that AZ has already extracted $450,000 in cash from Nuburu as part of 20% for his wholly owned SAAS company and lent back the additional $900,000 ton Nuburu at 10% interest.

Nice work.

TwoGoodToDie

I agree with you. Having a Chief People Officer when you only had 16 people at 19 April per 2023 annual report is an unnecessary expense and another indication of AZ’s poor management.

Three senior team members being Alice Buxton, Stuart Nelson and Mark Kavanagh have left since last annual report leaving only Amy Benning as last senior team member.

Kefi can’t manage the Ethiopian Government’s speed of delivery but everything appears to moving in right direction both on legislative front, road building, resettlement etc

With today’s RNS and previous contractor equity funding RNS these are two more big steps in right direction.

I think some people under estimate how many legal parties need to agree all final paperwork at same time and then sign off before we go live.

Dr Jan

Versarien death clock is ticking.

When markets reopen it will be 6 May getting closer to when cash runway ends in Mid May.

Yet another AZ controlled entity fails to pay Supply on time and we get usual dog ate my homework excuses as opposed to a detailed factual explanation.

I don’t think Supply’s accounts are getting signed off until Nuburu payments are up to date.