Member Info for Theanalyzer

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Manager 511 check out Iconic Labs which was offered £50 million in convertible loan notes despite having net liabilities and having lost all of its business.

Convertible loan note providers work on basis that they only lend a proportion of money up front, they charge a big fee or interest on advance and then convert into and sell the shares.. The risk they take is company gets shares suspended before they can cash out. The lowest six day VWAP price means that they nearly always make additional profit between conversion price of shares and selling price.

Some posters on Iconic initially took comfort from EGHOF acquiring shares until it dumped over 30 billion shares in just over a year and cratered the shares.

The most positive factor is that having received £5million cash SYME can trade on for a while provided it’s shares are not suspended and that so far they have taken £5.6 million of loan notes.

Given SYME has had first CFO in place for 3 weeks now and raised finance from Negma which fixes the going concern issue, i expect accounts will be out by next Wednesday to avoid another suspension.

Upbeat01 Liquidity in coming weeks doesn't usual mean after 52 weeks…

The Wyld IPO has a 12 month lock in for Tern and Tern are investing more to get IPO away not my definition of a liquidity event at present time.

AZ does like to take his time getting his results out.

I suspect he wants to complete TF deal prior to signing accounts and showcase that business as part of the group.

Also gives new CFO the opportunity for thorough review of the numbers.

Should be able to offer some good insight into first of 2021 as well in Directors report.

I see that Ganfeng just raised HK$ 4.85 billion so now have plenty of cash to make formal bid assuming their are permitted to releases the cash

Ya 37 Talk about lack of research - LOL

I remember a start up listed in London with an entrepreneurial CEO, lots on supportive shareholders with a new innovative fitness device that was going to dominate the sector - it was called Cloudtag.

Both sides of share can cite stories of amazing success stories or failures.

Getting a death spiral provider to lend to doesn’t involve due diligence on your business model - just look at the poor shape of some of the businesses that have entered into such arrangements. Yes you can cite Novacyt as a success but far more businesses have their share price destroyed by such deals.

Roll on the accounts next week or week after to see current state of play of signed up customers.

The fact that a death spiral loan note with a 12% day one charge (SYME gets £5 million but has a liability of £5.6 million) is the best funding option you can do for a potential “FinTech Unicorn” tells you all you need to know. Primary Bid is knocking out some placings at present with small discounts to share prices.

Also as others have commented why does he need £50 million now a year after IPO raised only a few million? Even if Tradeflow hits buyout targets (and is presumably profitable ) he would need about £25 million to fund deferred payouts if SYME chose to pay in cash.

DJenks. Negma give SYME £5 million in cash to SYME in exchange for loan notes of £5.6 million. The difference between cash received and loan amount ie 12% is part of the way Negma make money on the deal. Negma convert the £5.6 million of loan notes into shares of SYME based on lowest volume weighted average price over 6 day period and then sell the shares in the market. SYME gets cash it needs, Negmarecovers the money by sale of SYME shares.

Remember that Negma now knows that it will be getting £5.6 million of shares in a week or so time, so if it sells on a forward settlement basis which pushes SYME price down it wins because conversion price is linked to lowest volume weighted average price. Negma can only really lose if SYME draws money down and then SYME share is suspended as has happened to Iconic.

Joil10. You should do some research on convertible loan notes. First SYME has no assets or revenue at present to put a charge over. Second the convertible work by the financier converting loan into shares and then selling the shares and recovering their money. They don’t convert and hold the shares.

The financing resort of desperation - convertible loan notes for a listed group with a market cap of over £100 million.

This is a desperate measure for any company because of the share dilution that can and often does occur with this type of funding (look at Iconic from 1.6 billion to 37 billion odd shares in just over a year). The lender will simply convert and sell, convert and sell usually selling into strength after a positive RNS.

In a world full of institutional investors looking for the next Fintech giant and SYME can’t raise real money from proper institutional investors.

It’s another giant red flag for me.

Let’s see what the 2020 accounts show in terms of actual signed up customers and due diligence revenue.

Secret Blueprint. Your are uniformed. insurance companies in Bermusda are subject to external audit and there is a credible local regulator at least in eyes of U.K. PRA who looks at solvency returns. Bermuda is home to some major international insurers and has been for over 25 years not some back water like you try to portray.

SYME will also need to issue £4 million for cash proceeds plus whatever it needs for working capital until funding arrives.

Issue size will depend on price but at present it’s around 900 million shares for £4 million.

So in total 1.7 billion more shares a modest 5% dilution.

I am long term Opti holder and only brought Skin after recent price drop after trial results were announced and price dropped as people sold out. I see Skin as much lower risk now with one proven product in process of scaling up for commercial launch and other products in pipeline so I brought and now with a small gain.

Hence share price rise today

Iconic must really be strapped for cash if they can’t pay £185,000 creditor.

EGHOS stands to make a multiples of that in fees from issue of convertible debt and has existing credit exposure to Iconic so no wonder it is keen to resolve the issue.

The non response feels like secured creditor wants to punish EGHOS and or Iconic.

Given sum involved I suspect matters will get resolved in favour of Iconic shareholders ie administrators will withdraw after Creditor is paid.

Kibx The administrator was appointed by the secured creditor Shard not the company. Don’t embarrass yourself by trying to call me a ramper of this stock. Just admit you are wrong on this point.

Dividend up and reasonable growth in Net Asset Value per share.

The insurance market hardening should feed through into performance of many of the investments.

Significant discount to net asset value per share which provides margin of safety.