The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
As per today's RNS, a small group of long-term holders have taken out the Riverfort short-term funding facility with a premium placing. As I and my close family took 30% of thew offered £200k, I'd like to explain why and how it came to be.
I am not going to give away confidences and I have been "inside" for weeks. I also dont know the full details of what is planned over the coming weeks and months but I have enough information to be very confident of the future of LVCG.
When the Riverfort announcement was made in February, my heart sunk. It was a terrible deal to do with Riverfort in effect incentivised to keep the share price low to gain more shares and warrants until all their loan had been repaid. I and a few other large, long-term holders then reached out to the BoD to give our strong opinions on what we felt was a catastrophic mistake and pointed out that there was no way the SP would recover despite the great news that have flowed until Riverfort were gone. Again, no inside knowledge but I am not surprised the CFO “resigned”. It was a terrible deal for the Company.
Over the last 6 or 7 weeks, we have been working with the BoD to find a way of getting rid of Riverfort once and for all. Kudos for the COO in getting what we have in place today. So, what have we done.
All these new shares are in the hands of long-term supporters of the Company, so they won’t be flipped into the market. We also insisted the warrants are tied into owning the shares, to demonstrate this fact.
We have removed the potential of Riverfort getting a further £150,000 worth of shares and warrants at a discount price, which they would inevitably flip into the market creating a huge overhang. We paid a premium remember! We have ensured that all future payments for the Settlement amount to Riverfort can also be paid in cash, rather than the originally agreed shares. At today’s price, this has prevented them getting a combined total of ~30m shares and warrants. The payment plan has also been pushed out, so by the time we need to pay, there should be plenty of cash to do so.
Of course, we have a good deal in taking these shares and warrants but it is also a great deal for the Company and all shareholders. The Riverfort handbrake is off and good news is on its way!
DC was indeed in Japan was week
You need psychiatric help !! In the meantime, please just shut! Constant posting of nonsense doesn't help anyone!
Let's play Top Trumps
Rough calculation to back Mcap of £1BN
Say LVCG has 150 Kpop tour/event each year in Japan
per tour Income £2M X 150 event and will bring £300m
say £10m is the cost, LVCG still will Have £200M in profits
£200m X 10 PE will become £2Bn, and that's staggering from current £5m MCAP
I've been Conservative and said £1BN.
**Strong enough buy ***
Now is this not once in a generation opportunity
Easy to make up numbers isnt it!!
I've just reported the idiot! Spamming the board with completely useless info isnt helping anyone
DC told me in person that he needed a good CFO, allowing him to concentrate on building the business (which is undoubtedly his strength).
The deal with Riverfort was a disaster, so no surprise to me that the CFO has "resigned".
Good news IMO.
My guess is the Riverfort arent being as supportive as DC believed (AGAIN) and are selling in large chunks. Frustrating but the sooner they are cleared the better. The SP in no way reflects the true value being generated here.
It looks very much like Riverfort are selling into these buys. The round number sells yesterday and today stink of them doing it to us again. They need replacing with friendly finance ASAP or we wont be going anywhere soon.
Now that is a stonking RNS !! Guaranteed income of $1m plus share of TV and merchandising! One deal worth more than the MCAP alone. With the other recent licence deals the SP should be 10p on these alone. Crazy crazy price down here.
As a long-term holder and massively underwater, I spoke to the BoD earlier too. Riverfort isnt ideal but as people have said below, it's short term. Massive over reaction on that news today IMO. The Start license deal announced this morning is worth more than the MCAP on its own FFS! More news to be announced next week. I know its difficult (God knows I've struggled too) but patience really is key now. Top up if you can! I wish I could !!
It is yes, mopping up old Riverfort debt still owed.
Legal requirement if it hasn't been paid. We're obviously still tight for cash but this month is a big month for LVCG. Really feel this is the bottom and a great opportunity. Just added 39k
Today's RNS is great on 2 fronts.
1. LVCG gets £500k pa with no risk or outlay, so 100% profit. This underpins the MCAP on its own!
2. Lee wouldn't pay £500k pa for the StartArt name if he didn't feel the brand was valuable. StartArt could easily be the best buy LVCG has made!
DC is concentrating on Start and Kpop and the team in SA are small . I suspect they are running around like blue*rsed flies trying to complete everything at the moment. Frustrating....but I suspect we will be pleasantly surprised.
Good as there are now two options
Really difficult to say. If DC keeps hinting and alluding we could remain at these levels. If he lays it out in clear black and white, how each division comes together and how each division is making PROFIT, then we could be many multiples higher.
For what it's worth I feel this is hugely undervalued but DC keep telling us to join the dots is horse c**p. He need sound financial numbers. Hopefully the new CFO will help him understand this far better than the clown we currently have!
Asimpleinvestor, now you might begin to see why I get fed up with Tintin and his BS! It is clear as night follows day that we needed cash to get through to Q2 next year. With Jason Lee's investment, we now have that stability although I am not happy that we have diluted yet again. In my view DC has completely lost financial discipline and tried to run before he can walk. A very risky policy as cashflow concerns can kill many a promising company. However, I hope the new CFO will right the LVCG ship and this really is the bottom.
For once TinTin I agree with you. Its NT to buy £500 worth now!
Jason Lee will stay in Seoul I believe. DC may not directly read social media and bulletin boards but he is acutely aware of the sentiment I assure you
I can assure you I am almost certainly far more affected that you have been and absolutely understand the damage this SP has done to so many. But there are ways to quietly influence rather than flip flop everyday (including mentioning illegally sharing recordings).
This is from the last 5 days of your postings
2 Nov – “It’ll go way above 7p in a year… 7p= MC of just £16-18m but they must deliver on this concert. I highly doubt Jason lee bought £500k at 4p to just make almost double in a year. This is AIM. We all know once sentiment returns it can multibag very easily to 15p plus”
4 Nov – “What a disgrace of a chairman. I now truly believe dccis doing this on purpose to buy the co. Wake up people dc is trying to manipulate the sp and get it low to buy it and we are all gonna get sweet ****”
5 Nov – “I’ve spoke to a few other shareholders and they are going to be creating an action group. We will all chip in and take legal action, i and many others have recordings of DC.”
Do you and ASimple actually think this helps FFS !!
Finally, you also claim you have spoken to a large shareholder who has invested £250k. For what it's worth, I have nearly double that invested, so I am acutely aware of the need for this SP to get back to fair and sensible levels