The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
We draw attention to the going concern note in the accounting policies, concerning the Group's ability to continue as a going concern.
The matters explained indicate that the Group needs to raise further funds to enable the Group to invest in future ventures as they deem appropriate at the time.
Additionally, £1.6 million of convertible loan notes have expired on 28 June 2023. The directors are in discussions with the holders of the convertible loan notes to extend the term of the loan notes as the Group does not currently have sufficient funds to settle these loan notes in full.
As at the date of approval of these financial statements there are no legally binding agreements relating to securing the extension. These events or conditions along with the matters set forth in in the accounting policies indicate the existence of a material uncertainty which may cast significant doubt over the Group's ability to continue as a going concern.
I did just ask the question why people are buying. There is no news to back up the rise, all the info is in the previous RNSs which paint a very bleak picture. Fair play to people jumping in and out for profit but its based on a punt. The company has no money and can't pay the debt as has no revenue at all. even before they shut the revenue making part down they were bleeding £500k a month!
TruSpine is an AQSE listed medical device company focused on the development of spinal stabilisation systems. The Company's £300,000 investment in TruSpine, which has been satisfied from the Company's existing cash resources, is in the form of a subscription for 6,000,000 ordinary shares, giving Vela a 5.07 per cent. equity interest in TruSpine.
Can't disagree with anything said by Hereshopin and UncleJim. I have tried to be as positive as possible but its just come to a point where a simple change of BoD with some that are reputable and this flies. We are trading at all time lows even after the prospect of a £4m windfall which effectively doubles the MCap alone.
But if you are the current BoD why would you leave for the sake of the SP when you have no skin in the game and are picking up £5k every month to do nothing. It's an absolute farce.
If they do raise, which seemed so unlikely a few months ago with 800k in the bank but spending the 400k on the PUT option (which is fine) and then putting £250k in Tribe when that left the bank balance so low is ridiculous.
What's happening with Aeristech? we have been invested Pre-IPO for 2.5 years and no sign of the IPO! Don't get me wrong the money is safer there than in the BoD hands but still would be nice to see some return on that investement.
Happy Friday!
I know! I have given up trying to work out what our investments are currently worth.
Either way we know the put option is worth £4m and currently our MCap in £2.3m ish. Shows exactly what sentiment does when your BoD show such little interest in anything.
Shock, mode is a dead duck. Its what we expected. They won't be able to raise as they couldn't before. VELA watched that SP go all the way down from 80p highs to the low of where it is now and never mitigated any losses.
Nothing particularly new in this. We knew the revenue was down from the year before and knew they don't have the cash to pay the loan notes. Not sure how they think they will now get funding when they couldn't when they tried to raise before. Call me a cynic but they will keep this going until all the cash is gone. The loan note holder would be mad to extend even though there is not enough to pay them I would suggest 50p on the £ is better than nothing.
Looks like more and more PIs are just selling at losses to get rid of this share off their portfolio. I can see why but will remain here until the lie of the land becomes clearer, this could be a mistake if they try a placing etc but like a lot here my losses on paper are so much another dip won't make too much difference. Obviously that makes it a lot harder for the SP to get anywhere near my avg. but have waited this long another 6-9 months shouldn't be too much bother.
Joe please thoroughly read RNS(s) when they come out:
Key developments in the quarter
· On 20 January Vela subscribed £49,000 for 700,000 shares in Ethernity Networks Limited, half of which it sold almost immediately at a profit of £600.
It really is a crappy share to be in isn't it! We are not valued on our assets but mainly on our BoD incompetance, which is ironic as there could be £4m put back into the coffers for them to spend. Really not sure how this will play out. Personally I think we should leave the £4m in the shares for Murphy and let them try and grow our investment!
Agree Dave. No way should they have put that £250k into Tribe and left the cash balance in the position it is. Whilst there is some truth in the fact that some of the companies are valued lower than they perhaps should be, that doesn't offer them an excuse. They watched MODE go from 80p down to liquidation without mitigating any losses. There is no guarantee they will be able to raise the required funds if they did try and raise either.