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Wakey-I totally disagree with your analysis.Without cash, they won’t be able to JV with anyone!

Meaningful revenue only starts in 2027-cash negative until then at least,hence the requirement for chunky cash.

LME-there are lots of opportunities out there so I would focus on looking for them-they can’t take your existing shares off you so bottom drawer and look to add when they come up with a package in next few weeks.Im sure they will raise money and if you believe, you need to be in that funding round if at all possible-you will even get an EIS tax break.

Desperate stuff when you are asking Long for advice after being totally destroyed by plain talk and facts.I feel sorry for all those in this maelstrom but not Long and Harley, who has probably checked into Rampton by now.

For what it’s worth, I think they will raise money but the current equity is worthless.The market agrees with me.

I think it’s bad timing and wrong structure/advice that’s caught them out-2 years ago, it would have been an easy raise

Punter

What I would say in defence is they have struggled to raise money due to the standard list not qualifying for soft tax money from VCTs.But that’s down to them reversing into a shell in the first place.

I have no doubt they can raise money with the tax breaks.

Many on here really don’t understand the time it takes to move from prototype to full production-and the cash consequences.Their own presentations suggest cash flow positive from 2027 earliest if all goes well, hence the need for at least £10m of hard equity from VCTs-and that’s ignoring the CLN which is in essence a loan

You will not be diluted until one of three events

-cash raise which is definite

-CLN conversion which is now unlikely

-new share package for execs which is highly likely

-

LME-it’s tax mate.I keep saying it.The Standard List is not VCT qualifying, hence the attempted move to Aim.Delisting makes the company compliant

As I have said, they were paying themselves too much-it came up in previous presentations to potential investors.

When this delists,the old money will effectively be washed out by a new capital structure around new VCT money and you can expect the key execs to sort themselves out with plenty of stock.

As I say, the current equity has little if any value so if you are keen on staying with this, you should be asking the board for reassurance you will get the chance to reinvest.

That said, they will be in Prospectus territory under the Collective investment rules which is very problematic.

Be careful

Https://www.telegraph.co.uk/business/2025/01/05/cambridge-ev-battery-maker-warns-may-run-cash-months/

There were plans to build a giga factory in earlier presentations-crazy and a pipe dream.They have some interesting ideas on chemistry but it’s a dead end in my opinion.The margin on battery manufacture is sub 2pc as many investors in Nothvolt,Envision etc are finding out to their cost.I pointed this out months ago.

The motor tech is the prize and should be their focus.

LME-DGI don’t make batteries.They never will.The battery manufacture market is shot to bits eg Northvolt

I doubt many invested here to see the company delist-so you need to revisit why you invested.

It’s very clear that they have found it difficult to raise money-the round before last was supported by the execs because they failed to attract investment over the summer.

The Standard Listing has been their nemesis-it restricts the field of potential sources of cash.

This is now resolved so as an existing shareholder, you should be seeking reassurance on your shareholding going forward-I would be asking to be included in the next round, simply because the valuation will likely be so low as to destroy the current equity.Some will disagree but look at the market cap now-it reflects the reality.

I’m sure the company has a future -I have said this all along.But I have also clearly stated over and over again that there was no rush to invest and that remains the case.

Looking forward as a private company, the directors are likely to have their hands tied more tightly by the new money-that’s a fact.Stronger Shareholder Agreement, likely VCT share structure etc.That’s how private companies are policed by VCTs-no bad thing as I think their salaries were crazy as a PLC with no income

New money will be looking for VCT/EIS reliefs-time to invest is coming up if they get the balance right between ordinary and sweat equity.Ask yourself why you would hold onto existing stock if you can subscribe under EIS rules at a lower value-it’s an obvious question

So in summary, current equity should be asking the CEO to confirm there will be an embedded right to invest in the next round-I don’t think it’s a big ask as I doubt the queue will be very long though there are still regulatory issues to resolve even as a private company eg Collective Investment rules.

I don’t disagree Lion

Positives

-classic VCT company so either private or Aquis will allow investment

-out of the limelight and massive cut in costs and regulatory stuff

Negatives

-poor liquidity for shareholders

-reliance on Cos Act and new Shareholder Agreements to police Directors-they have form in overpaying themselves

-current equity likely to be torched by adoption of new finance structure and executive sweat equity.

-CLN still in situ.Most likely now repaid by VCT money

I have said all along the would be a time and place to invest and this is it alongside the new money.Hence my view current equity is trashed.

I think this is a balanced view.They should never have reversed with the benefit of hindsight and the CLN has proven to be a disaster.Both decisions made by the board of course

Scratch-I’m writing a book on posting on message boards and it’s pretty obvious you have followed the rampers at your cost.Everything I have said over the last few months has pretty much been right-everything the rampers have said has been wrong!That you continue to blast me is pathetic-you should have listened to me rather than the likes of Long.I was doing you a favour.

LME-I would be selling up and taking the tax loss, then buying them back if you really feel comfortable owning shares in a private company with directors who have historically been happy to pay themselves big salaries despite having no revenue.

What will happen next?I reckon they may raise some VCT money and offer shares to existing investors on same terms.But the cash required is substantial so I see the current equity being torched with the directors resetting their equity via sweat equity with the VCTs-rather like a PE deal.

I see no chance of relisting anywhere in the next 3 years.

They still need to sort out the balance sheet which is most likely technically insolvent-that means a cash raise in the next 3 months so not long to wait

Good luck

Syme??

I got banned off that thread for calling it out for a total pile of rubbish at least 18 months ago.What a disgrace that company is!

The company spent the summer trying to raise money and failed-that’s a fact, for all the reasons I explained.They were very keen to get on AIM but the minimum market cap rules stopped them-hence the rather tardy RNS earlier this week.I suspect they were in at Downing St for that reason but that is just a decent guess.

Anyway,all water under the bridge now.I would get out now and try and buy in when the VCT money is lined up if the company facilitates.That would be a good question to ask the CEO/FD

I cannot believe the tripe written on here today after shooting all day.

The company is delisting because

-if can’t raise money under EIS/VCT rules, the easiest way to raise it

-the costs associated with running a plc/compliance least £500k oa.Remember the company is pre revenue.

-the company is tainted having failed to raise meaningful money in the summer

-the CLN won’t convert into private company shares.

The talk about Musk is fantasy land stuff.

Step back and look at the picture-company needs to raise money and quick.Shares about to be delisted.Current equity reliant on Board largesse-unlikely

Thanks 404-Long, the organ grinder and Harley, his dancing monkey, have thrown the kitchen sink at me over the last few months, but the ‘transactional accountant’ was the one that took the biscuit.Yes Long-I’m Big 4 trained so that rather gives me an edge over your untrained rants.As for Harley, he’s just the village idiot-where is he now?

Even now you are peddling your VD, your ‘relaxed LTH’ front disguising the fact you are down I reckon 90pc.I will continue to call you out whilst you post your unsubstantiated fiction

I’ve just read your various posts today Long

Let’s start with basic maths-you do know that 0.02 is 75pc less than 0.08?The latter being the price I said be careful for all the well trodden reasons.

As for your delisting suggestion, I posted two weeks ago that getting off the Standard List had to be a priority.I specifically mentioned AIM or delist as the two alternatives.AIM out of the question as I repeatedly said earlier in the year because…they couldn’t get to £20m mc without raising at least 8m.Impossible in this market and the frustration in the last RNS confirms this.

That left the delist route as the only viable route and here we are.As an unquoted company, they can now ask VCTs to invest-some won’t because the company is now unquoted,or will be, but some will.

The big issue now is how much and at what strike price.I reckon they need £10m plus to get to cash generation.This in my opinion destroys current equity-and it’s already started with the fall in the last couple of days.

In summary Long, my concerns have been proven right all the way through.Your bile, your personal attacks are water off a duck’s back to me.What really grates is this assumption that you are close to the action and know what’s going on, reassuring investors on here with your soothing words of inside knowledge.

The reality of course is somewhat different-you have made yourself look like a paid insider, at worst a complete idiot with no idea.Basically a blundering clown with challenges in arithmetic

Not bad for a simple ‘transactional accountant’ eh?

Long-you are discredited