Member Info for Truthfactory

I’ve got a one way ticket for you to Rampton Richard

I didn’t say it was-read it again

Try explaining that to an insolvency practitioner when good companies run out of money-accounting treatment goes out of the window.

Good note Punter-100pc aligned

Well all I can say so far is my predictions are dropping into place one by one-off you go to Tescos and see what you can buy with capitalised R&D

As for Long, where is he?

To repeat, this company has a chance but it needs cash.The issue is how much and at what cost.Beyond that the tech, the IP, the CLN, the inflated wages,-none will keep the doors open and bills paid

Sorry mate-whether you buy a banana or spend it on R&D, it’s still cash out the door.Its certainly not WIP here either.The last fundraise document confirms £280k per month cash burn-a lot of it in what I see as high end salaries.

As Punter rightly says, news needs to be forthcoming

How’s it going DS22?

I’ve never been a fan of wholesale capitalising of R&D-more often than not, it disguises the true picture.Same with deferred tax.

Hi Lionsworld

I mentioned AMTE simply because they were following a similar strategy-I called them out in a presentation when they were attempting to raise money.Granted DGI are smarter guys but in their April presentation as part of the funding round, there was a clear reference to another gigafactory based on their early stage chemistry.I refrained from investing because I saw this as a major distraction and the world and his wife is spending billions on chemistry.

I have been positive on the motors business but they need to show some progress on the MOU.I think production starting in Q1 2025 is optimistic.

My issue as always is cash-in this case lack of.We know they are spending c £300k per month so they must be running low.That means a call-either a small one, a medium one, or a large one.I think the small one is preferable and more likely , simply because it will keep things rolling and allow them to raise at a much higher value when operational things have moved along.I think the AIM thing is therefore a bit of a red herring-plenty of time to go down this route on the front foot.

As for my previous comments on minimum raise for AIM, I think the technical issue will be around minimum market cap under AIM fast track rules.I believe this is around £20m so they would need to raise a big chunk of cash to get to a market cap of that order.A challenge in this market and potentially very dilutive.

So in my opinion, a small raise is best with a bigger push further down the track.Putting off AIM for a while also likely to limit damage from a CLN conversion

Oh look Lionsworld-read my previous posts on the subject of margins and gigafactories-if was only 5 months ago that DGI were looking to build one.You can express your view and I will do same.This company has a chance but it needs to focus on motors and nothing else.That and getting a decent amount of capital in the business and pronto

I was slaughtered on AMTE for stating the same argument and I was proved right-very right.Some of those punters are in this forum.

https://www.telegraph.co.uk/business/2024/09/09/ftse-100-markets-latest-news-uk-jobs-interest-rates/

I was offered the chance to participate in Operation Longlegs-I rejected it but they did manage to get the funding sorted

I think it was me who pointed out the going concern issue weeks ago.That the CEO has out his neck on the line tells you how desperate the situation was-either it’s blind faith, desperation or a some other reason, they have raised cash but it’s very expensive.

Uninvestable unless you have something to lose??

Sandwell-it’s toast you fool.They have been scratching around for this cash for quite a few weeks to sign off the accounts.

I think the rest is fine-good tech, decent team.There is only the cash headwind to overcome and this should give some comfort

What’s wrong with that Punter?

This is the ‘uninvestable’ point

The dots are joined by cashflow-do the maths.

We all know about the team-the key issue is cash and how much it costs in terms of dilution.Surely you can’t criticise me for that??

How is pointing out the truth ‘thick as mince’

I reckon a heavily discounted raise-loan backed up with warrants and other freebies to keep the wagon rolling.Then a move to another Exchange but not in London

It’s basically the central issue-cash and how much it will cost.Unless you have a money tree to hand over Punter

?

Let’s revisit after the fundraise!