Member Info for Truthfactory

I’m taking bets that the company are planning to move to this exchange.Makes sense but they will need the cash to do it.Poly did it.

As for the trade finance, there is no security to offer other than warrants in new equity.

I wouldn’t let WHI deliver the morning milk Long-they have form in batteries with AMTE.Shambles

I think the battery stuff in DGI is a sideshow-their original plan was to build a giga factory as per the last funding round document.Thats not going to happen of course so it’s more likely to be farmed out

Long

I have not once suggested buying cheaper-I’m buying when they tidy up the balance sheet and have cash in the bank as there is in my view significant downside risk here.If that means paying more, so be it.The upside potential is excellent but there is also risk

In my view, they are virtually out of cash so a fundraise is imminent but we shall see how it pans out

Good luck

Sorry Long-the criteria is indeed set by forward looking working capital,I suggest £3m to £4m,but also a minimum market cap under the accelerated transfer to Aim route-that’s where I think £6m is more relevant but they could get dispensation from the panel of course for a lower amount.

We agree however that they are raising money-and that is why I’m sitting in the fence because nobody knows what the strike price will be.

Good luck

I reckon delist-Parsley Box style

Well it’s a start-I would expect more salary sacrifice on top.It clearly suggests a raise is coming

This is going one way-south

Hang on-I did say the burn was a tad on the high side.

As you know, I’m writing a book on this stuff.In no particular order, Minoan, ESL, NNN,Blur,Syme,AMTE, Amigo-I have been calling dross out for years, it’s become a hobby with entertainment value and boy have I been pilloried.I don’t short-I commentate and provide a view, sometimes good but on AIM, largely bad.I also get wall crossed a lot so you get a feel for good teams and bad ones.

But if you look at the companies listed above, people would have saved a lot of money by at least listening to people like us who provide an alternative balanced view.

EUA is an interesting one because up until Putin, it looked a good bet-I didn’t invest because of the troubled past with nomads, despite being offered a big slug in the 2020 raise.

I actually don’t think the BOD are bad people-they have boxed themselves in a bit but the real cause is Putin which made this uninvestable.The read across to Raven Russia was obvious and I have friends who lost fortunes in that one

The problem wolf is very simple with these forums-unless you agree with the ramping consensus, you are labelled all sorts of crank(why are you here?)even though some of us are here simply to counter the ramping as sport but with measured intellect behind it.

The problem for the accusers of course they throw their weight around whilst losing money,in this instance around a cool £1bn of capital value.An obscene loss which will be difficult to swallow for some unfortunately.

I’m an accountant with 35 years experience in M&A and investing in fast growth business.This company has a chance but it needs recapitalised.My point for some time

I was accused of making up the monthly cash burn.I then pointed out it’s £280k per month per the presentation given at the last round.Without sales, the company will run out of runway, hence the consensus that a raise is coming

Now to raise money from VCTs, soft money, it needs to go on AIM.To do this, it needs to show a 12 month runway.I reckon that means a minimum £3m raise, possibly more.

The headwinds are obvious-the CLN, the market is terrible, and it’s still early stage.But something will have to happen soon due to evaporating cash

I have said all along I will invest if they execute a cash raise-might be a small one to keep the wagons rolling, or a bigger one which gets the VCT money.Whichever, it has to happen as they need cash.

The final issue is strike price-Long thinks near the current SP.Im not so sure but it’s very clear an executed contract in India will underpin.

This is a good company but as always, even the best ones need cash

You’ve really lost it Bundle-there is no deal as this company has been uninvestable for 3 years.If it was, why are they trying for debt finance rather than an equity raise?

Moving to another exchange will allow Russian based investors to come in-look at Poly as an example.

There is no security other than using company shares eg a convertible with warrants

I don’t believe you can move money in Russian subsidiaries into U.K. companies with some indigestion

No-I follow cash in everything I do.Without it, even good companies and opportunities fall.

Not far off my thoughts save that I don’t think there is a sale in the offing.More likely they will be looking to transfer to another exchange but need cash to do it.

I’m not sure £1m will be enough-probably nearer £3m in my view to execute a transfer.

I believe they have inventory and some cash-just in wrong part of the group and innaccessible

We meet again Scotty

It’s my opinion the group has cash but it’s simply in the wrong place ie in the Russian subs and it can’t be moved into the UK plc because of sanctions.

So it needs a lender who is prepared to take a leap of faith in the legal process.I said a long while ago that the BOD should mothball the whole group to preserve cash-that still applies but it probably means delisting it and possibly listing it on another exchange like Poly did

I think the issue isn’t necessarily lack of cash-it’s just in the wrong place ie the Russian subsidiaries

3 Year ESL.L Share Chart

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Combination chart with 2 data series.

The chart has 1 X axis displaying Time. Data ranges from 2017-04-25 00:00:00 to 2021-02-09 01:00:00.

The chart has 2 Y axes displaying values and values.

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Smoke and mirrors-the original equity went down the toilet!

Well there you go.I said they had run out of cash in the U.K.-fact.I said they would be looking to raise cash but would find it difficult-fact.I said there was no deal for the assets-fact.

Those who spin rubbish about this company should be ashamed of themselves