Member Info for Walkley

For those that like tech stocks with lots of promise a relatively new one is Cykel Ai (CYK). It might attract disillusioned Cirata holders.

Have bought a few here but suspect more would invest if there was a outline of the expected (hoped for) prospects from the company. As I understand it the year end is now 30 June 2024 so presumably an annual report will be out soon which may help clarify matters.

Great response by the market. Significant numbers of trades shows that Intercede is becoming noticed

Reach announcement today:

Intercede and Microsoft Join Forces to Streamline FIDO Passkey Management for the Enterprise

Intercede, the leading cybersecurity software company specialising in digital identities and strong authentication, announces a strategic partnership between Microsoft and the Company that will bring cutting-edge FIDO Passkey management to the Enterprise.

This collaboration combines Intercede's expertise in Credential Management Systems with Microsoft Entra ID to allow administrators to create and register FIDO Passkeys on behalf of users on devices such as the Yubikey family of devices or smart phones. This development allows FIDO Passkeys to be managed in a similar way to PKI based devices through MyID CMS and then passed to Microsoft Entra ID for use during user authentication. Importantly, this enables organisations to comply with US federal government security legislation including FIPS 201/SP 800-63 at the highest levels of assurance.

Surely the company will need to let the market know what this could mean for the business. A statement on Monday??

50 trades today. Up 230% in last year. A tech stock that actually makes money!!

From the FCA giving the case number in case anyone who bought shares as a result of the publication of misleading order figures wishes to let the FCA know about their position.

“I have located the case where you've raised concerns with Wandisco / Cirata PLC as case reference 211037731 and can see that the information you've provided has been logged accordingly against the firm. Please include this reference in future emails regarding this matter to ensure your concerns are directed to the correct team.

As my colleague has previously stated, we would be unable to make any comment regarding any investigation we may be undertaking in respect of Wandisco and Cirata.“

The FCA may feel that they have to make an example "pour encourager les autres". Tesco also had to compensate buyers of the shares between the RNS with the unrealistic high profit and the correction. Not sure Cirata would have enough to pay more than about 5p in the £ -and the buyers in the placing would be very miffed at their funds being used in this way.

From the Fund raising RNS:

"The FCA investigation is ongoing and it is not yet known whether the FCA will seek to take action against the Company. If the FCA does ultimately decide to take action against the Company, this may result in the FCA sanctioning the Company. Such sanction could include the Company receiving a fine and may have a material adverse effect on the Company's business, operating results, reputation, financial position or future prospects."

You are not seriously saying they can escape penalties by just changing their name? Wandisco didn't go bust and sell its assets to a new company Cirata, Cirata is Wandisco.

The FCA have teeth, they fined Tesco and entitled buyers of shares to compensation for producing inflated profit forecasts:

On 22 September 2014, Tesco plc published a further trading update in which it announced that it had “identified an overstatement of its expected profit for the half year, principally due to the accelerated recognition of commercial income and delayed accrual of costs.” Tesco knew or could reasonably have been expected to know that the information in the 29 August 2014 announcement was false or misleading. In making this finding, the FCA does not suggest that the Tesco plc board knew or could reasonably have been expected to know that the information was false or misleading.

Full report:

https://www.fca.org.uk/news/press-releases/tesco-pay-redress-market-abuse

I would expect the minority shareholder (owning less than 2% of the equity) mentioned in the recent RNS to bring a class action against Wandisco/Cirata and the directors who approved the misleading information on orders and sales. I would want to be linked with it if it happens. But even if no recompense is possible, if the directors are found liable I would hope that some fines or disqualification periods could be brought against them.

Not very helpful:

"Thank you for your further email to the Financial Conduct Authority (FCA).

I appreciate that you would like an update of progress or an indication of expected date of completion of the investigation.

Please note that Section 348 of the Financial Services and Markets Act 2000 (FSMA) places certain legal restrictions on?what information we can disclose,?and a public body like the FCA has to treat some information as confidential.

As my colleague has previously stated, we would be unable to make any comment regarding any investigation we may be undertaking in respect of Wandisco and Cirata. You may wish to keep checking our website for any potential further updates. Further guidance about the information we can share can be located on our website by clicking on the highlighted link.

Whilst we’re unable to assist you directly, I do hope the information has been of use."

I am surprised that Cirata have managed to raise $7.2m on the basis of the Q2 performance of 16 bookings worth $1.7m -but the people who paid 55p may be happy with the risk and may be proved right. Fair View Partners is not a new investor. They owned 3,551,067 shares in July 2023 and 4,666338 in March 2024 but didn't issue TR-1s despite being over 3% and 4% of the share capital at the time respectively.

When there is some evidence of actual significant growth. It still has a Market Cap of £55m. Which is high for a business with an annual bookings (Turnover will be less) rate of £3.75m pa and overheads of £15m pa.

From the results of the placing RNS "The participation of Richard Griffiths, Global Frontier and Davis Capital, all existing substantial shareholders in the Company are related party transactions pursuant to Rule 13 of the AIM Rules for Companies ("Substantial Shareholder Related Party Transactions"). " This refers to the purchase of shares in the placing.

As a related party if Richard Griffiths knew on 16th July that he was intending to sell nearly 4 million shares I assume that he would have had to inform the company and it would have been mentioned in the placing announcement.

That it wasn't referred to must mean he did not decide to sell until after the results of the placing were announced with £107k raised by Primary Bid and £38,500 from directors.

That he managed to sell almost 4 million shares and the share price only dropped 11% is quite an achievement!

The RNS says happened on 26th Placing was on 23rd but no TR-1 was issued then. Richard Griffiths would only have the same information as anyone else - issued at the time of the placing. But they are his shares he can do what he likes with them.

Unless there is another TR-1 to come Richard Griffiths has bought 1,400,378 shares in the placing at 55p and sold 3,961,249 at who knows what price.

What is not to like - looking forward to results and increaed dividend - possible buy back.

If he had sold shares to participate in the fund raise he would have more shares than he started with!! He might have sold his shares because he preferred the cash now!!