Member Info for WG213

Fully underwritten means if you don't take up your shares, the underwriting banks will sell it to the public immediately after the rights issue process closes. There will be an option to sell your rights during the rights issue process, and the price of this will vary just like the standard stock market prices.

Has anyone receive the rights issue email from Hargreaves Lansdowne? or should we expect this after 22nd of May? thanks

Slight amendment. If the current price was 21.5p i.e. same as when the rights issue was announced, and you didn't subscribe to the new shares, you would lose around 47% of your value when the rights issue is finalised (not 69%).

At the current price of 12.32, you will lose a further 30% if you do not subscribe to all your new shares. The 69% loss was based on a current price of around 21.5p when the rights issue was announced.

The lower the current price, the lower you lose when the rights issue is finalised, if you don't subscribe.

Quote from the prospectus:
"Qualifying Shareholders who do not take up any of their rights to take up the New Ordinary Shares will suffer an immediate dilution of approximately 69.2 per cent. in their interests in the Company (calculated on the basis of the Existing Ordinary Shares).

Yes. By end of this month. As you are new, I hope you understand the impact of the rights issue and the choices at the end of this month?

I have been researching other recent rights issues, and the rights issue news has mostly been greeted with + or - 10% . Only Kier seems to have fallen drastically and below the rights price. I am surprised by the drastic drop since the rights issue and mainly believe a lot of shares are being sold by those not able to afford to take up the rights issue. The 69p set was partially set by the underwriters as insurance to prevent them from having to take on shares to sell themselves. Hopefully the selling will stop way above 69p.

Separately, I thought maybe the lockdown will last longer so Hyve is being punished but other mass gathering stocks have not been falling recently in line with Hyve.

Continued...
Uncertainties are such that potential mitigating actions, which would be over and above the current strategic plan, may not be sufficient to mitigate all reasonably possible downsides in assumptions. In such downsides the Directors would need further funding and would consider ways of sourcing this, which could include debt or possible further equity funding. The Directors consider that such scenarios are possible, but not the likely outcome.

Based on the above, the Directors believe it remains appropriate to prepare the financial statements on a going concern basis. However, these circumstances represent a material uncertainty that may cast significant doubt upon the company's ability to continue as a going concern and, therefore to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

Please read the Going Concern section of the results. The results might be somewhat expected but the share price is at significant risk right now.

Going concern

The financial statements are prepared on a going concern basis notwithstanding that the group is competing and disrupting an established market and as is typical for a business at this stage of its lifecycle is still generating losses as it uses working capital to develop the business model and market share.

The Group has reported an underlying EBITDA[1] loss of £5.9m in the six months ended 30 June 2019 (30 June 2018: £11.9m loss) and an operating cash outflow of £5.4m (30 June 2018: £9.7m outflow). The Group completed a share placing in February 2019 raising £11.7m cash net of expenses (the "Placing") from existing and new investors, alongside £0.9m of future advertising spend credits, which at 30 June 2019 remain fully available for use against future advertising activity. The closing cash balance at 30 June 2019 is £12.5m.

The Directors set out the three core pillars of the re-build strategy in the Chief Executive's statement to the 2018 Annual Report and have prepared a strategic plan in order to grow the business in the refocused markets of UK&I and France. The plan is supported by a financial model, underpinned by a number of key business drivers. The business plan assumes continuing improvement in 2019 over those observed in 2018 for the majority of these drivers. The principle assumptions adopted in the forecast model which reflect these improvements are set out below:

Revenue growth driven primarily by website traffic growth and conversion rate improvements;
Marketing expenditure reduction over the prior year and more targeted spend moving forward.
To support the strategic plan the Directors have prepared cash flow forecasts covering a period of more than 12 months from the date of the publication of these financial statements. These forecasts in the base case indicate that the group will have sufficient funds to meet its liabilities as they fall due until such point that it achieves sustainable profitability and cash generation. However, the delivery of the strategic plan is subject to uncertainty and these have been modelled through sensitivity analysis. Where sensitivity analysis indicates the possibility of a material impact to the ability of the group to meet liabilities as they fall due, the Directors have considered what mitigating actions would be required and the timeframe within which those actions are needed. The key mitigating factors are centred around further reductions in controllable spend, including further marketing cost appraisal and reductions in other categories of discretionary spend. The Directors also consider that it would be reasonable to target working capital improvements such as reducing days through lower stock levels and reducing debtor days through facilities such as debt factoring as the group does not presently have any debt.

Sorry I don't understand the math of the deal. If TAP's share price goes higher, doesn't that mean R1 will get more money?

Any logical thoughts on who the european premium car manufacturer is for smart eye? I am hoping it isn't Mercedes or BMW. I have assumed Smarteye will win the remaining Audi.

This story is from 2014.

ADAS Challenges and Opportunities

https://www.mckinsey.com/industries/semiconductors/our-insights/advanced-driver-assistance-systems-challenges-and-opportunities-ahead

Nick DiFiore's RNS statement said sixth customer from the automotive sector, whereas the main body said fifth OEM. I am convinced that it is not an OEM but an automotive customer like UBER with Guardian product.

Can anyone make sense of why driver monitoring is not prominent(compared to their roadmap 2025 strategy document last sept) within this latest euro ncap report? Thanks https://cdn.euroncap.com/media/39213/ratings-group-report-2018-version-10-with-appendices.pdf

Interesting that there have been no tweets or linkedin posts by Seeing Machines regarding the supercruise expansion. Could we be getting an RNS today?

https://ec.europa.eu/transport/sites/transport/files/3rd-mobility-pack/3rd-mobility-pack-factsheets-safety.pdf

My question and comments do not warrant your condescending attitude!

I am not aware of any strong evidence to suggest a delay in manufacturing. Just conducting additional research before I top up.

Does anyone know the manufacturer of the Guardian machines? I am trying to find out if there are any delays to the release of Guardian 2.0.