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Calamari
That is correct however in order to assign a rating the agencies model the default risk and assign ratings accordingly. Unlike a residential mortgage securitisation where you have a portfolio with defined loan to value ratios from what i can see here the inventory is bought at cost with a small deduction for fees etc. The agencies will require somebody to take the risk of default.....and if that’s not SYME then I don’t believe that you will find anyone to assume that risk at a rate which makes the model work.
Securitisation has been around for decades and inventory has been securitised before via Commercial Paper programmes. I cant see what SYME has that will allow it to do what hasn’t been done before?
And who bears a loss on sale. From the interviews i have read SYME securitise the inventory and the risk is borne by the purchasers of the securitised notes.
Debt note holders will require ratings to buy or an exorbitant interest rate if it’s not rated. To secure the right ratings somebody somewhere will have the bear the risk of a modelled default rate. It’s not cheap to get somebody to take on that risk.
This is one of the reasons that I can’t see this flying. There is no detail on how the securitisation notes being offered will be structured. No securitisation equals no monetisation. In my opinion Stormharbour will only be able to place rated Notes and the rating agencies will want to see a robust platform already in place for monitoring the inventory etc. I’ve seen nothing about how the “platform” works
Just my opinions.
It certainly should.......if he washes just be aware it will likely return until all of the salt is out of the bricks. It’s why I would brush off first.
Washing may not work as it will add water which ...if I were the builder I’d be getting a brush on it on a sunny day.
Should be able to brush it off......it’s not a rare sight on a new build house. If you’re having it surveyed just ask the surveyor to confirm it is what you think it is.
Formerly in property development. I agree.....not unusual in a new build where the bricks have gotten damp. If the house has been up for more than a year best to investigate the cause of any dampness in the brickwork.
Company would need to issue an RNS if an offer had been made from a credible source.
Thanks. I’ll watch the share and see how the first transactions go.....be good to see the first securitisation happen. I presume SYME will announce in due course a big banking facility which will enable them to accumulate inventory for the first securitisation. It won’t be possible to do the first securitisation until it’s a meaningful size.
Thank you.
I’m not a de-ramper. I’ve done my research and sharing my views to hopefully see what I’ve missed.
I don’t doubt the size of the market and the need. What I can’t see is any information on whether the platform exists already or not. I don’t mind a high risk/high reward investment but I think to bring this idea to market will require further funding. And with the current market cap I’d like to see what that represents. If it’s an already existing platform, IP protection if needed and some accounting confirmation of the treatment of the sale and value of the token then I can see a value. If it’s a yet to be executed idea I can’t see any value at current levels.
Just my view.
Agreed. I bought a few shares to get me motivated to do some research. Since sold.
If you watch the video on the company website they take about their online platform and what it will do. If the platform already exists I can’t see anything about it in the placing document......IP protection, development partners etc. How it’s been tested etc.
If it doesn’t exist it won’t be cheap to develop to the standard that will be required.
The cross-shareholding’s etc don’t help. From what I can see no new money aside from the £1.4m was raised and everything since is sales of existing shares to investors who have a way more bullish opinion on this company than I do.
Everyone has a view on an investment and I hope the board accept that not everyone who has an opposing view is de-ramping. The majority may be right in this instance and I’ll be the first to admit I was wrong and congratulate them.
The company raised £1.4 million from the listing. The shares issued by SYME were in consideration for the purchase of the business. As far as I can see this was an all paper transaction.
As far as I can see no further funding has been raised?
Companies usually list for two main reasons. If they wish to realise the value of their business and if they need access to capital to expand the business by issuing new shares to acquire.
If this business is self financing then the reason must be to monetise the idea. Which is fair enough but is an idea worth the current market cap? I couldn’t see any description of any IP protection so what is the market cap representing other than hope?
Self funding when the transaction flow starts but how is the technology platform funded? There will need to be significant investment upfront before you can monetise any inventory.
From what I could see from the Placing Document, the company raised net proceeds of £1.4 million. I’m not aware of any other significant funds having being raised. Building out the technology platform and putting in place the significant resources needed to achieve what they want to achieve will require further funding.
Like you I’m scratching my head as to why the share price is where it is.
I read the RNS. I’ve just given my opinion and that’s all it is......a few may agree and many more will vehemently disagree.
The current share price bears no reality with the current value of this business that’s just my opinion.
Bought a few shares to research the business. It might just be me however I can’t see anything other than an idea here. No real description of the technology behind it and a very short video on how it might work.
I’ve no interest in the share now so I’m not de-ramping and I’m not interested in buying back in I’m just suggesting you don’t put your “widows and orphans” money into this share.
It doesn’t stack up......hope I’m wrong for those of you who’ve put a lot in but I urge caution.
I don not believe that the listing rules would allow a company to not disclose such price sensitive information. Likewise if they had been approached about a potential offer this would need to be disclosed as well. Lack of a RNS suggests to me they are quickly and quietly sorting everything for the various approvals. If they had had the ability to delay the “Manic Monday” RNS I’m sure they would have done so in order to give time to “firm” everything up for the regulators etc. However again such price sensitive information needs to be released to the market. I think this is very much the lull before the storm and I’m not reading too much into the number of days/weeks that have elapsed since Manic Monday. If anything less “noise” gives me more comfort. Factor in a very astute US investor accumulating shares and you can make the case for a significant uplift in the SP when news arrives. Valuing this share is well nigh impossible for a small investor however the broker’s £7.20 will be taken out if everything falls into place and there is more than one interested party for a licensing deal or acquisition. How far over £7.20? Only time will tell.
Venrock don’t operate like Private Equity. They would not want to try to acquire control of Synairgen. They see value against the current share price and expect to be able to crystallise a gain probably within a relatively short time frame. They won’t always get their investment thesis right; however as this isn’t an early stage venture I take comfort that they wouldn’t be investing if they weren’t confident in the risk/reward analysis.
Any potential buyer of Synairgen would likely want to acquire 90% of the outstanding shares in order to squeeze out the minority holders. In effect the larger shareholders would have to be happy with the offer price.
If the share price were to spike on takeover rumours the company would need to issue an RNS if it were in takeover discussions. As the share price is trading in a range I don’t see this happening. Equally if the company was in detailed discussions with one or more parties then its likely that they would have been required to issue an RNS to that effect already.
For what it’s worth it looks to me that they may well be sharing information with potential parties who have yet to express a firm enough interest in making offer to trigger the issue of a RNS.
Agreed......I can’t see them being interested if they can’t see a two to three times return. They likely have access to decent deal flow so they must see the value in Synairgen. If they keep buying Synairgen will be a meaningful investment in their portfolio.
For me a very positive sign having them on board.
May interest some......this is the list of investments held in VHCP Management II and III. Based on SEC filings so a little historic. Nonetheless it gives a flavour of where they invest and where the size of their current Synairgen investment sits in the overall portfolios. I would rather be invested in a company with Venrock as a shareholder than Lansdowne Partners. This investment is the daily bread and butter at Venrock.....Lansdowne operate purely as a hedge fund. So I wouldn’t be surprised to see them sell down more shares to book some profit to offset some of their loss making positions.
https://sec.report/Document/0000950123-20-001878/
https://sec.report/Document/0000950123-20-001882/