Member Info for wordog

I’ve been in and out of this for the last 2 years, made some money and lost some too. But either way I’ve followed the story, and to be honest they have steadied the ship but still not breaking even. I believe BV Techs intention has been good but too many skeletons in the closet. The only advantage of being listed is to raise cash through equity, but given that BVT are funding, loaning and buying shares they don’t need to list, especially when operating at a loss and listing in an unnecessary cost. Taki N it private essentially gives them full control without buying more shares and reduces overheads.

Mkt Cap £1.35mil
BV Tech now owns 67.1% of Defenx
Defenx has received €1.0 million and going forward will receive 50% of any sales in excess of €5.0 million
BV Tech have committed to purchase products to a minimum value of €150,000 per quarter (total €1.2 million) in the period to December 2020
DFX entered into a software services agreement with BV Tech which defines our product development roadmap with a cap of €1.2 million for 2019 development spend with BV Tech.
Secure Mail is currently in final testing for imminent release with Mobile Communications expected shortly thereafter. Finally, we are upgrading the infrastructure for Cloud backup; migration is scheduled for completion in Q4 2019. We will work with BV Tech to develop our secure messaging for delivery in 2020.
BV Tech has provided a non binding letter of support for €350,000 loan.
BV Tech already invested ~€4.6mil in DFX

If that isn’t a buying trigger I’m not sure what is, but until the company post a solid positive RNS this isn’t moving, but when they do it will rocket!

OCD got the better of me and I’ve done a top up this month to turn my total holding into a nice round figure. I’m confident that 4p presents an excellent entry point. But until we get some solid news of improving sales we will only continue to see these artificial spikes. But given the lack of shares in free float and the potential upside with BVT, this could triple bag to a £6mil market cap best case. Here’s hoping.

Pump and dump crew have cleared now, predictable as usual, I’ll look to increase my holding if it’s over sold. Given BVTs ongoing commitment to provide financial support until it becomes profitable it’s a medium to long term bagger in my opinion.

Defenx 2020 strategy

Following the challenges of 2017, the Board is now looking to develop further its strategic plan, Defenx 2020, which aims to refocus sales from B2B2C distributors to selling our relaunched products, which are building on our existing cloud backup products, in a compound model of Software-as-a-Service to smaller customers and direct sales to large corporates and the public sector.

The revised product suite we are developing, with the technical support of BV Tech, has the following key features:

· EU based, General Data Protection Regulation ("GDPR") compliant, data storage;

· Integrated security (1st line of defence);

· Automated backup (2nd line);

· Flexible, scalable storage solutions;

· Competitive pricing; and

· White-labelling to reflect a customer's own branding.

Gartner Inc estimate that the Western European security & storage market will grow to €3.7 billion in 2019, largely driven by ongoing GDPR compliance. While the major players - Amazon Web Services, Google, Microsoft - dominate the market, the Board strongly believes there is space in the market for niche players such as Defenx.

I doubt we will see anything drastic until there is more exposure of the share, it’s been under the radar and on the verge of going bust too long. Could no be one of the big turnaround shares of 2019. The +€1mil payment keeps the lights on for another year at current burn rate but they need to start driving sales, particularly when they launch the new products.

We haven’t seen a trade larger than £3500 yet, and there have only been 2 in that price range since the RNS, the big players are yet to act here.

Still very low volume, a couple of decent trades will move this north quickly.

Mkt Cap still only £2.6 mil. That's roughly revenue plus the £1 mil installed payments.

The (minimum) £1.2 mil payment over 2 years, new products, services from BVT and future royalty fees not factored into current price @7p

HOLD

More to come before July, happy to sit on these now.

"Following entering into the Service Agreement, Defenx will focus on completing work on its product portfolio and now expects to be in a position to launch new products in Q2 2019."

With so few shares in free float today could be absolute chaos, but in a good way. I doubt the herd will arrive for a while yet as this has been off the radar for some time.

This reads ok to me, obviously BVT benefit in the main, and have control over the agreement, but it proves yet again they are not willing to lose DFX. There’s enough cash income there to keep them going for a while, product launch delayed until Q2 but at least we know the company has the cash to keep going.

All of the applications and software underwent major updates 4-5 months ago, just checked them all, which tells me that they are now working properly.

Market Cap is now approximately equal to revenue working off £700,000 for H1 from the interims.

It’s all very odd, I’ll stick to my guns that BVT are too deeply invested to drop DFX.

It is pretty strange, but BVT are too committed to let it fail.

Must be due soon?

Only 15 working days left in Qtr 1

But what next? They need to generate sales, and if they aren’t making marketing contributions to channel partners anymore how will they achieve this? We know they are short of cash and still moving towards profit this year. Only cheap option would be selling into current BV Tech client companies.

So previously there was the Linkd in job advert which mentioned rebranding and relaunching, then the board mentioned new product launch in Q1. With the final loan draw down I make them around the 68% ownership mark, so they could go for a takeover or delisting with enough extra votes from a large holders. However, why rebuild and relaunch the website in line with the direct personal and business customer sales strategy if they were to absorb it into the BV Tech group? Not saying they definitely won’t absorb it, they are cash rich and aren’t listed themselves. Will they incorporate the secure messaging platform the bought from BV Tech and couldn’t integrate previously, is this the new product or have BV Tech got other products of this type they could wrap up as Defenx offerings? Just for 5h4k35p.... looks like a double bagger to me!

Is it me or is the website a new design?