Member Info for wordog

Well they had mentioned that the last placing wouldn’t last long when they raised the cash, but this RNS concerns me as it essentially means that they are struggling to convert opportunities into cash generation this FY.

They already effectively have taken it over, if investing £2.9mil and holding 54% ownership isn’t then we shouldn’t be invested in this company because the old business model is/was knackered. This stock is about turnaround potential with an incling of complete buyout. BVTech knew what they were getting in the open offer, nothing has changed since accept investor sentiment. I’m still confident that we will see a significant regain this year.

Interesting isn’t it, why is every key position interim? 2 potential reasons: 1. It’s in a mess and nobody wants to have to pick up the peices, potentially not able to recruit the quality they want/need. Hence they are just filling gaps, however they did mention “finalising” the appointment of a CEO which assumes that they are just agreeing terms and another appointment is imminent. 2. There’s no real intention to fill full time board appointments in entritety as the company will be consumed into the BV Tech Group. They will still “finalise” and hire a CEO, but not a BoD as this will be covered by the BV Tech Board. This is essentially indicating a full takeover, how that might occur is beyond my knowledge, but it’s looking just as likely to occur as 1. given the facts.

I’d take 38p

All we can do is wait and see.

Worst case scenario is that the £1.2mil raised recently has to be used to cover historical debt and they need to raise more cash.

Most likely scenario is that the trade receivables, cancelled payments and reimbursements are so broad and complicated that it’s taking a very long time to audit. BV Tech most likely want it to be as accurate as possible so they can draw a line under it and carry on.

Either way, we all know last year was a complete disaster for DFX, but let’s not forget BV Tech own 54% and have invested £2.9mil over 2 years - that tells me they want DFX. So it’s very unlikely they will allow it to rot away, they invested and took majority share because they see the potential, which is the same reason I and most others are here.

More annoyed that there was a 16% drop despite the fact the RNS should have stopped people bailing.

Because a multi million £ successful IT and communications security company called BV Tech bought 54% of the company in a partial buy out. Since then there has been no real news, but you have to ask, why spend £2.9 mil on an investment and do nothing? I'm hoping they want to baseline the accounts from last year precisely so they can either start fresh or accurately value the company to buyout the remaining holders.

Fair one, I suppose the deadline is 30th after all, but it still isn't ideal.

Well, we do have the rest of the day in theory, but they are leaving it very, very late.......

Agreed, I think they just want to establish a clear baseline, then start fresh. Or even to allow accurate valuing of the company?

Yeah because after investing £2.9mil BVT are going to let the company get delisted because the annual report is late.

I will admit they are leaving it a bit late though, however they probably need to in order to baseline the year end to include all of the refunded customers and any trade receivables they have managed to claw back.

Big week, annual report and final results due.

Fingers crossed that the smooth outweighs the rough. BVT have been so quiet they must be putting all the news in a single release.

How are they driving down the share price? They haven't sold any shares, more likely that people are just getting impatient. There will be news in the next 10 days as the annual report and results are both due, I have always believed that all will become clear in a sinlge report outlining how bad the financial performance was last year, but also giving us an indication of the transformation plan and sales pipeline, I just hope the good news out weighs the bad.

What do you mean by illegal activity?

I think they are delaying the audited results for as long as possible to allow them to recoup more trade receivables but more importantly to pay back the customers that they owe in full before release. We know the news will be grim but that should be factored into today’s price. This is all about the turnaround and/or buyout. I’m holding and going long here for a mutibag either way.

All true, they even buried a line in the RNS that states that it will only fund short term operations

�1.2mil raised in Q1 via placing and open offer in which BV Tech increased their holding to 54% of the company, only leaving about 30% of shares in free float. They are now restructuring and rebuilding the business as part of their group. SP is sliding do to lack of news flow, fundamentals haven't changed and this will fly on a sniff of good news. Just need to sit on your hands and you'll be rewarded.

But for me nothing has really changed from last month, they are going through a transformation and that takes time.

They are a snapshot in time, to be updated shortly, the final results and trading update should make for interesting reading, but it's my hope that there will be some positive news also. Like i said, BV Tech are balls deep now so they are going to try and make it work, the old BOD failed, so i'm happy to see a new strategy and new leadership. The key issue will be cash generation in the short term, �1,2mil won't go very far.