Kuala Innov Share Discussion Threads

[monkeymonkey] 23/11/2015 07:17

RNS, like the bit only open to a selected investors, fingers crossed

[doodlebug4] 22/11/2015 22:01

Interesting keya, I'm sure we will see a few RNS from KUL/FFWD this week and some will hopefully answer a few questions.

[keya5000] 22/11/2015 21:49

Doodle I think they have had issues meeting the AIM regs more than the funding, you would have still listed on AIM regardless of the fact you looked to raise £1.5m or £3m.

Obviously raising cash on ISDX is much harder than AIM and given the book is still open for a considerable time they are not a million miles off their target, I am sure on AIM they would have got a lot more interest and likely achieved their aims.

Their new 'cornerstone' investor could be Mellon or Dattels. Or it could be an unconnected party who may have also invested in us. Wonder if we will get a holdings RNS from the last placing.

I do think our quick fire placings are being used to fill their gap though.

[doodlebug4] 22/11/2015 21:45

Interesting find that info on Coinsilium, keya. I did think it strange that Coinsilium wasn't being listed on AIM when I was looking at the details of the IPO. Reading between the lines it would appear that they haven't received the level of funding/interest they were hoping for perhaps.

moormoney, I will keep the share price charts showing above the text in the new header as you suggested.

[keya5000] 22/11/2015 21:35

Coinsilium wanted around £3m and an AIM listing to give them a valuation of £20m on IPO.

They would have invested say £2m but will now only invest about £500k, that leaves a shortfall of £1.5m on what they would have wished to have seed funded into their embryonic Blockchain portfolio.

I reckon our cash raises one quickly followed by another is filling that gap. I reckon we will via our links with Coinsilium fund the difference.

That then seriously begs the question if they expected an IPO at £20m which we have in effect taken over what price do value this vehicle at?

[keya5000] 22/11/2015 21:13

If there AIM listing had progressed they would have hoped for a £3m raise. We will not be a million miles off that after the latest fund raising (in total overall invested cash c£2m) I think our cash will fill the majority of the gap they have missed via their ISDX IPO, I.e. We will invest the cash we have raised into their/our joint projects.

So if that would have had them at £20m mcap why is this not there, or when will it get there is the question?

[keya5000] 22/11/2015 21:08

The range Coinsilium is looking at is between a minimum of £3m ($4.7m) and £4m which would give a market cap of around £20m. On this occasion it is not targeting large institutions.

[keya5000] 22/11/2015 20:57

Just found this amazing little snippet on Coinsilium. They had hoped to list on AIM with a valuation of £20m in August but ended up on ISDX at 1/3 of the proposed value. Given we are on AIM what does that make us worth?

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Robert Evans, 11 days ago
Were you originally looking to list on AIM in August?

Was that at c£20m?

If that's the case, why didn't the AIM listing go ahead? Why the change of value?

Thanks,

Robert.
TEAM MEMBER Cameron Parry, 11 days ago
Hi Robert, we were originally considering having Coinsilium quoted on AIM. Whilst our advisors, myself and some of my fellow directors are experienced in bringing companies to AIM, we did find the process somewhat frustrated, so following meetings with the ISDX, and seeing how forward thinking they were about blockchain technology, we decided to progress Coinsilium in that direction.
The pre-money valuation was reduced by one-third in the lead up to the current offer with founders reducing their holdings. This seemed appropriate for what we are trying to achieve with the company for the benefit of shareholders upon admission to trading.
Regards,
Cameron

[moormoney] 22/11/2015 20:22

Thank you doing the new thread Doodle..roll on next week! Please would you keep the share price showing above the text inserts if possible as I find on tern for example you have to scroll through lots to find it and skip header takes you way past it!

[keya5000] 22/11/2015 18:34

It is very interesting to see that Coinsilium. will be IPO at a £6m valuation which is 50% more than KUL with what across the board is a very similar set of investments and its on ISDX.

That's roughly 5x value of its actual investments against its mcap.

KUL could have a further £1m+ (£655k already raised and a further placing imminent on the same terms) invested by mid December and have substantially higher stakes in all the projects that they share plus KUL have Mellon/Dattell at the helm.

I would say a mcap of £15m for KUL would be about par with the current only market comparable in coinsilium and that's being kind.

[flashheart] 22/11/2015 17:16

Yes, agree with all the fellow investors for you to take the helm again with the new thread db. I appreciate all the info constantly being added to the thread. Also thanks to keya for the recent info posted here. This is just looking better and better all the time. I think Tuesday onwards and together with the release of news on what the new money will be spent on, we will be propelled to new highs. Agreed that 16-20p does not seem unreasonable at even this early stage and much higher when the plan comes to fruition.

[doodlebug4] 22/11/2015 16:20

Thank you, I'm happy to carry on and any suggestions about the info in the new header will be very welcome. Perhaps a bit more information about the present investee companies, although I'm not sure that people generally like to trawl through too much text in headers.

[keya5000] 22/11/2015 15:45

Doodle carry on please. Great job being done

[wolf9] 22/11/2015 15:40

no one around better than you doodlebug4, please carry on

[tenniselbow] 22/11/2015 15:32

Doodlebug4, can you please do the new thread. Please

[doodlebug4] 22/11/2015 15:12

Would the shareholders who post here like me to start the new FFWD thread on Tuesday? I'm happy to hand over the baton to someone else on the team!

[keya5000] 22/11/2015 13:41

Cameron parry is involved to facilitate the plc listing etc.

But you are right we have the heavyweights the aim listing and a much lower comparable valuation.

[doodlebug4] 22/11/2015 12:13

Executive Chairman & Co-Founder of Coinsilium is Cameron Parry who is also CEO of Metal Tiger (MTR). Does Cameron Parry have a good track record? He's not quite in the same league as Jim Mellon.

Edit - Eddy Travia seems to be the real driving force behind Coinsilium's involvement in blockchain technology.

[keya5000] 22/11/2015 10:06

Given both Fast Forward and Coinsilium will have been key investors in both factom and Satoshipay I would expect both those entities will reward those who are feeding them with regular positive updates on progress/contracts etc.

The pressure of two UK listed entities is greater than that of one and I expect both companies are very well placed and at the pivotal stage of development that will produce a lot of news flow through 2016.

[keya5000] 22/11/2015 10:00

I think what makes this so much more attractive over coinsilium is the fact a much higher percentage of funds raised here will find there way directly into the seed funding of the tech companies both are invested in than cash burn funding salaries/offices etc.

Reading the IPO of coinsilium something like £700k of the proposed total £1.5m raised will go on working capital over 12 months. £500k on investments and nearly £300k on fees.

So say we raise £1.3m (£655kalready raised) i reckon £1m of that will find its way into similar vehicles.

Coinsilium at £6m mcap, Fast Forward Innovations should be double at the very least.

Let see how much we raise and what direction it goes in.

[keya5000] 22/11/2015 09:54

Jim Mellon is the headline speaker at this event next week.



He will be doing a session on Blockchain etc.

I do not understand Bitcoin, blockchain technology and the like. I leave that to smarter folks like Dominic Frisby who will be presenting on it at Gold & Bears and my good friend Jim Mellon who will – I’m sure – mention it in his G&B talk. This could all be the next phooey hype but it could be big so I’m getting a small exposure via Coinsilium – a two year old blockchain investor listing on ISDX later this month. I’m backing Jim’s judgement on this one.

As I understand it, blockchain is a system that allows people that don't trust each other to trust each other. Well that sounds like it’s aimed at miserable gits like me. Coinsilium was set up to invest in Blockchain and Bitcoin companies and start-ups. Plus it generates revenues through corporate advisory and CPD accredited training. Over the past two years they've privately raised £3.3m. Most of that cash has come from HNWIs notably Jim’s business partner Steve Dattels.

Now it is raising up to £1.5 million at 10p ahead of an ISDX IPO. It is topping up via a crowdfund on Seedrs. It shows £750,000 committed but I understand that with the HNWIs it is already well past £1 million so the crowd fund element is just a top up. If you want to have a punt you can invest HERE

The key people from Coinsilium are Eddy Travia and Hakim Mamoni - who are apparently very well connected go-to people in the space. Cameron Parry Exec Chairman (and CEO of Metal Tiger) is the deal structurer and dealmaker and there to ensure that all PLC rules are adhered to.

This is the only serious way for private investors to get pure exposure to this hot sector – there aren’t any other publically traded entities with this sort of investment portfolio. Nearly all activity is VC’s out of Silicon Valley. Coinsilium right now has 11 investee companies including two companies (Factom and SatoshiPay) in which Kuala Innovations (Mellon and Dattels again) have invested in

Coinsilium was the lead investors in the case of SatoshiPay and Factom, that means it introduced these two deals to Kuala/Mellon/Dattels. Kuala is part of Coinsilium’s co investor network. It has other co-investors as well - that means when it does deals it doesn’t always have to use its own funds (or all of its own funds) for investments and it can thus gain other benefits from introductions. This could be warrants, free shares or just corporate advisory fees or a combination of all of the above.

Factom (Kuala holds 3.5% as will Coinsilium post IPO) is already one of the biggest plays in the blockchain space. This is a potential “Unicorn” as they say or it could all be hot air – what do I know? But here is what the Economist has to say about Factom

SatoshiPay is a NanoPayments platform - using small units of bitcoin for publishers/content providers/websites to monetise online content - means it becomes economically efficient to pay as you go for content (10p or less) - no need for credit cards/direct debits or monthly subscriptions to newspapers. Publishers are very keen to look for alternatives to current advertising model as revenues are slipping from increasing mobile device usage. – pay to skip adverts and avoid banners

SatoshiPay’s biggest Shareholders are European media giant Axel Springer with 3.7%, Kuala Innovations 10% and Coinsilium 14.5% (post listing)

As an aside education was massive in the dotcom boom and it will be in this space as too many people just don’t get it and they will need to or fall behind like loads of people did with the internet. Coinsilium has an education and training division and has just announced a one day CPD accredited course on Blockchain Technology and indeed run its first course. Income from education and training, plus the corporate and technical advisory, is expected to cover PLC costs meaning that more of the cash we loyal followers put into the IPO is invested in new positions.

The truth is that I do not understand this space at all but I want a small exposure as it might be big. I am happy to back the judgement of the Jim Mellon crew as they seem to understand it and at 10p per share and a market cap of £6m, given the trends in NAV in recent years I can live with that.

- See more at:

[keya5000] 22/11/2015 09:48

Some have stated NAV to be weak here in comparison to the mcap, Coinsilium which you must use for a near term accurate comparable holds current NAV of c£480,0000 (after reduction of £1.5m goodwill) and will have c£1m after expenses etc in cash raised to invest after the IPO completes.

That gives a c£1.5m NAV against a mcap of £6m and its on ISDX.

Discount its cash and it will be trading at roughly 6x its invested value.

That gives you a feel of how the UK market is valuing investments in 'unicorn first movers' high tech bitcoin/block chain focused companies.

If we drop our say £1m raised into similar to what we hold I expect we should have a mcap in excess of £9m at the point of investment to mirror coinsilium.

So after the new shares have been admitted and the investments made something c16-20p would seem about right.

[keya5000] 22/11/2015 09:20

Would not be surprised if we are involved directly in this IPO. We have similar sized stakes in two of the companies coinsilium will have invested in and the timing of our fund raising may well link on with their further investments into the companies below.

Interesting the IPO valuation of coinsilium is £6m, if you consider we have likely the cash to hold more than they have plus our none payment/Blockchain investments, add this to the AIM listing rather than ISDX and direct involvement by Mellon/Dattels this looks very cheap at sub £4m mcap.

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Coinsilium will use its IP proceeds which have in the majority been raised to bring there investments in Satoshipay & factom to the levels Kuala currently hold, factom is looking to seek further cash (see coinsilium IPO prospectus so I expect some of the c £1m+ we have recently raised (guessing the second placing is similar to the first) will be in factom/Satoshipay.

If that's the case we will have much larger stakes than coinsilium. We should after the fund raising and next investment be valued well above£6m.

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Coinsilium

Use of proceeds

Why are we raising funds?

We want to make further investments in the following Blockchain companies within our existing portfolio:
- Factom
- Fuzo
- Magnr
- Neuroware
- Rivetz
- SatoshiPay

We want working capital to help fund the growth of Coinsilium’s corporate advisory services and accelerator program which Coinsilium believes is essential to helping our investee companies achieve their milestones and gain meaningful traction and attract further funding for development.
Chairman's Statement: Revised Shares Structure and New Pre-Money Valuation
20 November 2015
Monday, 16th November 2015

"As part of Coinsilium's book building process, an investor has committed to subscribe for £250,000 in the IPO subject to a revised pre-listing valuation being circa £6m for the IPO. All funds are helpful to the book build but there is also a strategic reason for accommodating this as the Company is working with this overseas investor on a future opportunity to build a blockchain-based clearing platform for a consortium of local financial institutions to use for their inter-company and in-country transactional dealings.

This restructuring sees the IPO share offer price revised to 10p per share and shall apply to all investors in the IPO."