7digital Share Discussion Threads

[michaelmouse] 01/3/2019 09:08

Excellent news. This could work out very well long term. They've now got the cash to restructure the cost base (i.e. further reduce) and return to growth without being reliant on a single major customer. They've been unlucky with the change of management and strategy at MediamarktSaturn, but the worry was there wouldn't be a settlement and 7dig would be in trouble. The uncertainty has gone, and now they've got cash and no debt.



"The immediate injection of cash will allow us to restructure our overhead base and reposition the company for continued growth. We have had a good start elsewhere to the current financial year and will update shortly on our recent contract wins."

Yesterday, the market cap. was less than this settlement amount. It's a no brainer. Fantastic!!

[russ505] 01/3/2019 08:42

bonbon
Posts: 4

Opinion: No Opinion
Price: 1.325
RE: i expect the share price to dropToday 08:15 7dig will try to ensure an orderly sale of jukes 11.5% holding

Maybe they have buyer lined up or 7dig buy them with the 4mln

Arborman
Posts: 103

Opinion: Strong Buy
Price: 1.175
RE: RE: i expect the share price to dropToday 08:22 That’s a great shout! 7DIG buy the shares and cancel them, should cost under £1m at the current SP

from lse

[tiger60] 01/3/2019 08:37

Friday rns and goes up but then again now watch

The issue was always one of reaching positive cash flow with limited recourse to any form of cheap debt financing.

With their biggest individual contributor to revenue now moving on 7dig now have to find other sources to get revenues above fixed costs. Cash burn is the focus

Add in mms needing to dump 11% the comparisons of cash receipt to mkt cap mean nothing if the cash pile is reducing daily.

The projection modelling included mms, strip that out and 7dig are back searching for profitability although Nov/Dec figures will look good.

Are they back to cost cutting? Really need a blue chip

False rise unfortunately. Haven’t addressed the key metrics

[toby hall] 01/3/2019 08:36

Are the four stooges still here?
You live, you learn.
I'm out now, good luck


toby hall
7 Feb '19
So quiet here. I like it.
Just hope the four stooges are okay.
Not long now.

[lagansider] 01/3/2019 08:24

Hmmm, The person who bought 400000 @ 0.94p near the close yesterday certainly timed it right....

[barnetpeter] 01/3/2019 08:19

Could easily hit 2 p today...people see all that cash and the low mkt cap. Got some myself early as I see a short term rally here

[barnetpeter] 01/3/2019 08:04

Yes but they have received some good cash to pay the directors you know. That’s the important bit

[tiger60] 01/3/2019 08:01

Yes it is a car crash now.

[poombear] 01/3/2019 07:36

Remarkably upbeat about losing their biggest customer.

[monte1] 26/2/2019 11:28

Who knows ochs - I do hope that the avatar is ok - perhaps he is taking a very well deserved holiday?

This is the last confirmed freebb sighting of the avatar;

toby hall - 07 Feb 2019 - 18:47:42 - 4482 of 4498
So quiet here. I like it.
Just hope the four stooges are okay.
Not long now.

[ochs] 26/2/2019 11:19

So what happened to the resident comedian? toby hall was his name...

[monte1] 26/2/2019 09:35

Good morning officiallyrob.

[officiallyrob] 26/2/2019 09:23

I'm just here to clear away the tumbleweeds. The excitement and anticipation seems like a distant memory. We hold and wait.

Do your own research.

[markdallara] 14/2/2019 19:53

I don't think it is amazing at all, it is just consistent with the continued unprofessionalism that is constantly displayed by this company. Makes me proud to be a (very losing) shareholder ha ha ha

[tiger60] 12/2/2019 11:56

It is amazing that they have failed to explain the tax fiasco, detail behind the new contracts (not expanded on due to CES - well that finished ages ago) and the current position of their number one client MMS.

It is a textbook example of how not to create shareholder value. The mind boggles at SC's approach. Farcical.

The market and the potential suggested such high hopes but at a micro level the business failed. It could of been so different..

[kcr69] 08/2/2019 12:45

Many thanks for pointing that out Shaken not Stirred, I had overlooked it when reading the RNS.

I guess it could mean one of two things.

The lender either believes that he is getting the best 'bang for his buck' at 1p in terms of a share / residual loan mix which certainly points to a positive story (waiting for a lower price to convert would have obviously resulted in a larger residual loan amount), or if a negative story, the lender sees a conversion at this or any price as the best way to recover any of the loan and we can expect to see 20m shares dumped on, or soon after, the 14th February.

Only time will tell as always.

[monte1] 08/2/2019 10:32

Ah right, so the 1/2 million lender has converted his full entitlement but is still owed the balance of his loan.

[monte1] 08/2/2019 10:19

At the time of the fundraising the share price was over 3p so using a price of around 2.58p to cap the max shares to be issued upon conversion provided the lenders a bit of cover. Unfortunately with the VWAP now down at 1p they have taken quite a haircut on that. It looks to me that one party lent £500k and wanted out as 19.3m shares at 2.58p equals that value. We know that Juke lent £750k so presumably the 3rd lender is in for £250k. Of the o/s £1m, Juke can covert to 29m shares and the third lender just short of 10m.

[kcr69] 08/2/2019 09:43

As a holder, the slightly more puzzling element to todays announcement is that it would appear that 33.33% of the “maximum number of new ordinary shares which may be issued pursuant to the Facility” have been converted for only 12.92% of the capital raise. Now it would be complete speculation to try and guess what agreeements were in place with each of the three lenders, and the fact that 33.33% has beeen converted is conveniently exactly a third, however it is certainly a little opaque and could lead to a summation that up to 150m shares may be issued rather than the 58.16m stated back in October. It could similarly mean that each of the three lenders have the facility to convert only 19.4m shares irrelevant of the principal loaned. We also don’t know if each of the three lenders loans were of equal size. There are other possible conclusions both positive and negative.

Any views?

Just a bit too opaque for my liking and would have preferred greater granularity.

[iamnoone] 08/2/2019 09:05

If I was to bet. That would be MMS needing the money.

[monte1] 08/2/2019 08:35

LOL

Another 20m shares in circulation - nearly 5% dilution.

Just as likely they feel that they have more chance getting some money back by taking the shares and then selling down on the market, than by hoping there is money in the pot to redeem the loan.

All AIMESHO.

Please do your own research.

[dave4545] 08/2/2019 07:48

Somebody has given them just shy of £200k to convert stock at 1p

With the price at 1-1.1p are they expecting some good news to offload them for a profit ?

[monte1] 07/2/2019 20:46

Insolvency?

[ochs] 07/2/2019 19:23

Not long until what?