Allied Minds Share Discussion Threads

[believer2] 03/3/2022 16:11

Volume today ????

[kooba] 03/3/2022 15:16

If there is a GM the shareholder who called it i believe has the right to write to all holders , that would be the time to outline future plans and management. I suppose its possible it doesn't go that far if Harry thinks he won't get 50% might well fall on his sword. Save time and money too that way.

[kooba] 03/3/2022 15:03

RB doesn't need to do anything just yet...the company haven't even announced a requisition for a GM has been made let alone actually calling one..where they can delay further. They will soon be in breach of legislation as far as i can see, a company has 21 days to call a GM.Why alert Harry and friends to plans, i am sure they must be running around trying to get support to deliver "even more" value behind closed doors...just like last time! They misled then and will mislead now I'm sure.What happens here is very much up to one institution who supported Harry last time..can only hope they are not duped again.

[bobonumber1] 03/3/2022 14:37

Sorry I meant suspended. RB needs to communicate plan B to get the vote. I for one would not want the company suspended.

[kooba] 03/3/2022 14:20

Well why not move to aim then ?? I do not believe for one moment however that it costs £2m more to be on the main list..the biggest costs are normally staff ,advisors ,accountants all required for AIM. But worth looking at.The shares will not get delisted without a Chairman, they may get suspended pending reorganisation of the board if for any reason we are left with one director ...if Brucey jumps too it would reinforce the inappropriate nature of the relationship between the Chairman and SID ..not independent and not concerned for the smooth running of the company....if he goes then it would therefore be a good thing as he seems to have added nothing but unrelenting support for the Chair and from what i hear private briefings that go nowhere. The company's articles say 2 directors required. Their articles also say no non executive can earn more than £100k..i note Harry is on $150k plus a year.Best structure would be to have a CEO and two or three NEDs supported by the major shareholders. I'm sure that is all in train should the shareholders vote for change.

[bobonumber1] 03/3/2022 12:28

All good getting rid of HR and BF. Who replaces them though ? Without a chairman the company gets delisted

[bobonumber1] 03/3/2022 12:26

Frontier is an AIM listed which is much cheaper than a public listed company.

[kooba] 03/3/2022 07:08

Crystal Amber results todayALM comment...no punches being pulled !Allied MindsThe Fund has been an investor in Allied Minds since November 2018, and currently owns in excess of 18% . of its issued share capital. Since investing, the Fund has secured a 70% reduction in the annual cost base.In 2019, Allied Minds announced that it would focus on maximising returns and shareholder distributions from its existing portfolio, rather than continuing to invest in new businesses. Allied Minds has failed to provide market participants with visibility as to the timing and quantum of shareholder distributions. The portfolio contains three significant holdings: Federated Wireless, BridgeComm and Orbital Sidekick.In March 2020, Harry Rein was appointed Chairman of the Allied Minds board, having joined the board in November 2017. In January 2021, following a strategic review, Allied Minds introduced what it described as "a new form of governance better suited to achieve value creation." With no Chief Executive, Allied Minds is now managed by its three non-executive directors. The Fund considers, in practical terms, that Harry Rein is the key decision maker. The 2020 Report and Accounts for Allied Minds states that "the Chairman is responsible for the leadership and conduct of the board."During the period, the Fund expressed several governance concerns to Allied Minds, none of which were adequately resolved. On 18(th) February 2022, Crystal Amber announced that it had sent to the board of Allied Minds a requisition notice requiring Allied Minds to convene a general meeting at which a resolution will be proposed to remove Harry Rein as a non-executive director.Harry Rein's record and responsibilities as Chairman (there is no Chief Executive) include:1. Appalling shareholder returns: since becoming Chairman, the share price of Allied Minds has fallen by 40%. Over the same period, the NASDAQ US Small Cap Index has risen by 85%. Over the last 12 months, the share price of Allied Minds has fallen by 36%.2. An egregious total expense ratio: Allied Minds is projecting annual operating costs of $5.7 million. Net assets are currently estimated at $123 million including cash of $13 million. Adjusting for cash, the total expense ratio is 5.2 per annum. Expenses relative to market capitalisation less cash are 11.8%. per annum.3. Withholding price sensitive information: In April 2021, at the Capital Markets Day, it was disclosed that revenues for 2021 Federated Wireless were forecast to be $17 million with $35 million to $45 million expected for the year to December 2022. It was stated that during Q3 of 2021, the company would have "a really good idea" of the 2021 outturn. In August 2021, Allied Minds reported that Federated Wireless had met its revenue expectations for its first half and was on track to meet its full year plan. In October 2021, house broker, Numis Securities wrote: "Federated Wireless accounts for c.26p NAV per ALM share (but is likely worth a multiple of this) in our view, and, most importantly, the company keeps producing more evidence to assure that it is on track to turn over $17m in FY21 and $40m in FY22, and earn high, SaaS-type, profit margins." Following Crystal Amber's requisition notice being announced referring to this issue, on the following business day, Allied Minds' announcement admitted that Federated Wireless revenues were below expectations set out at Allied Minds' capital markets presentation in April 2021.4. Misleading and unbalanced regulatory news service announcements: on 21(st) February 2022, Allied Minds announced a $58 million fundraise at Federated Wireless. This was presented as an "up round" referring to a $15 million increase in the pre-money value. However, adjusting for the $4.3 million of bridge funding, the like for like value of Allied Mind's shareholding fell by 17%. This was not disclosed to market participants. 5. Governance concerns including: i) Breach of provision 20 of the 2018 UK Corporate Governance Code. No external search consultancy was used to identify and recruit Bruce Failing. Bruce Failing, a non-executive director was proposed by Harry Rein who advised the Fund that he had "persuaded Bruce Failing to join the board."ii) Bruce Failing acts as the Senior Independent Director but the Fund does not believe he is independent: both Bruce Failing and Harry Rein are directors of Delivery Care RX.iii) Breach of provision 24 of the 2018 UK Corporate Governance Code. Harry Rein is a member of the Audit Committee.iv) Appointing Mark Pritchard, a 5.5% shareholder as a paid consultant, further increasing the cost base. 6. Investor communication blunders including: i) The publication of a "rogue" press release by Federated Wireless, a company also chaired by Harry Rein. In November 2021, Federated Wireless issued a press release stating that revenue growth was four times higher than expected. When Crystal Amber wrote to Harry Rein to seek clarification as to why this information had not been released to market participants, he replied: " A marketing manager at Federated released the initial Federated release without the Board of Federated's knowledge." The release was subsequently amended to exclude any reference to revenue growth.ii) Failure to invite investors to the 2021 Capital Markets Day: invitations were sent to analysts, not to investors. The Fund was aware of two (paid for) analysts who cover Allied Minds being sent invitations. Subsequently, investors were made aware of the Capital Markets Day, with only a few days' notice. The company's broker subsequently apologised to the Fund for this error.iii) Withdrawing of paid-for research from Edison, after the Fund highlighted an error with the percentage holding in a portfolio company. Edison also apologised for a previous error pointed out to Harry Rein by the Fund: estimated net asset value had been materially overstated, as a result of not deducting the special dividend paid to shareholders in February 2020. It would appear there was a lack of oversight of these figures from Harry Rein.Under Harry Rein's "stewardship," the Fund regards Allied Minds as rudderless and guilty of serious and egregious corporate governance failings. To safeguard against further erosion of shareholder value and to stop such conduct continuing, the Fund is now seeking Harry Rein's removal.The Fund estimates that net asset value per share at Allied Minds is approximately 38p, placing the shares on a 50%. discount to net asset value. In its engagement, the Fund has found Harry Rein to be a major impediment to value protection and realisation. The Fund believes that Allied Minds must communicate to market participants a timeline of cash realisations and return of sale proceeds and this should materially assist in narrowing the share price discount to net asset value.

[bobonumber1] 02/3/2022 12:19

Absolutely not. If RB has a decent plan it will be backed by shareholders. Time at the bar for these two.

[bobonumber1] 02/3/2022 10:38

I agree. In the event of a positive proposal/development from the board, I hope RB can overlook his personal grievance

[kooba] 01/3/2022 15:53

There appears quite a personal thing with HR and RB ..but i don't know the whole background , if HR has been disrespectful and has misled on prospects or generally has failed to convince that he is acting in the best interest of shareholders...(seems likely to me!) then i guess it is shareholders duty to effect change in the management.

[kooba] 01/3/2022 15:50

My view is that they will only call it if they think they can win and are in the canvassing for votes period. If they think they can't win i would expect HR to step down rather than the ignominy of being thrown off. But obviously limited time which i believe must be the end of this week.

[bobonumber1] 01/3/2022 15:03

Who knows ? Strange that it has yet to be announced by the board. On the other hand maybe it's not as they never announce anything !!

[kooba] 01/3/2022 10:45

"Crystal Amber Fund, the activist investment fund, announces that it has sent to the board of Allied Minds plc ("Allied Minds") a requisition notice requiring Allied Minds to convene a general meeting at which a resolution will be proposed to remove Harry Rein as a non-executive director."18/02I guess sent in day before?

[kooba] 01/3/2022 10:26

I understand they have formerly made a GM requisition ..AM have not announced it...but must call the GM by the end of this week. Unless there is a technicality in the request of course..but i think CA have experience in these matters so would be surprised if they got it wrong!As i posted I'm sure Harry and Bruce are running around trying to get support ..the only real key one is Invesco so they could swing it either way.Small add on i found interesting on Spark.Start of the year (2021) likely up round valuation $3.2m.Company runs into trouble can't get funded.Company sold...note that AM without informing shareholders appear to have an investment of $3.7m in Spark now as have i presume put in a further $500k cash in the business..one presumes this was as a loan as equity interest not increased. They then announce disposal as below for $700k in private paper.I think this is very deceiving ..we have thrown more money in after the company was in trouble but announced it as a straight sale. We have in fact invested more to get paper in another company.1 November 2021 Allied Minds Portfolio company disposal Allied Minds plc (LSE: ALM, "the Group"), the IP commercialisation company focused on early stage company development within the technology sector, has disposed of portfolio company Spark Insights, Inc. to Concirrus, a private UK-based insurance technology company. The disposal is valued at $700,000 USD and will be paid in Concirrus stock. Spark Insights is an advanced analytics company developing predictive analytics for the insurance industry through the use of artificial intelligence, smart data, and remote sensing. However, as previously reported, due to challenges posed by COVID-19, it has faced delays in fundraising for the continuing operation of the business. Therefore a sale offers the best return for the company and its shareholders. To date, Allied Minds has invested $3.7m USD in Spark Insights. As at 6 October 2021, Allied Minds' issued and outstanding ownership of Spark Insights was 70.44% and fully-diluted ownership was 60.00%. 95% of Allied Minds' portfolio value is held within its top three portfolio companies, with Federated Wireless, Inc. driving the ultimate terminal value. This disposal has no impact on the terminal value of the Group's portfolio. For more information, please contact: Allied Minds plcc/o Instinctif PartnersHarry Rein

[bobonumber1] 01/3/2022 09:29

Kooba. Have CRS actually submitted the request to ALM or is it just their intention at some stage. ALM have not announced such a request has been made so I can only assume they have not officially been notified.

[kooba] 01/3/2022 07:11

Tick Tock ..I'm sure HR is desperately making promises he won't keep to major shareholders to stay in post ( like last time he was challenged) while still ignoring the smaller shareholders and treating them like mushrooms ..if he doesn't get support will surely step down before calling a GM he can't win.Directors required under section 303 to call a general meeting of the company must call a meeting-(a)within 21 days from the date on which they become subject to the requirement, and(b)to be held on a date not more than 28 days after the date of the notice convening the meeting.(2)If the requests received by the company identify a resolution intended to be moved at the meeting, the notice of the meeting must include notice of the resolution.(3)The business that may be dealt with at the meeting includes a resolution of which notice is given in accordance with this section.(4)If the resolution is to be proposed as a special resolution, the directors are treated as not having duly called the meeting if they do not give the required notice of the resolution in accordance with section 283.Think they received notice 17th Feb ..CA announced 18th so not much time left.

[kooba] 01/3/2022 06:26

https://spacenews.com/orbital-sidekick-aurora-in-q-tel/

[kooba] 01/3/2022 06:25

https://www.lightreading.com/private-networks/federated-finds-new-funding-as-investors-challenge-its-chairman/a/d-id/775501

[kooba] 25/2/2022 15:03

It was posted in full 4 days ago before you posted 3 days ago Fella...posting it again is not really pushing things on. Here's Thompson piece on Allied Minds from Oct 2020 https://www.investorschronicle.co.uk/comment/2020/10/19/technology-winners-with-a-huge-margin-of-safety/Nothing like following form.

[davesailing] 25/2/2022 14:26

GIC and Cerberus Capital Management are both very shrewd technology investors and have both participated in Federated Wireless series D funding round that gives a post-money valuation of $228M. Allied Minds stake in Federated Wireless is worth $69.7M (21.4p/share) and this is not taking into account any further valuation uplift given the huge growth potential in the 5G secure private network space. Get reading the latest edition of Investors Chronicle magazine. Article titled - Bargin hunting in the tech sector carnage, Allied Minds' portfolio companies attract heavy weight investors.

[kooba] 23/2/2022 15:01

Still hope in this one..thankfully no board representation.https://twitter.com/ocuterra/status/1496489880779644930?s=21