Allied Minds Share Discussion Threads

[davesailing] 02/9/2022 14:57

ALM cash position is 10M US dollars.(Over 4p per share). ALM current holding of Federated Wireless is valued at 25.6p per share (so this is valued at under 7p per share with the current ALM share price of 10.8p!!!!!

[kooba] 02/9/2022 14:33

Is there a further update on last week?On the hunt for tech bargainsShares in two small-cap technology companies have been savaged this year, but at such depressed valuations the investment risk is skewed to the upsideAugust 25, 2022By Simon ThompsonInvestors invariably head for the exit on news of a potential de-listing. This was the case with Allied Minds (ALM:10p), a Boston-based intellectual property (IP) commercialisation company focused on investing in early-stage companies with disruptive technologies.As part of a strategic review that could lead to an outright sale of the company, or distribution of assets and cash, the board is consulting with shareholders to ascertain the level of support for a de-listing to save on listing fees. Allied Minds' share price had been trading above the level of my last update ('An unloved deep value play', 17 June 2022), but tanked on the news.I would not sell out at these depressed levels as the group's largest holding, Federal Wireless, is alone worth $72.3mn (25.6p a share), or 2.5 times Allieds Minds' market capitalisation of £24mn. That technology group is reshaping wireless connectivity for cloud-based technologies by providing customers with a high performance, accessible and secure private wireless network.Including proforma net cash of $13.4mn (4.75p a share) and other holdings, Allied Minds' sum-of-the-parts valuation of 36p a share is 3.6 times the current share price. Even as an unlisted entity, the investment risk is skewed firmly to the upside.

[davesailing] 02/9/2022 14:30

Investors Chronicle (Friday 2 September 2022) latest view from Simon Thompson is not to sell ALM at these depressed - Federated Wireless is worth 25.6p a share on its own 2.5 times ALM current capitalisation. With other assets the sum of ALM is 3.6 times the current share price....

[spectoacc] 02/9/2022 13:29

Agree on tax loss point, not sure why it's not been explored.

Value of ALM somewhere between 0p & 30p, timescale somewhere beyond 18 months.

[bobonumber1] 02/9/2022 11:07

Spin was hope yes. Not revenue producing.

[spectoacc] 02/9/2022 10:25

Still remains a chance of 0p IMO. FW is the biggie tho, if that can ever get sold/listed, without further mishap or dilution.

Spin was the other big hope once.

[bobonumber1] 02/9/2022 10:16

I do not understand the radio silence from CA since they initiated the vote of no confidence in Harry. A once very vocal CA have lost their voice. Agree with Guvenor, we are where we are. Absolutely not ideal but if you are still in then what other choice is there but to delist or go to AIM?I was hoping to still get around 50p per share back from this. Fed should be valued around $ 500mill by the end of the year giving a NAV to us around 35p, the others are still very uncertain. I had high hopes for OSK. We need to find out what the situation is with the GHOST project. My understanding from Dan Katz last interview was that it was financed ( GHOST) with 2 sats going up by the end of the year followed by the rest in q1 2023.

[kooba] 02/9/2022 09:42

I would agree on the surface..however i think for most of the formal offer period the company was doing nothing in engaging..pretty sure some contacted but were not followed up.The excuse was probably the delayed report and accounts and the forthcoming change in management..we were then down to one director with little authority , now new guys who have spent time trying to understand what is left.I think the process was a ploy to get CA off their backs and little effort from board or Numis has been made in attracting interest.The market backdrop has not helped..but having said that why not this process when the markets were hot..the board thought it not the best way forward...until the markets deteriorated..no bloody sense. Instead we clung on writing down all the way and burning $15m in costs and supporting businesses now gone to the wall as we went.I would ask what exactly has been done in seeking buyers beyond putting a for sale sign up and ignoring any early interest and now waiting for the phone to ring.It's such a basket case it's presumably difficult to attract any talent to proactively deliver value to holders but simply look for an easier life away from regulatory accountability.Hoping CA challenges this and looks at alternatives..they are the largest holder and seem to be the only ones concerned at achieving some value for share holders in a timely manner.

[spectoacc] 02/9/2022 09:29

@kooba:

"Formal Sale Process

Notwithstanding the contemplated de-listing, the Formal Sale Process remains on-going but no notable interest has been forthcoming to date. If Allied Minds' consultation with shareholders concludes that it is appropriate to proceed with a de-listing....the Formal Sale Process would be terminated. Notwithstanding that, the Board remain receptive to any proposal for the whole or part of the business, prior or subsequent to any proposed de-listing..."


I read that as them having had no "notable" interest in the co as a whole, or for any of the holdings, either at carrying value, or at a reasonable discount, or the shares on a now c.70% discount.

That's despite having run a formal sale process, being in wind-down, and no doubt having punted both the stakes and the co as a whole over many months.

Nothing about that is positive for shareholders.

[kooba] 02/9/2022 07:58

Sold off yesterday ..presumably by smaller investors ahead of an update with a write down today.Still look to be on about a 70% discount to nav..bit more with cash stripped out. No interest from any buyers.The management are just not believed..that they will deliver.After many years of not delivering anything buy disappointment whoever is running it is weighing heavily!At least Federated on target it seems though i haven't got a clue what those targets might be..don't think they like publishing anymore ..i wonder why.So federated value could be higher in a year or two..and a takeover shorter term could see 30p plus per share to shareholders. This though extremely optimistic is not at all impossible as the private network market in the states ( and elsewhere) expands as they have an interesting key position in delivery. Hope is still there.Orbital is rather disappointing as once again the company gets to financial exhaustion and ALM has to bridge..same as with most other holdings ..we then get stuffed on dilution. Still looks a very viable business though so hopefully ALM share holder value can be protected.

[spectoacc] 02/9/2022 07:58

"At least we now know where we are".

The trouble is, it's where ALM have always been, and likely will still be in "18-24 months". Only this time, without the cash to survive.

Ergo, they'll take tuppence ha'penny on one of the stakes, and use that money to keep going another 18-24 months.

Meanwhile, the money all gets spent.

Agree they could/should have released this update at same time as original delisting one.

[baldguvnor54] 02/9/2022 07:50

I take a contrarian view- I think think that is a pretty clear update. We might not (do not) like where we are, but at least we now know where we are. There are no buyers for the business, and it will be a slog from here. As to whether delisting is right, think "if this were a private business, would it be sensible to seek a listing?" answer clearly no.
While I think the outcome is a disgrace, I don't think the process is, with one caveat:
The management and Numis dropped the ball with the delisting talks announcement without including the context of this announcement- this should all have been in one announcement, and agree there must be much more savings than they are forecasting (directors' fees being one).

[spectoacc] 02/9/2022 07:39

"This company will always be monetised in 18-24m..it has been for years now!"

Absolutely.

There's dilution coming too it seems. If ALM had any sense, they'd have already exited at previous fundraisings. But why do that, when they can continue to milk it indefinitely?

[kooba] 02/9/2022 07:38

De-list save on running costs $2.2m so still $3.3m as a private company with a few passive investments. Does the saving warrant a delist and the associated further lack of accountability? The listing could have value itself as a vehicle and whilst it is listed we are guaranteed some regulatory protection.$ has helped the £ nav..BCI they have only just realised is not workable with a large UK investor ..think that took well over 5 years to realise! Looks like a 4-5p write down. Still see nav low mid 30p's.This company will always be monetised in 18-24m..it has been for years now!We should stay listed look to move to aim and have costs and advisors commensurate with size of the business.I do not believe they cannot cut costs of over $5m and stay listed.

[spectoacc] 02/9/2022 07:22

What a depressing read for ALM investors. Basically, FW continues to do well but with no sign or prospect of realising any money from it. There's been absolutely no interest in ALM as a whole. They're having to take, on BridgeComm, "...An economic write-down...sets the company up for future success and the potential for a significant total return."

Even the delisting only buys 2 more years.

The usual nonsense at the end:

"The Board remain of the view that there is substantial value to be realised within the portfolio of investments and that this can be achieved within a time frame of 18 to 24 months. It is therefore important that the Company has sufficient resources, including an appropriate buffer, to achieve this which is the key reason for considering and consulting with Allied Minds shareholders on a potential delisting."


What, another "18-24 months"? What about the past two sets?

Have they seen the way the market's heading?


Edit - it sounds as if they haven't even received any "notable" interest for even one of the holdings, let alone ALM as a whole.

It reads as if they're an early-stage investor, just starting out, but how long have they had those holdings and how much money have they chucked at them?

Other than the cash return - 13p was it? - ALM has been an absolute fiasco. Raised further money at £3.50 from memory.

[kooba] 31/8/2022 15:09

"Further announcements regarding timings and procedures for the formal sale process ("Process") and any additional appointments to assist with this process, particularly overseas, will be made as appropriate. The Company is not currently in any discussions with any potential offeror relating to an acquisition of the issued and to be issued share capital of the Company."No timetable at initiation or with the subsequent results...so no timetable ever set as far as i can see.

[kooba] 31/8/2022 15:00

Not sure we had all this in the announcement certainly not a timeline or a commitment to announce a timeline.FSP launch announcement: contents requirements• the phrase "formal sale process" in the heading• an explanation of how the FSP will be conducted• details of which documents an interested party must enter into as a condition of participation• an indicative timeline (or a commitment to announce a timeline)• confirmation of whether the target has received an approach or is in discussions with a potential bidder at the date of the announcement

[davesailing] 31/8/2022 11:44

Is there a regulatory time limit on how long the company can be in a bid situation? What information must be made available to the shareholders if a interested party makes an offer, or is holding discussions relating to the purchase of one of the assets (share holdings belonging to Allied Minds)?

[spob] 30/8/2022 23:37

Kooba - thanks for the shareholder list

[wbodger] 30/8/2022 23:25

Re 3310:"..why not sell [FW] and pay that out ..delist the balance." I hope they will do that if there is a buyer for FW. That is where I would go too.

What if offers for FW are not attractive? I just think Dobbyn & McDonald appointments are saying "we need time", but I concede your other posts that delisting by itself doesn't solve the problem. Saves a bit of cash perhaps.

Perhaps delisting is about the possibility of participating in a cash call for (eg) BridgeComm which I guess they will have to duck if they remain public. (Repeating myself, I know.)

Not easy options. However we got here, here we are.

[kooba] 30/8/2022 19:19

Meanwhile OcuTerra seem to be getting out there presenting their wares ..may be worth keeping check for a company update from them in presentation..phase 2 are now taking place.

[kooba] 30/8/2022 19:17

Bridgecomm is on bridge funding right now ahead of more comprehensive raise apparently...they certainly seem to be hiring ..or trying to from their tweet feed.