Allied Minds Share Discussion Threads

[spectoacc] 21/2/2022 11:44

CRS's reaction to today's announcement should be interesting.

Agree re Pritchard - and what's he going to be paid?

[kooba] 21/2/2022 11:05

"Marc Pritchard left the company when is was valued at over $1 billion or around £7.50 a share."Some facts.Stepped down as executive chair end April 2015 price 635p stayed on board as executive director.Resigned as executive director 04/09/2015 stock was 471p..the stock closed out that month at 363p.I don't know why he jumped but was undoubtedly responsible for establishing the business that had already started to unravel as many investments failed..obviously subsequent managements managed to do their bit to lose swathes of shareholder money including the current incompetents.But it is very unclear that Mr Pritchard sitting alongside Harry as a consultant is going to make any difference to how this company is run or the outcome to shareholders..though one hopes he is aligned. HR pays little attention to the shareholders who own the company and seems to serially mislead investors. I am not sure why Mr Pritchard as a founder of this failed company , a shareholder and now a paid consultant is going to make any difference...why not replace Harry if he has all the ideas on restoring value , I'm sure if he has a plan that makes sense CA would back him!

[robertball] 21/2/2022 10:22

Pritchard is back is the best news here.

[kooba] 21/2/2022 09:44

Just an observation on this "up"round.Using numis numbersAM owned 36% fully diluted on $215m valuation 24p (they said 26p)NowAM own 24.19% fully diluted on $288m post new money valuation this is worth 21p per share..now AM has also put in another $4.2m.So more cash in and holding valuation has gone down significantly.The straight numbers $230m pre new and $58m new indicates a dilution of 25% ..we have putting more money in but are getting diluted by 32%..how the hell does that stack up?

[bobonumber1] 21/2/2022 08:22

Cerberus drove the raise. The valuation is disappointing. Positive being they are a vc fund so will be looking to monetise quickly. They are a major player and specialise in flotation and spacs. Bridgecomm speaking with an investment bank. Can only assume that is for the same purpose. Flotation or spac. Sale of touch at a loss is disappointing. ALM need the funds to keep the lights on so beggars can't be choosers. Taking from touch to give to fed probably seems like a good idea. Marc Pritchard left the company when is was valued at over $1 billion or around £7.50 a share. Personally I think it's great he is back having influence. Floating and selling companies is his bread and butter.

[spectoacc] 21/2/2022 08:18

Fair comments @kooba. On the plus side, I felt there was a real chance of FW not being able to raise money (look how long its taken), so guess that's a plus.

Difficult to gauge a timescale from here still, after years & years.

Did we know about the FW bridging loan from November?

[kooba] 21/2/2022 07:35

It's a bit of a mare..at least FW is funded but looks like Cerberus has dictated terms ..though its AM shareholders who have to bridge the company for months to get diluted.The updates from the company and its brokers bare no relationship to the underlying picture and it is not wrong to say the expectation in the market completely misleads on progress and valuations.The fact this has come out seemingly in response to CA move...though they don't even mention it is amusing. Time to go Harry you have achieved nothing in furthering the company's strategic targets and are not capable of running a listed company.

[kooba] 21/2/2022 07:30

So valuation of FW since 2019 is not even keeping up with inflation $215m to $230m hardly multiples or VC like returns as signalled !Revenue miss known about for many months and undoubtedly a factor in disappointing valuation...the company was aware of revenue miss when it committed a chunk of money as bridge financing ..without telling shareholders!In November 2021, Allied Minds invested $4,283,000 in Federated as bridge financingThis might secure FW finances to progress..but the company is being a serial misser of any revenue targets given.The whole thing looks shambolic.Selling Touchbistro at a loss that i think will prove to be worth multiples of this valuation...to put more money in the largest investment that misses very recent revenue targets is just concentrating exposure.The company is still chugging through cash when the remit is to monetise.There needs change urgently and moving one of the founders of the company and presumably somewhat responsible for many of the plethora of awful investments to a consultancy role ain't the answer!

[spectoacc] 21/2/2022 07:24

Loads to get your teeth into this morning @kooba. Looks like Harry spent the weekend writing that, after CRS's moves late last week.

Positives and negatives.

[wbodger] 20/2/2022 23:34

#2894 ... Absolutely. 47% vote against Harry Rein's continuation as Chairman and he doesn't go?
What a waste of space.

[kooba] 19/2/2022 19:55

Crystal Amber's current stock price: 114.30 pence12-month change: up 13%Allied Minds's current stock price: 18.60 pence12-month change: down 33%https://www.morningstar.co.uk/uk/news/AN_1645219401513988800/in-brief-crystal-ambers-seeks-removal-of-allied-minds-chair-rein.aspx

[believer2] 18/2/2022 23:16

I wonder how many horrid stones may be overturned by ÇA actions - still a white knuckle ride ahead me thinks

[kooba] 18/2/2022 17:22

Prompted some volume..highest this year and a slight up tick.One has to remember 47% voted against HR last time and he took that as a vote of confidence..47% of shareholders who voted didn't want the man chairing the company they own ..most would have stood down or announced succession plans immediately ..not our Harry. Carries on doing exactly the same going nowhere and treating shareholders like a nuisance.

[petersw1] 18/2/2022 17:14

I didn't vote last time but will be proactive this time. I'd urge all private investors, with holdings big or small, to have their voice heard.

[astralvision] 18/2/2022 16:50

Maybe the CA guys could run out the investments?

[casholaa] 18/2/2022 16:41

When in rain's it pours.

[kooba] 18/2/2022 16:34

I hope that those convinced to support the Board last time are now suitably convinced that it was not the best choice ..whatever they were promised 2021 was a totally lost year in terms of board activity. Two investments have bitten the dust and we are in overtime in getting any details of what we were told were necessary fundings for FW and BC. 2021 was probably one of the best years to secure technology funding for a long time have we missed the boat. These are not passive investmentsFW largest holder with chair HR..BC we are by far the largest holder again with allegedly a board position.The only positive in over a year is the phoenix like reemergence of life sciences company OcuTerra..something AMs board had written off completely did not support a well subscribed $35m fund raise and seems have been refused a board seat.Time to go ..but who should be tasked with getting the best return from the remaining investments..answers on a post card.

[kooba] 18/2/2022 15:54

Imagine RB has been keeping his powder dry but has lost his rag on lack of progress and updates. I think the current structure does not work and the lack of listed company experience by two directors is very obvious.Shareholders deserve better..question is where are the underlying investments now...as shareholders we have heard nothing but good , significant up rounds , multiples of historic nav...wonder where things really are, if this was to be believed i doubt CA would be going again. Who knows but i would like change and will vote against the Chair.

[spectoacc] 18/2/2022 15:49

Indeed. Hope they manage it this time, but also wonder what skeletons are in FW's cupboard.

This made me ruefully chuckle:

"Since Harry Rein has become Chairman, the share price of Allied Minds has declined by 40 per cent. Over the same period, the NASDAQ US Small Cap Index has risen by 85 per cent. Over the last 12 months, the share price of Allied Minds has fallen by 36 per cent."

[cousinit] 18/2/2022 15:43

Doesn't look like the register has changed that much since the last vote which CRS narrowly lost. Unless Invesco have indicated they will support then CRS must just be hoping Harry's record over a longer period speaks for itself...

[kooba] 18/2/2022 15:24

CRYSTAL AMBER FUND LIMITED("Crystal Amber Fund" or the "Fund") Crystal Amber Fund requisitions General Meeting of Allied Minds plcto propose the removal of the Chairman, Harry Rein, as a director 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. Since November 2018, the Fund has been an investor in Allied Minds and currently owns 18.2 per cent. of its issued share capital. In 2019, Allied Minds announced that it would henceforth focus on maximising returns and shareholder distributions from its existing portfolio, rather than continuing to invest in new businesses. 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." Since Harry Rein has become Chairman, the share price of Allied Minds has declined by 40 per cent. Over the same period, the NASDAQ US Small Cap Index has risen by 85 per cent. Over the last 12 months, the share price of Allied Minds has fallen by 36 per cent.The Fund has conveyed several concerns to Harry Rein including:1. Lack of updating market participants regarding core portfolio company Federated Wireless Inc. ("Federated Wireless"), where the current carrying value significantly exceeds the market capitalisation of Allied Minds. In April 2021, at the Capital Markets Day held by Allied Minds, it was disclosed that revenues for 2021 for 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." The Fund believes that price sensitive information is being withheld.2. 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, Harry Rein responded: "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.3. Breach of provision 20 of the 2018 UK Corporate Governance Code. No external search consultancy was used to identify and recruit Bruce Failing as a non-executive director.4. 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 DelliveryCare RX. Bruce Failing was proposed by Harry Rein who advised the Fund that he "persuaded Bruce Failing to join the board."5. Breach of provision 24 of the 2018 UK Corporate Governance Code. Harry Rein is a member of the Audit Committee.6. 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: for several months, 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.7. Failure to invite investors to the 2021 Capital Markets Day: invitations were only sent to analysts and 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.In its engagement with Harry Rein, the Fund has found him to be a major impediment to value protection and realisation. Moreover, his track record evidenced by the concerns outlined above, speaks for itself. Over recent months, on a number of occasions, the Fund has asked Harry Rein to announce his resignation. He has declined to do so. Therefore, in order to safeguard against any further erosion of shareholder value, the Fund is now seeking his removal. For further enquiries please contact: Crystal Amber Fund LimitedChris Waldron (Chairman)Tel: [phone]www.crystalamber.com

[bobonumber1] 17/2/2022 20:48

Again looks good. Need updated and forecast revs for all 3 subs. The delay in a probable fed raise is concerning.