BNN Technology Share Discussion Threads

[wetwestwales] 11/1/2018 20:44

Thought u were arranging a meet-up in Bells of Peover pub in cheshire ? Still waiting for my invite. My dogs are ready to travel and meet the local walkers muts too !! Come on Paul, make the arrangements. Or simply fade away.....to your own Dog&Duck. In fairness I am loving this BB. I haven’t got a great exposure to BNN (nothing I can’t handle), but some muppets on here seem to concentrate on the RNS, NOMAD, Q3 Q4 results etc. Always looking for a ray of hope. They have completely lost sight of reality. Mercer. And his costs/wages/loan/bonuses. Big business high finance when in fact it’s a Ponzi get-rich-quick scheme we have lost money on. It’s over. Maybe brought back into private, but nevertheless it’s over for us investors. Some just don’t see it. Some don’t want to. But the clues are there. Mercer, historic & current. Who else has a dog and fancies a meet up in Cheshire ?

[swiss paul] 11/1/2018 20:04

Ah life in the Dog & Duck is still going strong - Andy either take him outside or STFU you are now getting boring.
Where is the resident smackhead? Ain't seen high as a Shi'ite for a couple of days.

My oh my this board - it makes I larf - good entertainment value.

Carry on Gents

[delboy39] 11/1/2018 19:59

Andy

Or whoever you are get the message and clear .
You really are a waste of time and space on this board .

[greenarrows] 11/1/2018 19:29

Oh come on Andrew. Give over man. Pathetic and embarrassing.

[balance1] 11/1/2018 19:12

Andy, can you please get off this board

[andy] 11/1/2018 18:28

charles,

What part of the post you indicated to me yesterday was "threatening" please?


I can't see it, and apparently nobody else can either, so can you help us to clear this up and put it to bed?

Or did you misread or misunderstand my post and afraid to admit it?

[charlesdarcy] 11/1/2018 17:39

Hobnob .

Excellent ... no more to be said .

Up too BNN to clear up that post on behalf off all SHAREHOLDERS on here

[hobnob1] 11/1/2018 17:21

newman, they need to find a new Nomad at a minimum before they can resume trading, and it is clear that there are still some serious governance issues outstanding that need to be resolved.

We were told a couple of months ago that PwC had investigated and reported on the CFO's "serious allegations" and the company had acted on its recommendations. Then two new independent directors were appointed. This all gave the impression that any outstanding compliance and governance issues had been addressed.

However, the Nomad has just resigned for reasons unexplained. It is very unusual for a Nomad to resign, and they would have had to have given Aim a good reason for doing so, eg they are in some kind of conflict with the behavior of the board.

The newly enlarged board has just put out an RNS stating that it intends to use this controversial bonus to offset the former CEO's loan. One poster has raised the notion that some directors (including presumably the then CEO) may have contravened the Company's Act by withholding information from the auditors regarding this bonus.

There are certainly aspects of this bonus that raise a lot of questions for shareholders. Why, for instance, were two bonuses awarded in one year? Why also were the combined bonuses so large in the light of very disappointing revenue performance in 2016? What were the terms and conditions for the payment of the second bonus?

You would have to assume that, because the bonus was not paid in 2016, it's future payout was somehow performance related, as any bonus would be. And we have been told that the company is now properly governed.

So lets look at the performance of the former CEO since 2016. The first half of 2017 was very disappointing with a big miss on revenue expectations, and then the interims gave warning of a challenging second half (we have yet to be given any indication of actual revenue performance in the second half of 2017, which we await). Since 2016 the share price has collapsed, and the stock has been suspended. It was then announced the company would move the CEO out of his post and off the board, on PwC's recommendation after its investigation into wrong-doing. Now the Nomad has resigned. The board has also announced that there are still on-going investigations, arising from PwC's report in October, into issues apparently surrounding the former CEO's loan, or items added to it.

In the face of such a mind-blowingly appalling record in 2017, shareholders were knocked backwards to learn that the BNN board has just decided that the former CEO is to be paid out another £270,000 in a special extra bonus for his performance over the last 12 months.

I was wondering where the auditor may fit into all this? Because the second bonus was omitted from the 2016 audit under unusual circumstances, is the auditor now obliged to give us some kind of formal declaration and description of this bonus? The 2016 audit, and the performance of the auditor Deloitte LLP, is now under public scrutiny. Either Deloitte's did not read through the 2016 minutes of the RemCo properly, or they did not ask pertinent questions of the directors during its audit. If Deloitte's did ask the right questions, but the directors withheld information, then this probably becomes a legal issue. Someone is culpable here, either the auditors or the directors, and we need to know who. We should expect a statement from Deloitte's on this matter soon as to whether they accept blame for not reporting this bonus in the 2016 Annual Report, and will then resign as the company's auditors.

In any case, if the company is sincere in its commitment to greatly improved governance and transparency, it should provide shareholders with a detailed account of how and why this bonus came to be awarded, and also all details of its terms. The public focus will now be on BNN's board announcement that shareholders funds will be used to offset a related-party personal loan. Either that, or the board should swiftly reverse its decision after due consideration.

Given that this extraordinary BNN board announcement to offset a large related-party personal loan was made on the same day the Nomad announced it was resigning, the public would naturally conclude the two issues were related. This throws into question whether the board is in regulatory compliance on this issue. It is disappointing that the sign-off on this (poorly worded) RNS is the first public act of our two new independent directors, who were appointed with such fanfare.

Whatever13 has given great insight on this situation and am sure understands any regulatory and statutory obligations around this issue much better than I do. We would all be grateful if he had time to consult with the people he knows to offer up any opinions on the performance/obligations of the board and the company auditors.

[perfect choice] 11/1/2018 17:12

That I do agree with, why hasn't DM paid off the balance of £180K (latest RNS states loan is circa £450K)? Even with the statement made in the 3rd January RNS that "Mr Mercer believes could reduce the amount of the remainder of the Loan" (but RNS also states "further amounts which were not included in the Loan " so loan value could also go up), there is no case in my view why DM could not honour his commitment (24th October RNS) to pay off at least part of the loan by end of December while this "missed bonus" is investigated.

[and11] 11/1/2018 17:11

Read the rns on it!

[wetwestwales] 11/1/2018 16:54

If the loan was for £500k and the retro announced bonus was for £270k where’s the outstanding £230k ?

[perfect choice] 11/1/2018 16:28

Actually that would be fraudulent and the police should be paying a visit to Lord Mancroft if the bonus never existed. For the RNS to state what it did, there had to be evidence. Suspicious as everybody else on the "convenience" of this bonus appearing though, will wait outcome of further investigations.

[andy] 11/1/2018 15:54

Hobnob1,


Yes I think most people here would probably agree with that.

[newmanontheblock] 11/1/2018 15:19

Might be right hobnob1. Still does not explain why this company is not trading!!

[hobnob1] 11/1/2018 14:20

I reckon that bonus never actually existed in 2016. That is why the board didn't know of it, it wasn't reported to the auditors, and the auditors didn't pick it up from any minutes etc. It also explains why it wasn't paid.

The loan had a deadline to be repaid by 30 June 2017, but there is no money to clear it. Suddenly a hitherto undisclosed large bonus magically appears as the deadline approaches...

Then the CFO resigns, then the Nomad resigns....

Just a theory.

[vegpatch] 11/1/2018 12:46

Spoke to an experienced corporate broker (about another matter). Mentioned the shenanigans at BNN. He laughed. He said they had been offered it but definitely wasn't for them. They are at the more "conventional" end of the spectrum so I am not surprised actually. There may be more out there willing to take a punt but doesn't feel great.

[newmanontheblock] 11/1/2018 12:26

Surely they would know by now whether they are going to get another NOMAD by Feb 2018? Come on, we need comms please.

[perfect choice] 10/1/2018 20:52

Agree and11, you really have to take some of the detail posted here with a "pinch of salt". See reference to LinkedIn above, no relevance to China operation (LinkedIn has a different site to one you access in the UK, UK based staff were below 20 anyway), all staff don't subscribe to LinkedIn (only 60% of staff in my large UK company are on LinkedIn) and those that have recently left are exactly as I would expect, namely Scott's finance team and the 2 PAs, since DM for one is moving to HK and there is no CFO right now. New CFO will set up their own team, that's how finance works. Just wait patiently, only thing to do right now but it has to be sorted by 4th March as that is the deadline for the suspension.

[and11] 10/1/2018 20:27

PWC were brought in to do an independent investigation on instruction of the Chairman of BNN 3 months ago, which would of highlighted a lot of the nonsense being posted here today. People just speculating & making stuff up with no facts to support anything. We have already been advised post the investigation that there is plenty of money in the banks, business operating as usual in China, new NED’s being appointed in the last few weeks. I understand the annoyance about DM in general, but come on there is still a business operating. News will come soon.

[dennislevine] 10/1/2018 19:34

Never was 300 employees in China - said it ages ago that Linkedin (as an independent source) only ever showed about 12 people at BNN Technology (most at the HQ in Cheshire) & most of those have now resigned. Most tech companies in China show hundreds if not thousands of local employees. Obv red flag that this was all fantasy

[andy] 10/1/2018 18:32

Papillon, PJ1

Thanks.

[andy] 10/1/2018 18:25

Charles,

Thanks for replying and indicating the post that concerns you. I have pasted it below, please indicate exactly where I have "threatened you"?

It's quite a serious thing to accuse somebody of, as I'm sure every decent person here is aware.

-------


Andy7 Jan '18 - 13:01 - 8738 of 8832 Edit
0 1 1
Charles,

You are continually potentially libeling the previous CFO, I trust he doesn't read here or you may have a problem!

If two directors had a secret agreement, how is it all the fault of the CFO, who doesn't appear to have been privy to the 'secret agreement'?

And have you asked yourself why he reported whatever he did report (serious allegations), and walk away from a well paid job? And why the company was suspended, and remains so?

And why have Strand walked away from their lucrative fees, when they could have hung on receiving them until they were replaced?

i think you are pointing your finger in the wrong direction personally.

[shareheaven] 10/1/2018 18:08

10 years of 6 star extravagance with not a penny returned to shareholders. Mercer and some of his mates have ripped the shareholders off on a grand scale. Don’t forget this superstar lifestyle has been going on long before the AIM listing.
I have witnessed Mercer showing off buying £800 bottles of wine with shareholders present.
Thick skinned is an understatement.
Mercer and Mancroft need to be exposed. No my Lord you can’t hide behind being a Lord . As thick as thieves colluding to line their own pockets. Criminal .
Where are the trading updates?
Where are the tangible contracts and defined income stream?
Which right minded CFO would leave a decent job to untangle this shambles ?
Which level headed investor would look at this for a return?
BTW The Bells of Peover is a leasehold pub Robinson’s of Stockport own the place.

[rampair] 10/1/2018 17:52

If there was no income whatsoever, surely Directors have a duty to maintain a “going
Concern”? Instead, there is nothing tangible being carried out in a hurry that gives
Shareholders much confidence .

The Chairman & the U.K. office have limited time overlap, the hope would be that the Chinese Management would have some idea as to what is going on.
Who is in charge right at this moment to conduct talks about a new Nomad?

It’s very concerning for any AIM Investor, clearly these companies are regulated simply by the conduct of the Directors.
Just another way to drive Private individual Investors into high cost managed funds.

It’s getting to the point where previously thought of higher risk markets are, in fact, becoming less of a risk than U.K. maybe we should hand the investigations
over to the Chinese authorities.?

As for buying £800 bottles of wine in front of shareholders- if that happened, it’s
a red flag straight away.Very childish.