BNN Technology Share Discussion Threads

[andy] 26/1/2018 09:40

redhill926 Jan '18 - 09:03 - 9119 of 9124
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It's worth remembering that Pwc didn't look at everything in the company. They were asked to investigate the allegations made by the departing CFO and this is what they did, delivering some recommendations on compliance and corporate governance. There was no suggestion they looked at details of contracts, sales, the financial situation etc so it's incorrect to say they gave BNN a clean bill of health.

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Come on you're being picky now, it's not incorrect at all.


The CFO made allegations, they found some "compliance and corporate governance issues", and made recommendations, so clearly something was found to be wrong. So they gave the company a clean bill of health on the parts they were asked to investigate! I would have thought that was obvious to be honest!


The company already have an auditor to cover them, PWC were brought in as an independent to review those aspects highlighted by the CFO. This is basic stuff!


You have to wonder why, if there were only some "compliance and corporate governance issues", has the Chairman gone, the CFO resigned, and the CEO been moved off the BOD?


And why is it taking so long to find a new NOMAD?

And why did the old NOMAD resign their well paid position when there was no need to do so?

I don't rule out their finding a new NOMAD, I am more optimistic than some here today, (perhaps because I'm more cynical about AIM and the city?) but I feel there may be some surprises to come if they do, and manage to resume trading, let's just wait and see!

[andy] 26/1/2018 09:32

jarjarbinka,

No you don't, you become a shareholder in a private company.

Your shareholding remains the same, and they can pay out dividends to you if they so desire.

The problem is to buy or sell would be done on a matched bargain basis, think JP Jenkins. This is fine but obviously not a fluid market and a price may be difficult to achieve.

They can of course try and list on another market in the future, but your shareholding remains whatever happens, it's just crystalising it into cash that might be more difficult.

[jarjarbinks] 26/1/2018 09:26

@charlesdarcy - if the delisting from Aim occurs, do we technically lose our investment and therefore money completely...?

[charlesdarcy] 26/1/2018 09:12

Yes I agree .

It’s just a few days now and BNN will no longer be listed on Aim .

Not sure where that will leave the shareholders other than with worthless paper .

I held shares in a company that did have cash in bank but no trading business that was taken off AIM so now a cash shell as such but slowly the money was spent searching new investments etc and to this day has never listed again (7 years) .

Does BNN have any real saleable assets ?

[marmar80] 26/1/2018 09:08

O/t Do they have any website in China?

[redhill9] 26/1/2018 09:03

It's worth remembering that Pwc didn't look at everything in the company. They were asked to investigate the allegations made by the departing CFO and this is what they did, delivering some recommendations on compliance and corporate governance. There was no suggestion they looked at details of contracts, sales, the financial situation etc so it's incorrect to say they gave BNN a clean bill of health.

On the other hand of course, Pwc not looking at these other areas suggests the CFO didn't make any allegations in these respects, and if there was anything "dodgy" about contracts etc no doubt he would have had some inkling and presumably would have included that in his allegations.....so perhaps that's encouraging.

We don't know what's going on at the moment, maybe a lot or maybe they've effectively given up - we'll just have to wait and see.

[redhill9] 26/1/2018 08:55

Sensible and realistic post by Perfect Choice.

[andy] 26/1/2018 08:51

PC,

There will be an awful lot going on in the background now, they will be moving heaven and earth too find a NOMAD I would imagine, and if that can't be done they may be looking at the NEX.


You have to wonder why, if this company was given a clean bill of health by PWC, is it taking so long to find a new NOMAD?


Looking forward to hearing more about the repayment of DM's loan as well........

[perfect choice] 26/1/2018 08:40

Well its 5 days to go until BNN is delisted from AIM due to no Nomad. So we're definitely due an RNS next week either way.

Mark Hanson has only been in the job of Chairman for 2 weeks, giving any form of status update just for the sake of it is hardly going to be in his priority list I have to say. Main IIs will have been kept up to date with developments anyway, PIs will only know when there has to be an RNS so by next Friday.

I wouldn't put the chances of staying on AIM greater than 20% right now, so expectation is to be delisted, time has just ran out unless there is a great deal still going on which we simply are unaware of, e.g. if there was a new Nomad then nothing will be said until they have completed their own DD, which is why its a 20% chance I feel rather than 0%. The RNS 2 weeks ago said "The Board is continuing to talk to potential Nominated Advisers with a view to appointing one in the near future."

Mark Hanson seems the guy with the background to get BNN going again IMHO but we just do not know on what basis that will be. Nothing can be done from a PI perspective now, just wait for next week.

[delboy39] 26/1/2018 08:11

No RNS yet again ...
A complete show of arrogance from the new Chairman considering the previous treatment by this company to shareholders .

Just a few days from time out and nothing to be said .

Let’s hope he puts something out at mid day .
Can’t help feel he does not want to re-list the company ?

[and11] 26/1/2018 01:56

Is this a sit com!!! Very funny Balance & 13.... look at most aim companies, all the same ... high risk/reward... this has cash in the bank,revenue coming in... massive potential..go & invest in other aim stocks with non of the above.... I’m sure you will... hilarious

[balance1] 25/1/2018 22:36

Whatever13, sad that the Hong Kong market should be putting London's Aim to shame.

Clearly the Aim regulatory system is not working. It is a system of regulators who are chosen and paid by the companies they are supposed to be regulating. How stupid is that?

[whatever13] 25/1/2018 17:10

I am sorry but there is no way the company can or will list in HK. They would not pass any of the tests. The HK stock market is properly regulated and has much of the same requirements as the LSE, it is not the "Wild West". The primary reason this would not happen is track record which would also preclude them from any other market i.e. not fit and proper.

PWC did not report on the contracts they were asked to investigate anomalies with the Executive Boards conduct at no point did the company state they were looking at the validity of contracts or for that matter cash balances, if they were they would have had to disclose it.

[goldie40] 25/1/2018 16:18

traceys d. m. p. a. has left not being replaced

[newmanontheblock] 25/1/2018 16:01

Well we have 2 weeks and 1 day to have an update on Nomad...no doubt we will hear something at the very last minute...but here's hoping for news tomorrow. Whether it be good or bad...let's be put out our misery!

[charlesdarcy] 25/1/2018 12:51

Balance .

It is exactly as I remember it , however I do agree with PC this is really bottom draw history now and although I agree with your 20p new price it is what is to be announced in the next week or so which pave the future for Bnn .

I think it will find a new home in HK not good news for shareholders but could be in a couple of years time ( I hope )

[balance1] 25/1/2018 10:06

PC, the bulk of the money (£50m) for the new wave of China projects was raised in 2016 by the company’s broker, Mirabaud. To accompany these placements they put out a research note in April 2016 of forecasts which were based off information given to them by the company. Mirabaud forecast that in 2018 BNN would make revenue of £188m, producing EBITDA of £131m. Based off these forecasts, investors were led to believe that by this year (2018) the stock would be trading on Nasdaq, and worth perhaps around £4-5.00 per share. The share price shot up to £1.40 in the months after the publication of these forecasts.

Then the company started investing this £50m, with much fanfare and in new exciting venturesbeyond those described in the report. Obviously, investors imagined the forecasts would have been increased even further given that new business units were being added to the company.

However as 2017 arrived, it started to become clear that revenues were not building up at nowhere near the rate predicted. They had to pass the hat around the insitutional investos to raise another £25m at a reduced price of 80p in April 2017 to shore up the cash reserves to make up for the missing revenue.

By then Mirabaud had also started to slash its forecasts (which is probably the report you are looking at), and the share price continued to tumble. This was all before the stock was suspended, and the suspension can’t be used as an excuse for what happened (or rather didn’t happen) in the business. Rather than the £4-5.00 per share investors thought they would be seeing this year, they will probably be lucky to sell at 20p.

Sincerely hope the new team can turn this around, and don't make the same mistakes as the last.

[perfect choice] 25/1/2018 09:01

Don't know where you are getting figures from but last analyst report was £34M and a loss in 2017 FY. Assume you were talking revenues not profits for 2018 as I don't have exact report to hand right now to check. It's all out of date anyway and new business growth model will need producing. All contracts were valid. It's the revenues which were missed and now the suspension delaying launches and deals, etc

[balance1] 25/1/2018 08:52

Fake as in fake news, not literally fake but greatly exaggerated. Will be very interesting to hear what has (financially) become of the various much-touted new businesses such as student recruitment, football micro sites, data-mining, utilities payments, ski-lift passes, mobile top-ups, petrol cards etc etc which were supposed to have delivered profits of well over £100m this year.

[bergsy] 25/1/2018 08:35

Balance1, which deals are fake? I'm sure PWC in part of the investigation would of looked at these deals, they never reported any fake deals! Underperforming deals there are, but fake would of been reported by PWC I presume.

[balance1] 25/1/2018 08:16

Well they should re-list in London, get their house in order, and then list in HK. At least in HK they can have a fresh start with none of the baggage they have here. It would give people a reason to hold/buy the stock in London ahead if the HK listing. The problem is that the HK market won't be so easily fooled by a string of fake deals in China.

[andy] 24/1/2018 22:41

ripplevale,

Where did the company announce their intention to list in HK please

[andy] 24/1/2018 22:40

papillon,

Thanks, yes my post was badly worded, ayshe4 is indeed posting on the Asiamet, Jersey Oil, and Angus threads.