Deepmatter Share Discussion Threads

[pwhite73] 30/11/2022 13:03

I stand corrected. The highest paid price in the last twelve months was 0.11p paid on 26/08/2022 by the second largest shareholder. The other major shareholders paid 0.10p in the placing in January 2022 and the CEO paid 0.11p on 05/11/2022.

The point is this once the market gets wind of a possible compulsory purchase order investors start buying up stock to prevent the consortium from acquiring the controlling amount. This is happening at Parsley Box at the moment. Leaving all the theories and shenanigans aside Deepmatter is worth far more than the derisory market cap of £1.4 million.

[pwhite73] 30/11/2022 12:16

supernumery - "if the buyer has gained 90% control"

For a forced buyout a buyer or consortium of buyers must hold 75% of the shares. After this point they must offer the highest price over the last twelve months to the remaining shareholders. Coincidentally the 84% discount placing took place in January this year so they only have to wait until January 2023 to offer the remaining shareholders something like 0.23p for their shares.

[supernumerary] 30/11/2022 12:01

I don't know if this is a desperation move due to a lack of external financing, or an attempt by insiders to capture unrecognised value. Hard to be sure without being inside.

What is clear however is that if it goes ahead, and small shareholders hang on, they will most likely either be 'squeezed-out' if the buyer has gained 90% control, or shortly afterwards be faced with a large rights issue - 'following which a more substantial capital raise would be pursued as a private limited company in 2023’.

They can then either ignore the offer, accepting the dilution, or take it up, putting more money into an already rather risky pot. Not a comfortable choice however you look at it.

[pwhite73] 30/11/2022 11:18

1347- "PW Oh I know a lot about what they do and AI, it's the directors that concern me"

The directors should not concern you at all. In most cases 80% - 95% of the shares in AIM stocks are owned by PIs so the directors can effectively do whatever they like as PIs do not participate in corporate events and neither do they form a group to agree on anything. Here the major shareholders control the company so the directors literally dance to their tune. The major shareholders can call an EGM and remove one or all the directors. Looking back I now think the major shareholders blocked the directors from seeking funding from the markets last Christmas and stumped up the money themselves for a greater slice in the company. I do believe they are up to the same trick again. If a company is to delist why would the major shareholders pump in £1 million when they have no one to sell their shares to?

My view is that the do have someone and perhaps several people to sell their shares to and that is major corporations that have tried and are interested in their technology. They may already have had several offers for the entire share capital but they have turned them down.

Q. How is it possible to raise 'substantially' more money as a private company than a listed company.

A. Quite simple you sell the company for multiples of the listed market cap.

[vaston] 30/11/2022 10:48

Next multibags SYME … CLON

[1347] 30/11/2022 10:44

PW Oh I know a lot about what they do and AI, it's the directors that concern me rather than the technology, I was hoping it would be another ETX. I note your points but it does seem a lot of pain to mop up a reltively few more shares that they could buy at rock bottom prices anyway and if (note IF) the company is going to be worth a lot more in the future then how does being private improve that? No, I'm not seing the point myself, unless someone like Merck wants to pick them up for small change, in which case why do the existing shareholders seem to be in favour? Normally companies only delist when they're screwed or get taken out.

[pwhite73] 30/11/2022 10:18

1347 - "The other question in my mind is whether it's worth holding the shares after de-listing"

RNS 24/11/2022 - "The Company anticipates it will seek to raise c.£1m from its major shareholders ahead of the Delisting, following which a more substantial capital raise would be pursued as a private limited company in 2023."

Firstly the delisting if it goes ahead won't take place until next year. Secondly I would strongly advise anybody against selling their shares at these levels. The major shareholders are having the value of their own holdings trashed when the share price craters but they are willing to tolerate short term pain for long term gain.

Deepmatter are at the cutting edge of digitising chemistry and AI technology in chemistry. They have major global clients and only last month they updated on a licensing deal with Merck. Merck does not enter into licensing agreements with mickey mouse outfits.

This company will be worth multiples of the current market cap so naturally the major shareholders will try and wrestle as much of it away from small PIs. If it means in the interim wiping out the value of their own holdings its a price they're willing to pay.

[1347] 30/11/2022 07:40

Has anyone reported this to the FCA yet? I've given up with them, I've bought one or two other companies to their attention in the past with pretty clear proof of dodgy things yet no action is ever taken. I've come to the conclusion that they are not fit for purpose and pretty much anything goes on the London Laundromat.

Anyway I'm certain in my own mind that Warne and the other Directors have acted in a despicable and possibly underhand manner, which may not be in line with the Companies Act for public companies. I really hope that Madame Karma catches up with them one day, in one way or another. That heavily discounted placing last year was suppposed to allow them to execute on their strategic plan and grow the business, they even did an open offer to retail shareholders only to then hang them out to dry less than a year later.

The thing is I don't see how it helps the significant shareholders, who they say are backing it, between them they already own about 67% so if they wanted to gain control then they could fairly easily do so at not much extra cost. How does wiping out the share price still further and de-listing help them or make any offer from a third party more likely or improved? Am I missing something here?

The other question in my mind is whether it's worth holding the shares after de-listing in case an offer does come in at some point, might not be able to trade them but might still be worth more by holding shares in the private company than selling at this stupid price? Anyone had any previous experience of this scenario or a view on that?

[smcl] 26/11/2022 11:18

Agreed PWhite73.

[pwhite73] 25/11/2022 10:45

1347 - "I may be being over cynical"

I don't believe you are. It is important to note there is no suggestion from the company of any decline in business. Indeed they appear to be gaining traction on every trading update. I think the issue here is one of liquidity. The shares are not traded frequently enough for the bucket shops so if the management are going to inject their own money they want as bigger slice of the cake as possible. They are not concerned about the decline in the share price of which they already own 67% as the long term goal is to purchase the remainder of the company's shares at the lowest possible price.

There is ample evidence in the trading updates that there is a host of major science companies interested in what they have and what they do. Once the company has gone private with major shareholders owning 99.99% it will be sold off for multiples of the current market cap.

The FCA do need to investigate what is going on here.

[1347] 25/11/2022 07:51

PW That's interesting because it may be the case that by them waiting a year to table an offer they will be able to benefit from the lower price caused by the share price crash from over 1 p to 0.1 p due to that 'wipeout' placing last December, which means they may have created a false market in the share. It could be that this was all contrived and the placing was a means by which they grabbed a chunk at a low price in order to enable a subsequent low ball offer later? I may be being over cynical but having seen how AIM companies operate(and some of their bigger shareholders) it's something that needs to be considered. Either way I think the FCA should investigate the company, not that they are of much use. Has anyone bought it to their attention?

[pwhite73] 24/11/2022 22:34

1347 - "This does look underhand to me, possibly worse."

I wholeheartedly agree. The major shareholders already own 66.7% of the company. If they inject £1 million this is effectively a buyout of the company. The listing regulations require they offer the remaining shareholders the highest share price closed at over the last 12 months. Sit tight.

[dudishes] 24/11/2022 15:51

Ye olde Guild looking somewhat sketchy?

[1347] 24/11/2022 11:43

This does look underhand to me, possibly worse. If the FCA were anything more than a useless fig leaf they ought to be looking at this company, especially the newsflow and transactions over the last year or so with that 'wipeout' placing. AIM directors often seem little more than legalised scammers to me, I'm now moving away from 'investing' in them and getting out of the ones I'm in as and when I can find suitable exit points.

[blackhorse23] 24/11/2022 10:54

Glad moved to MCL (LSE) last week

[pwhite73] 24/11/2022 10:29

This all looks a bit fishy to me. How can the major shareholders put up £1 million before a delisting, what happens to their shares. I think there is genuine interest in the company by a third party and the fewer shareholders their are the bigger the slice of the cake for existing shareholders. Revenue is on track for £1.5 million and they have £700k cash available. These are worth a punt even if the delisting goes ahead.

[pwhite73] 24/11/2022 09:31

the quiet one1 - "They are not useless, they are criminal, they have used the system to steal investors' money,"

But who are they stealing from?. If you go to the website you will see as of May 2022 66.7% of the shares are holders of more than 3%.

Open up major shareholders

Its not PIs in nominee accounts that are the shareholders. They can't do anything without the agreement of these 66.7% major shareholders. As per the RNS the delisting is not a foregone conclusion, they would need the support of these 66.7% major shareholders. They intend to raise £1 million from the 66.7% major shareholders prior to any delisting.

I think the major shareholders believe in the company but this belief has not been reflected in the listed share price.

[allenquatermain] 24/11/2022 08:53

Why does zxie have multiple IDs ? (Mr woodland and moor sir)

Why does zxie use his aliases to recommend his own posts ?

Why does Zxie pretend he can’t speak properly ?

BECAUSE ZXIE IS A CONMAN

[allenquatermain] 24/11/2022 08:52

Zxie uses aliases mr woodman and moor sir ✔️

Zxie uses his aliases to recommend his own posts ✔️

Zxie is a scammer that pretends he can’t speak properly ✔️

Zxie is a troll that thinks he’s funny filling your board up with useless rubbish ✔️

Zxie is a multialias conman ✔️

[pjj71] 24/11/2022 08:23

Another AIM friends and family piggy bank bites the dust!!!!!