Defenx Share Discussion Threads

[whiteshark1] 18/7/2019 10:44

not always but often is. they did this last year, the share price never recovered

[5h4k35p34r3] 18/7/2019 10:30

I don't. Late accounts isn't the end of the company.

[whiteshark1] 18/7/2019 10:05

I think this is doomed

[5h4k35p34r3] 09/7/2019 20:32

Unless DFX is now solvent then the money from BVT has run out - the latest part of the loan having been drawn down and used. So, the next announcement will have to include some decision on its future. 12p would be illegal before October. It would have to be 13.5p.

[fatslag69] 09/7/2019 20:03

Agree with wordog this won’t come back.
Sorry for all those invested.

[wordog] 09/7/2019 19:26

Final option is continue to support DFX as a separate corpoRate entity and continue to list on Aim. Which I believe is unlikely as they have already demonstrated their preference to buy equity rather than utilise the public listing for investment. My feeling all along has been their ambition to take DFX into their private group but have to wait until the 12 month minimum value becomes tolerable to make a sensible and affordable offer. Explains the lack of appointments amongst other decisions.

My holding isn’t big, but happy to hold out for some form of buyout. 12p would be welcome,

[5h4k35p34r3] 09/7/2019 19:01

wordog is right. The whitewash resolution is pertinent only to individual events, in this case, the previous act of making an open offer in April 2018 to provide further funding for DFX. It is not infinite and would need to be sought again if there were another open offer.
So, the options appear to be: BVT making another open offer to invest further in DFX and increase its shareholding; BVT making a buyout offer, which may seem unlikely with them having previously avoided doing so, but could be more likely now that the cost of their buyout is now a fraction of what it was last year; administration which results in all investors losing their investments, including BVT who have made by far the largest investment, who also risk losing DFX's commercial and technical assets to another party. Plus, formal investigation of the BVT Directors by the administrators.

[wordog] 09/7/2019 16:34

I thought the whitewash resolution only covered the previous equity sale to allow them to cross the majority shareholder threshold without mandatory buy out. I understand that the whitewash resolution did not continue indefinitely.

[fatslag69] 09/7/2019 16:05

Bv tech have a whitewash resolution so they do not need to make a mandatory offer. They could easily make the company private and ensure they have no uk directors. They are then not under the takeover code.

[5h4k35p34r3] 09/7/2019 15:43

I don't think honesty nor fairness come into it. If BVT buy out the remaining shares then AIM rules require that it is at the highest share price achieved over the previous year. Currently, that's 13.5p, achieved on 2nd November 2018 so a buyout up until November will cost BVT circa £1.58m.
Considering BVT's latest €950,000 loan plus annual AIM listing charges of €234,000, BVT are reaching the point where a buyout may be preferable to pumping even more money into DFX. All of their RNSs though suggest that they value being AIM-listed and want to deliver shareholder value, but talk is cheap...
After November though, the highest share price collapses further making it even cheaper to buy out. I remain suspicious as to how so many healthy buys have not improved the share price whilst so many pocket money sells have immediately devalued the stock.
Haike was an exception, perhaps fuelled by it being a profitable business so able to finance the buyout.
BVT own 67.1% of DFX and cannot delist without 75% shareholder support so would need to make an offer to remaining shareholders to permit delisting.
I think administration is unlikely as BVT lose control and potentially loss of their investment and DFX's assets. So, BVT are either strategically committed to DFX meaning further investment and/or sales driving recovery else this limping from one suspension to another prompts a buyout to take it private and answer only to themselves. If they have the moral and ethical conscience that Haike have, then that would be very welcome.

[wordog] 09/7/2019 15:13

That wouldn’t surprise me either, as long as it’s over 7p I’m happy lol

[dave4545] 09/7/2019 14:11

They own so much stock it would not cost them a lot to make a honest and fair buyout
for the rest.

It does actually happen from time to time.

Haik delisted price dropped to below 15p but biggest shareholder did right thing and bought out the rest for 30p which was a fair price.

[wordog] 09/7/2019 14:07

Your last paragraph is spot on, I agree that BVT are too heavily invested and given the last announcement of further financial support they have made their intent clear. The lack of CEO, CFO and CTO are cost saving measures, which is fine as BVT can supply similar functions. Accounts for 2018 will be poor, but let’s hope for improvement.

[5h4k35p34r3] 09/7/2019 13:38

I can't see the owners BVT wanting administration. If that happened, the Directors' activities will be investigated by the IP. Should anything untoward be discovered they may face disqualification as Directors, financial penalties and personal liability for company debt. They lose control of DFX and DFX's assets become the responsibility of the Administrator who will sell them off to the highest bidder to settle with creditors, i.e. BVT could lose all of DFX's assets to any other software house that's interested.

Administration is a bad dream for PIs as we will lose all of our investments but it's a nightmare for BVT who will lose the £millions that they've invested in convertible loans so far as well as potentially all of DFX's technical assets.

It is in BVT's interests and control to return DFX to being a profitable company, hence their investments so far, as recently as March, the revamped website, the licensing arrangements with BVT to exploit their Italian defence industry contacts, etc.

The accounts are late, again. When they're published they will be bad as they only go up to end-2018. What is needed is evidence of 2019 sales driving recovery and returning DFX to self-sufficiency and solvency. Otherwise, BVT will have to invest still further in DFX else lose everything, as will we.

[whiteshark1] 08/7/2019 08:36

Dave, I think you may be looking through rose coloured. By from administration is more likely, after PI's wiped out.

[wordog] 07/7/2019 19:44

It’s all a bit odd isn’t it

[dave4545] 07/7/2019 19:30

Looks like BVT will just buy them out for whatever price they decide.

[whiteshark1] 07/7/2019 19:29

they will probably be suspended for a couple of months now, genuine investors are locked in, if and when the continue trading, their shares will probably be worthless

[whiteshark1] 07/7/2019 19:27

Its nothing to do with general progress, they can't even be bothered to post their accounts, lack of management , 2nd year running

[wordog] 07/7/2019 17:48

The BVT bail out was welcome, but lack of general progress is disappointing

[wordog] 03/6/2019 12:26

I agree, long term they need to generate more organic sales, they have steadied the ship now they need to grow again.

[5h4k35p34r3] 03/6/2019 12:07

They were supposed to be launching new products in Q2 2019, not June, so nothing yet with 4 weeks of Q2 remaining. And the BVT payments are merely via a licensing arrangement, not earned value.
The only way I see the now all-time low in share value improving is via actual sales of DFX products. The accounts due by 30th June will not be good but they really need to show a recovery in sales via BVT's licence to distribute within the Italian defence, space, national security and critical infrastructures sectors, and elsewhere.

[wordog] 03/6/2019 10:55

Supposed to be launching new products in June and have payments from BVT due, I’m positive and will top up