Molten Ventures Share Discussion Threads

[steeplejack] 29/11/2023 07:48

The Company is pleased to announce that the PrimaryBid Offer successfully completed and closed at 3.00 p.m. yesterday. A total of 888,888 New Ordinary Shares have been subscribed for at a price of 270 pence per New Ordinary Share (the " Issue Price") pursuant to the PrimaryBid Offer. Following the successful closing of the PrimaryBid Offer, the Company has raised gross proceeds of GBP57.4 million via the Fundraise.

[makinbuks] 28/11/2023 12:10

primarybid was what i was referring to

[zangdook] 28/11/2023 12:00

"A total of 20,370,370 New Ordinary Shares have been subscribed for at a price of 270 pence"

That's £55m already, and they said they wanted to "conduct an equity raise of c.GBP50 million". So that's ok, just leaves the primarybid results to be seen. I'm not sure I've ever seen a primarybid offer where it wasn't possible to pick them up cheaper in the market...

[makinbuks] 28/11/2023 11:43

Trading 6% below the offer price, doesn't bode well for take up

[spectoacc] 27/11/2023 16:21

Lol


Martin Davis

Chief Executive Officer

10,000


Ben Wilkinson

Chief Financial Officer

10,000

[steeplejack] 27/11/2023 08:13

"Certain Directors of the Company, Martin Davis, Chief Executive Officer, and Ben Wilkinson, Chief Financial Officer, intend to participate in the Placing. Incoming Chairman, Laurence Hollingworth, also intends to participate in the Placing."Nic Brisbourne CEO of Forward is returning to his old company then.Together we stand.Feels like this was all arranged by old mates over a pint.Forward portfolio currently trading on 50% discount to assets.The deal makes sense.

[steeplejack] 27/11/2023 07:55

Placing 70% done and dusted then."Molten has today also announced its intention, subject to obtaining Molten Shareholder approval, to conduct the Fundraise at a price of 270 pence per Molten Share. Forward Partners' largest shareholder, BlackRock, has irrevocably undertaken to subscribe for up to GBP25.0 million worth of Placing Shares at the Issue Price under the Placing. British Patient Capital, a subsidiary of British Business Bank plc and existing shareholder in Molten, has also agreed to subscribe for GBP10.0 million worth of Subscription Shares at the Issue Price. The net proceeds of the Fundraise will further capitalise ...."

[kooba] 27/11/2023 07:54

Its not massively dilutive its relative small in terms of raising for cash. The shares at 63% discount being issued for acquisition are buying a company at a 53% discount that has cash balances.On balance mildly dilutive but brings cash into the business which puts it on a better footing and we have BlackRock as a supportive shareholder.Seems a good deal ..a reason they trade at a 63% discount is down to the thin finances , this should help extend funding projections and hopefully reduce some caution in the rating.See how it's received but i would think positively even after Fridays jump.

[spectoacc] 27/11/2023 07:34

Gutsy. In conjunction with a merger with FWD.

[riverman77] 27/11/2023 07:22

As expected, a massively dilutive fund raise announced on a 63% discount to NAV

[rambutan2] 22/11/2023 21:44

Absolutely columbarius. They are facing the value destructive consequences of having been very stupid/greedy. VC investing and debt should always be a no no, and it's rather unforgivable that they thought that rule didn't apply to them.

[columbarius] 22/11/2023 18:46

The main issue is cash. £24.6m in the bank at 30/6/23 but £20m required to service portfolio companies and £5m to pay bank H2 interest and financial lease leaves nothing.
Cash was supported in the first half by £33m realisations. All hangs on being able to sell more of the family silver in H2. Having to down more debt would look bad.

[steeplejack] 22/11/2023 13:58

A nudging down on NAV hardly makes much difference in the context of the current discount.If the company's assessment of its assets is anywhere near accurate,the shares appear to be a very good long term investment.

[purple boots] 22/11/2023 11:39

NAV reduced to 735, but interims seem well received. Bowly.

[johnrxx99] 10/11/2023 15:59

We will have to wait for more confidence in the IT sector I suspect.

[kooba] 10/11/2023 13:33

Often the case would be 12-18 months..but these kind of companies are basically just pooled investment trusts not really operating businesses...i guess they just set the target at the prospective NAV , as shop they are not going to say sell at a discount to assets. If the IPO market continues to recover and some of GROW portfolio companies get back on the listing runway then i guess some excitement returns. For now even though the company seems to be weathering the underlying market challenges it's clear that the equity market is still very wary of PE valuations.

[pugugly] 10/11/2023 12:27

kooba - Thanks - Unusual not giving a timescale. I was under the impression that target prices were usually to be achieved within one year - with the unwritten caveat caveat of everything going to plan.

[kooba] 10/11/2023 11:31

Which is why i pointed out it was shop research , however the answer to your question was in the post.....735p (787p previously), which is also the basis of our new target price.The target price is 735p...they are not specifying that is a i year timescale btw.

[pugugly] 10/11/2023 10:49

Always take brokers' target prices with with a very large sack of salt!
For the record what is the Numis target so can see how accurate or not in a years time!

[kooba] 10/11/2023 10:38

House broker Numis valuation comment.At 269p , the shares are trading on a c 63 %discount to NAV. Whilst it's still a bit of waiting game for now, we believe the discount will become compelling as markets recover. The portfolio has shown resilience through this difficult environment and strong discipline by the management means the portfolio remains well-supported. We assume NAV/sh by YE is flat at 735p (787p previously), which is also the basis of our new target price.

[kooba] 10/11/2023 07:51

63% discount to current NAV per share seems highly cautious especially considering the comments on private equity funding environment. Though IPO a similar facing UK listed also trading at a like discount to recently reported NAV..its a sector thing.As things stabilise and hopefully there is an improvement in the funding environment and further progress to sustainable cash generation in the portfolio i can see a significant rerate to more rational and historic discounts nearer 30%. Any exits at or above book value would also reinforce value and lead to reassessment of market value.Not for the risk averse but could be an opportunity to buy into an asset portfolio offering growth at 40p in the £1.Holder small underwater.

[rambutan2] 02/11/2023 05:36

It's also worth noting that AGT has been upping its stake recently, despite it having such a large field of value to pick from at present.

I've also wondered whether GROW might end up being targeted by one of the larger US VCs. In the past, despite quite a lot of effort, they have struggled to make much headway in Europe, with its borders, red tape, languages, varying regulations etc etc. GROW, with its established platform, might offer a solution of sorts?

[riverman77] 01/11/2023 10:49

Yes and remember that GROW hold these positions alongside very sophisticated venture capital investors with long track records, so they're not going to be buying any old rubbish with zero value! Agree that public equity market valuations can be even more irrational than private investments, as they are more prone to greed/fear and subject to all sorts of momentum effects and distortions.

[rambutan2] 31/10/2023 22:17

Near zero, I don't think so!
Most companies are unlisted, a stock mkt listing is not needed to value them.
What is so great about stock mkt valuations? Mr Mkt tends to the manic, too much up and too much down.
Many tech companies are bought before they've made a profit.
The only price that really matters is the exit price.
And it's exits that GROW really needs, at an uplift, both to restore some confidence and to get some cash and reduce the the debt which it was stupid enough to draw down.
The current huge discount offers a large margin of safety for nav reductions, which i'm sure will come.

[riverman77] 31/10/2023 21:54

They have a good track record of selling positions well above book value so very much doubt the aggregate value is anyway near zero (although there might be some individual positions which are worth zero). The bigger worry is they could be close to running out of cash, and of course the underlying companies are all cash hungry, so suspect they may need to do an equity raise at some point.