Emv Capital Share Discussion Threads

[1gw] 05/10/2024 14:32

I'm not trying to drive the shareprice anywhere. I've followed NSCI/EMVC for a while, after being alerted to it by one of the other posters here. I'm interested in biotech in particular, and also have an interest in stories that appear "too good to be true."

I only started posting today because of the ridiculous post 54 by btgman, and then decided to continue after a bit of further provocation from loaf. If you're going to put incendiary posts like that on a bulletin board, expect some response from those who (think they) actually know something about the subject.

[blakieboy7] 05/10/2024 14:32

A couple to add to the ignore list

[retirementfund] 05/10/2024 13:56

WARNING WARNING WARNING WARNING WARNING WARNING WARNING WARNING WARNING WARNING!

Several Posters are posting negative spin on here trying to drive down the share price EMV Capital have stated on several occasions that they do not need to raise money.

The article below represents an accurate appraisal of the company.



This is my opinion

[1gw] 05/10/2024 13:42

loaf - they do need short-term funding, don't they? In that bit from the 2023 results going concern section I quoted above they included:

"The Board plans to sell various portfolio assets in part or in full in order to meet the funding requirements. "

Again in the IMC Q&A session (around 38 minutes in) the CEO talked about the failed attempt to sell ProAxsis. They agreed to look at strategic options, they appointed an M&A advisor, they couldn't identify a good exit.

And ProAxsis is one of the companies where they have recorded a big increase in fair value, from £3.5m at end-2023 to £8.0m at end-1H 2024. This increase is based on the funding round announced in April where they raised £1.8m. However, only £211k of this was from new investors, with a lot coming from CLNs and loan conversion (loans from EMVC) where you could argue the debt might not have been worth face value. In fact all new shares issued for this raise except for the warrant-related ones were preferred shares carrying a liquidation preference.

"The Investment was led by the Company's wholly owned venture capital and corporate finance firm, EMV Capital, syndicated from a cohort of private investors. The Investment includes c.£211,000 from new investors, c.£36,000 from the exercise of warrants (Warrants) granted to existing investors in connection with convertible loan notes (CLNs), the conversion of the CLNs (and interest thereon) valued in total at c.£455,000, and the conversion of loans from NetScientific valued at c.£776,000. This additional funding is complemented by ongoing non-dilutive funding from, amongst other grants awarded, a recent c.£333,000 grant from Innovate UK.

The new shares issued in connection with the Investment (other than those resulting from the exercise of the Warrants), are preferred shares (Preferred Shares) with a liquidation preference multiple of 1.1 (Liquidation Preference). "

[loafofbread] 05/10/2024 10:58

And there is the crack.

You both admit to wanting to buy in , but at a cheaper price.

Just a shame you go about it in such an underhand way.

The account element is explained in the recent IM and is just the way it is done, as you both well know.

"For the period to June 2025, the Group requires (including subsidiaries) a minimum of approximately £3.6 million to continue as a going concern. NetScientific and EMV Capital require £1.6m, while the other subsidiary portfolio companies Glycotest, ProAxsis and Cetromed require £2.0 million.

The company is well on it's way to achieving the £1.6M in annual revenues and Glycotest/Proaxis/Cetromed will be from External funding as stated many times.

As mentioned before they have so many assets that could return multiple millions over the 6/12/18 months arguing over a few pence on the share price seems a bit pointless.

If you are really that interested, perhaps give Ed Hooper a call or email.

[1gw] 05/10/2024 10:27

They also do appear to have had to resort to "internal" financing of the recent Q-Bot fundraising where they contributed a material amount of the £1.5m raised by issuing new shares (albeit at a premium) and converting fees due into Q-Bot shares.

The issuing of new shares to Q-Bot is interesting, given presumably Q-Bot needs cash rather than shares. There appears to be a weak "orderly market" provision in that Q-Bot has to sell the shares through the EMVC broker, but we might guess that those shares are going to create a bit of an overhang.

"The Group has participated directly in the Fundraising, including:

· a £349,968.22 subscription for Q-Bot shares, such amount to settled by the Company issuing to Q-Bot 411,727 new ordinary shares in the capital of the Company (Consideration Shares) at a price of £0.85 per New Share, a 35.0 per cent. premium to the closing price of the Company's ordinary shares on 29 July 2024; and

· a £198,143.92 advance subscription pursuant to an ASA, converting outstanding fees due to EMV Capital into Q-Bot shares.

EMV Capital's EMVC Evergreen EIS Fund has also participated in the ASA.

The Consideration Shares are subject to orderly market provisions such that if they are to be disposed of they must be sold through the Company's broker."

[nigelpm] 05/10/2024 10:20

Of course they are of legitimate concern. There is no way the discount would persist without something being "up".

A watching brief for me. Any kind of cash receipt through sale and I'll happily pay 10-20% more for the safety net. Too much other stuff without more risk like CHRY and IPO.

[1gw] 05/10/2024 10:13

I think the balance sheet and going concern statements are a matter of legitimate concern, and are one of the key things that has held me back so far from investing here.

While there appear to be plenty of options to raise cash, the fact is that the near term funding requirements have increased between end-2022 and end-2023 and they have not so far managed to achieve a portfolio exit that would provide them with a decent cash buffer.

Compare these sections of the going concern statement from 2022 and 2023 full year results. Note that the amount required in the near-term (broadly 1 year beyond publication of the full year results in May/June) has gone up from £1.5m to £3.6m, although it looks like the 2022 number excludes the subsidiary companies whereas for 2023 they've brought subsidiary financing into scope. Note also that in the 2023 statement they have dropped the comment about having "no current intention to pursue [a placement] in light of the Company's current share price relative to its net assets."

2022:
"For the period to June 2024, the Group requires a minimum of approximately £1.5 million to continue as a going concern, assuming that its subsidiary portfolio companies continue to be fully funded by external financing as expected. This amount can be financed through several options, either on their own or in combination, including accelerating revenues at Group level, partial or full exits from portfolio company stakes, soft and non-dilutive finance, and/or a placement of NetScientific shares. Whilst a placement of NetScientific shares remains an available option, the Board has no current intention to pursue that in light of the Company's current share price relative to its net assets."

2023:
"For the period to June 2025, the Group requires (including subsidiaries) a minimum of approximately £3.6 million to continue as a going concern. NetScientific and EMV Capital require £1.6m, while the other subsidiary portfolio companies Glycotest, ProAxsis and Cetromed require £2.0 million.

This amount can be financed through several options, either on their own or in combination. The subsidiary companies plan to be funded by external financing, as they have done in 2023. This could include convertible loans, equity or debt finance.

The Board's plans for satisfying the going concern needs of NetScientific and EMV Capital are primarily based on service fees for corporate finance, value creation services, fund management and other fees. The Board plans to sell various portfolio assets in part or in full in order to meet the funding requirements. The Board can also consider the option of a placement of NetScientific shares."

[nigelpm] 05/10/2024 09:41

hxxps://theoakbloke.substack.com/p/not-nsci-eee-em-vee-see

[blakieboy7] 05/10/2024 09:29

Does anyone have a link please?

[nigelpm] 05/10/2024 09:25

OB's article is exactly what brought me here. His response is much more considered and sensible.

[loafofbread] 05/10/2024 09:16

Talking of such things, The Oak bloke has posted an excellent update this morning.

Well worth a read.

[loafofbread] 05/10/2024 09:14

Nigel,

Get a life. Every AR has pages and pages of risks and going concern blurb as you well know.

Any reason for your sudden interest in EMVC?

Incredible that you know more than the company, house broker, Simon and the Oak bloke who have all provided detailed analysis of the company and have made it clear that the assets alone are worth on average £1.75/£2.00 a share.

[nigelpm] 05/10/2024 08:55

It's even in the Interims!

Going Concern



The 2023 Annual Report audit report drew attention to the material uncertainty relating to going concern as follows:



"We draw attention to note 2 to the financial statements, which indicates the Directors' consideration over going concern. The going concern of the Group and Parent Company is dependent on additional funding being raised which has not yet been executed. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the Group and the Parent Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate."

[btgman] 05/10/2024 08:37

Nigel
You are talking out of your backside. Emv have a clear stated policy that they are not raising money.
These liabilities will relate to companies they hold over 50% in so ultimately the liabilities sit with those companies who will raise money externally to EMV Capital.
Please don't cone on here spouting B.S
AIMHO
GLA
BTG

[nigelpm] 05/10/2024 08:00

Trade and other liabilities are 3.6m. unless they raise cash it goes bust.

[loafofbread] 04/10/2024 16:29

Odds on that 50k is another Director buy.

[kingston78] 04/10/2024 11:02

The spread was and is wide, so anyone buying shares in this company will have lost about 10% instantly. Previously, there were days when the spread was 1 p, so that would have been reasonable.

[loafofbread] 04/10/2024 10:05

Worth following Beam (Rovco) and Nu Quantum from the Martlet stable.

They are going to be absolutely massive over the next few years.

[kingston78] 03/10/2024 10:05

The asking price is nearer to 55 p, so I abandoned my buy order.

[loafofbread] 03/10/2024 07:33

Risk/reward is insane at this level.

Doesn't come along that often!

Added a few which moved the offer up a tad.

Our PDSB investment is now approx £750K to the good since results.

Yesterdays data just reinforces the hope that they have a cancer killing platform. All the data from the past 5 years has been 100% positive.

A step closer to waking up one day to find it's been bought for $15+ a share and we have £10M in the bank.

Having listened to the presentation for a second time there is so much potential to come out over the next 6/12 months.

More fool the market for having no idea.