Heiq Share Discussion Threads

[kemche] 09/11/2023 16:41

Could he be any wrongerer?


PWhite733 Nov '23 - 11:51 - 228 of 234
0 0 1
Catabrit - "It would not surprise me if this slowly faded down."

You couldn't be more wrong. That the stock has held firm at 20p on the bid side when all the sells are AT suggest there is a buying picking up stock big time.

[davemac3] 09/11/2023 16:29

Big drop on small volume

[jammytass] 09/11/2023 16:03

has the bod been naughty? fraud!!!???? hugo boss pulls out?

[glavey] 09/11/2023 15:41

Banana skin?

[ali47fish] 09/11/2023 13:05

any reason for today's fall

[hedgehog 100] 06/11/2023 14:09

30/10/2023 07:01 UK Regulatory (RNS & others) HeiQ PLC Interim Results LSE:HEIQ Heiq Plc

"Half year results for the period ended 30 June 2023

... Financial Overview:

-- Revenue reduced by 26% to US$20.5 million (H1 2022 restated*: US$27.6 million)
-- Gross profit margin of 40.9% (H1 2022 restated*: 41.5% in H1 2022)
-- Adjusted EBITDA of US-$3.6 million (H1 2022 restated*: US$0.7 million)
-- Operating loss of US-$6.0 million (H1 2022 restated*: US-$1.6 million)
-- Loss after taxation of US$-6.5 million (H1 2022 restated*: profit of US-$1.9 million)
-- Cash balance as at 30 June 2023 of US$7.3 million

* Details on restatements of prior year financial information are disclosed in Note 2 of t he Consolidated Financial Statements.

Operational Overview:

Trading conditions for the markets of our commercialized product range continued to be challenging during H1 2023 and, as highlighted in detail in our Full Year results for the 12 months to 31 December 2022, the Company took decisive steps to reduce its cost base and reorganize the business to maintain its innovation and differentiation capabilities during the period under review. With costs reduced and operations adapted in light of the challenging headwinds our entire industry is facing, the Company expects H2 2023 trading to stabilize

... Liquidity as of 30 June 2023 & Going Concern Assessment

As of June 30, 2023, the Company reports a cash balance of US$7.3 million (December 31, 2022: US$8.5 million). To manage its cash balance, the Group has access to credit facilities totalling CHF9.0 million (approximately US$9.8 million as of September 30, 2023). The credit facilities are in place with two different banks and both contracts have materially the same conditions. The facilities are not limited in time, can be terminated by either party at any time and allow overdrafts and fixed cash advances with a duration of up to twelve months.

As of September 30, 2023, the Group has drawn CHF6.3 million of the facilities (CHF2.4 million as of December 31, 2022) (see Note 2 for details including maturity dates). The facilities are not committed, but the Board has not received any indication from financing partners that facilities are at risk of being terminated. Furthermore, the Board is in discussions with financial institutions to replace the currently uncommitted credit facilities by committed, long-term facilities, but the outcome of these discussions remains uncertain.

The Group's directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and operate within its credit facilities for the period 12 months from date of signature. Nevertheless, the Board acknowledges the uncommitted status of the facilities which could be terminated requiring the refinancing of debts, and which casts material uncertainty on the going concern assessment until appropriate longer-term funding is in place. Further disclosures on the going concern assessment are made in the notes to the financial statements. ..."




So HEIQ expects H2 trading to "stabilize".

I take that to mean that they expect it to be similar to H1, as opposed to getting worse.

Though this is still just an expectation, two thirds of the way through this period.

And this is despite having reduced costs in H1.

Other things being equal, such stabilisation would suggest a H1 operating loss of c. US$6M., like H1.

Cash at 30.6.23 was US$7.3M., but this is balanced out by the short-term borrowings of US$7.47M. at 30.6.23.

HEIQ has CHF9.0 million (equating to c. US$9.8 million as at 30.9.23) of (discretionary) credit facilities, but as at 30.9.23 had drawn down 70% of these, with just CHF2.7 million left, having drawn down CHF3.9 million in the first 9 months of this year, an average drawdown rate of CHF1.3 million per quarter.
So at this rate of drawdown the facility would be exhausted by early April 2024.

That seems incongruous with the company's indication that funds should last until late October next year.
In order to last that long, with no additional injection of funds, you would think that trading would have to improve significantly ... whereas the company is only expecting stabilisation.
Replacement of the short-term credit facility with a long-term facility of the same size wouldn't actually provide more money.

So the bottom line is that the company looks to be running out of money, and has a bad track record of misleading investors with its forecasts.

A big placing looks to be the most likely outcome, probably within the next few/several months.

And in the current very bad fundraising environment for loss-making companies like this, that is likely to be at a lot less than the current share price of 20p.

That I believe is why HEIQ's CEO hasn't bought shares since the company's return from suspension, despite coming out of the close period: he's 'keeping his powder dry' for a forthcoming discounted placing.

And if he apparently doesn't have confidence in the current s.p., despite the big drop since his buys in January at 28p average & 34p, then why should anyone else?

[pugugly] 03/11/2023 11:57

Darren Morcombe – Chairman of the Board


2001 to current Springtide Capital Pty Ltd Founder & Ex-ChairmanCurrent CVW CleanTech Lead Investor & ChairmanCurrent Foran Mining Corp (FOM.V) Founder, Lead investor & Advisor to CEOCurrent Heiq (HEIQ.

[pwhite73] 03/11/2023 11:51

Catabrit - "It would not surprise me if this slowly faded down."

You couldn't be more wrong. That the stock has held firm at 20p on the bid side when all the sells are AT suggest there is a buying picking up stock big time.

[catabrit] 03/11/2023 11:24

Interesting RNS. I am surprised that Carlo did not buy. No disrespect to Darren who I am sure is a good investor but the fact that Amati sold almost their entire stake at the bottom says everything you need to know about HEIQ’s future shareholder base I.e it ain’t going to be institutional. The rise in the share price has made me look very stupid (happens all the time in the short term so I get used to it!) but I stand behind my thesis. I think this will be in the doldrums for a long time. Even the moonshot bets are way off from meaningful revenue and with rates at 5% and a tonne of VC type bets available at 15-35p in the £ (GROW and multiple others), I can’t see why the market would value HEIQ’s portfolio at a premium. It would not surprise me if this slowly faded down. It is now at a market cap where the vast majority of money just doesn’t give a damn. I look at the balance sheet and the cash flow statement and I look at the markets that HEIQ operates in and there is nothing that entices me to buy it. I suppose people will fall in and out of love with the story and good luck to them.

[livewireplus] 03/11/2023 08:28

Anyway I'm off back yo bed with my warm duvet :-)John Lewis Active Anti-Allergy with HeiQ Allergen Tech* Duvet, 10.5 Tog, Doublehttps://www.johnlewis.com/john-lewis-active-anti-allergy-with-heiq-allergen-tech-duvet-10-5-tog/p6428198

[livewireplus] 03/11/2023 07:56

We seem to have a disgruntled constant down-ticker who actively reads this thread- well the world takes all sorts ... otherwise it'd be boring.

[livewireplus] 03/11/2023 07:31

Is it this one?'Darren is a major shareholder of several public companies."https://gb.wallmine.com/tsxv/fom/officer/1664131/darren-morcombe

[ali47fish] 03/11/2023 07:26

Darren Morcombe buys a chunk - who is he

[davemac3] 02/11/2023 13:07

higher than before suspension now

[hedgehog 100] 01/11/2023 19:22

Packman,

It's over a year since HEIQ filed this complaint:-

10/10/2022 06:00 UK Regulatory (RNS & others) HeiQ PLC Files Breach of Exclusive Agreement Complaint LSE:HEIQ Heiq Plc


Though as far as I'm aware, they still haven't commenced legal proceedings.

We don't have the detail to give an informed opinion on the merits of this claim, so here are just a few general points of mine, for what they're worth:-

• Things are moving very slowly, and will probably continue to do so.
• There are two sides to every story.
• The market will likely largely discount any potential settlement until any is achieved.
• This claim is probably as likely to put off potential investors as attract them.

[catabrit] 01/11/2023 18:14

This is true and I am actually OK with the market embarrassing me. Happens all the time in the short term. Long term, I am embarrassing it and that’s all I care about.

I am the fastest investor in the world to accept a loss. Soros would be proud! Why? Because my opportunity cost changes daily. Here I had bought at 19p odd pre suspension. Upon resumption of trading the bid was 8p. I decided to re underwrite at that price. So I held. 8 suddenly went to 14-15 and so I sold. So you can either look at it as a massive loss or you can view it as a double. I stand by my reasons and have plenty of places to put the money which offer a much better risk reward than HEIQ. I really hope this ten bags for everyone!

[glavey] 01/11/2023 17:36

"Sold most of my position for about 13p." "Looking forward to seeing what happens!"

It's what usually happens, the market laughs and closes at 18p.
¯¬_(ツ)_/¯

[packman8] 31/10/2023 22:01

On the Investormeet podcast today Carlo stated that they were still pursuing ICP for the $30m which was the contractual minimum exclusivity fee for the contract term.
Is there any chance they would receive anything for this complaint?

[volsung] 31/10/2023 16:55

Take a HEIQ Carlo

[catabrit] 31/10/2023 15:52

Sold most of my position for about 13p. A big loss on my average of 19p but a big gain on the 8p bid this morning. It is now an option like bet for me i.e small. This has a lot of upside and I wish everyone well. It is just not my sort of bet and I have other uses for my capital. I don’t think Carlo gets capital allocation at all. He’s a big dreamer and whilst I admire that and think it’s a necessary trait for a CEO / Founder, I find it unconscionable how much wealth he has squandered on acquisitions. I think he is the sort of guy that goes for home runs and if you align yourself with him, you might get a few. Down here the odds are high that will happen so I’m happy to play but not with 4% of my NAV. Looking forward to seeing what happens!

[catabrit] 31/10/2023 13:36

Carlo has some nerve doing the investor meet whilst in the car!!

[jpatara3] 31/10/2023 12:51

I managed to read the results on the company website. As an athlete I can vouch for the HEIQ products that I have tried. I topped up my existing holding this morning. I actually took money out of high savings rate to invest today - crazy!! but I see a long term for this company. Might take years or a decade, I can wait.

[catabrit] 31/10/2023 11:50

Am I the only one who gets a dodgy PDF when they download the annual report? It is all over the place and it looks very amateurish.