Immotion Share Discussion Threads

[hatfullofsky] 02/3/2023 08:34

I've crated a new thread for those that want to follow the future of LETS

[hatfullofsky] 01/3/2023 16:11

This is bonkers but they have not done themselves any favours, yet again. They just need be clear and simple about the return, the price and the method.

[divmad] 01/3/2023 14:27

So basically, a buyer today, at 3.75p, like I did, could tender 64% of his/her shares at 5p for a 33% uplift in 8 weeks, whilst retaining a 36% interest in the rump business, which would have been cash per share of 4.5p-5p at the outset. That's a pretty good cushion to start the new business of with. Surely the share price will gravitate towards that cash value over time, or even exceed it, depending on how well management sell the new business concept and on delivery.

[divmad] 01/3/2023 13:38

5p does seem like the logical, neutral level to pitch the TO at, so that redeeming or remaining shareholders get equal access to 5p of value, whether it is 5p of actual cash or of embedded cash per share remaining.

[mcfly79] 01/3/2023 09:14

The important thing is that there is around 5p per share in cash. That's a definite. It makes sense to set the tender price at the cash value per share, especially with the remaining business being breakeven. Assuming £19.5m cash in the company prior to the tender offer (after the leavers buybacks). With 394.5m shares, that's 4.94p per share. If they set the tender offer at that price then 253m shares will be bought in the tender offer. There will be £7m cash remaining in the business and 141.5m shares. So 4.94p cash per share remaining too. That's the right price to make people accept the tender offer, and some may decide not to take it and keep their shares.If, say they set the tender offer price at the current mid-price of 3.625p per share. Then 344.8m shares would be bought in the tender offer. The remaining £7m cash and 49.7m shares would be the equivalent of 14p cash per share. Nobody would take the tender offer. Why would you accept 3.625p, when there is about 5p per share in cash and you're giving value to the remaining shareholders.

[bennywin] 01/3/2023 08:36

Seems like the markets think they are going to fritter away the retained money.
A very muted market reaction this morning.

[hatfullofsky] 01/3/2023 08:30

Mcfly791 Mar '23 - 07:43 - 3001

Thanks you. That's what I was missing, if the offer is 5p with a max % of shareholding, I'm good with that.

But is that usual ?

[mcfly79] 01/3/2023 08:26

The 2 Feb RNS said the disposal proceeds were £20.5m ($25.2m) and that the company would have approximately £20m of cash, net of transaction fees.



The USD has strengthened since and if the proceeds were exchanged into GBP this week, then they would be closer to £21m rather than £20.5m. So retained cash may be between £20m and £20.5m.



After the leavers buyback that would be £19m-£19.5m.



£12.5m paid out in the tender offer, so £6.5m-£7m left in the company.

[divmad] 01/3/2023 08:09

What's left over to fund the remaining business?

[mcfly79] 01/3/2023 07:53

The share price should be trading much higher than it is. Closer to the cash value of 5p.

[mcfly79] 01/3/2023 07:43

I imagine the tender offer price will be based around the cash value of the company, perhaps 5p per share. E.g. they will buy back 250 million shares at 5p per share. With all shareholders entitled to sell at least 63% of their shareholding (250/394.5). If some shareholders decide not to take part in the tender offer then the remaining shareholders will be able to sell more of their shares at 5p.

[mcfly79] 01/3/2023 07:21

Looks like £13.5m for shareholder return. £943k being used for the buyback of the leavers shares. Leaving £12.5m.The buyback of leavers shares is good for shareholders since it's done at a lower price than the cash value per share. Leaving more cash per share for remaining shareholders. Currently 416.1m shares. 21.6m leavers shares to be bought back. Leaving 394.5m shares. £12.5m to be returns over 394.5m shares = 3.17p per share. Returned to be paid in May. In line with the 8-12 week timeline following the GM.

[mcfly79] 01/3/2023 07:18

Tender offer so that it's taxed as capital gains rather then income. Better for most shareholders.

[mcfly79] 01/3/2023 07:17

Great to see the completion. I calculate the return is about 3.17per share.

[hatfullofsky] 01/3/2023 07:16

Any views on why this is a Tender offer instead of a clean dividend.

[hatfullofsky] 01/3/2023 07:13

Well the return was never going to be immediate. May 23

[yump] 28/2/2023 12:06

Pre covid the LBE plan looked fine, so I was hoping it might succeed despite some doubts about MH.

[bennywin] 28/2/2023 09:31

Having skim read some old threads, the Netplay story looks very similar and certainly raises some questions.

[yump] 28/2/2023 09:08

Does anyone know if the award-winning Gorilla Trek is also in the HBE offering, or was the nice award presentation and the IMMO mission statement about Zoo expansion just sticking 2 fingers up at investors ?

[yump] 28/2/2023 09:02

Have a look back at the history of Netplay and some here might change their view about “Martin”.

When the going gets tough sometimes the not so tough just get out or morph into something else.

HBE is not profitable and acquisitions are mentioned so all the waters will be muddy for some time to come

[bennywin] 25/2/2023 05:24

This article says there are 30 Gorilla trek installations.
How is that even possible ?

hxxps://www.immotion.co.uk/dian-fossey-gorilla-fund-celebrates-lumiere-award-win/

[napoleon 14th] 21/2/2023 13:58

bennywin, LOL, BUT.....

I originally stuck with IMMO because they avoided wipe-out in Covid.
That forced several strategy changes at IMMO; unsurprising.

Since then management have all the consistancy of a weather-vane in chosing in which direction to go. If HVE is going so well, how come this wasn't the case earlier & why sell LVE? LVE was the mainstay & IMO stands a good chance of good royalties from China as well as profits from existing sites.

The chopping and changing in IMMO means they've lost too much cred. with me
& I've been reducing, tho' not too fast as there's room for share price to move up.

[bennywin] 21/2/2023 12:50

A reminder Mcfly

Only a few months ago they were going to almost give it away and the LBE was going to be the making of the company.

Remember “‘over 400 headsets was going to land straight on the bottom line” . They then get to 500 and flog it off.

They seem to be advocates of headless chickens.

Bearing in mind that the initial investors have been burnt , I doubt they would have much confidence going forwards.

Each to their own I suppose, and I am sure the next lot of cannon fodder will clutch on to the hope that they do well on the next part of their search for the holy grail.

[mcfly79] 21/2/2023 12:34

A reminder of what is happening in the HBE business.£800k of sales in 24 hours on QVC U.K. On top of that there is QVC US, and the products are also being sold in other retailers - Amazon, Selfridges, Hamleys, Dixons, FAO Schwarz and Fraser group.Significantly larger orders to come for 2023.'In the period following the Interim Results, QVC undertook a small trial in the UK selling some 3,000 Vodiac units in a single demonstration. The success of this led to a test in the USA, where 4,000 units were sold in a matter of hours, plus a 'Today's Special Value' promotion on QVC UK, where 23,000 units, some £800k of sales, were sold in a 24 hour period. Sales of the Let's Explore Oceans packs have been buoyant through both Amazon, and direct to consumers with this line selling out in Q4 2022.Talks with our distribution partner are already underway about significantly larger orders for 2023 and beyond...''The Board believes that the HBE business has clear potential and since the Interim Results, HBE has developed, and honed its business model to have a greater B2B focus. Over the last six months it has undertaken a number of successful initiatives via its distribution partner, Wicked Vision. These include a number of trials with QVC, a major global shopping channel where circa £1m of the Vodiac product, at retail value, were sold in a small number of on-air TV demonstrations. It has also launched Let's Explore Oceans and Vodiac into the retail sector, securing a number of trial retailer partners, including Amazon, Selfridges, Hamleys, Dixons, FAO Schwarz, and Fraser Group, to name but a few.'