Lightwaverf Share Discussion Threads

[clocktower] 18/11/2019 12:35

Food for thought for you Whoppy, If there are no offers for the company, CC may for example offer to put up some funds at say 0.005p - It get recommended as the only thing on the table - Take over Code gets waiver - then how much do they own - 80/90% - then within months de-list. Seen it all before.

[whoppy] 18/11/2019 12:16

I think if thy don't find a buyer then CC would have lost a lot of money and taking it private will only mean they will have to pump more money in on their own. They need a big buyer. CC and the concert party currently own 38%. They can only go up to 50% and then they have to make a mandatory offer. If they want to whitewash shareholders the Takeover Panel might refuse and may force them to make a mandatory offer.

Waiver of Rule 9 of the Takeover Code.

In the event that the waiver by the Panel is approved by Independent Shareholders passing
Resolution 1 at the General Meeting, the Concert Party may hold between 30 per cent. and 50 per cent. of the Enlarged Share Capital following completion of the Transactions. Under Rule 9.1 of the Takeover Code, any further acquisition of Ordinary Shares carrying voting rights by the Concert Party in excess of what has been permitted by the Rule 9 Waiver will trigger a mandatory offer for the Company.

In addition, the Concert Party will not be restricted from making an offer for the Company unless the Concert Party either makes a statement that it does not intend to make an offer or enters into an agreement with the Company not to make an offer. No such statement has been made or agreement entered into as at the date of this Document.



The concert party own 47,153,454 shares, 38.16%
There are 122m shares in issue.
Only leaves another 15m shares and they go over the 50% threshold and they will be forced to make an offer. So they need another investor or a buyer.

[sinkyj] 18/11/2019 11:32

Don't confuse not chosen to, with can't. There are several Chinese companies that sell products into Europe, USA but not the UK. One thing LightwaveRF have proven to the world is that there is no money selling in a country where your products have to be different to much larger unified market on the doorstep. One company, I am very well acquainted with sells wifi led bulbs and lamps and has a >$100m revenue and large profits. What would it gain by buying LW? As I've said I've not read up on the implications of the announcement but trust me, they'll find a way. It only takes 75% vote to take private, then they can do what they like. What happens if there are no suitable bidders for the company?

[whoppy] 18/11/2019 10:38

Chinese can't get their product into UK or EU.
CC would have to be classed as a related party takeover if CC entered into a formal process and then they would have to pay a minimum of the highest share price in the last 12 months.

[sinkyj] 18/11/2019 10:26

Chinese Whoppy? . Have you been to China and seen the smart home tech? I've designed a reasonable bit of it myself. I can assure you Huawei won't be on the list of suiters. Dozens of smart socket and lighting suppliers. Some linked with names like Schneider. Xioami Mihome is superb and a fraction of LightwaveRF prices. As I said a little while ago, likely suiter is Resideo, as they are a perfect fit as they are up the same technological cul de sac. I believe their share price has halved since the split with Honeywell though. Not carefully read the RNS to see if this is a possibility, but, I warned several times about CC buying the rest for a pittance and taking it private again.

[whoppy] 18/11/2019 09:33

Don't know, must be near £10m. They have 10 days from today to whitewash themselves if they are going to take it over. Can't see them writing off that amount of cash and then needing someone to run the company for them. They'll just be back at square one and millions more needed.

[clocktower] 18/11/2019 09:26

Keep your chin high whoopy, I will say no more to dampen your dreams but tell me what do you think is CC`s total investment in this to date?

[whoppy] 18/11/2019 08:16

Clocktower, I think it will be worth more to Resideo or someone who can leverage off their own products and brand name. Wouldn't take much effort for a big player to run with this and do well, imo. That's if you believe in SmartHome tech and that it has a future and there is a market for it, which I believe there is. LWRF were starting to run decent numbers and entering growth and profitability. They've established themselves in the market and have the best product for smart power and light switches and a unique selling point.

CC don't want to put anymore money in without having to make an offer or wipe themselves out, imo.

[clocktower] 18/11/2019 08:12

CC will want their millions back for sure whoppy but wanting and getting are two very different things.

The way I see it panning out is as follows - Nobody willing to pay more than a pittance, so CC will (in the best interests of ALL stakeholders - LOL) put up more money at a fraction of current levels. The city will approve it (as they always do - whitewash) and de-list, wiping out all minority holders BUT of course those on the BoD will get either their jobs or a decent deal.

If your still in whoppy, I hope it works out better for you than I think it will - Good Luck.

Another AIM car crash.

[whoppy] 18/11/2019 08:03

Have to put a realistic value on it now. Will be profitable to someone as all the legwork and R&D has been done.

[whoppy] 18/11/2019 07:57

Committed Capital have put millions into this. They will want their cash back, that's for sure. Anyway, LWRF is in play now.

[whoppy] 18/11/2019 07:54

Well, they have plenty of contacts. Whether anyone is interested is another thing, but the synergy for Resideo is perfect. The product is good. Just needs a big player to sell it.

[phowdo] 18/11/2019 07:50

Always was a lifestyle company for the directors.
Now they're hoping to find some new sugar daddies.

[whoppy] 18/11/2019 07:44

Resideo will buy this or Google, Apple or Amazon. Hive possibly. Quite a few suitors. Probably Resideo as they already operate on 866Mhz. I see Lightwave is now compatible with Honeywell radiator valves. So probably will be interested in power and lighting. They hint at a big investor / buyer.

[clocktower] 18/11/2019 07:13

That,s it curtains on the horizon.

[clocktower] 06/11/2019 08:43

MaltaTrader- It happens to us all at times but in some cases when all seems lost miracles occur but in the past I have suffered huge losses having been given false information and fraud, which nobody (AIM/or LSE) wanted to investigate and the SFO acknowledged it but as it was under £20 million would not take it further. Hence, AIM is a very high risk business but there can be huge gains as well.

Spread your investments and follow the winners.

[maltatrader] 05/11/2019 08:48

I have been invested in this Company since 2008......what a disaster

[clocktower] 05/11/2019 08:45

If you truly think Resideo is the last hope, then I honestly suggest there is NO HOPE for LWRF.

Not a fig of a chance, and CC will be lucky to get anything more than 1p in the Pound if they cut their losses and look elsewhere to recover from their errors of investing in these bunch of playboys imo.

No amount of money will save this from the knackers yard but the ones that have done the best from this are once again the BoD - another AIM one heading for the rocks.

If your holding on in the life raft, I suggest you make sure you at least have your life jacket on, before it also sinks.
DYOR.

[sinkyj] 04/11/2019 14:00

Very insightful CT, too good a sales director to make a good CEO. Also, you are correct they've found themselves caught between two stools. Wrong products and too expensive for a starter system. Too few new products and poor integrations for the high end. They don't even have the range they launched with many years ago. If you are at the high end you need your apps and installers to interface and integrate to whole house audio/video, blind systems, locking etc. Etc. I've not idea given the time and money why that hasn't happened. There's something very wrong. Most of the posts here seem to see the issues. I've spoken to quite a few ex employees in my time. Just about all have the same story, the Bod is completely remote to the company and has little idea about the technology or market the company is in. It's not surprising they are unable to guide the CEO. As many of you have said, there's just no buzz about the company anymore. Even if the update had said they'd doubled last year's, sales, there would barely have been a flicker of the share price. It's a shame, there are people I know that would have made the company fly. Everyone is doing the same products. Only as part of a larger ecosystem will the company survive now. The dimmer technology is very good. Using proprietary RF is the wrong choice. I'd say Resideo is the last hope.

[ukdannyboy] 04/11/2019 12:01

CT was right on this all along; poor management, lack of strategy, missed opportunities and barely any updates.

Glad I got out of this last year but I have continued to follow. A shame to see what were innovative products with so much potential in the right hands if taken to the market early left on the shelf, overtaken and undercut by companies which have the required capital and knowhow to properly penetrate the market.

To think they are barely any further forward than they were 5-10 years ago when the opportunity was there to get a big slice of the market.

[athnotts] 04/11/2019 11:59

looks to me like cc will now drip feed cash to protect themselves on the downside so they can get £ back out if it does sell out to honeywell or someone, while also having a large stake which would be great if the share price did take off somehow. the base is there so someone will pick it up and support, that's the assumption I've always made as a customer. but as an investor i can't see anything interesting here at present and given the low trading volumes and lack of chat on here and elsewhere i suspect that's how most everyone thinks.

[clocktower] 04/11/2019 10:32

sinkyj, It may have been CC that made the appointment but his CV never pitched him as being the correct candidate to take on the task of dealing with the serious issues that bleeds the company dry.

To me he looked like a man that was used to taking orders, not one that could create a imaginative strategy and demonstrate the needs of the business to the people that could provide the funds for it to do so.

I have a new neighbour and he has gutted the property and invested in a "Smart Home" -
he installed Lucent Controls - LWRF missed the boat by not offering a fully integrated system and bring new products to market over the past five years.

Trouble with buying LWRF products now, is that there is very little likelihood of the products being supported in a couple of years time.

[sinkyj] 04/11/2019 09:56

Hopefully CT, It's been silent on here, I suspect people quietly exited.

The lack of financial resource to do any marketing was evident the moment the placing was announced, and widely commented on. The company was disingenuous suggesting it could do R&D, finance operations and still have any left for the marketing required to drive the sales suggested.

I'd slightly disagree the current CEO hasn't delivered. He has, with some qualification. However, the task was too great with a company this top heavy and a board that hasn't ever been able to take the dilution that was necessary to launch LW into the consumer market. It needed a minimum of 15m in one raise to do the job required , not drip feeding it in.

The CEO is a Committed capital appointment, not the BoD, and obviously friends with the CFO given the recent share Joint purchases.

Still, it's Christmas and ,hopefully, resource has been put into getting stocks to shelves. They mention joint promotions, not sure who. Amazon are promoting their own brand smart plugs for the Echo now. Lw missed that boat with the wrong product choices.

LW are beta testing Residio (Honeywell) heating valves, so expect some announcement soon. It's getting more and more likely that is who will purchase LW. Unfortunately, LW is getting cheaper by the month.