Mxc Capital Share Discussion Threads

[suneday] 18/9/2020 19:44

18 September 2020
MXC Capital Limited
("MXC" or the “Company", together with its subsidiaries, the “Group”) Results of General Meeting and Tender Offer
As announced on 2 September 2020, the Board of MXC resolved to return up to £4.3 million of capital to Shareholders via a Tender Offer. The Tender Offer closed at 1.00pm on 15 September 2020.
General Meeting
The Company announces that at the General Meeting held at 10.00 a.m. on 17 September 2020, all resolutions proposed in the Notice of General Meeting attached to the Circular in relation to the Tender Offer, waiver of annual general meeting requirement, amendment to the articles and disapplication of pre-emption rights, published by the Company on 2 September 2020, were duly passed.
Results of Tender Offer
The Company confirms 43,881,869 Ordinary Shares were validly tendered and 5,789,336 Ordinary Shares will be purchased at a price per Ordinary Share of 75 pence, for an aggregate consideration of £4.3 million. Tenders for up to and including the Tender Offer Entitlement of 1 Ordinary Share for every 10 Ordinary Shares will be met in full. Tenders received for surplus Ordinary Shares will be met at the rate of 0.009474 Ordinary Shares for each surplus Ordinary Share tendered over and above the Tender Offer Entitlement of 1 for 10, rounded down to the nearest whole Ordinary Share.
The Ordinary Shares to be purchased under the Tender Offer represent approximately 10.0 per cent. of the Ordinary Shares in issue.
All of the 5,789,336 Ordinary Shares purchased by the Company will be cancelled. Cheques will be dispatched for certificated Ordinary Shares purchased pursuant to the Tender Offer and payment will be made through CREST for uncertificated Ordinary Shares purchased pursuant to the Tender Offer, in each case, on 28 September 2020.
Total voting rights
With effect from 28 September 2020, the total number of exercisable voting rights in the Company will reduce from 57,893,365 to 52,104,029.
Capitalised terms used in this announcement shall have the meanings given in the Circular referred to above which is available on the Company’s website www.mxccapital.com

[suneday] 07/9/2020 10:37

I shall probably take it and make a small profit on those, to reinvest the cash, though I think if they can get Íde moving and sell it on in line with original thoughts ( and I think they will ) it will have been a poor decision.
Hargreaves Lansdown sending it out as a corporate action so I'm mulling it over. I'd like to see some results from Íde to help with that. They'll probably hold a good update until after offer closes to get rid of 10% at cheaper price!

[trill1] 05/8/2020 15:13

MXC obviously didn't think the £4.9m investment into the JV was ridiculous and we rely on them to decide the investment case and to make those decisions,don't we?It enabled them and the Bailiwick Fund jointly to buy Guernsey press and Distribution for near £10m.Both MXC and the Fund know Guernsey very well. I have no wish to try and second guess them but maybe there were significant assets? Let's see.Anyway,well done for staying in.Far from being robbed (we wsn't!),I think it will work out well.

[trill1] 05/8/2020 09:49

Not me and it's in no way a "dubious looking shell". I'm a happy holder waiting for the profit to be distributed. It's exactly what MXC said they would do so not sure why you chose to sell.However,if you did sell,how on earth can you complain?

[suneday] 08/3/2020 12:34

I am a remainer here with the price at 50p. as an AIM-listed company.

There's a lot I don't know about MXCPs historic private investments, ( there's more, but such as the existence of Cloudcoco - as said, that's even a recent one - in the portfolio - and what has happened to their stake in the expanding Jobbio ) Private investments amount to 2/3rds of published equity investment value. But there's a couple of obvious more recent updates.

Ravenscroft/GIF
'To maintain the confidentiality of investees, we will not be disclosing information about each investment and their performance but I am happy to report that GIF’s largest investments to date are trading ahead of expectations and there is cause to be optimistic for the future of the cell’s performance,’ said Mr Chalk.
hxxps://www.ravenscroftgroup.com/news-insights/2019/september/gifupdate/

Sagacity

The initial investment of £4.8 million for a 19% stake in the company has been satisfied from MXC´s existing cash resources. A further £1 million of development capital may be invested at the option of MXC. In addition MXC has been granted options over a further 7.5% of the Company's issued share capital. In the financial year to 31 October 2014 Sagacity generated revenues of £4.8 million and EBITDA of £1.3 million and is expecting to deliver more than £7 million of revenues and over £2 million of EBITDA in the current year.

10th. May 2019 'Sagacity Solutions Limited continues to deliver growth in revenues and profitability as it builds an exciting data and analytics software business.'
hxxps://www2.trustnet.com/Investments/Article.aspx?id=201705100726466963E

The more I look at it the more it seems they have played things close to their chests.

[ochs] 04/3/2020 15:28

Not much detail in the 2 March announcement. Was anyone at the meeting? Much resistance to the plans? - how close to 75% was the vote?

[suneday] 20/2/2020 11:04

Yes. This was probably always the ultimate intention before realising the current and future value of their portfolio.

[chimers] 20/2/2020 11:01

I can tell you the name of one of their investments that went bust a few months ago because the owners of the company refused to allow MXCP to take it over....ALL TRUE.

They have used pubic money when they needed it to make themselves richer and now they don't need you so are getting rid of you on the cheap.

[chimers] 20/2/2020 10:58

It's a private club becoming more private.

They engineered the lack of liquidity on purpose, they could have had this on fire had they wanted to.
When did you ever see an RNS about any of their investments?

And what about the sneaky investments that shareholders know absolutely NOTHING ABOUT!!?


THATS RIGHT ...THEY INVESTED YOUR MONEY IN MANY OTHER COMPANIES THAT YOU KNOW NOTHING ABOUT.
CLOUDCOCO IS AN EXAMPLE.
They owned 10% of that.

They could have been slamming in the RNSs week after week after week on here if they had wanted and the share price would have been flying.

They keep it dead and buried so they can steal the company because it is making a lot of money.

You will still get the buybacks of your shares at a premium but not the amount you could have had.

Their reason for going private is outright blatant lies.

[suneday] 20/2/2020 10:51

The shareholder base is and will be consolidating now, to achieve their previously-expressed 'family office' aspiration. Mm's will pay above mid for volume just at the moment.

[cjohn] 15/2/2020 10:54

nickhewett "re reading the RNS they are returning 50% of the NAV (more than 58.5p probably) via a tender offer at the then NAV of the company (who knows what that will be)......does not mention the £71M cash balance.....so I am a little confused"


There is no "£71M cash balance"!!




On wider consideration, let's take the scenario in which they return £1.17 over 5 years.

That works out at around 14% annual compound return. (I'm simplifying. It may work out somewhat better or worse, depending on timing of payouts.)

That central result is not actually terribly exciting and it involves taking on a lot of risk.

Here are some to consider:

1. Value could well go to insiders by means of options and share awards. See the EBT. (Scant protection for minority shareholders.)
2. Harsh economic reality might intrude and the held companies underperform, reducing the total pay out.
3. Other unpredictable developments. 5 year time span, remember.


I'd need a better implied central scenario annual return to put money in here. Good luck to holders.

[suneday] 14/2/2020 09:43

The share price has become irrelevant to me now ( it's at the old 1.17p! ) NAV is the figure. The only option for me is whether to buy - but that involves tying more cash up on the dark side for maybe 5 years. If you have faith in them as a private company and they will deal relatively fairly with the EBT ( I don't know what it's linked to but I think it's probably successful exits ) and so on, then if everything goes well and in accordance( over 2x over 4-5 years, they said ) excellent returns are possible from here.

[acuransx] 13/2/2020 18:59

Beware of this chipmunk!!!! A ramper from ad4 ode and clco...done a runner now looking for new buyers to con

[suneday] 13/2/2020 12:38

If the NAV is about £1 ( it was approaching that a year ago before Íde and Adept had their rises and both prices are higher now) then sellers are at a massive over 40%+ discount to it - historical big discount to NAV being a motivator for the delisting ( I'm sure there are others for Smith and Weaver, but other major shareholders have gone with it after discussion ) More than interesting to see maybe end of the month what they actually give as NAV, bearing in mind that that figure will relate to returns ( much as before )

[gaz125] 13/2/2020 11:37

Nick - I also have some in a SIPP and the provider has confirmed I can keep them after de-listing.

[suneday] 13/2/2020 09:24

I think that's right Chimers. A guess at NAV now based on past and Íde/Adept movements - abovethe £1 mark I would say. This came as a bit of a shock to be honest, but I'm seeing the light now. The business doesn't need public cash, it has plenty coming in, and willing partners/investors. Positive stuff,obviously happily building on what they have, to the gang's advantage, and nobody has to do anything that the partners and mates don't have to. We're all in the same boat, though they have greater insight. It will actually have the benefit of avoiding these price swings, and hopefully sell closer to NAV. The company was undervalued, and even more today.

[nickhewett] 13/2/2020 09:05

Looks like we will end up with shares in an unlisted company which causes me great issues via my SIPP! Not good

[suneday] 13/2/2020 08:58

Bit of a surprise, but at this price it's a steal. ( as I thought it was yesterday ) Somebody will buy them later. Smith and Wheeler, and the gang, have large personal holdings and won't harm them. A question of getting your head around later sales.