Parallel Media Share Discussion Threads

[eezymunny] 03/12/2015 15:16

Yes, all well and good but if PAA either sell the golf rights, or hand them back to The Tour in exchange for being "let-off" the £2m that I think they may owe them, then they will have no meaningful interest in golf events. In which case why on earth would anyone pay them £250k pa? All there would left be is a weeny music biz, that isn't even owned by PAA and still a whopping £1m liability that can't currently be paid.

You only currently visible hope (in my eyes) is if someone buys the golf rights lock stock and barrel for at or above that $5m valuation. Don't see it happening myself but you never know.

Do you know exactly what the golf rights are and how long they last? Clearly the Eu Tour are not compelled to allow them a tournament as there wasn't one this year.

[dusseldorf] 03/12/2015 14:30

Eezymuny 2014/06 - -- We have created a special purpose vehicle for The Singapore Championship - The Championship (Singapore) Pte Ltd and have sold 15% of the shareholding to third parties for US$$750,000, valuing the company at US$5,000,000

The Championship (Singapore) Pte Ltd holds the assets in relation to the Championship in Singapore and PMG now receives a management fee of US$250,000 per annum to manage the event on its behalf. The management fee is for the life of the event.

On 1 September 2014, the Group entered into an agreement with Amarantos Group International Limited and First Alverstone Partners Limited to sell 15% of the equity of The Championship (Singapore) Pte Ltd for US$0.75m (valuing the whole of the equity at US$5.0m). In addition, an option has been entered into with First Alverstone Partners Limited for a further 10% of the company to be sold at the same valuation. The option can be exercised from the date of the agreement until 1 November 2015.

Discussions have commenced for the sale of a further 15% in The Championship (Singapore) Pte Ltd and the Board is hopeful that this will be concluded in 2015.

Whilst the above stated deal seems to have somewhat stalled (due to delay in events), I'd suggest the structure and valuation could remain broadly the same - perhaps lower due to reduced 'lifespan' on tour date. Monies, I believe £170k did exchange hands (its in full accounts somewhere) indicating whilst the full deal did not complete, interest has certainly been generated and monies received by PAA, the balance perhaps conditional on certain events occuring e.g. Title sponsor.

DC stated in 2013 AGM he knew individuals who had for a long time been interested in acquiring the date on PGA tour and he ascribed a fairly sizable valuation. The above statement appeared to show he was persuing disposal.

If PMG relinquish rights through sale of 'The Championship (Singapore) Pte Ltd' and retain only the 'running fee' (Sorry I meant $, not £), I would assume debts accrued related to the historic running of 'The championship' can move with it - I don't know if that's possible, perhaps you can answer. So for an entity valued at £Xm, why not factor in the debt from the new sale valuation and dispose of 100% entitlement in PTE for a debt reduced valuation. The tour would perhaps be happy to have ownership transferred to better funded entities - perhaps they already have links with title sponsors.

[eezymunny] 03/12/2015 13:41

"I think losing the £2m should involve retaining golf admin for a fixed fee (£250k)"

Do talk me through that in detail. Who the players are and what they would be doing. It should be funny!

[dusseldorf] 03/12/2015 13:17

Perhaps a change in fortune is not too far away. A prerequisite being AGM approval to issue more shares. My view since the £2m statement was made was that a necessary equity issue would need to be circa £1-1.5m via combination of new cash (Oryx?/DC convert) - £2+£1-£1.5=£3m-£3.5m balance sheet improvement.

I think losing the £2m should involve retaining golf admin for a fixed fee (£250k), with the rights and profits owned by another. If it meant disposing of golf completely, as long as some value in excess of £2m was realised that wouldn't bother me either.

[eezymunny] 03/12/2015 11:33

You say the company is "'almost' clean" DD but what about the £3m+ liabilities they can't currently afford to pay? I'd say it was decidedly dirty unless there's a massive change in fortunes!

[littlemadam] 03/12/2015 10:30

Cheers Duss.
And the venue?
Thought (for a nanosecond) about popping over from Canaries for agm. The sun won!
Wonder how ticket sales etc are going for 8th & 9th.

[dusseldorf] 03/12/2015 09:51

I have a prior engagement, so will not be attending. I've been to two AGM's before and the formalities are non-eventful though it's always interesting to ask all the questions that you want and get an 'honest' (for honest read 'the most optimistic', if somewhat unlikely outcome that could play out) reply. I remember meeting Chris Akers (multi-millionaire seller of skybet, former owner at leeds utd and chairman of CHA concha) last time I went, who was interested both in the golf and music aspect - but perhaps music more so as PAA being somewhat unique on AIM in that respect.

I'm almsot certain there will be a post AGM RNS, re: funding, conversion, perhaps update on golf etc..given one of the AGM proposals for authority to issue stock and updates due

The company is 'almost' clean....is there anything else left to throw out? golf?

[littlemadam] 03/12/2015 08:43

AGM next Mon at Park Tower, Knightsbridge. Anyone know the cost of hiring a room there?
I would have thought that a company valued at just £300k should hold agm at the local scout hut!!!
Anyone bothering to attend?

[dusseldorf] 23/11/2015 08:02

EezyMunny - Those targets apply to many a company should the profit numbers be achieved and no. of shares remain static, under sale situation ;) . I expect PAA to be acquired eventually. The number of shares will not remain static, in fact they will increase substantially, however, when the share count changes so will the targets in the header.

[dusseldorf] 20/11/2015 14:39

britishb - Assuming the £2m goes (my speculation is it will and my favourite theory is this debt is simply moved to Singapore PTE and the event entity transferred for a small contribution or a few hundred £k? to a new entity (backed or perhaps encouraged by the tour as more likely to be repaid i.e. debt transfer is part of the deal value for PAA), and majority balance of remaining £1m debt (which is related party debt anyway circa £750k directors, the balance being to the bank) is converted to equity & cash for shares to settle bank (ideally for me at premium), and then maybe the company will retain and run the Korean golf championship inc. Causway trophy.

PAA would then receive £250k/year from singapore PTE fixed, have the Korean event (inc Causway) for perhaps £100k/250k contribution/year and music business contributions without overheads all running against a fairly low cost base with unrestricted potential in music area, and be debt free.

Who knows but I can't argue with your summary:
Maybe the £2m will be written off. Maybe DC will put in even more money at a higher share price than today. Maybe golf will miraculously resurrect. All sorts of ways you might get lucky but this has been screwing shareholders for 16+ years. Good luck!

[dusseldorf] 18/11/2015 08:02

EezyMunny - I'm not attached to the golfing 'history' of the company given it's rarely generated anything in terms of contribution, if it stays, in PAA's new low overhead focussed on fewer events model, it may contribute £250-£500k annually, if it goes perhaps the focus on music can generate substantially more. The sale of the golf tournament/rights for the European PGA to another organisation has been floated before disposing of it is not a new concept. Should the event be cancelled and as you suggest £2m debt wiped out, then I for one will not shed any tears(!) I'd much rather the £2m was settled without further dilution or a 2 - 4 year wait...

[dusseldorf] 17/11/2015 15:52

Two TBC events and fuller table in the European tour 2016 calendar:


One in spring, one in summer.
Mar 31-Apr 03
Jul 21-Jul 24



Hopeful that spring date is Singapore (as alluded in prior RNS's) and perhaps certain details still being fleshed out, e.g. prize fund/Sponor, which may be subject to confidentiality...we'll see

[eezymunny] 12/11/2015 22:52

Ah. I see. You got lucky. Good for you!

[dusseldorf] 12/11/2015 21:27

I made 70% on my LMI swing trade, around £700 profit if you must know not maximised but only took a couple of days so no complaints, trade was 21->35, I sold when the sell pressure returned suggesting financing price was 'known', missed the top 40+ as I expected higher prior to RI being agreed, but moved position with the momentum. I'm going to see where the price goes on Monday... Early this week had my finger on the buy button at 8.6p but thought it would go lower.

[eezymunny] 12/11/2015 21:00

But DD you said on LMI "Perhaps it's a conservation estimate, but to be honest I'm just holding until the financing piece is known, and I would look for 50 - 75p by November". And now you tell us how profitable LMI has been for you?

I'm not stalking, just browsing your posts to see if you talk sense anywhere. NOt unreasonable I think - it is a public forum that you contribute to voluntarily.

As for LMI, those taking up the rights at 1p might do spectacularly well or might get smashed. Just depends on the Platinum price amongst other things. LMI already burned through the 2012/13 $800m rights issue so this latest fundraise guarantees nothing. It's just a wild punt IMO. I wouldn't buy it until it starts throwing off cash.

[dusseldorf] 12/11/2015 20:51

I.e fully take up or trade rights.... My view is any not taken up will be fully absorbed and the price will be trading above 1p equivalent

[dusseldorf] 12/11/2015 20:42

Britishb - are you stalking me? LMI was my guess and at the low end of 99% of posters assessment. I've been seeing it short for some time and actually banked a fair turn of profit swing trading from the bounce off 15p as that's where I saw the RI and 10-15p as the floor. Did you not see my post calling 50p from 21p? You must have done but chosen to ignore... The price of ri is irrelevant is it not if you are participating fully? I was considering going back in Monday before close - how do you call it from there over the period to year end?

[knigel] 12/11/2015 20:14

Bye then..

[eezymunny] 12/11/2015 20:14

Oh and DD. Your "You have to assume the rights issue is at 10 or 15p based on price action" on the LMI thread just lit up my day. Hic!

[eezymunny] 12/11/2015 20:03

Honestly DD. How much are you down? So far.

The PAA bulls are all excited abut the music bit. So why does PAA need to be "sheltered" from it. I'll buy you a sympathy pint when the penny drops.

As I say, I'm wasting my time.

[dusseldorf] 12/11/2015 19:33

p.s. regarding loss, lets just say based on my current holding I'll be in overall profit when PAA gets back to 28p..

[dusseldorf] 12/11/2015 19:21

britishb - All PAA JV's are formed under new entities, I suspect you've had a couple of sherberts and your question was actually was why is Luna in PCM and not PAA? IMO purely to shelter PAA from development cost/funding/establishment risk whilst the JV builds up a head of steam i.e. no risk, all reward, the 'donation' to this venture from PAA is DC's time.

Regarding Hat County, a more realistic risk for you would be if you changed your statement
from:
"If PAA ever buy out PCM I'll eat every hat ever made in Hat County!"

To:
"If PAA ever buy out PCM I'll eat a pie of your choosing"

I'd find the largest humble one I could and make sure it got to you in your village...