Primorus Investments Share Discussion Threads

[chutes01] 01/10/2021 10:58

So there we have it, over £1 Mio chucked at first investment,having tied investors up over a long period, all confidence gone now and several large holders stuck underwater.

[megaman2] 01/10/2021 10:50

Here's the full paragraph.theres zero about an average at conversion. The paragraph only refers to bmn shares. I made the same assumption as you but having read this several times that's not what it says.note the backstop is for "noteholders" not shareholders .prim clns do not get converted into must shares in this case. The wording is pretty clear and the "company"the backstop is clearly bmn.

· In circumstances where Readmission does not take place by 31 December 2021, BMN has agreed to issue new ordinary shares in its capital ("BMN Shares") to Noteholders in respect of the principal amount and accrued interest under the CLNs (the "Backstop") in return for MUST: (i) transferring to BEL all of MUST's shares in VRFB-H; and (ii) paying a fee to BMN of an amount equal to 5 per cent. of the MUST Capital Raise (including both principal and interest), to be satisfied by the issue of new ordinary shares in the capital of the Company at a price of 20 pence per share (the "Backstop Fee"). In consideration of BMN providing the Backstop, the Backstop Fee is payable in the event of Readmission not occurring by the aforesaid date or immediately prior to completion of Readmission. Each of the Lead Investors have the sole discretion to elect not to receive BMN Shares and instead receive shares directly in the capital of VRFB-H.

[megaman2] 01/10/2021 10:33

Yes that was my expectations and was why I copied the rns. It's not what it says in the rns?

[chutes01] 01/10/2021 10:20

disastrous initial investment for the rookie board, no wonder they've gone to ground.
Previous board got onto Greatland, could see 2p here, back to initial 0.1p

[betterupthandown1] 01/10/2021 09:54

megaman, I think that is incorrect. The 20p conversion is from the CLN into MUST shares. The backstop has a conversion rate based on an average of BMN share price when the backstop is triggered -therefore at a market rate at the time. Alternatively PRIM is able to take shares directly in VRFB - so 2 options if the backstop is ever required.

[megaman2] 01/10/2021 08:59

paying a fee to BMN of an amount equal to 5 per cent. of the MUST Capital Raise (including both principal and interest), to be satisfied by the issue of new ordinary shares in the capital of the Company at a price of 20 pence per share (the "Backstop Fee"

I actually missed this bit . But the bmn backstop is at 20p conversion price.....!!!!! Bmn current share price 9.7 p
on the bid...ouch. I hope the vfrb-h shares are still an.option but so little 8nfirmstion has been released about the Garnett action that it's really unclear . ..I see why the price has been hammered here now ...

[rental] 01/10/2021 08:59

Share price today has not understood prim has a backstop

[johncasey] 30/9/2021 23:09

shame they didnt invest in eurasia mining...clayton missed that one,he was informed about it at 4p

[megaman2] 30/9/2021 13:59

There is a backstop into bmn I don't see the problem? Bmn share price on the floor yes may well be lower at the end of the year but it's not a disaster if they convert then offload over a few months.

[chutes01] 30/9/2021 12:05

surely he cant have blown the lot
however MUST looks finished

[skyship] 30/9/2021 10:07

Actually not a "few million quid.". $2.5m; ie £1.8m.

To put that in context; if a 100% write-off (surely unlikely), the Net assets would drop from £9.17m to £7.37m; taking the NAV down from 6.55p to 5.27p. So at 3.7p the discount would still be 29.8%.

All conjecture of course - things could still work out with MUST; though BMN not looking good - though perhaps irrelevant to PRIM.

[chutes01] 29/9/2021 16:48

BMN does not look good, death spiral, shareholders tied up over several months.

[skyship] 29/9/2021 16:41

3.6p-3.7p! This is now being priced as though Labrum has totally blown the investment into MUST. We're again standing on a 44% discount!

Things there are certainly not resolving quickly and BMN are again drifting; so perhaps cause for concern. Also, I would have liked to have seen some comment on that deal delay in the half-year report. Sounded as though he wanted to duck the issue...

[timbo] 17/9/2021 17:12

>>chutes01 - I understand not much seems to have been happening above the surface but we're hardly handcuffed in PRIM. You could argue the holders of MUST are the ones in cuffs as MUST is suspended. Any holders in PRIM can exit if they want and it looks like some probably have over the last 4 months or so.

Yes, the MUST/Cellcube deal wasn't easy to understand but it looked like PRIM had safeguards in place holding CLN's over MUST. I don't think anybody expected the legal action against Bushveld that has made things a bit more complicated again. But that's the only "complex" deal over the last few months surely.

The big thing our 3 current flagship investments (Zuuse, Fresho and Engage) have in common is that they're cloud-based and growing fast. That model is hugely scalable and subscription-based. If you want to see mature cloud-based businesses look no further than Xero's growth from New Zealand to worldwide (www.xero.com/uk/about) or Salesforce in the US now global (www.salesforceben.com/salesforce-history). I'm not saying our 3 amigos will ever reach such dizzy heights but, so far, considering the dent the last 18 months have put in most business plans they've done well.

[chutes01] 16/9/2021 18:02

much of the early bluster from here gone now, investors been handcuffed over last few months by directors who entered into complex deals

[cwa1] 15/9/2021 07:25

15 September 2021

Primorus Investments PLC

Exercise of Options in Zuuse Limited

Primorus Investments PLC (the "Company"), the AIM listed investment company, is pleased to provide the following update regarding options held in one of its investee companies, Zuuse Limited ("Zuuse").

Zuuse is a Melbourne-based construction software vendor with operations in the UK, USA, Australia and New Zealand. Following participation in an investment round in late 2020, Primorus held 2,057,205 ordinary shares in Zuuse along with 1,000,000 options with an exercise price of A$0.50 per option (the "Options").

The Company has now exercised the Options for total consideration of A$500,000 (approximately GBP265,000). Following the exercise, the Company will hold 3,065,058 shares in Zuuse representing approximately 2.42 per cent. of Zuuse's issued share capital.

Zuuse performed well during the first half of 2021, with the revenue run-rate increasing to over A$20m at June 2021. This represented an annualised growth rate of 48% for the first half of 2021. In the year ended 31 December 2020, Zuuse reported turnover of A$17,995,000 and made a loss after tax of A$2,999,000.

Geoff Tarrant Executive Chairman of Zuuse said "We appreciate the continuing support of the Primorus team and remain optimistic on the outlook for our global business in 2022."

[timbo] 10/9/2021 19:06

I understand there were some non-recurring reorganisation costs in addition to these. Presumably, there is also 50% of the annual directors salaries (c £48k), 50% of audit fee (c £9k), some legal and professional fees, any other staff employed (c £15k, there was at least 1 person employed apart from directors in 2019 and 2020), AIM listing fees etc Soon adds up...

[betterupthandown1] 10/9/2021 14:51

presto, read the numbers and previous posts. there was a negative fx movement of 81k. operating costs have reduced by circa 40%. Options are being correctly accounted for also - didn't see that last year. Do you have a connection to the previous board/ accountants????? lol

[presto77] 10/9/2021 13:26

Where are the cost savings promised by the new lot!The expenses virtually the same as the same 6 month period last year£236k v £258kThere is no profits and cash down to £1.3m

[timbo] 10/9/2021 10:04

>>mallorca9 - trouble with the legal case against Bushveld is that it's going on over MUST's head so I'm not sure what updates they will be getting. I'm sure it makes commercial sense for both sides to come to a sensible agreement sooner rather than later as any disruption can't be helpful to Enerox/Cellcube's expansion.

On a slightly related note, I think Cellcube's website has had a major revamp..
hxxps://www.cellcube.com/

[golden prospect] 10/9/2021 10:02

Interims ending June 2021





Given we don't get investment updates throughout the year it is somewhat disappointing not to have extra insight from the statutory reporting so it feels like we come for the ride in blind faith!

[mallorca 9] 10/9/2021 09:38

Good points.

I see that they have not included an update on MUST.

Hopefully this will be provided separately soon.

[timbo] 10/9/2021 09:27

Small point perhaps but £81k of the costs are currency exchange losses. The investments in foreign currencies like USD and AUD will look like they've decreased in value because GBP strengthened after the investments were made. Also, I would imagine the options may be in the costs too even though not able to be exercised for some time yet.

[mallorca 9] 10/9/2021 09:05

Knight..

£2.5 million has been allocated to the MUST investment ..... which is currently in progress.