Reach4entertainment Ente... Share Discussion Threads

[ironstorm] 04/12/2017 19:54

I think there are one or two more pluses than that

- trading in line with expectations
- new CEO taking a stake in excess of 11% spending his own money (tho of course there are some of those share options)
- probable strategic relationship with Miroma.

They have a market leading position but do need to drive margins higher. Seems they may have some ideas on how to do that.

best news for sometime I think.

[michaelmouse] 04/12/2017 16:33

Well the good news is they've got a placing away at 1.5p.

The bad news is that, as I predicted in my previous post, it is indeed current investors who have had to stump up. Basically attempting to prop up their existing holdings. Hence the discount is pretty reasonable. £5.5m raised at 1.5p and the dilution is 37.35% of the enlarged share capital.

Imo this is a bargepole stock for PIs, it lurches from one year to the next continuously diluting investors with capital raisings. Imv the existing large shareholders are throwing good money after bad to keep it afloat. Clearly if they hadn't stumped up the company would have gone belly up.

Beware that the major shareholders now control 71% of the company and I'm not sure why it's even listed since it's the same old names putting up the cash? No new faces on board but that's not a surprise!

Not one for PIs, it should delist now imv.

Anyway, on a plus it's survived until the next fund raise.

[michaelmouse] 30/11/2017 08:14

Yep. Current investors will all have to stump up. PIs need to leave them to it imo. Bargepole stuff for PIs.

[pj 1] 30/11/2017 08:10

If the current Directors do not participate in the proposed Placing then the writings definitely on the wall? I suspect they will have to, to 'buy' confidence for the Placing itself

[michaelmouse] 30/11/2017 07:32

Whatever the outcome this company should now be avoided at all costs imo. The last two RNS statements which are hugely significant for shareholders have been buried post 5pm. Last night's takes the biscuit. Do they really think nobody's going to notice the trouble they're in by releasing news when they think nobody's watching?

I do hope nobody still holds and that investors weren't sucked in by the usual shameless suspects trying to "pimp" up the company on behalf of their mates. Disgusting.

Aimho of course.

[blondviking] 17/10/2017 12:10

Slight rise today allowing me to get out at cost, 250K shares. Good luck to all that still hold these, I am sure that there may be some upside but there are better stocks to invest in at the moment.

[michaelmouse] 20/9/2017 07:37

Interims are dreadful with excuses that they might come up with year after year to try and justify poor performance plus they are going to break their banking covenants yet again even after recently adjusting the terms. Oops!

In addition to a significant drop in revenues, increasing losses and a dreadful balance sheet with increasing net liabilities, the company states that it will break it's banking covenants in the third quarter but "The Company and PNC are monitoring the position carefully and remain in close correspondence, but the Directors of the Company understand that PNC remains supportive of r4e."

Really? I wonder?

Worth reading the thread as a whole.

Avoid at all costs imo.

[michaelmouse] 31/8/2017 15:19

LOL.

They'll have to sort those covenants out yet again. Oops!!

Now who are those BB savants that the lovely chaps at shareprophets refer to?

[michaelmouse] 31/8/2017 14:52

Previous blogs.

[michaelmouse] 31/8/2017 14:18

LOL. That's the way to do it. Sneak out a profit warning midday on a Thursday during the bank holiday week and hope nobody is watching.

Oh dear the banking covenants look like they'll be breached again. Oops!

Next stop 0.5p methinks.

Now who is involved with this one and who has tipped this all the way from 4p downwards? Let me think? LOL.

Aimho of course. Told ya so. Again.

[pglancy] 20/7/2017 14:19

All these predictions of fund raising you think you would get it right one day. Even a broken clock is right once in the 24hrs. When it really mattered you got it wrong. You never seen the trak fund raising coming did you and you seemed happy with the management subscribing to most of the shares because there was no interest from instis. Your hypocrisy is breathtaking mickealmouse.

[michaelmouse] 20/7/2017 07:39

Naughty naughty.

Raised £2m in October to develop the business and have now had to use more than £500,000 to pay down their debt.

I anticipate further trouble ahead.





"In addition, the Company has been able to repay its Cash Flow Term Debt facility with PNC of GBP553,081. Repayment was made from unutilised proceeds from the October 2016 share placing, which has not been required for investment into the Company's new initiatives as a result of these initiatives performing better than expected in 2017. The repayment will result in reduced interest costs in 2017. The monies used to repay the Cash Flow Term Debt facility are expected to be replaced over the course of the next 12 months from the cash flows of the subsidiary companies to provide further investment for the ongoing or new initiatives."

"unutilized proceeds" indeed. LOL.

So they didn't need the cash for investment but they hope to replace the cash over 12 months for further investment in the new initiatives. Eh?

I smell the whiff of yet more fundraisings.

Aimho of course.

[michaelmouse] 26/4/2017 13:19

"Our performance for 2017 has to date been in line with our expectations and we are enthusiastic about the growth prospects that our new initiatives will bring. Although these initiatives will inevitably increase the costs previously anticipated for 2017 (which did not factor for the costs of initiatives yet to launch)"

"At the latest measurement date prior to these accounts being released, the covenants had been met, however, trading in 2016 was unusually weighted towards the first half of the year and 2017 is expected to return to the typical trading pattern of a stronger second half of the year.  This means that, on a 12 month rolling basis the Group may once again be affected by seasonality issues in the covenant measurement.  The Company and PNC are monitoring the position carefully, remain in close correspondence, and are working towards a solution. 

The directors of the Company understand that PNC remains supportive of r4e, but that PNC cannot provide a waiver of a potential future breach as of the date of these accounts."

Oh dear! Doesn't provide much comfort does it?

LOL.

A fatal combination of a bunch of luvvies allied alongside the PR talent of the LSE's answer to Laurel and Hardy.

What could possibly go wrong? Aimho of course.

[tsmith2] 26/4/2017 09:54

Endless fund raises, way too much debt

[michaelmouse] 03/4/2017 16:02

Good luck with this one snape, you'll definitely need it!

I can't say I'd be re-assured by a company that has fairly recently had a massive rescue bailout at 1p and is still breaching its banking covenants. In fact the RNS suggests it'll have broken it's covenants twice within the space of 12 months despite amending it's terms.

Why would two rich shareholders make any difference to the company's prospects? Unless of course they bail them out again with a fundraise at let's say 0.5p or less this time round?

[snape] 03/4/2017 15:46

High risk, indeed. As it has been for a while.
There are positives though. Trading is in line which re assures and they have two rich shareholders that together own > 50% of the company, who may come in handy.

[michaelmouse] 03/4/2017 15:35

I wonder how supportive PNC will be if trading deteriorates?

Not one for the faint-hearted. ;)

[michaelmouse] 03/4/2017 15:13

Oops 'ere we go!

"However, notwithstanding the variation to the covenants in the Variation Agreement, trading in 2016 was unusually weighted towards the first half of the year and 2017 is expected to return to the typical trading pattern of a stronger second half of the year, the aggregation of which on a rolling 12-month basis may result in the new covenant tests being breached this year. The Company and PNC are monitoring the position carefully and remain in close correspondence, but the directors of the Company understand that PNC remains supportive of r4e."

Seem to make a nasty habit of breaching their banking covenants don't they.

LOL.

[michaelmouse] 02/3/2017 13:33

Oh dear, oh dear!! Good post BrianGeeee. Is it the smell of further profit warnings wafting towards us I wonder?

Let's hope the banks remain understanding? Yikes.

After all the recent dilutions, I expect another profit warning wouldn't go down well.

Share price would surely tank below 1p?

All AIMHO of course.

[briangeeee] 01/3/2017 20:32

Effects of the strong $.
I wonder if lower Broadway attendance means more or less marketing spend? I can guess!

"Tourism activity has shown signs of continued softening, with Broadway theaters reporting sharp declines in attendance in January and especially February, and hotels generally reporting lower occupancy rates"