Sosandar Share Discussion Threads

[paulypilot] 18/7/2018 18:40

The posts about excessive Director remuneration seem to be referring to historic information, when the listing pertained to a cash shell, and previously a failed junior resource junk stock, Oregon Gold, then renamed Oregon plc I think.

Sosandar is a clean operation, which just re-used the listing. Adam Reynolds reversed Sosandar into the listing, as I'm sure you all know.

If you look at the table in note 6, from the Sosandar Annual Report for y/e 31 Mar 2018, it breaks down Director remuneration into the various parts. The second column is titled "2018 from 2 Nov 2017" - in other words, the period from the listing of Sosandar (first day of Sosandar dealings was 2 Nov 2017).

The 5 months from 2 Nov 2017 to 31 Mar 2018 shows the following Director remuneration;

Alison Hall £36,667 (£88k p.a.) - Joint CEO
Julie Lavington £36,667 (£88k p.a.) - Joint CEO
Nicholas Mustoe £12,500 (£30k p.a.) - NED
Bill Murray £12,500 (£30k p.a.) -
Adam Reynolds £25,000 (£60k p.a.) -
Mark Collingbourne £12,500 (£30k p.a.) -
Steven Metcalfe nil

As you can see, these are perfectly reasonable, modest even, Director salaries under Sosandar's first 5 months as a listed company.

Another Director, called Andrew Booth has since been added to the Board, as a NED, with specific & relevant experience in eCommerce and marketing.

Therefore, it seems to me that the excessive remuneration shown in the other columns, relates to historic matters, before Sosandar, and also £500k of "fee shares" for engineering the reverse takeover.

I think it's important not to muddy the water by confusing historic Director remuneration of a junior resource stock, with the much more sensible/modest ongoing remuneration currently happening under Sosandar.

It would be a pity if jaundiced shareholders in ORE would miss out on a potential multibagger of SOS, simply because they're smarting from having lost their money in some rubbish junior resource stock.

Sosandar is the real deal, in my view. Management is superb, and the recent trading update was superb - I calculated £851k revenues (which is net of VAT and customer returns) in the quarter-ended 30 June 2018. If you extrapolate out, with more sequential growth (especially in Q3 ending 31 Dec 2018 for the busy Xmas party season), and I think we could possibly be looking at full year (ending 3/2019) revenues of maybe as high as £5-6m. If I'm right about that, then this share is still very cheap.

I think the share price should be nearer 50p at the moment, and 100p by the end of 2018, if this kind of stellar growth is maintained. Remember that the IPO plan was for only £3.3m revenues this year 03/2019. So the out-turn could be heading for getting on for double that - stupendous growth, albeit from a low base.

Therefore, I think the business model is basically proven now. We just have to wait for more growth to be reported. This should also mean that cash reserves are probably adequate. Although a top-up placing at a much higher share price wouldn't bother me at all.

On the basis of the above, I've recently increased my position size from 1m to 2m shares, as I think this has serious multibagger potential, taking a long-term view.
That won't happen overnight, obviously, we have to be patient. I don't see this as a trading share - it's a hold forever one - providing the newsflow remains positive.

My broker tells me that Shore Capital has institutional buyers who want to buy, but there are no loose blocks of stock available in any decent size.

I wonder if Nigel Wray, and Miton Group might increase their position sizes? Other than those two, there are no institutional shareholders, and quite a fragmented shareholder base. So that could propel this share much higher, if Instis have to fight it out in the market to accumulate stock.

A word of caution on valuation - the company has an unusually large share options scheme, with 18.4m additional shares under share options, at a strike price of 15.1p. These were granted at the IPO, and it was completely transparent - I had a conf call with management just before the IPO, and they volunteered this information. 16.8m of those share options are for the joint lady CEOs. The thinking being (of Adam Reynolds) that they needed to be super-incentivised, as they're driving the business, and their existing shareholdings of 5% each was not enough. I agree with him.

So instead of using 106.8m shares in issue, we need to manually add another 18.4m in-the-money share options onto that, giving a fully diluted share count of 125.2m. Therefore at 28p per share, the market cap is £35m. That may seem a lot for an early stage company, but the market is pricing in (or starting to anyway) the stellar growth, and how the company should be a very much bigger concern in a few years' time (and profitable).

Hope the above is helpful info.

Regards, Paul.

[marmar80] 18/7/2018 09:14

DD, what happened to our licence and old mines in Serbia? Trashed or transferred to other company?

[marmar80] 17/7/2018 20:44

DiscoDave, I posted warning on Galileo bb.

[toyin] 17/7/2018 20:19

The big fella

How do you work that out?.

[the big fella] 17/7/2018 16:41

Sone excellent posts DD4. The valuation here already looks ridiculous and given your posts on Director remuneration and related transactions I shall move on.

[discodave4] 17/7/2018 16:24

Just type in the search on this site, or any other share site, and you will find it (GLR).

[marmar80] 17/7/2018 14:08

Is Galileo also trading on Aim?

[discodave4] 17/7/2018 12:41

No doubt it was all legal and in the small print so the FCA wouldn't be able to do anything.Holding ORE taught me a lot of hard lessons, one being always check the past history of all Directors. Bird and Reynolds make a very good living from pi's. Will never invest in anything they are involved with ever again, only holding here by ORE default.Check out their current and past directorships and there is a load of dissolved companies.My holding here is next to nothing so can't be bothered to email the Company to ask some questions about Reyco and what services they provided to SOS, also some general questions about Reynolds remuneration, but other shareholders should IMO.DD

[marmar80] 17/7/2018 11:44

DD, we should have reported it to Aim regulator for investigation. In basic terms this seems to be illegal what he did.

[discodave4] 17/7/2018 10:48

Yep, a big smelly rat.Colin Bird is still the CEO and Chairman of Galileo Resources.Upon his appointed as CEO of ORE (20th Sept 2015) he immediately issued a discounted placing representing 33% of the issued capital to raise £450k......naturally he gave himself a nice share option as well.The Silverton mine JV with his Company cost ORE $400k in exploration costs.So we (ORE) supported his Company Galileo Resources to the tune of $400k, then 11 months later we hand the 51% ownership back to him for a big fat zero!. Mr Reynolds was ORE Non-Exec Chairman and thus must have approved this arrangement.DDps sorry for off topic SOS'ers

[unabkxb] 17/7/2018 10:36

Thanks DD4. You never know, we might get something back .

[marmar80] 17/7/2018 09:19

Smelly rat

[discodave4] 17/7/2018 08:51

"On 8 May 2017, Orogen issued formal notice to Galileo Resources plc of its withdrawal from the Silverton Agreement. As permitted under the agreement, Orogen has withdrawn without recourse with all interests in the Silverton property reverting back to Galileo."Colin Bird was ORE CEO (for a year or so, can't remember) and he secured the Silverton JV...........he was (still could be?) a Director of Galileo and had a 25% shareholding, just saying!.As for Mutsk, ORE had 82% ownership and believe this was not a discontinued asset and was put on care and maintenance until a buyer was sought.DD

[marmar80] 17/7/2018 08:00

DD, I was down on Ore 99% when they announced end of gold era. Obviously they promised a lot and delivered nothing. There was a time I was 1.5k in blue on Ore but never sold and later was worse and worse.I know, if I had taken a risk here and averaged down when they were at 10, I would be now back in blue, but it was hard to believe they can deliver anything more than promises.

[marmar80] 17/7/2018 07:54

Good question Una.

[unabkxb] 17/7/2018 06:25

Disco Dave4Do you know what happened to our ORE goldfields/licenses ? Do Sosander still own them ?

[discodave4] 16/7/2018 22:32

maurice,Think we did lock horns on here early on, so I do apologise for that, nothing personal just lashing out I guess at any positivity for the BOD, particularly as I have experienced what AR can do to ruin a company.DD

[mauricemonkey] 16/7/2018 20:59

I don’t need to agree to a truce, you’ve done nothing to wrong me :)
Your input is always valuable and welcome. I’m not a great communicator so if I offend sensible posters that’s something I need to work on. But to the Christhs of the world, I can’t mock them hard enough.
Stay classy 😀

[discodave4] 16/7/2018 19:28

Thanks maurice do appreciate your kind words and your opinion (you may not think it, but I do) and perhaps I still have open wounds as far as my ORE experience is concerned, which has possibly made me overly sensitive here, my sincere apologies.....let's call it a truce.AR is a leach IMO, constantly feeding off RTO's and small AIM company's where he pays himself ludicrous sums. The wage bill at ORE was disgusting and long term pi's lost virtually all their investments yet the likes of AR keep raking it in.....seems like this is another easy gravy train as well.I do hope SOS prospers but I'm out as soon as my trading fees are covered as will not have anything to do with a business that he is involved with, even if that business has potential.........do not trust him and placings / dilution / share options / inter party transactions / fees, etc., will always be on the cards IMO.All the best.DD

[mauricemonkey] 16/7/2018 18:32

DD,
I’m not sure what to say. I’m not being sarcastic, I do agree that directors, especially NEDs, taking the p!ss need to be stamped on.
As the company gains traction and looks like becoming a success, the more likely that there’ll be funds holding this and the harder it will be for p!ss takers to take the p!ss.
I’m firmly of the opinion that AR would be better off looking at the long game and sitting quiet whilst the company grows, rather than making a couple of hundred k then getting the boot as his chickens come home to roost.
I am genuinely grateful for your enlightening comments about your experience with this man and the points you raise about the annual report.
I believe this company has the X factor and will make me a lot of money, I don’t have the years of disappointment weighing me down and can see the traction, not just in the accounts but in their public facing content which is mostly positive and showing great growth.
I wish you well and hope this share pays back at least some of what it owes you. I’m keeping the faith here, what you do is up to you.
All the best.

[discodave4] 15/7/2018 18:32

MauriceYour earlier quips about II's and 9% holding suggests to me that you had missed the point completely, sarcastic as well to boot!.Oh well.DD

[mauricemonkey] 15/7/2018 14:25

I didn’t miss your point.
Thanks for bringing this to everyone’s attention.

[discodave4] 15/7/2018 12:54

mauriceI stand corrected, AR has received £493k from SOS (£243k was pre RTO).Still not bad for 5 months!.What did Reyco do for the money I wonder, particularly as I believe it only has two directors / employees (AR and his wife!).DD