Surface Transforms Share Discussion Threads

[bones] 14/11/2023 17:44

I believe pinkfoot mentioned that the capital loan will be asset finance which makes total sense. The company would only incur charges as and when the financing was needed, in the context of SCE's capital expansion over the next couple of years. They won't be receiving all £13M in cash upfront and being stiffed on interest charges on the lot from day 1.

Here's a promotional guide:

[alfriston2] 14/11/2023 17:29

I suspect the management's track record combined with current market conditions and a significant increase in share count explain the share price weakness today. There is still a risk of the loan finance not being forthcoming. But as some have pointed out, whilst the order book is impressive, it has to be profitable at some point to provide a return on shareholders money. That is still to be demonstrated. And there is the risk of further production problems,which would also be costly. We don't know yet whether the company has the engineering capability to solve the problems effectively. Given the current problems have arisen at relatively low levels of production,despite working with this technology for over 25 years, and having had a few years to prepare for these contracts, is not reassuring.New investors may just decide it's better to wait for some positive news before committing funds, even if it would be at a higher price.

[cheese666] 14/11/2023 16:55

With the signed contracts in place a loan will be secured. If any questions remain about the loan, which I have no idea about, it will be over the terms of the loan. Their order book means money will be available. The only possible question is how much that money costs.

[amt] 14/11/2023 16:47

Is there any risk of loan not being forthcoming and us ordinary shareholders being left in the lurch ?

[amt] 14/11/2023 16:46

I agree Cheese, nearly always better to buy in the market and hope to avoid yet further dilution.

[quazie12] 14/11/2023 16:39

I expect management to raise enough at the right times, when the stock price is high not at these levels. A raise at 20p would have been significantly less expensive to existing holders. Pinkfoot is playing this all down but management seriously screwed up here. This is not a time for me to invest more....not until Bundred and Johnston have left the building.

[emeraldzebra] 14/11/2023 16:02

Seems a little disappointing and mysterious that with much of the concern over the need for cash behind us, that we have not seen more heavy buying today. Perhaps that will pick up in the medium term. Hope so.

[amanitaangelicus] 14/11/2023 14:10

If you believe the cash can be used effectively , an easy buy!

[toffeeman] 14/11/2023 13:52

we have some time to decide whether or not to take up the offer and if the share price moves up then it will be worth adding.

[bones] 14/11/2023 13:47

I see your thinking but by doing that, cheese666, you are directly denying the company your money and maybe not helping your investment (assuming the open offer then falls short). I can't agree with that approach and will be going in again via the open offer (to fund the company) rather than buying in the market.

[cheese666] 14/11/2023 12:36

It benefits existing holders to avoid the placing and buy existing shares at 10p. That's what I'll be doing when the time is right.

It seems wildly optimistic to expect the placing to be oversubscribed from 20m to 30m.

[bones698] 14/11/2023 12:28

Albert totally agree with your statement . It's all about timing rather than investing with small cap shares . They timescale can be decades so timing it right is almost impossible . There are unknown risks looming at every turn as we have seen this last year alone .
Now the funding is sorted albeit at a discount and quite a lot of dilution it looks a decent entry point .

What's needed now is production issues resolved and no more balls ups and revenues to increase and get near to break even asap .

Still time to get in for a while though no need to rush as the placing will hold it down for a while imo

[pinkfoot2] 14/11/2023 12:08

I asked the question in the presentation meeting-no issues and of course a strong capital base should allay any fears

[swiss paul] 14/11/2023 11:21

Lets hope the risk register (have you seen it Pinkfoot) includes a piece about the potentail for customesr to pull out if they perceive the company cannot delievr in the agreed timescale or that there could be a risk to that companies operations.

[geko5trade] 14/11/2023 11:00

Don’t knock it that’s a lot sToday! But SCE have much more. They have orders in a market with extremely high barriers to entry. What has come into question is whether their own manufacturing process can be scaled up to meet demand or is that barrier too high. The reason for the uncertainty lies with the board. Eg: What does ‘not insurmountable’; mean? Does it mean we might, we will, it’s possible, it’s unlikely, we might if we raise 10 mil, we might if we raise 20, 50...or does it mean we might not...
The market doesn’t like uncertainty and unfortunately bungle and blunder produce it in spades.

[supernumerary] 14/11/2023 10:58

pf - the 'doom and gloom' is because even cautious latecomers like me - the archetypal wait and watch investor - are down probably 80% on their investment. Patronising us all neither makes their record better, nor yours.

In my view the management is incompetent and untrustworthy and these are characteristics that linger. There will thus be more ramifications further down the road, and the $1B valuation is just fantasy based entirely on their rose-coloured view.

I think this is my last word on the subject - running down my own investment goes against the grain, but I really can't find anything good to say about this situation, so better to stay silent.

Good luck all.

[pinkfoot2] 14/11/2023 10:51

I’m literally back to where I started after tax reliefs etc-I’ve lost a huge amount of upside.It hurts but I’m looking forward.If Johnny come lately investors make money, good for them-timing is everything

[swiss paul] 14/11/2023 10:50

Ah Pinkfoot so yet again others have an advantage eh! And there was me thinking that all shareholders are equal. As per my previous posting this company has more leaks than St Davids day.

Also the previous raising which I beleive you where given notice about. As on that I will wait until the price goes below the issue price (as it did last time and will this time) and may consider buying back in again.

[sunshine today] 14/11/2023 10:46

The issue here is investors have NEVER BEEN TOLD THE TRUTH.

Hence , today a new investor could be generally excited about prospects, only to find the share certificate printing, starts again a few months down the road.

On the plus side you now have a business, orders, a factory, and cash.

[amanitaangelicus] 14/11/2023 10:45

Did well to get that placing away,!!! Well done! The seers here thought £3m ...well you can double, treble that. Great news. Buy buy buy.

[amt] 14/11/2023 10:32

Spot on Albert, it's very unfair for longtermers to have lost out to newcomers who haven't taken any risk and can benefit much more. It needs to be sorted or AIM will die and so will UK plc

[geko5trade] 14/11/2023 10:30

I don’t think there’s doom and gloom. I think there is deep frustration with the board and fundraisings at ever decreasing prices. The latest appears to be last ditch emergency funding and that isn’t where most investors want to be or where they feel they should be. The other frustration is that it’s very hard to get an understanding , or accept the announcements fairly reflect and inform, the nature of the scaling up and manufacturing issues. Personally I find it impossible to quantify the risk profile of the company and I think that’s in tune with market sentiment.

[albert_einstein] 14/11/2023 10:19

Hi pinkfoot2,

The problem is that most of us haven't got an endless supply of money to keep investing. I've been in these from the very start, supported them through many fund raisings at far higher levels and it now feels like it's the johnny-come-latelys who will be the chief beneficiaries if the Company succeeds.

Sadly, I don't think I can risk any more even if the story is compelling at these levels.

[albert_einstein] 14/11/2023 10:13

SCE have overcome all the substantial barriers to entry in the automotive industry, have a world class product and huge deals with industry giants.

It's such a shame that they just can't get the scale-up of manufacturing right.