Venture Life Share Discussion Threads

[qs99] 09/12/2020 16:40

Cheers Riv, didn't see who mentioned 5 days, hope it wasn't me haha

Cash puts VLG in the driving seat, probably takes risk away of non-delivery of payment as a vendor in my view, shouldn't affect the price which will have been agreed I reckon.

DYOR and roll on Vulcan RNS!

[effortless cool] 09/12/2020 16:29

Having the cash puts them in a stronger negotiating position. It's like when you are buying a house with cash, you are more attractive purchaser than someone who needs a mortgage to purchase.

[whatja] 09/12/2020 16:24

Besides.....the seller may increase the price as they know the cash is in the bank.
In my view they should have done the deals they could with current cash and debt and then maybe a conditional deal subject to raising the cash - but they had the rule to beat. Still we can’t go back.

[rivaldo] 09/12/2020 15:27

Absolutely QS99. Completion could be a day or days away. But anyone setting 5 day deadlines for such deal news is just being unrealistic given the way real life - and negotiations - often intervene :o))

[qs99] 09/12/2020 14:16

Hey Riv, have worked in the city on client side and advisor side so it is possible that given the VLG RNS about Vulcan being "well advanced" that a deal could close near to the fund raising completing in my view. Just depends how hard the team want to work!!!

Cheers
QS99

[discodave45] 09/12/2020 12:17

Project "Vulcan" is well as advanced so the acquisition could be imminent, plus they do need to fill their spare production capacity in Italy (40%) ASAP and this deal hopefully will go some way to achieve that.Nobody apart from the BOD knows how close to finalising this deal is, and given the speed at which they passed around the begging bowl then it could be this side of Xmas (I'm hoping anyway!).

[rivaldo] 09/12/2020 11:26

The Downing Strategic Micro-Cap Investment Trust November newsletter is just out, and includes this commentary on VLG for the record:

"We added to our toehold in Venture Life, now a core position, on the back of a placing to fund an acquisition. We think that Venture Life, a leading developer, manufacturer and distributer of consumer self-care products, has significant scope to grow revenues, which should generate substantial operational gearing and earnings growth in the medium term. We think that the group has potential synergistic and strategic value to larger players in the space."

Anyone calling for an acquisition to automatically complete within days of a fundraising has evidently never worked in the City or in anything related to the markets. It may or not may happen quickly. Patience is the key.

[whatja] 08/12/2020 16:45

Q who are the institutional investors who now own 40% of VLG?

It had better not be the one selling down their stake a month or so ago.

[qs99] 08/12/2020 14:24

fair point discodave

board now need to pony up a few deals as per their "sell" into this placing.....

will they be "oven ready" haha

[whatja] 08/12/2020 12:48

1.6x subscribed shows generally positive expectations from existing shareholders.

Let’s see if the publicity surrounding the raise and the acquisitions generates wider enthusiasm.

[rivaldo] 08/12/2020 12:34

Indeed - the RNS is just out, with a healthy oversubscription of 159% of the Open Offer shares, so the excess is scaled back to almost nothing:

[whatja] 08/12/2020 11:46

Should be an RNS a with the results of the open offer.....hopefully over subscribed.

[farnesbarnes] 04/12/2020 18:41

Your biggest holding innit Cool? Innit cool.

[rachael777] 04/12/2020 14:08

Guess this is going nowhere until they announce acquisition details ?

[effortless cool] 04/12/2020 13:07

It's nice that you have a hobby.

[farnesbarnes] 04/12/2020 12:43

I still smell a rat

[qs99] 30/11/2020 13:18

Thanks for posts. V interesting

Would like to see one of the deals closing soon as surely they know the fund raiser is in the bag? DYOR

[rivaldo] 30/11/2020 12:44

I agree, on both counts. Probably a good thing.

VLG's move also leaves them with funds for additonal cap.ex - or even a further small acquisition if one comes along.

[shanklin] 30/11/2020 11:22

rivaldo

That seems quite a conservative note from Cenkos.

My guess is that the two smaller acquisitions could have been funded from internal resources and debt but that the large axcuisition tipped them over the edge of needing a placing... ...and they decided to announced before the imminent pre-exemption rights cutoff.

[rivaldo] 30/11/2020 11:18

There are some interesting points in Cenkos' long update note from a few days ago:

- they've calculated a pro forma forecast for the coming year ssuming the three mooted acquisitions complete reasonably quickly. This produces 6.75p EPS and £11.4m EBITDA, up 62% on the prior forecast
- imo that would justify a share price somewhere between 130p-150p
- VLG can almost double the manufacturing capacity in Italy from current capacity of 55m units to 100m units for only £7m total investment, with an initial £3m allowing 75m units production
- Pharmasource grew 40% in H1'20, and that was before synergies which should deliver further growth in 2021

[qs99] 30/11/2020 10:32

1 share traded, don't some people think that heralds an RNS?

DYOR

[qs99] 30/11/2020 10:18

Nice old start to the week