Vpc Specialty Lending In... Share Discussion Threads

[wilwak] 07/6/2024 09:24

The price keeps slipping. A little worrying.

Starting to feel like SLFR!

[wilwak] 22/5/2024 08:46

It’s pretty normal for even very promising tech companies to run out of cash and therefore face administration without regular injections of funds from shareholders.

Without the funds they would fail but with the support they could grow to be extremely successful.

Often shareholders are ‘expected̵7; or even ‘contracted217; to partake in future funding rounds to maintain their stake. This is most likely the explanation for the follow-on investment.

Hopefully we’re backing a winner! Fingers crossed. Although it’s already being valued well above cost so let’s hope that valuation is conservative.

[riskvsreward] 21/5/2024 12:25

Often they put more money just to keep the same share of a pie. It is good when the pie is growing but absolutely stupid when it is shrinking fast

[cc2014] 21/5/2024 10:31

Presumably it's an opportunity cost thing. Putting in £400k enables them to extract something more than putting in zero.

I'm keeping this on my avoid list. the market tends to push the share price far below what is reasonable in these situations.

[octopus7] 21/5/2024 10:23

I did think use of the word "preserve" a little odd as it suggests some security of (current) value longer term, which surely they can't be confident of with the recognised uncertainty surrounding Wefox.

[riskvsreward] 21/5/2024 10:14

Good fund managers are to find and support winners, not keeping prop up losers in the hope that it may come good.

[riskvsreward] 21/5/2024 10:10

Interesting the report says to preserve the value of the investment they put in another £0.4 m. How that is to preserve value if Wefox is going down in value or goes to bankrupt? The fund managers are just simply stupid and that is how they managed to get the investor capital value down from £1 to now £0.45 during the time they managed the trust.

[spectoacc] 21/5/2024 09:33

Well, they've chucked another £400k at it, but better than CHRY's 3 million Euros.

Not saying WeFokked is going under, but be very surprised if it didn't need to tap shareholders up again.

[wilwak] 21/5/2024 09:01

I can feel another NAV hit coming on.

[redhill9] 21/5/2024 08:13

Investment report now issued for 31 March. NAV is 78.59p, up 0.50p from previous month.

Regarding Wefox, they say:

The Company has noted recent press reporting relating to Wefox Holdings AG (“Wefox”), in which the Company holds preferred equity and convertible debt which were valued at £20.1 million and have a cost basis of £5.2 million as at the end of March 2024. During March, a follow-on investment of £0.4 million was made into Wefox to preserve the value of the investment. The Investment Manager has been and continues to be in discussions with Wefox and other stakeholders, is reviewing the valuation in light of developments and will provide an update with the release of the April NAV

[spectoacc] 19/5/2024 12:34

I don't think WeFokked are going to be worthless, but they clearly need more money - they've just had another 20m, 3m of it from Chrysalis.

[redhill9] 19/5/2024 11:35

Correct according to the latest investment report and NAV, which incredibly was as at 29 February - getting on for 3 months ago!

I don't recall (though haven't checked back) NAV announcements and investment updates being so slow in the days pre-liquidation. Surely an update is due very soon, or perhaps they're struggling to put words and figures together to explain the performance?

[mwj1959] 18/5/2024 09:59

If WeFox is really worthless (and I am not in a position to make a call on that front) it would knock 10% off NAV.

[ctrader3] 17/5/2024 08:37

Chrysalis Investments Ltd, up 4.3% at 80.60 pence, 12-month range 52.38p-95.30p. Chrysalis, which invests in public and private companies, says its investment adviser has been in discussions with the management and other shareholders of portfolio company wefox for a number of months. "A plan has been put in place to simplify wefox's business model to drive the company towards profitability. Following these conversations, the investment adviser believes there is a route to ensuring a successful outcome for wefox and Chrysalis's investment," it says. Chrysalis says it invested EUR3 million as part of a overall EUR20 million fundraise by wefox in recent weeks. It notes it reduced the value of its wefox holding as of March 31, and wefox now accounts for 14.4% of net asset value, down from 22.1% at the end of December.

[spectoacc] 17/5/2024 05:48

We're exposed to WeFox?

"L&F isn’t the only one. There remains the possibility (probability) of its largest equity holding WeFox also moving to IPO in 2025. Key people have been appointed and the ducks are being put in a row. Given the positive newsflow of growth and expansion at WeFox (35% growth in 2023) this is likely to be at a premium. It is notable that CHRY may look to take WeFox off VSL’s hands some time. They did something similar with Jupiter’s holding of Starling and CHRY are positive about WeFox."

And the same day "Oakbloke" does this puff piece, Sky say that WeFox may go to zero fairly soon?

[ctrader3] 17/5/2024 05:02

[e-mail]

VSL

[vatacarma] 15/5/2024 08:56

Repayment funds have still not been received to my account with Redmayne Bentley

[wilwak] 15/5/2024 08:47

It’s definitely a capital return and not a dividend.

So it’s taxed as a part disposal of shares.

I’ve taken the bold move to immediately reinvest the proceeds back in to more VSL at 47.1p.

Hoping that at this price the downside risk is very very low.

[pagoda67] 14/5/2024 15:56

Well looks like they do not like links to the HMRC website. The page I found useful was headed CG57800 - Capital distributions: introduction....my last on this.

[pagoda67] 14/5/2024 15:52

Agree they appear to be usually treated as a Capital Return. My last comment on this and I would also say I am not an accountant etc and not providing any advice!
Just to say found this:

[spectoacc] 14/5/2024 15:40

B-shares seem to always be capital distribution (no advice intended ;) )

[waterloo01] 14/5/2024 15:34

Thanks. AV. wasn't easy to work out even with the example. I'll leave it my accountant to figure it.

[pagoda67] 14/5/2024 15:27

If you go onto the VPC website you can see details of the B Share scheme, it is very likely to be treated as a Return of Capital, ie.e no income tax implications. No detail beyond that. There is a likely a calculation to be done when reporting next tax year, when Aviva did theirs they provided a worked example.....somehow I doubt you will get that luxury here.