Worthington Share Discussion Threads

[sweet karolina] 03/11/2018 18:08

David,

I am not sure any real exchange will take them. I doubt they have the cash left to pay for the prospectus and listing fees. If you strip out the Motivideo shares (even if they are worth the figure claimed they are not sellable and should not be current assets) RAP had negative net current assets of MINUS £400k back in Jun which are probably around MINUS £800k now. They would need to raise between £2-3M minimum to satisfy any market's capital requirements. All the talk was of a London listing, now they just make vague statements about a dual listing. The London listing has clearly completely bombed.

[davidkip] 03/11/2018 17:22

Oh dear Simon St Ledger does mix with some types! Frankfurt exchange anyone?



(from way back in 2012)


"A common practice is to encourage the client to float the company on the lowly regulated Frankfurt Stock Exchange. There is a fee in this for the promoter. Donovan's real bread and butter, though, is ''equity line financing''; that is, a promise of instant funds akin to a very expensive overdraft.

Often the funds are not delivered. Even if they are, equity lines are an expensive form of funding and can lead to sharp losses in a company share price.

Not all Donovan's clients are critical. One, Simon St Ledger, the principal of the weight-loss supplement distributor Rapid Nutrition, recently announced a ''$50 million joint venture'' with Equity Partners Fund.

''This transaction was facilitated by the Singapore-based Equity Partners Group, who have developed an exemplary track record with total transactions completed in excess of $US4.5 billion,'' St Ledger wrote on his website.

Contacted by The Sun-Herald, St Ledger said he had not yet drawn down the $50 million. He did say, though, that he believed that Donovan and Equity Partners did have $US4.5 billion in funds."

[sweet karolina] 03/11/2018 17:04

RAP Net cash used by operations 2018: £1,073109 2017: £50.202

Vs Operating Profit 2018: £1,101975 2017: £308,195

Incredible business model the more profit they make the more cash they burn and they are not even capitalising a load of costs.

[davidkip] 03/11/2018 16:38

I wonder if Streamcast are the media company that received the £1.7m pre-pay. When RAP asked for it back (ha ha) Screamcast offered shares instead. "sorry we don't have the cash any more, would you like some paper?". But then just kicks the can down the road to a new question, which is how RAP are valuing those shares at ~ 3x their purchase price?

All a tad opaque and hardly the sort of thing that will get RAP a London listing.

[cliffpeat] 03/11/2018 16:28

Roy - well spotted

Nicholas Hollens signed the audit report filed with Companies House - he is MD of Greenwich UK in Oz.

More here


So what is the status of the Moore Stephens report?

And re-iterating DY or SK's questions about the audit procedures for verifying the value of the Screamcast and Motivideo "assets".

The Screamcast/Advertising prepayment transaction is hard to understand. in the 2017 accounts the auditors reported:

"RECOVERABILITY OF ADVERTISING PREPAYMENT
Risk Description
The Group holds £1,706,869 in prepayments related to advertising. This advertising was paid for in full in a previous period, but was not fully utilised.
Given the age of this balance, coupled with its size, recoverability of the prepayment was considered a key risk for the purposes of our audit.

The note corresponding to this balance is note 10.

How the scope of our audit responded to the risk

We obtained a letter of confirmation from the provider of the advertising service, confirming the balance that was held on deposit for the Group, as at 30 June 2017.
We analysed the terms of the prepayment, to ensure there was adequate time for the Group to make use of the asset.
We confirmed the translation of this balance from its historical Australian dollar value to its Pounds sterling value was accurately performed.

Key Observations: We concluded that the prepayment balance is recoverable."

But 2018 note 12 says the prepayment was "sold to Screamcast Marketing LLC ... for contributed equity in the company". How did that work?

So - credit prepayments £1.7m and debit investment in Screamcast.

Debit investment in Screamcast - £3m and credit .... where is the £3m credited?

[davidkip] 03/11/2018 15:42

I note that the same double-act of Greenwich (CH) and Moore Stephens (for SIX) happened last year, which makes me think this is some Swiss SIX regulation regarding final sign-off of SIX-listed companies.

[davidkip] 03/11/2018 15:39

That's bizarre. The text of the two audit reports overlaps beyond the usual boilerplate but is also quite different in places. I can't see why anyone would pay for two audits. I wonder what happened ... the one on their website is ten days later for the audit signature ... I wonder if SIX requires a swiss audit firm to give their final sign-off so Moore and Stephens had to double-check Greenwich and Co's figures.

[roydyor] 03/11/2018 15:08

I see we have have just got an Australian flag, is Simon St Ledger having a peek? lol
The Companies House audited figures were signed off by Greenwich & Co while the audited figures on the Rapid site are signed off by Moore Stephens.