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Over the Edge

Sophisticated and complex high-risk tax-sensitive investments in small companies: handle with care
timbo003
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Re: Over the Edge

#360431

Postby timbo003 » November 26th, 2020, 7:40 pm

Another RNS caught my attention earlier today. Mirriad are conducting a fund raise at 40p/share
https://www.investegate.co.uk/mirriad-a ... 35006809G/

The Edge I shares portfolio has a very small stake in Mirriad, but the H share portfolio holds a decent number of shares.

The Share price for Mirriad at the time of the last reported NAV for the H shares (31st March) was around 7p/share (equivalent to around 0.94p/H share), so if Mirriad are now worth 40p/share, that would equate to around 5.36p/H share, an increase of around 4.4p/H share.

timbo003
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Re: Over the Edge

#361907

Postby timbo003 » December 1st, 2020, 7:11 pm

Herewith a link to a recording of a investor webinar (held earlier today) with AIM quoted Audioboom
https://www.investormeetcompany.com/inv ... ntation-17

Audioboom are held in the Edge H share portfolio and comprised 6.7% (£567K) of net assets as of end of February, the share price is now around 10% lower compared to end of Feb, but their prospects certainly seem quite bright from what was discussed today.

timbo003
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Re: Over the Edge

#366654

Postby timbo003 » December 16th, 2020, 9:40 am

I missed this RNS on Friday as it didn't appear on Investegate

https://www.londonstockexchange.com/new ... s/14790439

It's a bit of a Curate's egg if you hold both the i shares and the h shares.

Presumably the decreased valuation in Coolabi, reflects low indicative offers for the business during the ongoing sale process?

In the most recently published accounts of the Company, its annual report for the year ended 29 February 2020, the audited NAVs of the H share class, the I share class and the Company were £8.43m, £20.08m and £28.51m respectively. If these NAVs are revised to take account of only the revaluations as at 30 November of the Company's Unity and Coolabi holdings, then the NAVs become £18.79m (an increase of 122.89%), £10.67m (a decrease of 46.86%) and £29.46m (an increase of 3.33%) respectively. Based on these NAVs, the NAV per H share as at 30 November 2020 would be £1.62 (72.69p as at 29 February 2020) and the NAV per I share as at 30 November would be 14.60p (27.47p as at 29 February 2020).

Converse1
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Re: Over the Edge

#369524

Postby Converse1 » December 24th, 2020, 1:11 pm

As an I class share holder, it doesn't surprise me that we're at an all time low. The gift that keeps on giving.

timbo003
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Re: Over the Edge

#372156

Postby timbo003 » January 1st, 2021, 6:53 pm

Edge released three RNS announcements just before xmas (not all of them appeared on Investegate) which are worth a comment:

Interim results (6M ending August 31st) - released on Dec 21st
https://www.rns-pdf.londonstockexchange ... -12-18.pdf
There were a few interesting insights worth highlighting:
* Coolabi update : the drop in valuation was derived from the indications of interest received for the business
* Unity Software (h shares): Edge are locked in until February 2021
* Share buy back and possible fund raising still under consideration.


Quarterly NAV update - released on Dec 22nd
https://www.londonstockexchange.com/new ... s/14803196
* NAV per H share as at 30 November 2020,163.79p (31 August 2020, 66.44p)
* NAV per I share as at 30 November 2020,13.80p (31 August 2020, 14.14p).


Director share purchases - released on Dec 24th
https://www.londonstockexchange.com/new ... g/14805820
I shares - 25K shares at 11p/share
H shares - 10K shares at 115p/share

timbo003
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Re: Over the Edge

#386551

Postby timbo003 » February 14th, 2021, 7:11 am

Edge released an RNS after hours on Friday with updated NAVs, the announcement did not appear on Investegate, or the London Stock Exchange web site, but it did pop up on LSE
https://www.lse.co.uk/rns/EDGI/updated- ... lt7ad.html

NAV estimates on November 30th and February 10th were as follows:

H shares: 142.58p (163.79p as at 30 November 2020), a decrease of 12.95%.
I shares: 13.75p (13.80p as at 30 November 2020)

The change in NAV in the H shares between Nov 30th and Feb 10th was mainly due to the change in value of the quoted holdings, most notably Unity Software (down 19.8% in the same period).

Also worth noting that Edge are locked in to their Unity investment until 28th Feb.

127tolmers
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Re: Over the Edge

#420097

Postby 127tolmers » June 17th, 2021, 9:22 am

https://www.investegate.co.uk/edge-perf ... 00071655C/

Sale of Coolabi and Changes to I Shares

The Company's board of directors ("Board") as advised by its Manager, Edge Investments Limited, announces the disposal of its shareholding in Coolabi Group (Coolabi), with final closing expected on or before 31st July 2021. The Board would like to thank the Coolabi management team for its efforts in running the business over the last 12 years and in particular, guiding it through the challenging period of the past 15 months.

The sale of its shareholding in Coolabi will be an all-cash transaction on completion and this exit represents the disposal of the last major asset in the I class of EPVCT. No material change in the net asset value per I Share ("NAV") is expected from the last published NAV on 5th March which was 12.24p and further details on the transaction will be published in the annual report.

Following the disposal of the Coolabi shares and the collection of proceeds, it is the intention of the Board and the Manager to realise the remaining assets in, and then immediately proceed with an orderly closure of, the I Share class.

127tolmers
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Re: Over the Edge

#434583

Postby 127tolmers » August 13th, 2021, 2:58 pm


127tolmers
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Re: Over the Edge

#437496

Postby 127tolmers » August 26th, 2021, 8:32 am

Edge Performance VCT results came out Tuesday. Key excerpts below:

https://www.rns-pdf.londonstockexchange ... 1-8-23.pdf

19. Post Balance Sheet Events
Since the Company’s year end, the following transactions have taken place:
• In June 2021, the Company disposed of its shareholding in Coolabi Group Limited, consideration totalling £8,365k was received on
9 August 2021

Page 4 Overall Review
The Board has declared
interim dividends of 20p per H share and
8.5p per I share, each with a record date
of 20 August 2021 and a payment date of
27 August 2021. The sum of these dividend
payments is very close to the maximum
payable given the Company’s distributable
reserves as at 28 February 2021.

Distributions
We intend to distribute the proceeds of all
I share realisations as soon as practical.
Following the sale of Coolabi, the Board has
declared an interim dividend of 8.5p per
I share, payable on 27 August 2021. This
dividend represents a return to shareholders
of 72% of the net asset value of the I share
class as at 28 February 2021. Following the
distribution of I share proceeds from the
realisation of its portfolio holdings, we intend
to immediately proceed with an orderly
closure of the I share class.

Page 9 Existing portfolio investments
Coolabi Group Limited
Cost (£’000): 17,716
Valuation (£’000): 8,366
Value movement (11,296)
in year (£’000): (57.5%) decrease
Basis of valuation: Sale price
Equity holding: 49.99% of
voting rights

The valuation for Coolabi is derived from
indications of interest during the M&A
process, applied to the distribution waterfall
for proceeds. As a consequence of the
capital structure of the Company, and prior
ranking debt as well as the management
incentive scheme implemented in 2019, all
of the value for EPVCT value is now held in
its debt instruments rather than the equity.

An adviser was appointed in early 2020 to
explore the strategic opportunities for Coolabi
including an outright sale. Despite the severe
impact of the pandemic on the process,
which limited the depth and breadth of the
buyer universe, limiting this to European
bidders, rather than the expected range of
European and Asian bidders, Edge
Performance VCT reached agreement to sell
its shareholding in Coolabi as part of the sale
of the Company. This sale was at a headline
valuation of £35m, which is within the range
expected at the start of the process but at
the lower end of that range. This accounts
for the reduction in the valuation of the
Coolabi holding for EPVCT throughout
2020/21, as the valuation was revised down
to the offer price and subsequently lowered
again as the process completed later than
forecast and value accrued to the senior
note holders.

The sale of Coolabi will allow the business
to take on the additional capital required to
grow the business and which the current
VCT investors, including Edge Performance
VCT, cannot now offer under state-aid rules.

Converse1
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Re: Over the Edge

#437650

Postby Converse1 » August 26th, 2021, 6:22 pm

Thanks for posting. End of the line for I class holders for a performance VCT which hasn’t performed.

timbo003
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Re: Over the Edge

#452970

Postby timbo003 » October 25th, 2021, 4:30 pm

Edge VCT published their half year results (to end of Aug 2021) on Thursday (Oct 21st) and it is another depressing read for I class shareholders, not helped by the Chairman (Terry Black) crowing about the H share’s recent performance (the best performing VCT over a 12 month period in 2020).
https://www.rns-pdf.londonstockexchange ... -10-21.pdf

Edge convened their AGM at the end of August (a legal requirement) but then postponed immediately until November as they had not sent out the Annual Report (year ending Feb 2021). Shareholders still haven’t received the annual report and it is almost end of October, so will the AGM occur in November, or will there be a further delay? I have no idea.

What is now clear from the interim report is that only one director is down for re-election at the AGM and that is newly appointed Sir Peter Bazalgette (Chairman of ITV). The two directors who oversaw the destruction of value for the I class shareholders (Sir Aubrey Brocklebank and Chairman Terry Black) appear to be too scared to put themselves up for re-election at the AGM, as they must know that the I share class shareholders would ensure they would not be re-elected, instead they will be putting themselves up for re-election in the new year at a General meeting, after the i-shares have been cancelled and the pesky I class shareholders have been disenfranchised.

Nigel Somerville wrote up an excellent summary of the current situation on Shareprophets on Friday and has followed this up with another expose today, both articles are well worth a read (modest subscription required)

Edge Performance – Not so Cool-abi for I Shares
https://www.shareprophets.com/views/586 ... r-i-shares

Edge Performance – Bad News for I Share Holders, As Corporate Governance Goes Out of The Window
https://www.shareprophets.com/views/586 ... the-window

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Re: Over the Edge

#455058

Postby 127tolmers » November 2nd, 2021, 9:16 am

Edge Performance VCT- Early fireworks this year as EGM requisition arrives. Bravo Cliff Weight and ShareSoc

https://www.shareprophets.com/views/588 ... d-sharesoc

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Re: Over the Edge

#455244

Postby CliffW8 » November 3rd, 2021, 6:00 am


timbo003
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Re: Over the Edge

#455448

Postby timbo003 » November 4th, 2021, 6:40 am

Since the requisition request went out, there have been 500K i shares purchased from prices between 4p and 7p, the NAV of the shares is around 3.5p (mainly cash or cash equivalents) so shareholders are likely to receive somewhat less than that as a final distribution on wind up

https://www.lse.co.uk/ShareTrades.asp?s ... Edge-Perfi
https://i.postimg.cc/rpcGm57g/Edge-share-trades.jpg

There has been no RNS (yet), so who has been paying a large premium for the i shares over the last couple of days?

Given that there are currently 84.6m Edge shares in issue (11.6m h shares, 73.1m i shares) it looks to me as if someone has been buying votes for the forthcoming requisitioned meeting. The only people who would stand to financially gain from this transaaction would be individuals who are connected to the Edge management (voting to ensure they keep their jobs and receive management fees and performance fees for the h shares), if this were the case, could it be considered as insider dealing?

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Re: Over the Edge

#455476

Postby UncleEbenezer » November 4th, 2021, 8:23 am

timbo003 wrote: if this were the case, could it be considered as insider dealing?

The meeting is public knowledge. Are you suggesting they're privy to sensitive unpublished information?

I wouldn't care to speculate. But on the subject of buying votes, how many people paid £3 to vote for Jeremy Corbyn?

timbo003
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Re: Over the Edge

#455507

Postby timbo003 » November 4th, 2021, 9:56 am

The meeting is public knowledge. Are you suggesting they're privy to sensitive unpublished information?


I'm not sure about that UncleE

As far as I am aware, the first time the news of the requisition went into the public domain was when Sharesoc published details on November 2nd (time unknown)
https://www.sharesoc.org/sharesoc-news/ ... -director/

The recent ishare purchases (above the NAV) commenced on November 2nd at 08:55, was that before or after the first public disclosure :?: I don't know

timbo003
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Re: Over the Edge

#455993

Postby timbo003 » November 6th, 2021, 8:03 am

Since the requisition request went out, there have been 500K i shares purchased from prices between 4p and 7p, the NAV of the shares is around 3.5p (mainly cash or cash equivalents) so shareholders are likely to receive somewhat less than that as a final distribution on wind up

https://www.lse.co.uk/ShareTrades.asp?s ... Edge-Perfi
https://i.postimg.cc/rpcGm57g/Edge-share-trades.jpg

There has been no RNS (yet), so who has been paying a large premium for the i shares over the last couple of days?


We have an answer and it's a good one
https://www.investegate.co.uk/edge-perf ... 09335428R/

So that's just over 600K shares (votes) that David Glick and his mates won't be able to get their hands on :) :)

timbo003
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Re: Over the Edge

#457053

Postby timbo003 » November 10th, 2021, 11:53 am

There was a NAV update yesterday

https://www.investegate.co.uk/edge-perf ... 01388418R/

The estimated unaudited net asset value per H share as at 08 November 2021 is approximately 158p (25 October 2021, 146p).


Also I see the Telegraph has picked up on the story (probably from Shareprophets or ShareSoc) on the Edge Chairman, Sir Peter Bazalgette (who also happens to be the ITV Chairman, hence their iinterest)

ITV chairman faces backlash at investment trust
https://www.telegraph.co.uk/business/20 ... ent-trust/

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Re: Over the Edge

#457724

Postby CliffW8 » November 12th, 2021, 9:24 pm

https://www.shareprophets.com have interesting article and bearcast. TW says he has been threatened by a PR man (the implication is he is from Edge - but not sure if he means EIL or Edge VCT)

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Re: Over the Edge

#459147

Postby naflod » November 18th, 2021, 10:27 pm

Good news, bad news from Edge today.

The good: they have realised a twentyfold profit for the H shares with the sale of 90% of their holding in Unity Software for £10.9m in cash.

The bad: the investment manager believes it can find "suitable attractive opportunities"

https://www.londonstockexchange.com/new ... s/15217935

Given the track record across the alphabet I would rather see a special dividend

naflod


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