Jump to content


Photo
- - - - -

AFDAWN

new stategy new life

  • Please log in to reply
890 replies to this topic

#361 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 01 April 2015 - 02:49 PM

Some useless information. I am a shareholder in a company that we were restructuring and the company had a substantial SARS liability. We have through a 'facilitator' tried to negotiate a settlement with SARS. We approached SARS for a compromise under Article 200. One of the issues from SARS for not entertaining the request was; "The request must be accompanied by the evidence supporting the ‘debtor’s’ claims for not being able to make payment of the full amount of the tax debt." 

 

If this is the same article that Afdawn is using to apply for a compromise (reduction) I wonder if SARS will consider this as Afdawn has the funds available to actually settle the full outstanding amount. This may be the reason why there is no progress and also why management after the November positive cautionary that a settlement was imminent do not pursue any acquisitions. They may have to approach shareholders again for capital in the near future?       


  • 0

#362 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 31 March 2015 - 04:09 PM

Is Keet the force behind the throne? It seems like he is the spokesman and driver and that the present CEO is not really in the picture?

 

Say SARS give them a large discount what will that mean for the company? Do they have the funds to pay SARS, I think if SARS settles at a lower amount they would want the payment immediately. Will the shareprice react to a settlement? 

 

Do you think iKubu was a transaction in which they had equity or was it a fee for some paperwork as suggested on the Forum a while ago? It is difficult to consider the Afdawn value proposition. I see you mentioned other positive investments, what are these?

 

Have they come clean on Elite? I must say I find it strange that the management team is completely white and I assume their client base largely black - just a subjective observation.      


  • 1

Hawk


#363 battleship

battleship

    Member

  • Members
  • PipPip
  • 140 posts
  • Locationdurban

Posted 31 March 2015 - 02:46 PM

I see Elite has a nice new web site http://www.elitegroup.co.za/.
 
The 'new' management team has now been in charge of the Elite Group for 9 months now I wonder how long will it take with all the exit-centric (Knife Capital) expertise to  get the company exit ready? Or don't they (Afdawn) plan to sell Elite anymore? Are there reasons other than commercial motivation stopping Afdawn to sell the company? 
 
Will the Afdawn Board at this stage still pin Elite' issues on the previous people, Dr Stoop en Andy Turner? Does the buck stops with NO1?



The delay (SARS) causing so much anxiety needs a reason.My guess is that SARS are still after the culprits(before keet and co)and the delay is so SARS have opportunity to deal directly with the people owing the money.Its unfortunate as we are getting no SENS news, a lot of which I suspect would have been good.(Ikubu,other investments,etc).We appear set to wait till end May unless something transpires
  • 0

#364 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 31 March 2015 - 08:32 AM

I see Elite has a nice new web site http://www.elitegroup.co.za/.

 

The 'new' management team has now been in charge of the Elite Group for 9 months now I wonder how long will it take with all the exit-centric (Knife Capital) expertise to  get the company exit ready? Or don't they (Afdawn) plan to sell Elite anymore? Are there reasons other than commercial motivation stopping Afdawn to sell the company? 

 

Will the Afdawn Board at this stage still pin Elite' issues on the previous people, Dr Stoop en Andy Turner? Does the buck stops with NO1?    


  • 0

Hawk


#365 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 30 March 2015 - 01:33 PM

Looks like the share is (steadily) preparing for an upward trend?! Strategically, this might be a very good time for ADW to share positive/good news if they could do so at this stage...


  • 0

Hawk


#366 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 30 March 2015 - 01:32 PM

Hi Guys, 

Afdawn via Knifecap just released the beta version of Yue Diligence. It has already been included as a semi-finalist in the Fin-tech Innotribe Start up challenge.  

 

http://ventureburn.c...semi-finalists/

 

The did mention at the AGM that they will be releasing this soon. 

 

Only positive news. 


  • 0

Hawk


#367 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 24 March 2015 - 07:33 AM

The Board and management have the support of at least 40% of the shareholders (4/5 biggest shareholders). The Board is behind management in their endeavours. The Board is controlled by Knife Capital sympathisers supporting the present business case.   

 

Shareholders who invest in this type of company should accept the high risk and uncertainty that the investment will present. 

 

It is a free market and shareholders who are uncomfortable should sell their shares, outside pressure will not determine the business plan. 


  • 0

Hawk


#368 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 23 March 2015 - 09:01 AM

Point taken re certain Venture Capital Companies' challenges in a listed environment; but lets stick to the reality and facts, Afdawn is at this stage obliged to function within the JSE and other regulatory frameworks. Afdawn' stated vision is to be an investment holding company, or is it? The 'bump and dump' philosophy is a new Grindstone making.

 

On the 17th April 2012 (before selling out to Afdawn) Keet van Zyl proclaimed in a press interview; "Knife Capital is flexible about raising funds. We may look at raising a smaller (ouch)  tranche of funding - maybe R100m-R150m - which will allow us to close off a fund and build a track record before testing the investment market again. The 'entry ticket' will cost between R20m and R30m, which means that pension funds and institutions, as well as 'super angel' funders offshore, will be the initial targets.".....   

 

It must be noted that they were not successful in the above i.e. raising any funding and Afdawn was a last port in a storm for them, according to KvZ without the envisaged track record.

 

Regarding the past successes claimed as achieved by the KC team as managers of the HBD fund; Tim Harned of AGC was the sole financial adviser for HBD re the Fundamo HBD transaction which Knife Capital often claimed as a KC success (see AGC web site). Tim is often a speaker at the Grindstone exit-centric workshops... 

 

Even the iKubu transaction was according to Franz Struwig of their own making (interview on KykNet), it may be that KC has done some lesser paperwork for an undisclosed fee on this deal - as there is no transparency we may only guess.

 

No kudos there! So without capabilities in their field of expertise what did Afdawn buy? 

 

April 2014 Knife Capital sold a two year old seemingly insolvent company of which the balance sheet was bumped up with intangible assets of more than R10 million (to make the deal fly) to Afdawn for R10 million plus (please read the AD interim report to verify - 28th November 2014). So what can they lose? Who has done the independent DD on KC? My guess a related party, where are they now?   

 

Regarding open and transparent communication; at the AGM the CEO said that they subscribe to the King 111 Report, inter alia the Board is responsible for Governing Stakeholder Relationships;

 

o    Transparent and effective communication with stakeholders is essential for building and maintaining their trust and confidence.

o    Complete, timely, relevant, accurate, honest and accessible information should be provided by the company to its stakeholders. 

o    Communication with stakeholders should be in clear and understandable language. (please note the interim report was presented in very complicated and peculiar English and a lot of double talk) 

o    The board should adopt communication guidelines that support a responsible communication programme.

 

These are facts and not emotion or blind believe, there are only two Afdawn Board members that are not in one way or another compromised by the KC transaction.   

 

But let us wait things will pan out over time, the JSE may even have a say in the matter. Some people may think that the Afdawn Board is misleading the investor market by manipulating communications to suit the situation.  

 

 

 

 

 


  • 2

#369 zerocool

zerocool

    Newbie

  • Members
  • Pip
  • 5 posts

Posted 22 March 2015 - 05:45 PM

Yes I actually bought my shares...some at 12/18 cent per share (last year) and have also followed my rights on shares previously held. My DD was based on the public announcements made by the AD Board during 2013/14. So I have the right to question the credibility of the AD Board. 

 

Last year when the market was under the impression that the Knife Capital deal and the RI was the beginning of the fulfillment of the Vision as stated and proclaimed in 2013, the share price went to 20 cents per share. The reality check was that this was never the Afdawn Board' plan but a way of getting money to do other things with, smoke and mirrors. The share price reacted and retracted to where it is today. Hiding behind the SARS issue is just a way not to do what they promised in various communications not the least the motivation for the RI!

 

The market is never wrong, AD will fail dismally if with the present status and information the company tries to get additional money from the market. If KC was such a great deal as stated recently by the CEO why no progress (a year later), why with all the good stuff the share price has pulled back to the current levels? Afdawn Board, the market do not believe you any more.....

 

Zerocool, have you bought your shares, or was it issued as a consideration? But maybe you are right and the share price will jump tomorrow on the back of the 'good news' - just as it was anticipated in the iKubu cautionary (remember that one?)      

 

I bought a considerable amount of shares because I believe in the KC team. 

 

Have you ever read Lean Start-up by Eric Ries? Turn to about page 189 (I think it is page 189). He speak about "LTSE" (long term stock exchange). He said someone need to create a LTSE for Venture Capital companies to list, as it is impossible for a Venture Capital company to constantly report in terms of the relevant Stock Exchange/Listing rules due to  investments they make. Venture capital companies don't sell products like checkers or PnP where they receive a constant income, they invest and then when it is successful, they exit and make a huge amount of money from one deal (look at the track record of KC and sales of $100mil+). 

 

Grindstone allow them to spot talent and to invest in them with the hope of an exit in the near future. 

 

Further, there is no reason why Yue Diligence cannot be sold to another big corporation for massive amount of money- the best it, KC probably owns 100% of it as it is their product. 

 

I don't think the KC team with such a great track record and 33 million shares each would wan't this to go sour.


Edited by zerocool, 22 March 2015 - 05:45 PM.

  • 0

#370 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 22 March 2015 - 05:32 PM

Yes I actually bought my shares...some at 12/18 cent per share (last year) and have also followed my rights on shares previously held. My DD was based on the public announcements made by the AD Board during 2013/14. So I have the right to question the credibility of the AD Board. 

 

Last year when the market was under the impression that the Knife Capital deal and the RI was the beginning of the fulfillment of the Vision as stated and proclaimed in 2013, the share price went to 20 cents per share. The reality check was that this was never the Afdawn Board' plan but a way of getting money to do other things with, smoke and mirrors. The share price reacted and retracted to where it is today. Hiding behind the SARS issue is just a way not to do what they promised in various communications not the least the motivation for the RI!

 

The market is never wrong, AD will fail dismally if with the present status and information the company tries to get additional money from the market. If KC was such a great deal as stated recently by the CEO why no progress (a year later), why with all the good stuff the share price has pulled back to the current levels? Afdawn Board, the market do not believe you any more.....

 

Zerocool, have you bought your shares, or was it issued as a consideration? But maybe you are right and the share price will jump tomorrow on the back of the 'good news' - just as it was anticipated in the iKubu cautionary (remember that one?)      


  • 0

#371 zerocool

zerocool

    Newbie

  • Members
  • Pip
  • 5 posts

Posted 22 March 2015 - 04:51 PM

Zerocool, how is this good news for Afdawn shareholders; a digital version of the Grindstone monkey puzzle - a free to use app? I think the misplaced strategy to proof Grindstone rather than pursuing the approved vision does not make any commercial sense. It was also said at the AGM, by the same Director, that shareholders will during the first quarter see how profitable Grindstone is?     

 

This is another 'start-up' angle that is not bringing direct revenue or am I wrong? Will this call for the champagne to pop again.... AD should get rid of the show ponies as they are now squarely operating in the start-up space.    

are you a shareholder Ajax?


  • 0

#372 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 22 March 2015 - 04:47 PM

Zerocool, how is this good news for Afdawn shareholders; a digital version of the Grindstone monkey puzzle - a free to use app? I think the misplaced strategy to proof Grindstone rather than pursuing the approved vision does not make any commercial sense. It was also said at the AGM, by the same Director, that shareholders will during the first quarter see how profitable Grindstone is?     

 

This is another 'start-up' angle that is not bringing direct revenue or am I wrong? Will this call for the champagne to pop again.... AD should get rid of the show ponies as they are now squarely operating in the start-up space.    


  • 0

#373 zerocool

zerocool

    Newbie

  • Members
  • Pip
  • 5 posts

Posted 22 March 2015 - 12:21 PM

Hi Guys, 

Afdawn via Knifecap just released the beta version of Yue Diligence. It has already been included as a semi-finalist in the Fin-tech Innotribe Start up challenge.  

 

http://ventureburn.c...semi-finalists/

 

The did mention at the AGM that they will be releasing this soon. 

 

Only positive news. 

 

 


  • 0

#374 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 20 March 2015 - 01:02 PM

The bears are putting the pressure up- 15 million between 9/11 cents. Yes BS they will need to start producing - less talk and more positive action (VERIFIED). The SARS reason for doing nothing is not good enough, but maybe they expect SARS to claim a large amount? I have heard a 'story' that they have difficulty with the bond i.e. Sandown/Elite situation. Reading some of the 2012 announcements JG was the initiator of the arrangement when he was on Sandown' payroll now he is CEO of AD.
  • 0

#375 battleship

battleship

    Member

  • Members
  • PipPip
  • 140 posts
  • Locationdurban

Posted 20 March 2015 - 10:09 AM

6,2million sellers at 9c and 530k buyers at 8c tell the story.Ajax,it looks like the bears.........Only an announcement will stop the trend.
  • 0

#376 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 20 March 2015 - 06:49 AM

SARS (are they dealing with SARS directly or through consultants?), Grindstone progress (as promised by the Directors at the AGM), Elite (bond repayments?) and movement towards the set vision are all grey ares at this stage.

The sellers (volume) are increasing and buyers slowing down it seems?  


  • 0

Hawk


#377 battleship

battleship

    Member

  • Members
  • PipPip
  • 140 posts
  • Locationdurban

Posted 19 March 2015 - 05:26 PM

Looks like the share is (steadily) preparing for an upward trend?! Strategically, this might be a very good time for ADW to share positive/good news if they could do so at this stage...



Don't see the upward trend.On 12 march there were no 9c sellers.only 10c sellers, so we are going backwards with 3,3million 9c sellers.

The reality is that the SARS decision wait is abnormal.We must assume they are demanding more info or money, which is not good news.Patience is being tested and every day going by with no news is creating more sellers than buyers.I was expecting an announcement and shareprice jump,but now am factoring in not getting a decision and waiting for announcements which they have to divulge. The last two end Feb results were announced end May so it may be quiet for a long time.


  • 0

#378 Staghorn

Staghorn

    Member

  • Members
  • PipPip
  • 103 posts
  • LocationPaarl, Western Cape

Posted 19 March 2015 - 01:43 PM

Looks like the share is (steadily) preparing for an upward trend?! Strategically, this might be a very good time for ADW to share positive/good news if they could do so at this stage...

Attached Files


  • 0

#379 ajax

ajax

    Member

  • Members
  • PipPip
  • 173 posts

Posted 13 March 2015 - 02:17 PM

They have at least concluded the Rights Issue being it under false pretenses. 


  • 0

#380 ponzi

ponzi

    Member

  • Members
  • PipPip
  • 187 posts
  • Locationcape town

Posted 13 March 2015 - 12:43 PM

Guess who.... 2 years later....just wait! They just forgot to say this is all dependent on a SARS settlement of certain tax implications. They have an obligation to clarify this by means of a shareholder update!!!! 

From SENS April 2014; Shareholders are referred to the SENS announcement released on 10 April 2013, wherein the company advised of a change in strategy to become an active investment holding company. The focus of the company would be to acquire shareholdings in entrepreneurial companies, with strong innovation drive, which are in proven growth phases by enhancing the capabilities of these entities to accelerate long term sustainable growth.
Following discussions with various large shareholders, the board of directors of Afdawn is pleased to announce that it will be taking initial steps in the implementation of the above mentioned strategy. 
Various short-term actions will support the strategy:
1. Further capabilities will be acquired and institutionalised, which will include deal sourcing and structuring capabilities, investee mentorship programmes, the setting up of an investment fund and co-investment alliances;
2. A business development committee will be formed, together with the assistance of external professionals, who will be appointed to oversee investment decisions;
3. The company will divest from non-core assets and operations. The essence of the vision is that Afdawn will no longer focus on unsecured lending as a business model;
4. The recapitalisation of the company by way of, inter alia, a rights offer; and
5. Afdawn will be rebranded to articulate the vision and strategy in a visual manner.
 

  • 0

Hawk






Sponsored by Sharenet and VPSNine Linux VPS Hosting