The engines have fired up at last for MDX. ( BPRG ) At long last they are being recognised for the force they will become over the next two years. On the cusp of disclosing huge revenue-earning deals with Global pharmacists. These have been hinted at as being unrolled before the years end, but may be in the next days.You still have time to get in at a bargain-basement price before the SP takes off for real shortly.

Bouncyif you want to ring a pole as it has sprung to mind try 0048 39942715 it will get you through to a little known pole named Lech Wałęsanice chap give him my best

tabasco - 27 Apr 2009 16:26 - 7157 of 7158
Trigs, Missus was telling me that if the weather is nice Saturday she was inviting a couple of the lads round for a spit roastshe know vegetarian?

I'm surprised you put up with that sort of thing from your wife Tabbytit!

I suspect very little of any sense springs to your mind Tabsy baby. ;-)))

BTW, best of luck with the swine flu over in the zoo.

tabasco,

thanks for the comment about AFCB and our legend, Steve Fletcher, it was a real nailbiter! Good to see him notch the 100, hes been a stalwart for as long as I can remember, and doesn't always get the credit he deserves.

It was the longest season I can remember, and the club still have as many financial worries as MDX! If not more!

Good luck to the Gills, one of the best teams to play at our place this season IMO!

Quiet here! Something for you to read.

"Return to go" with Meldex

Edmond Jackson
30.04.09

Being 'written off' is what very nearly happened to Meldex International (MDX) after its AIM-nominated adviser resigned and it was de-listed; also its former chief executive and a business associate sought a winding-up petition. This was successfully defended in Court by two substantial shareholders who are turning their outrage at events into vigour for recovery and growth.

Barry Muncaster (co-founder) and Gary Cressman (a financier) have taken swift action to restructure the group and now seek at least 6 million to cut debt, provide working capital and re-list on the quoted PLUS market.

First-half 2008 results have been drastically revised down after a series of barter deals were shown to have enhanced the previously reported numbers. Group sales of 23.7 million were only 11.7 million and gross profit was 5.4 million instead of 11.7 million. Estimated sales in the second half of 2008 were 5.5 million. Despite various accounting reforms since the 1990s recession exposed 1980s wrongdoings, it remains possible to 'paint a picture' in accounts to investors.

Group assets, mainly intellectual property, have been revised down from 83 million to 13 million and are offset by nearly 10 million liabilities however management sees scope to whittle these down nearer 5 million.

It is hard cheese for Meldex shareholders, who include me. Despite the dilution of share issues to make acquisitions in recent years, the company is effectively back on the starting blocks to commercialise its technologies. Muncaster and Cressman say they find very little of this actually went on, despite various announcements implying such progress. So, besides the accounts, you may not even be able to trust the Regulatory News Service of what a board (comprising non-executive directors) permits a chief executive to declare.

Hence share price targets of about 150p set by Nomura Code, a previous broker, later a 50p range by FinnCap, have been proven pie in the sky. The reporting subtleties meant that not even Muncaster who had followed Meldex closely as its principal shareholder, twigged what was going on until he and Cressman took control.

There are now just ten employees on a payroll of 50,000 a month compared with nearly 500,000 previously, and Muncaster and Cressman currently taking no pay. You might wonder if their motivation results from Muncaster being emotionally attached as a founder and Cressman needing to resolve a previous 1.4 million loan to the company (although this will be provided back to the company by way of 1.4 million trade finance.) Yet these are no-nonsense men and when I spoke to Cressman informally after a 24 April presentation he felt this is a group that ought to be capable of making at least 3 million pre-tax profit a year - I should add, assuming fresh funds can be raised.

A two-year convertible loan note is being offered to shareholders, secured on all assets, with a 4.5% coupon and convertible into equity at 10p at any time in its life. At least 6 million is vital to ensure the group's survival (at minimal dilution to shareholders this way) although up to 12 million raised would see more rapid development. If you visit meldexinternational.com you can download details of this note, also the latest presentation on commercial prospects which has new developments since a first one on 4 April.

There are no cash-flow forecasts although it is proposed to issue management/staff with share options exercisable at 10p assuming at least 2p of earnings per share are achieved - that is, on an EBITDA basis (before interest, tax, depreciation and amortisation). So although the new management prefers not to be made hostage to forecasts, you can see what they are playing for. Muncaster and Cressman say they are subscribing for the convertible loan note.

From the 24 April presentation you can see Meldex's objective remains applying its revolutionary polymer technology to enhance delivery of drugs and health supplements. There is a clear plan for roll-out of products in the short and longer term. If at least 6 million is raised then 2009 sales are estimated at 7 million, or higher if there is additional working capital. The same applies to 2010 when 15 million sales are projected. On the basis of 6 million raised, Meldex is said to have essential funds for about two years.

It is hard to guess where the share price may establish in early trading on PLUS but if the new management can attract funds to deliver on their plan then Meldex is worth watching as a recovery play. The commercial pipeline appears to offer scope for useful news.

One uncertainty is what extent of potential for the group's core technologies may have been lost after several years of acquisitions that lost the plot commercially, despite massively boosting previous directors' remuneration. The 24 April presentation is encouraging in this respect but in rapidly evolving markets only time will tell.

An example how the new management is finding new commercial applications involves the existing Soluleaves technology in 'Fruitfilm' where citrus flavours have been developed. You drop a small strip into a glass of water and stir, for an instant result, instead of buying flavoured bottled drinks. Coffee flavourings and infusions are also being developed. All this relates to a food manufacturing customer although it looks premature to make projections.

In conclusion, Meldex has effectively been dealt a 'Return to Go' card. It is now up to shareholders to limit dilution to a 20% to 30% range if they prefer, by participating in the convertible loan note, the alternative being far more substantial dilution by third party rescue finance.

Kim,

Considering Edmund is a holder, that'a fair and balanced, IMO.

The last sentence carries the same warning as many posts over the road, maybe a sign that they need more interest in the CLN?

I would say so Andy!

Good morning all>

Very shortly off for a spot of relaxation and hopefully plenty of sungood luck to Gillingham in the play-offsI am not a supporter Andy {West Ham}have only ever seen them play twiceand that was many years ago in the cupbut as the only team in Kent I wish them wellkeep posting..
Bouncy and the rest of the gang you will be in my thoughts over the next seven weeksflat pack with me but wifes instructions absolutely no BBsjust for family and stock checking. I can feel the kind vibes as I typeGood luck to Meldex and to Barry/Garrywe are back!exciting times
Voyez-vous bient et merci Cay and Lisabe safe in the markets

J'espe que vous avez une vacances agrbles, Chilli.

Tabasco,

Bon voyage!

ROFLMAO ... edmund posts in the zoo , he was doing so years ago when he was tipping crap in one of the Sundays.

He had a go at me on the MDX thread last xmas when I highlighted a post from CAT from a few years ago calling him "sit on the fence Jackson".


That article says feck all ... get off the fence Jackson and for once in your life make a call ... should punters invest or not ???


Geez some things never change.

Ask me what I think Edmund.

lol

Edmund? Sounds more like Baldrick.

Baldrick had a cunning plan.

We'll all be in Tabatha's thoughts over the whole 7 weeks. Doesn't surprise me, but very sad. ;-0

Now to MDX. I've read Edmund for many years. Like all of us he can be right and he can be wrong. The whole point here is the problems in MDX were flagged an awful long time ago for those who opened their eyes. Others continued to pour money in. The bears' target price was breached over the period - good call.

Now, should the 6m minimum be raised, does it make MDX an investment? Quite possible is the answer, but still very high risk given many tried to make it a success and failed abysmally, including those currently in charge.

The good thing is that if it does look like recovering we can all get in at most a quarter of the price Tabatha and most in the zoo are currently sitting at. ;-)))

Who's right and who's wrong in their decision-making process? Now that is cunning! ;-)

PS

The problem with the Monopoly analogy here is you do not get 200 quid as you didn't pass "GO"; you went back. ;-0

Are Tabby's prperties down the Old Kent Road? LOL!

Anyone else missing tabby .......................... nor me :-)


Oi Barry , when do we get the announcment re the failure to raise sufficient funds and you waltz off with the IP as predicted pre xmas by some in the zoo ???

Regards

A Shareholder

Dil

I think Barry may prefer to be known as Kevin Cassey. I'm told that every lying, cheating fraudster needs a pseudonym or two.

G

Carry on like that and he'll pop up here threatening to sue you then disappear up his own ar*e without answering any relevant questions on why anyone should chuck good money after bad.

Andy , hows the fund raising going ? Couldn't be bothered to trawl through all the crap over at the zoo.

Cheers