Good morning, it's Paul here with the SCVR for Thursday. Apologies for the placeholder being a little late (07:24), this is because my phone was accidentally turned off, and so my alarm didn't go off as usual at 06:50.

Timings - TBC.

Agenda -

Portmeirion (LON:PMP) (I hold) - Interim results

Bigdish (LON:DISH) (I hold) - funding update

Character (LON:CCT) - trading update


Bigdish (LON:DISH)

Share price: 2.0p
No. shares: 275.7m
Market cap: £5.5m

(I hold)

Funding Update

This is a tiny, pre-revenue share, so I'll keep it brief. It's one of my larger personal holdings, because I see interesting highly speculative upside. The concept was originally a discount dining app, that used yield management principles to allow restaurants to offer discounts for specific half hour slots, in order to get bums on seats at times they would otherwise be empty. It worked superbly, and I used it at least twice per week, pre lockdown.

The business model was recently broadened, to expand into takeaways, link into EPoS systems, and become a package (initially free, to rapidly gain market share) intended to disrupt existing booking apps, and in particular to start eating JustEat's lunch (who price gouge takeaways by charging 14%).

The market potential for an ordering & discounting app is clearly much larger now, as restaurants need to manage the flow of customers more closely, in order to maximise revenues, given that capacity constraints and 10pm closure are being imposed to help battle covid.

Quite an ambitious plan, and it needed funding of $5m, with the remaining cash close to running out. The Chairman told me he didn't want to dilute existing equity, so was looking at alternatives. Since DISH has a full listing, not AIM, a conventional equity fundraising would be too expensive, needing a prospectus to be produced. He's proven adept at raising money before, getting c.£2m from a US investor last year, at 7p per share (price now c.2p per share). Technology investors will pay mind-boggling money for startups these days, especially in America.

Today we're told of a deal that's been done, but it's subject to quite stringent conditions.

Short term funding of £540k has been secured as a loan, which extends the cash runway until June 2021 - good news. Although I don't suppose the loan…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here