Why don’t they buy directly from the market now at a much lower price?
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Because a) the company needs money to scale its business and b) the company’s share price is (according to whom?) low, making it a good time to lock in the conversion levels for the convertible bond and warrants.
Padma, Hammaren, and Wilenius are now indicating that they will invest 76 million (40 + 36) euros of that money. A similar outcome would not be achieved if the same money had been funneled into Luminos’s account in the Bahamas.
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So everyone benefits, including retail investors.
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One more observation. Luminos, which has been carrying out large sales, is 573,035 shares away from the 10% flagging threshold. Considering Tecnotree’s overall situation, I strongly doubt they would let their ownership drop below the flagging threshold at this stage.
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If you started buying that kind of amount from the ask now, the price would start to run away very quickly.
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76 Meur is such a large sum that I don’t think Wilenius and Padma’s share is very big.
A little thought experiment. Let’s imagine that Oy Hammarén & co Ab aimed for an ownership stake of over 10% in Tecnotree. In that case, the future dividends paid by Tecnotree would be tax-free. Likewise, the right to demand a minority dividend (and certain other rights) would arise. An advantage worth pursuing for an unlisted company.
After the convertible shares and warrants, the number of shares would be 455,413,334; a 10% stake is 45,541,333. Hammarén would need 33,960,075 more shares. This could be achieved by subscribing to 123 loan units, and 23.4 Meur would be needed for the loan subscription and warrant payments, if the conversion price of the share was 0.569 eur.
Hammarén has a 23.25 Meur position in Aktia, which could be sold and would serve as collateral for a loan.
JKK Oy would reach a 10% stake by subscribing to 81 loan units, and 15.4 Meur would be needed in a similar way. JKK could easily put that sum together.
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Great find @MoneyWalker !
May: Kyösti Kakkonen and Tecnotree representatives (+/=Johan Hammaren) go through the whole situation, and Kakkonen states in a letter sent to Tecnotree that “the discussions have served to restore trust between the parties.” -Quote from Tecnotree’s press release.
JJK Oy is the 5th largest shareholder in Capman, on whose board Johan Hammaren also sits.
June Putting things into practice.
A very interesting week and month ahead!
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I ended up in this thread while searching for new companies to research with a stock screener using the following criteria:
P/E < 12
EV/Revenue < 2
ROE > 15 %
ROIC > 15 %
Current Ratio > 2
With a search like this, not many companies were found, especially in the technology sector. When you also factor into this equation that the share price has dropped 45% over the last 12 months, the company is very little followed on a global scale, analyst coverage is minimal, a lot of revenue comes from emerging markets, it’s a turnaround case, etc., it is possible that the company is undervalued. Fundamentally, one might think many would shy away from such a case due to perceived risks, which gives an advantage to those who know the company better. However, the CEO has recently bought shares, which I consider important when making investment decisions, as an individual investor can never have sufficiently good information about companies.
I have only had time to read the posts in this thread for this year so far, but I need to continue getting to know the company further.
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Politics
I have completely overlooked this. To start with, a few excerpts from the article in the link below;
“Biden’s investment program is a total of two trillion, i.e., two thousand billion. It includes infrastructure investments, including broadband investments and a green transition package.”
“According to Penttilä, it is clear that, for example, Nokia and Ericsson are hunting for those network investments that Huawei will miss out on for political reasons.”
Note: According to Inderes’ comprehensive report, Huawei has forced its BSS solutions into total network deliveries. -Huawei is no longer getting these from Biden’s network investments. Nokia is hunting for these, so doesn’t this open up an incredible opportunity for Tecnotree to make a big breakthrough? + Cognitive Scale is a US company
Now I would hope for an extensive discussion on the topic from those more familiar with the matter!
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@MoneyWalker’s previously asked question; “Could Qvantel be for sale?” deserves a deeper look.
- Biden invests 2 trillion in infrastructure
- Blinken signs a cooperation agreement with Finland regarding 6G networks
- Qvantel has partnered with Nokia as a BSS solutions provider; the rest of the background info on the company can be found in @moneywalker’s post above.
- Qvantel runs into trouble due to sanctions policy, which inevitably also reflects on the partnership agreement with Nokia.
1+2+3+4 = Quite a few reasons to call Qvantel’s owners Mhail and Pjotr, with whom a share swap/merger is a ruled-out option due to sanctions.
Is Tecnotree planning to buy Qvantel?
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As a small company, Tecnotree rarely makes it onto Nordnet’s most bought or sold stocks lists. In June, however, it was the 10th most sold stock from the Equity Savings Account (OST) alongside large companies.
So far, the timing of the sales hit very close to three-year lows. The negative commentary and “is Padma buying yet” memes on the forum may have had too much of an influence. Based on technical analysis, June was a buying opportunity. And in my opinion, the fundamentals should have also been interpreted as a buying opportunity. This is not investment advice. I assume that by the time of the Q2 reporting on August 4, 2023, at the latest, it will be disclosed what the 50 million euros (Meur) raised in the loan program will be used for.
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Has Padma’s buying window closed already, and yet there’s no word on any purchases?
It’s a shame when someone says one thing and does another.
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The issuance of the loan was announced on 22 June. So today marks 14 full days since then, so apparently you can still act today.
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Subscription period extended by a week at the request of shareholders.
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I have never understood these “most bought/most sold” listings. After all, someone is the buyer in the case of Tecnotree, for instance, and therefore believes in the company.
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This list is interesting in that it is compiled from the buys and sells of retail investors. While each company’s trading volume is visible on several services, the share of retail investors can only be seen in Nordnet’s statistics.
To my knowledge, there are no statistics on the share of institutional/professional investors in the trading volume of individual companies, but it has been estimated that retail investors accounted for about 20% of total turnover in 2021. In 2011, the share was only 10%. https://www.bnymellonwealth.com/insights/the-rise-of-retail-traders.html
Still, the retail investors’ share of trading volume is small.
Regarding Tecnotree, I am personally interested in the retail investors’ eagerness to sell, as my understanding is that we are poor at timing the market.
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With reference to the release dated 22 June 2023, Tecnotree Corporation confirms the successful subscription and allocation of compulsory convertible debentures (CCDs).
A total of EUR 43.1 million worth of CCDs have been subscribed and allocated, representing 431 CCDs, in accordance with the terms set out in the announcement of 22 June.
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This is a bit of a negative signal. Not all of them were sold.
Most of it surely went to Padma and Hammaren then. Wilenius participated nominally, I believe. Then just over 3 million went to others. Kakkonen didn’t seem to be interested.
Marketing probably can’t be blamed because I believe that those capable were 100% aware of it. Of course, it’s the same thing as with the whole company, meaning there’s not really any info on what the main owners and the CEO are even planning.
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Markku Wilenius, Padma Ravichander, and Oy Hammarén & Co Ab had committed to subscribing up to a total of 40 million euros (400 notes). This means only 3.1 million euros (31 notes) worth of subscriptions came from others.
In my opinion, this perfectly demonstrates how poorly the loan has been marketed. If the use of proceeds had been explained in more detail, perhaps interest would have been higher.
Edit: In my opinion, a major signal of the lack of market interest.
Edit2: It would be nice to hear the individual subscription shares of Wilenius, Padma, and Hammarén, so that the future ownership stakes of these owners could be estimated. The announcement says nothing about these. Hopefully, it will be visible in the annual report at the latest. Otherwise, we’ll have to wait 3-5 years for an answer. More transparency, please 
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The board must have a pretty strong vision for the future, given they’re playing with such high stakes 
They probably realized early on that interest would be lukewarm, which is why the trio increased their own stake to ensure the required minimum is met.
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