Ann: Annual Report to shareholders, page-7

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31/10/21

23:49

Post #: 57216966
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Originally posted by Brabant90: ↑

Two scenarios could unfold starting next week :

- A partly negativ scenario
- A positive scenario

The partly negative scenario.

- It will show a change in the scope of 4DS activities.

- 4DS will transition from a pure research company with one product to a research an developpement company exploring different ways to use what as already been discovered. Or even different kind of memories.

- This major change would have been planed by VDH since 2020 and that would explain DM and SD sellings. They would have known that a high takeover price was no more in the picture.

- A huge capital raise will probably occur to make some place for new investors or partners. Current shareholders will be dilluted but they will still retain a rerate perspective with the new 4DS.

What I think :
could happen, but this scenario doesn't explain recent events.
Maybe in 2022, with a small CR to bridge the transition...

A positive scenario.

- The end of 4DS as it is, has already been completly planned many months ago.

- What we have seen in recent weeks is just the programmed unfolding of the end game.

- That's why they dont care much about details. Most employees have already left the building.

- The technology has achieved what it was suppose to achieve at the time of the last technical update ( the rest was just to gain time to put everything in order).

- Imec work has been terminated earlier," in accordance with the agreement" (p. 53 of the Annual Report).

- There will be no takeover, but the direct selling of the technology (Patents + Trade Secrets). This is to expedit the transaction and avoid any hostile bid that could disrupt something that has been very carrefully planned many months ago.

- Shareholders will receive the proceed of the selling by the mean of of a special dividend / capital reduction. 4DS will still exist after this transaction and could start a new life under the direction of Drs van den Hoek (and also receive consusltancy fees for helping the new owner of the technology).

- This scenario could become evident if the company is still suspended an the board can disclose a futur transaction that will occur immediatly after the AGM (selling of the main undertaking needs 75% votes).

- This is because 4DS needs a new constitution to proceed with this plan (Capital reduction extended to unmarketable parcels, right to pay a dividend in the absence of revenu, ..Among other items).

- The selling price of the technology could be desappointing for shareholders ($ 0,20 ? - that would explain DM and SD sellings). But at least shareholders will get their money back in a not too distant futur.

- But it still could be a very good surprise depending on the results already achieved.

- The scrip for scrip transaction could still occur with this scenario. The technology will be sold against the shares of the buyer and those shares will be given back to shreholders (Not a very common way to unwind a company, but it's well documented). In this case shareholders will retain the perspective of a rerate through their shares in the capital of the buyer.

What I think : I tend to give some credit to this type of solution, because it is simple and fast.
And I think VDH will like to go fast and to force a conclusion.

... But I'm wrong most of the time.

Expand

Having a prior plan with WD to take 4DS’s IP
at a pre-set price is not in the best interest of the shareholders!
The best possible price will only come from an open market auction to all interested parties. I don’t care if the BOD want a quick end to this, they HAVE TOO act in our best interests.

I have always been very concerned about WD having rights to a non-exclusive license agreement as it takes away any other prospective purchasers ability to have complete market control of the tech. This would have a very detrimental effect on the sale price that 4DS could fetch.

Let us hope for an outright purchase , which should be a much simpler outcome.

……. please no more talk of 20 cents per share.
……. I want to go to sleep tonight with happy thoughts

4DS Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
17 Upvote

1 Great analysis

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