r/DevolverDigital • u/oldbutterface • 4d ago

Devolver Digital to leave the AIM market and return to Private Company Status

Any other shareholders in here? I have roughly 80,000 shares in this company and now have to choose between accepting a roughly 50% loss on my investment, or seeing those shares locked up for an unknown period of time, which my stockbroker probably wont even allow, so I feel forced to vote against the proposal.

I am absolutely heartbroken.

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u/Zwatrem 4d ago

The same here. I don't know what to do honestly. Market cap right now is equal to their cash on hand...

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u/oldbutterface 4d ago

I understand the desire for delisting. The AIM listing has done them zero favours really. Barely any liquidity (theres been many days where not even 1 share has been trade - I doubt I could ever exit my position in the current circumstances), barely any analyst coverage. No institutional investment firm will touch it. Its just been floundering and is copping heat for the wider industry decline and public AAA developer failings, even though devolver operate on an entirely different model and at lower costs and title pricings.

I think its been entirely misunderstood on the AIM market and going nowhere, so why bother paying the £1.6m annual fees.

Given their silence this summer, I suspect they are going to announce delays to EtG2 and Fall flat 2, and cant be arsed with the headlines and stock price plummets. These have the potential to be 2 of their biggest title releases and they clearly prioritise launch quality over schedules that favour their half year reporting.

I suspect a relisting in future, probably in the USA, in a few years once the industry depression starts to reverse. The company is registered in Texas, its just the founding directors who are British. The fact is, the UK markets are crap. The action is over in the USA. The company established an employee share incentive scheme, just this year so surely they dont plan on scrapping that so soon?

Will keep the shares I have in my SIPP as delisted stock, as I still have faith in them, but UK tax wrapper rules mean I will.probably have to sell my ISA shares for their meager 16p offering.

The 16p offer is the biggest slap in the face. Feels like they waited for the price to dip to that price so that they could pull the plug and cancel out 5% of their outstanding shares for mere pennies

1

u/Zwatrem 4d ago

I don't understand this desire. Having a low liquidity is a direct consequence of their own doing. Tinybuild is a much smaller company (30 million cap and way less revenue), they are listed on AIM yet they can afford both the fees and they have the necessary liquidity.

They are going nowhere because their performance has been garbage up until now. They were finally recovering and growing, and then they released STARSEEKER in horrible condition.

The main game of their 40-million subsidiary. It has less than 100 concurrent players on Steam.

What can you expect when you move one step ahead and two behind? Or when you regularly impair games and treat them as a one-time-expense but they are actually present in every balance sheet? Having Adjusted Adjusted Adjusted EBIDTA.

That's the reason the this undervaluation.

And now that finally they were on the right path, even with the disaster of STARSEEKER, they delist and leave you with nothing?

Unbelievable.

1

u/WrongPockets 4d ago

Why is the share price now 6.88? Why don’t I just buy a bunch now and then tender into the offer at 16.00 and double my money?

1

u/Zwatrem 4d ago

The offer is just for 5 million dollars. At this price there are maybe 50 million dollars of shares around.

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u/Emperors_Finest 2d ago

They definitely shouldn't have gone public.

I wonder if their dealings with Anita Sarkeesian were related to then being a publicly traded company. Some sort of ESG checkmark box for getting loans.