This newsletter was originally published on substack on January 04, 2025.
Happy New Year. I hope everyone had a great Christmas.
There’s been a slight name change to “Liquidations Newsletter”. The newsletter will come out monthly and follows the same format as the Liquidation Watchlist. I will be keeping some situations exclusively to the Master Watchlist- Pro Access subscribers (more info at the end).
On to this month’s edition…
Important Note: These watchlists are not buy signals, buy pitches or recommendations to purchase shares. The purpose is to inform you of potential opportunities and to give you a profile of the situation. Some of these opportunities might be actionable now, in the future or never. Please do your own research and analysis.
NAV is reported NAV, book value, my estimate or another disclosed value. Timeframe is based on management or my estimate. Both could change. NAV is unlikely to be the figure you will receive in a liquidation and you should not base your investment decisions on these figures.
Liquidations
WeCap Plc (AQUIS:WCAP, ISIN:GB00BKTRF404)
WCAP’s main asset is a 11.8% stake in WeShop Holdings (NASDAQ:WSHP). WeShop is an ecommerce website based on social networking and rewards. When you make a purchase on the site or refer people, you earn shares in the company. In November they IPO’d on the NASDAQ via a direct listing. WCAP’s shares are under a 1 year lock up. The board has said “once the WeShop lock up is over, then the Company would seek to either distribute the WeShop shares to WeCap shareholders, via an in-specie distribution, or sell the WeShop shares and distribute the cash received to shareholders WCAP”. The company has a £6.965m discounted capital bond due in May 2026. They don’t have the capital to repay it, so they’re negotiating with the bond holder to find a solution. At current prices net of the bond, WCAPs stake is worth £89m/£0.202 p/s, 10x higher than WCAPs share price. Considering the potential payout is above current price I’ve put this down as a partial liquidation. Update January 4: NAV £0.202 (net value of WSHP stake before taxes, will fluctuate). Timeframe 1.5 years
Bigblu Broadband PLC (LON:BBB, ISIN:GB00BD5JMP10)
BBB owns assets in the broadband and wireless space. They sold their main subsidiary Skymesh (SKM) last year. They still hold a 25% stake in this company (valued at £6.5m at time of sale). Other assets are a Starlink distribution business and a 2.8% stake in Quickline, an alternative UK broadband provider along with a £4m loan note. Lastly they own 2 other immaterial assets. The company announced they will delist, sell remaining assets and return cash to shareholders. The company is still owed £3.5m in consideration for the SKM sale due in December 2025. There is also performance consideration netted out by the amount recovered from a £1.4m customer debt plus costs. BBB are in discussions with the purchaser regarding the performance consideration and if they owe money in conjunction with the customer debt. So, there’s a bit of uncertainty to what return shareholders will get in a liquidation. If you value the assets at book value less liabilities and running costs you get to about £0.25. If you start to impair the assets, e.g. write off the Quickline loan note (they lost £38m on £3.8m revenue last year), you come up with figures in the range of £0.05-£0.08. These numbers are speculative. Shares have delisted but are tradable on JP Jenkins. NAV £0.39 (book value- high uncertainty). Timeframe 3 years.
Potential Liquidations
Guard Therapeutics Intrntnl AB (STO:GUARD, ISIN:SE0021181559)
GUARD is a clinical-stage biotechnology company focused on kidney diseases. Their main program was recently discontinued and current cash position is insufficient to advance its other programs. The board has decided to commence a strategic review to identify a potential merger or RTO candidate. If this is not successful within a reasonable timeframe they will delist and liquidate the business. The key driver here is if they can find a target and what the cash burn will be if they liquidate. Current cash is 3.46 SEK p/s. NAV 2.76 SEK (book value).
Taylor Maritime Ltd (LON:TMIP, ISIN:GG00BP2NJT37)
TMIP owns 8 bulk transport ships. This year they have been selling vessels. Until now, there hasn’t been any indication as to the future of the company. They have now announced a £106m (£0.32 p/s) return of capital via a partial compulsory redemption. The CEO said in the announcement “We will retain sufficient cash to ensure smooth operations as we evaluate our strategic options during the first half of 2026. We will continue to focus on reducing costs while maintaining a close dialogue with shareholders on capital allocation and strategic direction. We will review our dividend policy going forward given the substantial return of capital and our reduced operating platform”. The company is debt free and this capital return will be about 52% of assets. I’ve got this down as a potential liquidation and will follow the strategic review. NAV £0.74 (NAV).
Stratus Properties Inc (NASDAQ:STRS, ISIN:US8631672016)
A developer and operator of multi and single family residential and retail properties in Texas, USA. They’ve announced a strategic review with the options of a sale, liquidation, buy backs or other financial transactions. About 40% of their total assets (at cost) are stabilised. They also announced the sale of one of their properties at a premium to FY24 NAV. It would be no surprise to see this liquidate considering its small size and the general theme of smaller REIT liquidations this year. One of the main risks is how hard the development land is to sell if they liquidate. NAV $43.80 (FY24 NAV).
Updates on Previously Mentioned
Harbor Diversified Inc (OTCMKTS:HRBR, ISIN:US41150R1023)
I profiled HRBR in Watchlist #12. Since then they’ve announced the sale of the Air Wisconsin assets in three separate transactions for $113m. Post transaction the company should have around $200m +/- 10-20% ($3.40 p/s) in cash and marketable securities. Still no indication on what they will do with the proceeds and recent accounts are way overdue. I figure the transactions close by the end of Q1 2026. NAV $2.67 (book value September 2024).
Next Science Ltd (ASX:NXS, ISIN:AU0000041329)
I profiled NXS as a potential liquidation in Watchlist #9. Since then the board has called an EGM in January to vote on an initial return of capital of $0.145 p/s. The intention is to wind up the company and liquidate. A final distribution will be made by the liquidator (from residue amount left over). This has now gone from a potential to confirmed liquidation. NAV $0.155 (estimated distribution to shareholders). Timeframe 1 year.
Chrysalis Investments Ltd (LON:CHRY, ISIN:GG00BGJYPP46)
CHRY was profiled as a potential liquidation in Watchlist #7. The board has recently announced a revised investment policy. This will be voted on in February 2026. The new policy will be an orderly liquidation over 3 years, with no new investments made. Capital will be returned to shareholders as assets are realised. It sounds like a compromise between half of the institutional shareholders wanting a quicker liquidation and the other half happy to have them realised over a longer period. NAV £1.72 (reported). Timeframe 4 years.
abrdn European Logistics Income PLC (LON:ASLI, GB00BD9PXH49)
ASLI was last mentioned in Watchlist #10, where I mentioned it had been “a good liquidation so far”. Since then the company released some poor disclosures around NAV and a capital gains tax liability. There’s also been a Polish investor, DL Invest Group (DL) acquiring an 18% stake and trying to stop the wind down. They want to reposition the trust as a European logistics and data centre platform. The board is not having a bar of it and said no one else supports DL. They said the remaining disposals are to be complete in Q1 2026 and will return capital shortly after this. I’ve reduced my timeframe down to 9 months. NAV £0.301 (reported, adj for capital returns & potential £.02 CGT hit). Timeframe 9 months.
Master Watchlist- Pro Access
Until now the Master Watchlist has been free. Going forward, access to it will be available to paid subscribers to support the time and research that goes into it.
To find liquidations it can take over 4 hours a day reading company filings, turning over rocks and checking news sources.
That’s over 20 hours per week and or 43 days per year.
I built the Master Watchlist to save you time. I use it everyday in my liquidations investing.
The google sheet has over 120 liquidation or potential liquidation situations across USA, UK, Canada, Europe, Australia, South Africa and New Zealand. It’s updated daily.
With Pro Access, you also get a growing list of unlisted liquidations and discount with a catalyst situations (coming soon).
You can check out a limited free preview here.
The annual subscription of $1,000 USD is suitable for the busy liquidations investor who wants to save over 20 hours per week.
The price works out to a fraction of the hourly rate you would value your time at or what it would cost to hire someone to do this everyday.
Access is limited and the number of users is capped.
Click here to Get Pro Access now.
Disclaimer: The content in this write-up is for informational purposes only and should not be construed as financial or investment advice All opinions expressed are my own. Please do your own research or consult with a professional before making any investment decisions.
Disclosure: I, or members of my family, hold shares in LON:ASLI, LON:WCAP, LON:BBB and could potentially hold shares in any of the mentioned companies in the future.
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