Announcement via RNS – Oh Dear

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LightwaveRF Community: Welcome Forums JSJS Designs Announcement via RNS – Oh Dear

This topic contains 44 replies, has 15 voices, and was last updated by  Chris 4 years, 7 months ago.

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  • #5578
     Chris says:

    Chris
    Key Master

    I’m hoping this isn’t the announcement promised for this week. It doesn’t make for particularly good reading unless they are going to use this money to get the new kit to market in double quick time…

    JSJS DESIGNS PLC
    (AIM: JSJS)

    Issue of New Equity

    JSJS Designs Plc (“JSJS” or “the Company”), specialists in the design, development and manufacture of home automation systems using its LightwaveRFTM technology to enable consumers to remotely operate everyday household appliances, announces a placing raising £535,000, before expenses (“the Placing”).

    A circular will be posted to provide Shareholders with the background to and reasons for the Placing(“the Circular”). In addition, the Circular will contain a notice convening a general meeting of the Company on 17 April 2013 at which Shareholders’ approval will be sought to approve the resolution necessary to complete the Placing (“the Resolution”).

    The issue of the new ordinary shares that are the subject of the Placing (“Placing Shares”) is conditional on the passing by Shareholders of the Resolution, which will give the Directors authority to allot the Placing Shares otherwise than on a pre-emptive basis. Subject, inter alia, to the passing of the Resolutions at the General Meeting, the Placing Shares are expected to be admitted to trading on AIM on or about 8.00 a.m. on 18 April 2013 (“Admission”).

    The Directors have irrevocably undertaken to vote in favour of the Resolutions in respect of their holdings of 174,875,000 Ordinary Shares, representing, in aggregate, approximately 47.34 per cent. of the Company’s existing issued Ordinary Shares.

    Background to and reasons for the Placing

    At the start of the 2011 financial year JSJS announced a placing which raised £1 million gross to allow the Company to pursue sales opportunities and increase its revenue. Since the fundraising JSJS has announced the following achievements:

    · receipt of the first licence order fee worth £300,000 from Electrium Sales Limited (part of Siemens) (“Electrium”) and the subsequent availability of Siemens and LightwaveRF branded products at B&Q outlets;
    · the launch of a new heating control product range incorporating the LightwaveRF Remote Controlled Radiator Thermostat and Electrical Inline Relay Switch;
    · the on-line distribution of LightwaveRF products by Maplin Electronics;
    · the rollout of LightwaveRF products to City Electrical Factors;
    · the first order from the QVC home shopping channel;
    · the first order of LightwaveRF products by Screwfix;
    · a partnership with First Utility to supply the LighwaveRF WiFi link and energy monitor when customers sign up to certain tariffs;
    · an agreement with Micro-P Limited, the IT distribution specialists, as a new distribution partners;
    · the launch of its new website at http://www.lightwaverf.com;
    · the launch and stocking of its product by Ebuyer.com and a sales launch by Dabs and BTShop of JSJS’s home automation range of LightwaveRF products:
    · the launch by Amazon of JSJS’s home automation range of products; and
    · the commencement of a store rollout by Maplin Electronics into 20 of its stores of JSJS products, the initial stocking order for which was approximately £80,000.

    Despite the above achievements the Company has been impacted by the reluctance of distributors and retailers to commit capital to the stocking of new product ranges. The Company’s experience has been that retailers typically request an internet trail before store rollout or a rollout to a very limited number of stores. Therefore, the total value of orders placed to date, and hence the cash generated from sales, has been lower than the costs incurred in delivering the marketing drive and maintaining the Company’s ability to fulfil anticipated orders. As a result, the Company has undertaken the placing to meet the gap funding requirement and provide working capital for the year ahead.

    The net proceeds of the Placing will be used to fund the Company’s working capital requirements and to continue the development of the LightwaveRF range of products .

    Mike Lord Chairman and CEO commented:

    “We are delighted that we have been able to raise this money to help us accelerate the current strong growth of the business in difficult economic conditions. Whilst the offer price seems generous the Directors are satisfied that the funding is necessary to ensure the development of the business. We have made very significant announcements about progress with our distribution channels over recent weeks and we are confident that this progress will continue given our strong new product introduction pipeline and new retail opportunities.”

    Details of the Placing

    The Company has agreed a conditional placing of 178,333,333 New Ordinary Shares at a price of 0.3 pence per share to raise £535,000, before expenses. The Placing is conditional on, inter alia, shareholders’ approval to the Resolution. The Placing Price represents a discount of approximately 51 per cent. to the closing mid-market price of 0.615 pence per Ordinary Share on 21 March 2013.

    Pursuant to the terms of the Placing Agreement, WHI, as agent for the Company, has agreed to use reasonable endeavours to procure subscribers for the New Ordinary Shares at the Placing Price. The obligations of WHI under the Placing Agreement are conditional upon, inter alia, Admission becoming effective on or before 8.00 a.m. on 18 April 2013 (or such later time and date as the parties may agree, not being later than 8.00 a.m. on 30 April 2013). The Placing Agreement contains provisions entitling WHI to terminate the Placing Agreement at any time prior to Admission in certain circumstances. If this right is exercised before Admission the Placing will not proceed.

    Immediately following Admission the New Ordinary Shares will represent approximately 32.6 per cent. of the Company’s Enlarged Share Capital.

    Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM. It is expected that Admission will become effective at 8.00 a.m. on 18 April 2013.

    The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued. It is expected that CREST accounts will be credited with entitlements to New Ordinary Shares as soon as practicable after 8.00 a.m. on the day of Admission and that share certificates (where applicable) will be despatched as soon as practicable after Admission.

    Contacts:

    JSJS Designs Plc
    http://www.jsjsdesigns.com
    Mike Lord, Chairman and CEO
    +44 (0) 1902 500 562

    WH Ireland Limited
    http://www.wh-ireland.co.uk
    John Wakefield/Mike Coe
    +44 (0) 117 945 3470

    Yellow Jersey PR
    http://www.yellowjerseypr.com
    Dominic Barretto
    +44 (0) 7768 537 739

    About JSJS Designs
    JSJS Designs develops home automation systems to enable consumers to remotely operate everyday household appliances such as lighting, heating, air conditioning, door entry, audio, video and security. The Company is targeting the potentially significant mass market as consumers increasingly seek to “retro-fit” smart home technologies into their homes and, in the longer term, the “extra care” residential market where there is demand from the providers of such schemes to enable independent living for the elderly and physically immobile.

    This information is provided by RNS
    The company news service from the London Stock Exchange

    END

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5579
     djtomkins says:

    djtomkins
    Participant

    They’ve run out of money, they won’t have confirmed capital until mid-April at best. Even if they have a supplier ready to build and ship (from China I assume) then we are looking at mid June before any new physical products.

    However, this doesn’t preclude a new app. This may be what they sweeten the pill with.

    Two floors tooled up for light and power! Lighting circuits: 5 x 1 gang, 5 x 2 gang, 3 x 3 gang, 6 relay circuits, mainly LEDHut 5W LEDs (91!) but also outdoor SON lamps, LED kitchen lights, LED candle bulbs, halogen bulbs and a dimmable CFL, 5 mood controllers, two remote switches, 2 PIRs. Power: one remote socket, 9 plug in modules. Patiently waited for the heating modules for years, and am a little underwhelmed....flirting with evohome....and please don't tell me "there is a better way" and try to sel
    #5580
     Chris says:

    Chris
    Key Master

    Since the old app was built by W5H, a company run by David Griffiths, who is also listed as an employee on the JSJS Website, I’m having trouble understanding why the development of a new app isn’t being done quicker (unless he is on contract to JSJS Designs of course and doesn’t actually work for them regularly).

    I’ve just seen the app for Windows Phone. Not sure I like the backdrops, but it does look typically Windows Phone and more modern than the current iOS and Android offerings. It is listed as being published by LightwaveRF unlike the other app stores which list the publisher as W5H so it may have been built by someone else entirely.

    Of course, I should give credit where credit is due and had it not been for David championing my proposal to take on this forum, it wouldn’t be where it is today, so thank you David and now you don’t have a forum to worry about, crack on and get that app written ;-)

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5581
     Chris says:

    Chris
    Key Master

    The share price has fallen out of it’s proverbial arse… Down nearly 31% at the time of writing. I initially bought in to the tune of a couple of hundred at a little at around 1.1p per share, so may be a good time to average down – certainly not a time to be selling!

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5583
     nevetsecirp says:

    nevetsecirp
    Participant

    Its a shame, if they had managed to get the heating controls out, they would be flying off the shelves. Hope they manage to get through it, because their kit is good, generally easy to use, and the integration of all the different type of products looked good.

    LWRF light switches in several rooms, WIFI Link, Energy Monitor, Socket x3 and multiple On/Off adapters. PIR controlling lights and doorbell utilising light feature. TRV's for heating. Relays for garden and outside lamps Linked with Amazon Alexa via a dot
    #5584
     Node Zero says:

    Node Zero
    Participant

    Ah well, just think how lucky our grandchildren will be when they get their hands on the new kit!

    On a serious note i don’t really know what any of this means, is there a possibility that the servers will leave our wifi links stranded if they fail to do what needs to be done???????

    #5585
     Node Zero says:

    Node Zero
    Participant

    they* -JSJS or whoever(?)

    #5587
     pauly says:

    pauly
    Participant

    On a serious note i don’t really know what any of this means, is there a possibility that the servers will leave our wifi links stranded if they fail to do what needs to be done???????

    This has long been my concern which I’ve been minimising the risk of by not doing anything that goes to the lightwaverf servers (afaik). I should unplug my internet connection and test to be sure, but things that talk direct to the devices or to the wifi-link should be OK. Also if the servers disappear there is code and schematics out there to make your own controllers, so the hardware will still work.

    I have lightwaverf devices in ten different rooms of the house now, I hope they stick around, I’m fairly committed…

    12 rooms automated, time to stop now... API + more at https://github.com/pauly/lightwaverf
    #5588
     Chris says:

    Chris
    Key Master

    To my knowledge, the JSJS Designs servers (actually Amazon EC2 servers) are only used for remote control. The Wi-Fi link doesn’t have a real-time clock, but I believe it obtains its time using NTP (a standard time protocol for those who don’t know) – but to what server/pool?

    I think it is a bit early to be hypothesizing on systems being stranded, there is no indication at this stage that JSJS Designs is going down the pan, but raising money through the stock market clearly indicates that they are having trouble raising money through the traditional sales approach.

    It could well be that to fully realize the potential of the system, they need the heating system on the shelves and to get sensible prices they will have to achieve an economy of scale. Manufacturing lots of kit up front obviously costs lots up front and this is just an attempt to increase cash flow in the short term allowing bills to be paid, equipment to be manufactured and stock to be shipped in.

    Someone will have done the maths on whether this is a better approach than licensing the technology to Electrium (Siemens) for example and having LightwaveRF powered Siemens heating controllers on the shelves. With more and more retailers on-stream willing to take the LightwaveRF products, I suspect selling out to Siemens would not be the preferred route.

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5591
     Node Zero says:

    Node Zero
    Participant

    “I think it is a bit early to be hypothesizing on systems being stranded, there is no indication at this stage that JSJS Designs is going down the pan, but raising money through the stock market clearly indicates that they are having trouble raising money through the traditional sales approach.”

    -Good news

    It’s not only Share Placings I don’t understand but also servers and time protocols. Chris, are you saying that if LW do go down the pan eventually and their servers are no more that as long as my wifi link is still getting a time signal from tinternet that it will still work? If yes I guess with no capability to back up data anywhere but still able to execute timers etc set up and sent from an ipod. Am I right or way off??

    We’ve already seen the app and new valves/cctv on the promo vid. Do you think these are just dummies to enable them to get on with filming or do you think these will be the products we’ll see once they’ve paid a few bills off?

    #5594
     pauly says:

    pauly
    Participant

    does the wifi link update its own firmware or anything? Anyone know how it really works? What was it happened at the new year when the wifi link showed 32nd December 2012?

    12 rooms automated, time to stop now... API + more at https://github.com/pauly/lightwaverf
    #5595
     Chris says:

    Chris
    Key Master

    It does check for new firmware I believe. NTP just returns the number of seconds since the epoch (1/1/1970) as you probably know Pauly, so the 32nd December will be a display bug rather than a time bug per se (although I suspect the timers also store their dates in a display format hence why they didn’t run).

    It’s not only Share Placings I don’t understand but also servers and time protocols. Chris, are you saying that if LW do go down the pan eventually and their servers are no more that as long as my wifi link is still getting a time signal from tinternet that it will still work? If yes I guess with no capability to back up data anywhere but still able to execute timers etc set up and sent from an ipod. Am I right or way off??

    I believe so, yes. The official Android app requires the LWRF servers as it has no functionality to talk to the Wi-Fi link itself. This particular issue is fixed if you use one of the unofficial Android apps. iOS apps however do talk directly so providing your Wi-Fi link has a time signal, there should be no reason that it won’t work. I’m sure if push ever came to shove, we could get the firmware open sourced and handed over to the community – I managed to get the forum out of them after they felt they could no longer support it ;-) I personally don’t think that will ever be necessary though. Sure, development may stop and products may not ship, but JSJS Designs have been going in one form or another for many years. They have a viable product, just not enough cash flow to get new products to market. Worst case scenario I suspect is that they will just sell off the technology and only the shareholders (like me) will be out of pocket.

    We’ve already seen the app and new valves/cctv on the promo vid. Do you think these are just dummies to enable them to get on with filming or do you think these will be the products we’ll see once they’ve paid a few bills off?

    No, I suspect these are real but prototypes and they may not actually work completely correctly. I understand that early TRV’s popped off the valves when they moved – the Chinese electronics manufacturers weren’t used to the mechanics of the UK TRV’s (the springs are pretty tough!) The first few will have been flown in from China but at a cost of maybe £1000′s per unit. To get them at a price the market will pay, you have to be manufacturing in the hundreds/thousands and tooling up a line costs a lot. Just look at the Raspberry Pi. Initial orders took weeks/months because they had to come from China. It wasn’t until the market exploded to the point that it became cost effective to manufacture them in the UK that they became easily available. Manufacturing electronics in the UK is obviously a lot more expensive than China but once you hit that magic number, you are laughing.

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5596
     Chris says:

    Chris
    Key Master

    Hmm. To buy or not to buy… For every seller, there has to be a buyer. I’m in too deep to sell out, but do I buy more shares now to average down my position and play the long game for potentially better returns or hold fast and hope for a turn around?

    If the share placing can raise the capital to get the heating stuff and new app to market, then there is scope for much better growth over the longer term.

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5597
     Chris says:

    Chris
    Key Master

    Despite the above achievements the Company has been impacted by the reluctance of distributors and retailers to commit capital to the stocking of new product ranges.

    Reading this again, if I am reading it right, it seems that the new products are ready to go, but JSJS are unable to secure big enough orders to get the new products at the price they need to be. Hence the need to raise some cash to get the order placed with the factory.

    Chris Mills Founder and Editor - LightwaveRF Community http://cpmills.com/ http://lightwaverfcommunity.org.uk
    #5598
     djtomkins says:

    djtomkins
    Participant

    Reading this again, if I am reading it right, it seems that the new products are ready to go, but JSJS are unable to secure big enough orders to get the new products at the price they need to be. Hence the need to raise some cash to get the order placed with the factory.

    Which should offer them an opportunity to use their own (existing) channel for sales, or amazon or similar as a pass through channel? They have a backlog of people who are willing to pay and like me probably willing to pay through the nose. This is probably what the “pre-order” option is on their website – gauging what demand is via the website – on that basis if you’re not already logged on there, please do! This will force price down and likelihood up.

    Also, if you are listening LWRF – I’m willing to consider underwriting a stock of the heating controllers and valves or even offer to be a retail channel if you’ll offer to pass through warranty provided I get retailer margin. I know a forum where I can find demand for a fair volume of these things :)

    Two floors tooled up for light and power! Lighting circuits: 5 x 1 gang, 5 x 2 gang, 3 x 3 gang, 6 relay circuits, mainly LEDHut 5W LEDs (91!) but also outdoor SON lamps, LED kitchen lights, LED candle bulbs, halogen bulbs and a dimmable CFL, 5 mood controllers, two remote switches, 2 PIRs. Power: one remote socket, 9 plug in modules. Patiently waited for the heating modules for years, and am a little underwhelmed....flirting with evohome....and please don't tell me "there is a better way" and try to sel
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ABOUT Chris

Chris works as a techie for a large IT service provider. He is a geek at heart and loves nothing more than trying to automate his home. The problem is, his wife simply doesn't get it and can't understand why they can't have 'normal' lights like everyone else! Chris is dedicated therefore to implementing automation in a family friendly way.

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