You will remember Sphere raised £12.8m nett via an underwritten placing of 15.135m new ord shares @ 92.5p taking the outstanding shares to 36.8m. Approx 18 months later the co was back seeking funds this time through a placing and open offer (2new for7old) @40p and of the 10.5m on offer only 15% was taken up nevertheless the co raised some £8.5m taking the shares in issue to 59.2m.If you had subscribed to both offers you'd average out at 66.25p (ouch!) So my guess is they may be looking to raise between £8-10m if the take up for proxima is disappointing and revenues are well below forecasts. Of course the sp would have to be a lot higher than currently.If attempted now they would have to issue minimum of 80m new shares at 10-15p on a (2for10) or similar and that's a non starter.Get the sp to 40 and above and a 3rd raise in 4 years may just go?.Hopefully proxima turns out to be a blockbuster and raising cash will be the least of the co problems.First a breakthrough the 30p level, come sept the current sp may be a distant memory.
WBuffett999, I think Sphere were extreemly lucky to attract a man of Dr Rencken's abilities.Consider in his last post as CEO of Maquet (a subsidiary of the Swedish group Getinge) he was responsible for over 6000 employees with a group turnover of €1.4bn producing over 50% of co revenues.Ask yourself what attracted Dr Rencken to leave a huge co to start up with a minnow?.Its too early to judge Dr Rencken im certain he's going to prove invaluable to Sphere now that proxima has reg approval he will be focusing on the commercialisation pf proxima. After all the world is his stage.
RE: Shares Mag
Thanks for that John....
Del that was the full article printed which hit the stands on Thursday (last) as only 2050 sells were traded didnt make much of an impression on the investment community I would have hoped for a more positive outcome but as I have said before were only just leaving base camp a long road ahead and investors horizons barely reach the end of tbeir noses Sphere as an investment would be a complete anathama!.
Shares Mag article
Sphere readies proxima blood analyser to hit $900m market. Blood specialist Sphere is set to launch its device in sept sales of which are estimated to peak at £200m.Proxima analyses the blood gases that determine a patients health at the bedside replacing the need to send samples to the lab as well as cutting costs it reduces infection and anaemia risk with the analyser attached to the patients arm for six days and returning samples to the body.The global-point-of-care market was worth $900m in 2013 and is growing at 4.9% per year according to Sphere. The £14.8m cap will target UK hospitals ahead of a launch in.Germany/Benelux in H1Sphere needs the money having spent £48m on.proxima and lost £5.5m in 2013 rising to £6m this year. Cash is a concern Sphere burns though £500 per month and had £7.8m in the bank at March end.Unless demand for proxima takes off before year end it may need to raise cash in 2015 to pay its bills which could lead to a discounted offer if trading deteriorates in next 12 months SHARE says Sphere has a potentially market disrupting product. Worth a spec position at 25.5p
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