The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Anyone want to review the following maths?
- In these workings, assume there are 100 shares (or 100 equal 'tranches' of shares).
- Mulligan currently owns about 6, and will receive x new shares after the debt-for-equity swap.
His holding is then (6 + x).
- The number of new shares will then be (100 + x). Mulligan will own 30%, or 0.3, of the new total.
- So (6 + x) = 0.3 * (100 + x) [ i.e. 30% of the enlarged capital ]
=> (6 + x) = 30 + (0.3 * x)
=> 0.7 * x = 24
=> x = 240 / 7 = 34 (roughly)
- So shares roughly go from 100 to 134.
That's an increase of about one third. Or - existing shares (inclduing our own) will be three quarters (100/134) their previous value once the total is enlarged.
If that's the case, it's not total wipeout.
I would say it's not too bad a deal for retail investors IF the plus side is that company remains afloat.
Any thoughts?
Actually, if he is adding 24.4% to take a total of 30% that would be
32.1/0.244 = 131.5M euros x 0.86 = £113M
Seamus's 30% values the company at £92M. FWIW.
In The Times 7th and Sunday Times 8th, but need sub to read it. Headlines..
Oct 7, 2023 · Seamus Mulligan’s Nerano Pharma is poised to take a sizeable stake in AIM-listed Advanced Oncotherapy as part of a complex financial restructuring plan.
Oct 8, 2023 · Seamus Mulligan’s Nerano Poised To Exchange €32.1m In Loans For A 30% Stake In Advanced Oncotherapy
Currently holds 5.6%
29 June 2020
ADVANCED ONCOTHERAPY PLC
("Advanced Oncotherapy" or the "Company")
Advanced Oncotherapy announces strategic funding partnership and debt facility
Agreements provide access to up to approximately £42 million of funding
Strategic €20 million funding partnership with VDL Groep expanding close partnership with existing supplier, VDL ETG Precision
Nerano Pharma to provide $30 million debt facility
Advanced Oncotherapy will use facilities to further develop and advance manufacturing of additional LIGHT systems to address unmet medical need
Advanced Oncotherapy (AIM: AVO), the developer of next-generation proton therapy systems for cancer treatment, today announces that it has entered into two financing agreements, providing the Company access to up to approximately £42 million of additional funding to further the development of the LIGHT system and advance the manufacturing of up to 30 LIGHT systems.
Your quite right meldrew
I hope I've misread the dates of the articles. I'm heavily invested in AVO so am as keen as anyone for it to succeed.
Forgive me if I'm wrong but those article seem quite old.
laingbuissonnews:
Advanced Oncotherapy secures up to £42m in new loan facilities
By Maria Davies -30th June 2020
And the Macfarlanes article seems to be dated 03 July 2020
What am I missing?
It's not like it can affect the sp
Thank you Kenj, seem strange that the news is out before an RNS, but then again it is AVO
That took some doing to get back into my account. But managed to see the headline on the FT article so all is not dead. Just a pity we arnt treating people yet. Hopefully not long before news, Started buying creo they appear to be past the stages we are suffering through as they have a working appliances to sell as a pose to us just developing, here's to being able to add some more avo
Whatever it takes to get it back fired up and tested and on to treatment of patients
Ok, so the Recap Plan RNS refers to the CS loan as “Nerano/CS”, so I guess we can consider that to be included in Nerano’s total. The June RNS stated that Nerano’s loans totalled £27.8m including accrued interest, so converting to Euro and bringing up to date can get to 32.1m. The debt-to-equity swap is on, then. Positive if it keeps the company afloat. Does the Times article mean we’ll hear about the Recap Plan tomorrow (“early October”)?
Thanks for the info but I can’t find it even though I have Times Online? Also I’m confused - Nerano Pharma doesn’t have €32.1m of loans. From memory they had about 10m plus interest (CS had c10m, the CLN was about 8m, and the interest in all those brought the total to c40m). I suppose it’s possible Nerano have lent more to repay the CLN or CS loan. But then that ignores Nerano’s equity stake of c30m shares. And they were always very keen not to go beyond the 30% stake overall beyond which a takeover bid would need to be put forward (tbh I’m hazy on that rule so I’ve prob got the detail wrong). Can you quote more from the article to clarify?
Thanks for that Fergal982. Dilution on the cards
Thanks for posting!
Darn link didn’t work but to quote;
“Pharma king Mulligan closes on cancer care stake
Seamus Mulligan’s Nerano poised to exchange €32.1m in loans for a 30% stake in Advanced Oncotherapy”
Has anyone seen the latest Times article?
[LINK REMOVED]
The Company intends to provide a more detailed update on the prospective recapitalisation and funding plan in early October 2023. ?
Cant be easy trying to secure funding in the position they have got themselves in, an update would be nice though.
I think its more of a technicality rather than negligence etc. Probably unable to complete the 'going concern' section. Or they cant pay the auditors to sign it off, but the books are probably up to date waiting on the outcome of this situation and funding.
The bridging finance people will have full sight of AVO’s accounts, such as they are, and will be well aware of the financial position. The discussions would hardly be at an advanced stage otherwise. They will also be fully aware of the recapitalisation plan’s status, which would provide reassurance as to the viability of the company going forward - we hope.
"On 30 June 2023, the Company announced that its shares would be suspended from trading on AIM pending clarification of its financial position and, in light of this, that the Company would not be in a position to publish its 2022 Annual Report by 30 June 2023, as stipulated by Rule 19 of the AIM Rules for Companies ("AIM Rules").
The 2023 Interim Results are contingent on the finalisation and publication of the 2022 Annual Report which the Company will not be able to publish by 30 September 2023. Accordingly, the Company will not be able to publish its 2023 Interim Results by 30 September 2023, as stipulated by Rule 18 of the AIM Rules."
Would you lend money to a company that had still not submitted its annual accounts 9 months after the year end?
No, and neither would I, nor I suspect any bank or finance house. The company has offered no explanation why the 2022 year accounts have still not been published. This fact will have will have not gone unnoticed by potential lenders.
Thanks for the info metis20, next week or the week after to see whether we are to survive.
Https://www.londonstockexchange.com/news-article/AVO/update-on-financial-results/16147100