The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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The management kept on telling us that they are applying measures to cut cost and this avoidable cost where former CEO was reaping the company by charging 35% interest from his own decision for how many months in the past until-to-date? We don’t know how many of these petty expenses management are over-looking that are mounting up to reduce the profit.
With the amount of transformation new management are doing (I am not saying they are not doing), I also have substantial investment of my ability as you (Connie) have to become significant holder.
If we knew we are going to get a placing at 85p now, we all (including you and Gibson) would have sold out from well above 120p (I would have not bought it), forget that 149p. I do not want to dwell much on this.
But the way the placing has been done, I am not happy. Yes, some of the money will be used to purchase Numovista plant which will be costing approx. £650K (according to rns). But they are making an instalment payment for it over 3 years. Some of the money will be use to enter into agreement to connect national grid to bring cost reduction.
However, the management could have used the monthly tender revenue that company is generating. They could have even gone for arranging finance where they could get required amount of loan at reasonable rate (not that 35% per annum charged by cartel style former CEO) considering the turnaround management is making.
And we did a placing raising money to use it for improving production facility for increasing production and hopefully reduce cost. Most of money provider Teichmann is hugely getting benefit. They can pay it in three instalments over six months. If the company need money, they should be asking for it now. Otherwise only raise required amount of money. And management has confidence on themselves to improve productivity and reduce cost. This when seen will obviously reflect on the share price and again raise money at a much great price when management thinks company need it.
IMO this is a good placing - small discount with Teichman and Directors buying giving the company the ability to really boost production with great mining backers who hold nearly 30% - no brainer - I have been watching BRD for a couple of years and now I'm in.
Mil09 'Adam Waugh loan to company of £150,000 has an effective annual interest rate of around whoooping 35%. ' - yes now it has gone.
'Hugely giving benefit to Teichmann by letting them to phased their placing investment over six months in 3 equal instalments. And I believe on every instalment payment, if the share price appreciates during that time, they will benefit by paying the placing price.' Absolutely, these guys are providing the finance on favourable terms to BRD.
All good, bit of churn but majority has gone to sticky holders, over to BoD to deliver
The usual suspects will be along in a short while with the usual ‘great opportunity to buy more shares’ rubbish. Beware the company stooges!!!
Feeling uneasy with this placing.
Adam Waugh loan to company of £150,000 has an effective annual interest rate of around whoooping 35%. I am sure they could get more amount than this at much cheaper rate if they have gone to the financiers. No, need for placing too. Even retail investor with deep pocket would be happy to lend them that money if they knew the interest rate they would be getting.
Cannot believe where are those monthly revenue going- directors pocket and benefiting their other investment co by purchasing its asset?
Hugely giving benefit to Teichmann by letting them to phased their placing investment over six months in 3 equal instalments. And I believe on every instalment payment, if the share price appreciates during that time, they will benefit by paying the placing price.
Directors not willing to have skin in the game by not participating in the placing or buying shares if they are that much confident. Granting themselves an option only- not FAIR, only reaping shareholders.
Dress it up how you like but this is one big kick in the nuts for the pi’s. Everything that’s wrong with investing in AIM.