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Lol. So the message from shouty wig is that the shares are going to multiply and dilution is irrelevant and all your dreams are gonna come true! Totally tick-tastic mate. Back on planet earth, dilution is far from irrelevant now. There was/is the potential for the shares to rerate toward Nasdaq peers prior to further readout, but that angle gets materially compromised if a large dilution takes place near term. Over the longer term - in the event trials are successful - I can agree any dilution now becomes less important. BUT that is dependent on data that we don’t have any certainty on yet. Anyway other wig - you’ve got some attention and I’m sure a lot of ticks will be winging their way to you. Whatever floats her boat.. ATB
Spot on Wigscoff - very well put.
It’s certainly clear AIM never appreciated 4D
Thank god Duncan got us on to NASDAQ in a quick innovative manner via the SPAC
LOL. He isn’t conceding anything, stop turning everything around.
The point I am making is we always new we had funding to Q3. We always new funding was coming and soon. No one yet has any idea what deal will be made.
Dilution is irrelevant in the long run at this level. Yes of course everyone would love for us to raise at £10 a share but that’s not business, and that is a very greedy and small minded way of viewing the situation now and with hindsight. The reason we are in this predicament is because of UK investors have muzzled the price to date with fear and worry and irrationality like i said before and they don’t understand the industry. This is why the company is being opened up to allow a new channel of investment.
You can’t have your cake and eat it. The people responsible for holding the price down then can’t be the ones who suddenly want a raise at a higher price. We aren’t at a higher price because of these exact people.
Funding allows ii’s to step in, clear the runway, potentially forever, cast an even greater spotlight on the company. Also let’s not forget these investors may also likely be partners for future trials who provide free drugs (worth millions), inflection points and add much more value indirectly. You’re not going to put a choke hold on that potential relationship just because a few pi’s would rather have the dilution at £10 a share, so we get more bang for our buck than they do.
Yes it is a balancing act I don’t think anyone said otherwise, however people getting the runs at the thought of dilution is ridiculous. The point I made was hypothetical. Even if we raised now at this price point, the potential market cap could still multiple many many times over even if we issued the maximum 40% at this level. That was the point I was making.
Equally like I said this isn’t some two bob aim dog stock I think we can all agree. Issuing stock to high level and specialised institutes in the US who would likely be specifically chosen as they intend to support company growth over the medium and long term...is far different from getting uncle Bob to invest a few million at a significant offering price so he can forward sell his shares in advance into the market at a profit whilst shareholders are forced to churn the shares. These are two very very different things. And we know the latter is all too common in aim, and this is the exact reason why many investors hear ‘dilution’ and sell. Because of this very misunderstanding.
I’m sure whatever deal Duncan cuts will be made in best interest of all parties and whatever deal cut will be done to support the long term growth of the company and market cap.
As far as I’m concerned UK investors can’t kick the **** out of the company perpetually and then get all picky and demanding when the US are happy to take this to an level of growth that we failed to provide.
Research - thank you for conceding that people here do get it, in contradiction to your first post, and for making clear it is a balancing act, which your initial posts do not make clear. No glass half full or empty about it. I was in the glass half full camp on Friday believing that only $25m would be required, suggesting an 8% dilution. In fact, I posted on advfn stating exactly that on Friday morning. The only thing that has led me to question this is a group of posters arriving aggressively suggesting that the level of dilution is irrelevant. Why would they do that when it’s evidently nonsense? Anyway, onwards and upwards I hope. ATB :)
Wigwammer- I think we all get it - of course it’s a balancing act as to the amount and the timing which I’m sure Duncan will judge sensibly as he’s a major share holder anyway, after all he will want to minimise the % dilution and yet achieve sufficient runway funds ( having regard of course to timing of the various inflection points which are likely to come through to promote this) In short, the whole reason for going on NASDAQ is to achieve bigger and better funding in a market that values biotech companies more highly.
We are all actually saying the same thing, the problem seems to be interpretation of the RNS wording. It’s worded so as to state the extreme case in order be fully transparent and comply with Nomad vetting .
We just have to trust Duncan’s judgement on how and when he promotes a fund raise but let’s remember it was actually his idea that got us into a SPAC vehicle listing on a much better market more used to investing in growth oriented biotechs. I’m sure the Americans will see our world leading position and the number of patents as highly valuable so we will re-rate before Duncan presses the button.
"The decision regarding how much to raise or whether to proceed or not, will depend on the prevailing market conditions, investor appetite and price, and there is no certainty that any such fundraising transaction will proceed nor what amount might be raised."
We each have different temperaments - glass half full and glass half empty judgments - let’s just trust in Duncan he got us this far, the NASDAQ future is bright and we are now well placed.
Mudstud - i think you’re addressing your contention to the wrong poster. You are stating they will only raise $25m. I hope they will only raise $25m. The other wig/research are arguing that it doesn’t matter how much they raise - the scale of dilution doesn’t matter - because it will all go to making the cake bigger. To state the obvious - OF COURSE the level of dilution matters and it should be a key part of DP’s role to make sure he gets maximum buck for what is given away. ATB
Research - you opened your point by stating posters here “just don’t get it”. Actually, I think most posters here do “get it”. You are not in possession of some high level concept that the average punter here cannot understand. Yes - raising money can fund a bigger cake making the slices larger. The point you neglect is that you pay for the ingredients by giving the existing cake away. As has been subsequently stated by other posters - the hope here was that the cake would get bigger prior to dilution - it would rerate on Nasdaq listing - thus you get the same cash but give away a proportionately smaller amount. It’s a balancing act, and that’s not something that’s clear from your post. Hope you get it now. ATB
Wigwammer
I wasn’t suggesting that anyone (other than The Stigologist) was an uber ramper, just that echo chambers like Telegram groups etc. should carry a wealth warning.
Wigwammer - I can tell you with a very high degree of confidence that I am not the Stig ( whom I actually find quite opinionated but well researched) and that you are to put it mildly disingenuous and seemly quite literally paranoid about the Stig
I have my own opinions on this stock which I’ve tried to share with others on this board- particularly those based on how to regard any NASAQ fund raising ( vis a vis the analogy I used earlier about creating a bigger cake with bigger slices for each type of share hold) which I note you haven’t really commented on
Well so be it. Can’t help everyone . Good luck all.
We are all rampers. Some write it and others just think it it. When you buy shares, you have researched and you have your opinion by how much the SP will increase. We all all buy for an increase unless you are a lunatic, or a shorter.
Hi rossannan - with a high degree of confidence I can tell you wigwhatever and (probably) researchandsomething are both stig... as you suggest he is an uber ramper who will have difficulty justifying his uber near term targets now the share count is about to shoot up. That’s why he’s here - to try and change the narrative for the new reality. For all his self professed ability, I can’t recall a near term 40% dilution being part of his picture. ATB.
Well that’s something...
No it doesn’t Not this group
Presumably the Telegram group includes uber rampers like The Stigologist/Stockonomist. Good luck with that.