The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Indeed. The share price decline in the week leading up to today's TU is there for all to see. It's what suckered me in with a little top-up last week.
Funny, I was thinking over the weekend that it was a bit stupid and risky to add shares before a TU - not much more than a gamble really, so serves me right.
But I didn't expect a company like EKF to be so leaky!
As a relatively long term holder I am very concerned in the way the share price has dropped ahead of a disappointing update. Amazing the premonitions some of the large holders seem to have. What's happening EKF.....??
You're a star! And your musings are welcome.
No problem unhooked. EKF purchased ADL Health from its management/shareholders (vendors) for $10m in October 2021 - the purchase price was paid to the vendors via the issue of 9m shares as the share price at that time was c.80p. ADL Health was a new company and had only been in existence for just over a year having been established to process COVID tests in the US in their certified laboratories - possibly what attracted EKF. The 9m shares were subject to a 2 year lock in period from October 2021. In addition there were some hefty earn out clauses payable over three years but only if that division made $5m EBITDA minimum - which based on our H1 accounts relating to laboratory services is unlikely to be achieved (imo). In a touch of irony after the share price collapsed in spring 2022, the company elected to purchase 9m of its own shares using cash on its balance sheet (buyback) at 40p a share and ultimately cancelling those shares - the logic being that the 9m ADL issued shares only cost 50% of the amount given the company purchased and cancelled the same amount for half the price. Whether any of this has any bearing on what has happened this week I cannot say - I was merely trying to think out loud what could have happened and could be completely off course! SB
Silverblade, forgive the questions (and my ignorance) but exactly who are the ADL holders, do they hold a significant number of shares and when does their lock in period end?
C.20% loss of market cap in a week driven by sale of 8.5m shares at 41p (another 3.5m confirmed tonight in addition to yesterdays 5m). So just under 2% of company traded as we await a trading update. Messy. I did wonder if this is ADL holders exiting but they are still under a lock in period - they received just under 9m shares in October 21. Maybe next week will throw up some answers. SB
What we don’t know is has the seller stopped; and if their selling was connected to some activity we are as yet unaware of - possibly linked to the TU. Until these issues are cleared up we will likely remain in a nervous investor market here. I have been an active buyer last few weeks in anticipation of a decent update - timing eh……SB
UH Same here, average still a bit higher though every bit helps when sp kicks higher
Well I've taken advantage of this morning's weakness and added a few. Nothing major, but hey!
Based on last year, we're only a few days 'late', why should there be a problem? (clears throat)...
Maybe changing to single advisor has held up trading update. But it must hit soon?
Revenge is a dish best served and all that!! The move has certainly spooked the market. Just when ekf was moving in the right direction for a change. SB
Might be clients of old brokers .....
Goes some way to explaining the bloodbath earlier this week if these are catch up trades. Just over 1% of the business sold at 41p a share - if it’s one of our declared 3%+ holders we should find out who was selling - if not we might never know. Still a strange coincidence with a later than expected trading update - we will find out soon enough if there is a connection. SB
Looks like a fund selling out. I did by a few more, could just be good opportunity.
02-Feb-23 13:18:06 41.00 728,369 Unknown* 40.00 42.00 298.63k O
02-Feb-23 14:27:40 41.00 1,662,711 Unknown* 40.00 42.00 681.71k O
02-Feb-23 10:00:01 41.00 790,014 Unknown* 40.00 42.00 323.91k O
01-Feb-23 12:45:06 41.50 150,000 Unknown* 40.00 42.00 62.25k O
02-Feb-23 10:00:12 41.00 790,014 Unknown* 40.00 42.00 323.91k O
02-Feb-23 09:52:56 41.00 981,617 Unknown* 40.00 42.00 402.46k O
Company have refused request for an investor meet presentation.
I think that’s a reasonable assumption - although of course it’s still possible an intraday RNS may land yet.
It remains a sharp, as yet unexplained drop. Although this is AIM :-)
Well no RNS today, good or bad. Maybe it was just a coincidence, surely the company would RNS after the drop if they knew there was a problem. Gift from the market?
It cannot be a coincidence that there’s been a delay in publishing the Trading Update and a price drop of c.20% on no RNS update. Many of these AIM shares a leaky ships, and I suspect there’s a significant leak below the waterline of this one.
I see several people have requested a meeting through investor meet, but no response from the company.
I was comfortable yesterday to buy, but today has got me wondering whether we have a leak of inside information.
I can't think of what might be.
You have to love small-cap stocks, they move 20% on absolutely nothing, happy adding shares at this level ahead of the anticipated trading update.
Did you mean the 250K shares trade yesterday Dartron - raised about £110K? Or was there another? Something appears to be up. SB
There was a very large sell yesterday around £250k at 43p. I am hoping this is not selling on news. Could just be a fund needing to exit for unrelated / innocuous reasons. I have not topped up though, as cant trust anything in this market - which is a shame for a quality company like EKF.
The last week has been pretty poor here vig - like you I added some shares in anticipation of a decent update. Its low volume trading but its still grim to watch - no reason to think anything is up although based on previous years an update would have been issued by now which in itself is no reason for such a marked decline in a week - unless there are whispers.....sure all will be revealed or not soon enough. SB
I am expecting decent results, though not spectacular.
The main point for me is how their investment in production of bio cultures production is progressing.
Bought more today, which shows on here as a sell.
Could be usual games from MMs prior to results.
Let’s hope so Chelsea. Would be interested to see how ADL has performed - there were some heavy performance related payments due late last year linked to EBIDTA for that division which look like have been missed. Also keen to see cash flow taking into account ongoing investments - and year end cash at hand. 2023 should be good here. SB