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The cat has 7 traditional lives, how many bounces did we have so far?
One day the bouncy dead cat will come to some life...hopefully.
Another dead cat bounce??? :) :(
Well above average volume today.....good or bad is anyone guess,but something is brewing....
And last, but not least, the AGM (or the lack of one!). Normally, it's out of the way in May and it's the last update (excluding RNS on deals etc) on trading before the interim results, out in September normally.
I see 3 scenarios:
1. A delay purely due to CoVid (so AGM in June/July), with a trading update for Jan-May; 80% chance
2. Things are so bad that AGM is delayed on purpose; 5% chance because we are used to horrible news anyway!
3. Delay so that a positive update can be announced with the AGM; wishful thinking so a 15% chance (too high?).
Definitely, we need sales. Mgt is trying to buy time, hence the pay cuts until the SP can reach 2p or thereabouts. That's a market cap of 9mln, so a minimum cash raise of 2mln (to see us off in 2021) would mean a 20% dilution.
In any case, just guessing now, but there should be some sales in 2020, as our product is on display at the various OEM and Ditributors' websites (USA, Australia, Japan, Taiwan, Germany, UK, Thailand etc) and all of these countries are more or less out of lockdown. But even in lockdown, there is a global race to develop drugs, vaccines, tests etc so research / analysis activity has increased exponentially; there is bound to be some increased interest in our products (hopefully sooner than later!).
On the face of it your breakdown sound reasonable....but we both know that we definitely need some deals and a decent level of revenue to move the SP to a level where funds raise will not be heavily dilutive for us.....as such it is a case of race against time where good news would come first...I really hope the company very good products can land us some decent contract/s or at least a cash rich partner. ATB.
get them out for Xmas! By then, there should be some developments.
Some facts and numbers:
1. Virus here to stay, for another year or two
2. States are printing money like there's no tomorrow
3. Cost of cash almost zero
4. Lots more cash to go into health & medical research
5. If not directly (e.g. a grant), indirectly (through big pharma partners) some of it will flow to MSYS (when, is the big unknown).
We may avoid a fund raise in 2020 as:
Cash 2.62ml at Y/E 2019, and cash used in 2019 was 2.8ml
Tax credit due July 2020 of 300k, debtors o/s in Dec.19 of 270k, meaning 3.2mln available for whole 2020.
20% salary cuts (and furloughs) on appx 2mln annual cost = 400k saving
200k in travelling, and 200k in prof. fees, easily half of that can be reduced = 200k saving
Lease costs 400k, some office space might be released, or lease renegotiated = 50k saving?
So, conservatively, we have 3.2mln cash for 2020, and ASSUMING ZERO SALES, cash needs of 2.2mln (2.8 minus 400k minus 200k) = 1mln cash at Y/E2020
Plus, if we get 500k sales, that's another 200k cash (@40% GM), plus other potential savings e.g from lower need to stock?
CONCLUSION - we have cash to take us to end 2020, even on zero sales
BUT, we need some deals to drive the SP up and limit dilution, for when the Capital raise comes. A potential deal can come via MIT and/or CPI (project has a finite end and should yield results in a few months, including - very likely - a sponsor).
Definitely, this summer will be very interesting! Good luck, DYOR
Sum it up in few words-bottom of the lowest drawer....big potential,just hope they don't need to raise funds before any good news,...GNGB.
without newsflow, price will hover around these levels. If news will be good, and when such will come, is anybody's guess. But probably the SP does not reflect potential good progress that could be announced with MIT or CPI, sales in Japan/Korea/Taiwan/China, from the JV with Axcend, new partners in Europe OR a deal with big pharma on ProteinID or the triple quad. Weeks, months we will see. And still nothing on the AGM either
Is that a splatter of modest buys which I espy, this morning....