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'' their best outcome is to find a buyer of the complete portfolio for $700m - $1.3b for the lot''
I think you might have made some very - very - serious typos above George.
NTM - I'd agree with them odd's but also favor the leadership being truthful and providing honest and timely updates. These leaders and this board should have never IPO'd this company, it was derailed from the start with James at the helm and given the millions and millions and millions raised over the years these damn people couldn't deliver anything and kept leveraging the company over and over in more debt over time. This management had better find a buyer, and soon as the funds are burning daily, and there wont be anymore raises, loans or anything. This company is leveraged with debt, they owe the Spanish government loans back and cash fly's out of the coffers daily... They need to window dress this little bit intellectual property and patent book up to the hilt, find a damn buyer and get the shareholders some of their monies back that they've grossly mismanaged over the years. This is the absolute worst outcome and performance I've ever seen from a company. We can only hope for fractional returns to our investment, and even CMTS in china and blackrock and all the institutional investors will lose out. their best outcome is to find a buyer of the complete portfolio for $700m - $1.3b for the lot, sell it all and get the deal completed this tax year. Have Stephen to stick around until the legal matters and sell is complete and turn the lights out, close the doors and hope that's enough.
MTX110 is indeed something that gives us some hope too ..but, as said, getting FDA approval is hard generally. Indeed I'd offer that even if they had raised and spent the $30m for MTD201, there were, even for that, far from any guarantees of its approval.
Generally, I'd love to know the rough ratios of drugs in development by AIM Bio/pharma and FDA -or equiv.- approvals over a say 10 year window. off the top of my head I'd guess 1 in 4 maybe ?
By comparison, if you bet red or black on a roulette table in the Casino you have an approx. 48.5% chance of winning.
Altogether, I don't think people generally come close to grasping anything like the odds they're playing against in this game. I genuinely believe you have better odds in a casino.
A balanced response to the present situation, NicetoMichu. I knew they intended to raise at least $20 million because that was the target set for Stephen Stamp. They had about $8.5 million in loans already.
If coronavirus hadn't exploded exponentially would they have got the money? Back on 12th February when they released the RNS about the share consolidation, ratio changes and the intention to raise money in the US, there were 8 COVID-19 cases in the UK and no deaths. How many people saw this coming?
As you say, the delivery platforms are still in place and they have been shown to work in human trials. Compared to SLAR, MTD201 is a superior product. That simple truth should allow for its continuation with a suitable partner. And there is a lot of excitement around the CED of MTX110 for the treatment of brain cancers. A new one was added on 19th March:
https://clinicaltrials.gov/ct2/show/NCT04315064?term=MTX110&draw=2&rank=3
Yesterday's RNS didn't even mention it.
Niceto… I'm taking a fairly different approach and will say that the company will do what it has to do to dissolve and close the doors quicker than you'd think. They have cash for less than a year and they can't do any more raises and they don't have any potential partners. they've got real property to sell, IP and patents to window dress and they need to decrease their assets and taxes to make them attractive to buy. that lay off of 2/3 of the company came at a cost as they had to settle with them employees, but now the balance sheet is a bit stronger and they are a bit more attractive. now they only have 110 going for them and that at best is $50 million year so with the outstanding shares that might get you back to 50p if they even get FDA and EU approvals for NDA. They shuttered all hopes as a viable manufacturing company and stopped work on a 2 billion drug opportunity so guess whose celebrating? that's right the SLAR manufacturer in Switzerland. they can keep their customer base and continuing having that crappy solution bring in billions annually. this promising company is now a pipe dream and will soon be up in smoke and gone with countless class action suits in tow. just my two cents
Sad that such a radical restructure was deemed necessary.. but MTD201 phase 3 and Bilbao scale up costing approx. $30m is a far bigger number than I'd have guessed and so their decision in sundry unprecedented circumstances is understandable if awful.
Generally, they still have patents and their delivery technologies are perhaps potentially very useful to many partners etc. and they have likely/hopefully a cash runway for a year now. So they don't have a gun to their head for partnership / asset sale or company sale outcomes at least. And there still is potentially value here and 20 people still have work ..
Instinctively I've always liked their delivery technologies .. and while the big dreams here are clearly dead now - I'd stopped big dreaming here a fairly long time ago in truth - I haven't given up all hope here yet either.. far from even.. and I can still perhaps/hopefully see 50p or 75p or a bit more again here at some stage in the future.. a pathetic figure in the eyes of many here granted and losses for some are sadly large and perhaps mostly cast in stone now - and I hate to see people lose their hard earned money - but the company is doing what it has to do to survive.
Viveka I came to conclusion regarding the sale of the company this year as two primary reasons. Now that the share count has been slashed by twenty fold it makes a lot of sense as to how and price the value of the company regarding the outstanding shares. so how this relates to the intrinsic value of the company its "assets, patents, properties, and any intellectual properties this is likely why they still have Stamp in the drivers seat. He will have to continue to complete all of the regulatory requirements as an existing company. in addition he'll have to work with outside counsel and attorneys regarding the sale of the company plus there are the legal requirements such as shareholder notifications, board meeting minutes and voting rights. It just my personal opinion that because of all of these requirements that the company will be likely looking for a suitor to take over and buy the company and hopefully continue with the progress in the MTP110 program. finally they're running out of money and burning through it daily. they obviously can do another raise and they have but a few months to find a suitor, sell the company complete the sell, balance the books and close the doors and file their final year end taxes and dissolve the company. that's likely why Stamp is still around and as for how much they sell all of this valuable enterprise for? well that's anybody's guess but since they only have a few months of cash runway and likely an itch to close the books on this 7 year fiasco of non management, lack of abilities and disastrous outcome id think they'd want to have something in the order of pennies on the dollar and a suitor lined up by the summer as it will take a couple of more months to get the sale completed. Not to mention all of the forthcoming class action law suits coming their way which they have no funds to fight so those suits will have little merit if the company is sold or bankrupt. all just my opinion I base this solely on my own opinion and experience.
Just as COVID-19 may be fatal for many people with underlying health problems, likewise it may have an equally disastrous impact on companies in precarious financial conditions. And, just as medics may face difficult decisions about which patients receive ventilation, similarly the capital markets will decide which companies get an inflation of cash.
Although you do have to be careful with the word stakeholder because it includes more than just the shareholders. For the sake of the children with DIPG and their families I hope MTX110 has a favourable outcome. These are also stakeholders.
You thought it was going to be sold some time ago, George-Inn. What do you think it would be sold for? Stephen Stamp said the usual platitude: "our focus now is to extract maximum value for stakeholders." At least he is a stakeholder, having bought 1 million shares for around £50,000 in October. That's significantly more in money terms than Craig Cook or Nicholas Robbins-Cherry ever bought.
from SanMartin: And there you go that says it all..... It's my personal thoughts that a sale is pending of the whole lot and it's fractional to the actual book value. They'll have to sell this year to accomplish two major things..
I do remember your posts, SanMartinho. Shareholders can often overlook the human cost. Do you or did you work for Midatech in Bilbao?
Nobody read, noticed or commented my post on Feb 2019. Crystal clear. This was a disaster waiting to happen for such a lousy management during the last two years, nobody took advice, nobody cared. It was about time this finally has an outcome. CC, good f***g bye.
Firstly, my thoughts are with the 47 employees that are facing redundancy (42 in Bilbao and 5 in UK). It was inevitable that Craig Cook had to go given the size of the job losses and the impact this will have on staff morale. This is not in isolation though, there are job losses all over the place because of the fallout from the pandemic. A record 3.3 million people filed claims for unemployment in the US last week.
Commercial manufacturing of MTD201 in-house has stopped. They needed to be able to show the FDA that they could produce MTD201 in commercial quantities as part of the NDA process. They are not running the Phase 3 trial – so they don’t need the scale-up or the data for commercialisation. Hence, Bilbao is closed.
They will be left with a core of 20 employees located in Cardiff. They are no longer going to conduct clinical trials unless a license partner or grant funding has been secured.
The tech is still in place. They say they are going to use it to build a portfolio of products for licensing at proof of concept stage. I don’t know what to say about this except they have not had a great lot success so far with license agreements. They gave half the company away with the one they signed with CMS and A&B.
As for the drugs, it does look like the focus will be on MTX110 for the near future because the trials in the US are continuing. The cash runway has been extended until the start of 2021 – it was the fourth quarter of 2020 in 12th February RNS.
Will someone make an offer for the company? What price would it go for? Should they actively look for a buyer or a merger?