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Viveka, listen anything is possible. But at the risk of being brutally honest and not trying to dash hopes. You're scenario would be a complete opposite 180 degree turn from what this company and management has done in previous situations. Listen I'm a fan of the company ask anyone here, but my trust in their decisions and support for them is waning. Their market cap at the moment is less than all of the combined funds from grants, previous RS, fund raises and private sales to CMS in 2019. Why is that? Basically it's because the progress and results are too slow coming in to support any stock value appreciation or even balance and news is too slow trickling in and thus their efforts are met with spikes and no follow through support. No analyst coverage and no effort to consistently update the market and trading public to generate enthusiasm. So I do sincearly hope first of all that their meds are breakthroughs and help save lives. Secondly I truly hope that your scenario works out for us all because we all need it to. But if the management doesn't change and continues with their usual course of business and communications after this next reverse split. My fears are that the SP will continue to repeat its trend and the results will be the same. No regular communications, slow progress and as a result no share price support. Thus business as usual, and if that approach continues, well then your scenario doesn't have a chance of materializing Again not trying to be negative but merely pointing out the usual course of business is completely opposite of your possible scenario. In closing I will say that your scenario is plausible it's also possible and it's also very welcomed if that were to occur. For everyone's sake I hope that your suggestion pans out.....again these are just my own thoughts and opinions. I'm not at all trying to be overly negative or contrite in any way. I'm a believer in this company and their future, but they've got to improve in many areas.
Agreed, could be possible. The SP so low now it won't take much to shift it. Steady rise over the next year or so will do me.
My top up listed as a sell today, I think it was all buys today but nearly all showing as sells. Just an FYI.
''They consolidate the AIM shares, change the ADR ratio and raise enough money from informed and enthusiastic IIs at a premium to the present SP. Then they release a sustained blast of ‘escape velocity’ news to overcome the ‘gravitational hold’ of the traders and the SP rises on a continuous upward trajectory. Is this feasible or just pie in the sky? ''
Indeed it is possible Viveka.. and that's what I'm very much hoping too.. but continuous upward trajectory still unlikely though.. spikes and retraces but overall upward would be fine.. (nothing goes in continuous one way trajectory generally, not even mtph in a downward trajectory.. although it's has made very good attempt at that in fairness :-))
I disagree that progress is too slow, full stop. It depends over which timescale you measure it. The acquisition of DARA Bio slowed progress. That’s now gone, and progress over the past 18 months has been good. The company have updated the market accordingly through RNS. Could they communicate things in a more effective and all-encompassing manner? Yes – they certainly could. But it would cost money – and they don’t have a lot of that.
The share price is in the grip of traders. The company should now appreciate that snippets of good news doesn’t work. The share price just spikes and then drifts downwards again. I’ve found news that you would think would justify an official RNS. Maybe they are saving the news up to release it all at once? So, let’s hope this is what is going to happen. They consolidate the AIM shares, change the ADR ratio and raise enough money from informed and enthusiastic IIs at a premium to the present SP. Then they release a sustained blast of ‘escape velocity’ news to overcome the ‘gravitational hold’ of the traders and the SP rises on a continuous upward trajectory. Is this feasible or just pie in the sky?
Viveka, I think most all of us here agree that "Stop this ridiculous race to the bottom" would be helpful. And saying that the present SP does not reflect the progress the company has made since February 2019. or that They raised over £12 million then at 3.9p. In the last 12 months etc....: But also I want to offer my own opinions as to why this may be so.
" With all of those loans, grants, fund offerings & millions and millions raised etc.." the fact remains that progress is too slow, results are not always promptly reported, and there's little not no analyst coverage. The results of this are that investor and the markets enthusiasm is waning. The SP reflects reality perfectly and with this next consolidation and fund raise offering over in the US, the SP will likely peak the day of the split and slowly creep back down again with the same dismal results of last split and offering.
The management needs to understand that Facts are the markets value companies on pure results, prompt reporting, analyst coverage and clear guidance none of which seems to exist here. So with all of the progress made in 2019 and millions upon millions upon millions granted in loans or funds raised by reverse splitting the company and its shareholders into oblivion. The fact remains that the share price does seem to reflect the slow progress, lack of prompt reporting , poor decisions and lack of public marketing to which builds excitement to prop the share price up.
What other logical explanation would offer why both AIM and Nazdaq markets seem to be undervaluing the SP? To me its fairly simple and that is because of those things mentioned here. Markets reward companies whom deliver on those things. These are my own thoughts, opinions and personal observations after supporting this company for many, many years. Going forward both my enthusiasm and criticism will be tempered, and fair. I will see what results materialize, what news is promptly reported and what effort's are put into propping up the SP and what decisions are made to "create protect and maintain shareholder value" ...Again this is just my own opinions.
“My big hope here is that II's stop this race to the bottom now and do a next raise at no lower than recent 3.9ish.” I’m with you on that, NicetoMichu. Stop this ridiculous race to the bottom. The present SP does not reflect the progress the company has made since February 2019. They raised over £12 million then at 3.9p. In the last 12 months they have achieved the following:
1. Receipt of loans totalling £6.83 million to apply towards the commercial scale-up of the manufacturing facility in Bilbao.
2. A Phase 1 study demonstrated: (i) similar bioavailability and pharmacokinetics of subcutaneous injection compared with intramuscular administration of MTD201, and (ii) this was sustained over a period of 8 weeks. These are both unique selling points for MTD201 when compared with Sandostatin LAR.
3. A clear development path for MTD201 as a differentiated product in the £1.9 billion long-acting octreotide market.
4. MTX110 has been so well tolerated in patients that a further two higher dose levels have been added to the study. The principal investigator has described the safety profile as “excellent”.
5. MTX110 Orphan designation for DIPG.
6. Receipt of a £2.19 million GlioKIDS grant from the EU to support a Phase II proof of concept trial of MTX110 in DIPG.
7. Substantive licensing agreement with CMS for the Company's products in Greater China.
8. A direct offering with Armistice Capital raised £2 million at 3.9p.
The SP should not be below 3.9p. That should at least be the bottom. And with the progress made since February 2019, it should be a lot higher.
the post consolidation level equivalent to 'old money' 3.9 ish p, I should have said
(and btw I do understand that s/p's often tick down post consolidation ' as a rule' .. but not always .. every situation is unique )
Who is going to give them a loan at 4% George, or even at a lot higher interest rate?
They don't have revenue generating assets at this time to act as collateral for a loan and while they may have in the future, also they may not/never have.
As has already occurred from get go here, all monies they raise going forward will be for a share of the company... and that's a big bet by whoever that meaningful future revenues will occur here, or a buy out at a good premium will occur ahead of those revenues occurring.
My big hope here is that II's stop this race to the bottom now and do a next raise at no lower than recent 3.9 ish p's , as they see it in their long term interest to do this. And that it's for a many many millions towards hopefully getting something to market off the back.
If a big raise at that level then future funding to market broadly sorted - or at least to a next serious value inflection point - and a strong relief rally follows to push this higher than that raise price.. and then good news going forward pushes higher again etc..
(But my guess is next raise will within 8 weeks and at a level somewhere meaningfully lower than 3.9 ish p .. between 2p and 3p for eg.. and will have very lowly priced warrants attached too)
"We continue to examine all options for financing our lead R&D programs and manufacturing scale-up," Chief Executive Craig Cook said adding that if approved the resolutions will provide flexibility to enable an equity fundraise in the U.S.
( I have another suggestion, take a loan out at 4% interest and pay it back when you get drug approval ) a consolidation of shares and an equity fundraise in this case is nothing more than reducing existing shares to near nothing and issuing more shares and debt.
The company said it has the support of CMS Medical Venture Investment (HK) Ltd. and A&B (HK) Company Ltd., who own 44% of the company's issued share capital between them.
( CMS 44% stake will be maintained "ONLY" If the share price is maintained at or higher than "post split" consolidation levels)
if not maintained or higher then CMS can watch the share price drop along with their 44%, ownership. I am merely stating possibilities or facts here nothing other than my observation, or opinions about what could happen if the share price does not remain constant or above the post consolidation levels.
Just back in from a dreadful , cold and wet lunch I guess my spirits are dampened along with my mood and opinion as I am not usually this negative. However the more I see mismanaged the more pessimistic I become. Thankfully me pub has F&C's and cold Stout on the menu, cant wait.
NicetoMichu, I did invest in a company back in the 1990's that issued a 3 foe 2 forward split each and every year for 5 years. So they gave a 1/3 back to the shareholders allowing ones portfolio to grow 33% annually in share count. More importantly the company kept the share price propped and grew it higher each and every time the additional shares flooded the scene. It took about one year to rebalance the share price, and then bamm another forward split. So it does happen it happens to well ran, well balanced, and "well managed" companies.
It would be lovely of it worked like that George. It absolutely and categorically doesn't, unfortunately.
No Timmy it's not just over on the Nazdaq for the ADR's it's your shares here on AIM . The consolidation is fine just as some say well the ratio is the same as the share base shrinks. If the company doesn't post news to keep the new ration share price from falling once again here or over in the states then the consolidation or better yet call it a reverse split will simply prove nothing and the share price drops again with no support. Look this company has got to stop with the consolidation, reverse splits and issuance of new shares to raise capital. Go borrow the money without dilution to the poor saps holding this company up. Better yet deliver on the tasks at hand use the money as sparingly as possible, granted trials take time but every time there's a raise like with CMS the word in the RNS is that money is set aside to see all clinical through until NDA and this is simply not true. Get the results delivered and when this is 100p or more than do a forward split back to 20p and deliver more good news, get it back to >100p and forward split again. Give back to those that have given to you.
They want to consolidate the AIM shares and change the ratio of the ADRs. The 12th February RNS stated that the company is seeking approval to:
“Consolidate the Company's existing ordinary shares of 0.005 pence each ("Existing Ordinary Shares") on the basis of 1 new ordinary share of 0.1 pence each for every 20 Existing Ordinary Shares.”
“The Company is also proposing, assuming the Resolution to consolidate the Company's Existing Ordinary Shares is approved at the General Meeting, to change the ratio of its American Depositary Receipts ("ADR") from one (1) ADR representing twenty (20) ordinary shares, to the new ratio of one (1) ADR representing five (5) ordinary shares (the "Ratio Change"). The Ratio Change is aimed to bring the price of the Company's ADRs into compliance with the NASDAQ $1.00 minimum bid price per share requirement.”
I think that's just for the American ADRs, I don't think the ordinary shares in the UK will be affected (could be wrong though). They're just trying to get the US SP above a dollar so it remains listed on NASDAQ.
Where has it been published that the share ratio is being adjusted by a factor of 20? Not sure what you're refering to.
Zahir u are right less shares 22 million shares, producing, cash positive with eu and Spanish government funding after consolidation looking at 50p plus..imo. It's not for trader on news we are looking at 5p plus.
What are you on about? Your investment and the percentage of the company you will be the same.
current share in MTPH is 470 million
divide that by 20
= 23.5 million shares
It’s just getting consolidated which is better for us less shares in the market the faster up north it goes
While my share base will be greatly diminished due to consolidation, so will others. For example the CFO stamp is listed as having bought 500,000 ordinary shares which were purchased in the > 5p range and that will be reduced down to 25,000 shares if my math is correct (500,000 / 20 = 25,000) My own lot is being downsized in equal fashion and those poor investors in the states have been busted down twice in under a year. 10/1 RS last year in 2019 and now a 5/1 in 2020 so that leaves everyone on both sides of the pond asking themselves how does this constant consolidation and not propping up the SP "build shareholder value" the answer is it does not. Management had better find some news to prop this SP up moving forward or else this consolidation will be met with short sellers entourage and they will walk it back down until this is R/S again and again until there are no investors. No investor will keep throwing good money after bad if the management isn't willing to prop up the share price with credible and noteworthy updates. when this company actually scores something tangible and the SP rockets lets see a forward split eh?