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Yesterdays funding announcement came as a bit of a surprise, but is the latest in a series of what is now becoming a complicated shareholder/funding structure. Within the last month alone we had the equity placing to raise $10m at 20p a share (although at that time only $4m could be raised because of the nasdaq 20% restriction). So the placing was split into two - a first placing for 20m shares to raise $4m; and a second placing to raise a further $6m subject to a general meeting on 22nd April to deal with the Nasdaq listing issue. As it turns out, forward commitments to the second placing now mean a further $2m has been raised, taking the total under the equity placing to $12m. We know the take up was good amongst existing shareholders. Now, less than a month later, we are told that DB Capital Partners Healthcare are taking an initial 2.6m shares for $1m on nasdaq; with the option to increase for a further 8m shares at the same price (c.30p) to take them up to $4m. That's just under 9% of the business and would make them the 4th largest shareholder. The web site link for DB Capital looks like it was put together over the weekend; and good luck finding out any details on the 'founding partners'. How did this come about - did they try and get into the initial equity raise, miss out, and come back to be told told price was now 30p under a share purchase agreement? Who do they know that allowed this to take place. What drove the need to raise $4m so shortly after the $12m last month? Alongside this, anyone remember the $21m convertible bond fundraise in 2022 advised by Heights Capital. Turns out the fund behind this is a company called CVI Investments (channelling money for high net worths, trusts etc), based in the Cayman Islands, and represented by William Walmsley, Director who lives there. They now own 8.5m shares in Renx as a result of the company settling its annual interest coupon and capital repayments in cash. Its an intriguing picture to say the least given the current 'formal sale process' and I'm not entirely sure what to make of it all. SB
Kyborg, don't think that $2.75 is inconceivable - RENX has great potential, let's hope that potential gets fulfilled and the PI faithful get some decent return for a change. GLA
They won't sell before the LCD decision. That would be silly. They know that decision will attract attention and engagement from additional pharma wanting to bid. Chronic kidney disease is a huge market. Reducing acute kidney disease will be a real prize for big pharma especially if they can tie it in with a US healthcare plan, covered by US insurance. The healthcare industry will also save up to 35 billion dollars if they can achieve their aim to make acute kidney disease negligible.
From todays PR:
The net proceeds of the Fundraise will be used to support commercial sales activity as the Company continues its Formal Sale Process, as previously announced.
1. Could they get $2.75 ps offer ?
Shares outstanding: 122.5M * $2.75 ps = 337 M - achievable I think?
2. since they have cash till like Jan 25 now - they wud wanna wait till expected issuance of a final Local Coverage Determination ("LCD") which could occur during fiscal year 2024?
3. I wonder why they planning to sell before the LCD decision this year - they have got the company this far - why sell just before LCD decision?
Not really a premium when NASDAQ closed at 80c and the raise is @75c
But it is a premium on the last fund raising which was at 20p (51c)
If a deal is certain, I am surprised they have gone outside the previous funding circle….unless it is a signal to the market that they may get $1 or more.
Getting in their direct strategic positions before offer I see. And happy to pay much higher than current SP. Nice! Patience will pay handsomely here! More money for RENX so all coming together beautifully. IMHO DYOR
We ain't looking at a stalemate. The stock is drifting because volume is low. And yes, the mms will take it lower if they can. Yes, Aim is badly manipulated.
This particular stock will go up as soon as the market thinks a decision on the insurance industry coverage is due. The decision could come any time since the consultation ended in the 3rd week of March. Realistically it's more likely to take between 4-8 weeks. I want some more RENX for this year's ISA but I need to wait for either HARL or CABP to do their thing first. Expect there's time. If an RNS lands on Monday will just sell some other shares and buy more anyway.
Yes it's looks like it's going that way. It's been a sell off all week, although the buying did pick up towards the end when it dropped below 30. If that continues onto next week, then 30 could become the new support level, although I very much doubt it, the market looks depressing atm. Either way surely we must be close to some takeover news. The 28 day FSP period is officially over, although that doesn't apply due to the dispensation. The longer this goes on, the more we're looking at stalemate.
There seems to be a tendency for shares to drift down to placing prices - and Renx appears to be heading in that direction, albeit on low volumes. Wonder how the business fared in Q3 - not due to hear on that for another couple of months - and likely other news will overshadow that either way by then. In the meantime - Armistice have reduced their short position - although even that buying has not helped current drift. SB
And I'm not talking about the Nasdaq, I'm talking American Pink sheets.
Last year this time the SP was 87p, in July it hit a high of £1.45. only 3 years ago the SP was £11.75. Then in the space of a year it drops to 10p. Unbelievable. Now I understand that AIM stocks can be very volatile but how do you go from £11.75 to 10p in under three years? Something very very fishy. MMs playing with the SP however they like and the FCA and all these other impotent organisations say and do sweet nothing. The AIM is the biggest pile of poo out of all the markets in the world. Rip off Britain is an under statement, it's an utter disgrace. You stand more chance with the American market and thats a fact.
Thanks for replay SB
Ahh OK, was hoping it was going to be the big announcement
The Extraordinary General Meeting has been arranged to approve the issue of a further 26m shares at 20p to comply with nasdaq rules which curtailed the original placing to 20% of shares in circulation - and resulted in 20m shares being issued as part of the first placing. Sinai and Harwood have already confirmed they are subscribing for additional shares - will see who else participated in due course assuming all motions are carried - which they will be. Nothing else at present. SB
I wonder what this could be 🤔
Good news even :)
Hope it's bl00dy god news, I'm sick of all my investments being burned to ash :(
Big problem with AIM these days is lack of liquidity for loads of shares....
A lot of us knew how this would go after the "offer" announcement. We all predicted the discounted placing and now it slips further with no more updates about the "offer".
The whole of AIM has become one big joke. No wonder people are investing abroad or in other assets now.
Mikodox, you could be right. We could both be right. Once the reccomendation lands there could be more than one offer. More than 2 if you look at who is interested in ckd and diabetes 2. Astra Zeneka and Thermo Fischer have drugs for ckd. Eli Lily and others have drugs for diabetes 2 weight loss. It will grow like a snowball.
Trickymatters - I've got a funny feeling the bid will be coming from Mount Sinai School Of Medicine, they already own 16% of the Share capital. Here's another reason:
https://reports.mountsinai.org/article/neph2022-_1_renalytix-goes-into-clinical-use
Easy to drive the price down with fast algo trading. Biotechs getting smashed last month again, XBI index off 10% in the last month a good indicator. Any hints of delay to interest rate cuts and biotechs are one of the first sectors to get knocked down.
Will be the next substantial catalyst. Then they're likely to confirm the bid. It could come anytime. The consultation ended mid March. The US government have contracted for this test and the insurance authorities are already signalling that they are inclined to use the test for those eligible. Should triple bag at least imho.
Wonder if the bid story was just a scam to raise the price for placing?
WTAF was that all about, loads of £32 sells...? Looks like someone is trying to send some sort of messaging unless it was an algorithm going nuts...