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Most of them relate to CVI who are selling convertible bond issue shares at a higher price than they purchased in the rights issue. 156m shares now in circulation......never ending dilution. SB
Already raised at that price. 2 for 1 in the US. Different class of shares. But the same value taking the exchange rate into account. It's not a new document.
Just the 9 RNS’s so far today then!
Everyday so many RNS's....when are we going to get an RNS that will actually add value to the share?
I would love to see an update regarding which way they are going on what is the plan. Bio tech companies are not always the best on finance side as they never care about it. They usually closed in labs and only thinking about research.
Update with next steps would be grate.
There is at the bottom a price equiv. to .66 which could be very good news ....
A document named as a prospectus was lodged with NAsdaq on five days ago just prior to the weekend (17th April). Placement 'AD' shares are under ticker RTNXF it comes up in conjuction with our usual ticker.
It is quite a document to wade through I have been reading it for three hours. I have no idea why it was not registered here only in so far as within that document there are several statements which provide that basically only US corporate law namely Delaware law will be adhered to?
Could some others wade through the same document and share their thoughts please as a very heavy read indeed and I am not sure what to make of it at all.
It’s coming soon… pounds not pence! IMHO DYOR
Mikodx - 100% agree that Renx has huge potential. That said - as we are all aware - the company has an FDA approved product (the regulatory bit); a US government approved cost model (the reimbursement bit); and goodness knows how many insurance/healthcare partners signed up who can access the test (the insurance bit). Despite this - there is little evidence that the clinical market is ready to purchase the tests, despite all the validation evidence available. Perhaps the medicare local coverage determination is the final piece in the jigsaw. In its defence the company has achieved a lot in a short time period; however its commercial and financial approach has appeared at odds with its positive healthcare journey. I do not assume a takeover at a decent price is a foregone conclusion; but given the potential there are pharmas/diagnostics who could view this as a bargain - even at multiples of its current valuation. On the subject of dilution - you are correct to note the company currently has c.124m shares in circulation. My estimate was based on the addition of the 26m second close funding placing shares which will be approved at the GM next week - gets you to 150m. Interesting to see if GB Capital take up their option at 30p by close of play tomorrow - if so that adds a further 8m. The convertible bond holder will continue to be paid in shares - currently 3.6m per quarter based on current share price. There are also a significant number of options available to directors, management and employees - exercisable at various values which will effect whether they are taken up - a further 37m in total. Lets hope we get some clarity soon on what's going on. SB
Silverblade - I agree the dilution is bad, but it's gone from 95M - 120M not 150M. Still not too bad, and the latest dilution should be the last. The company now has enough money to keep the lights on and see out the Takeover bid.
I've only invested in RENX because it has the KidneyIntelX platform which is FDA approved and being used and fully funded by Medicare. It's also being used by major United States Insurance companies and multiple state Blue Cross Blue Shield organizations. RENX has huge potential and could be about to be taken over by a big pharmaceutical company. That's the only reason I'm here, If it was because of it finances, I would have stayed well clear of this company, it burns through far too much cash. This Takeover has possibly come at just the right time.
Trickymatters - Too right, we really should be around the 35p mark, just a couple of pennies short. But it's to be expected as the UK are currently in the middle of a recession. Used to be able to get almost two dollars to the pound, now the dollar has almost the same value as the pound.
1x ADS is equivalent to 2x UK shares.
Even taking the exchange rate and the 2 for 1 situation we are rarely evens with the US. If and when it gets bought out the price will even up. Shows what a nonsense Aim is.
Each ADS is equivalent to 2 UK shares
Sorry to sound dumb but I thought if a company trades on US and UK exchange that the share price should be the same on both? Why is there a difference?
Might catch up with NY this afternoon, but at present there is a near 20% difference (if there is the ability to trade)
Hopefully open strong today and good volume, here's hoping :)
Moving nicely over in US
I do agree. I only invest in RENX because they are listed on Nasdaq. US got a privat healthcare and I think they more respect and value medical/biotech companies. If they won't be listed in US, I would expect the share price to be around 1p now.
Its a strange position in the UK where the FTSE is continually testing the 8000 level and yet the majority of PI's seem to be having a difficult time. The constant flow of funds out of UK equities does not help - and there does not appear to be a safe haven unless you opt into managed funds, bond, gilts etc which do not really suit typical PI's. I have holdings in various 'profitable' companies and they are also way below in value terms; although they are debt free and not in need to development capital which is possibly the point the pharma boss is making. Another 3.6m shares yesterday to the account of our convertible bond holder - this constant dilution is not good - 95m shares to 150m in less than 6 months. SB
This might be behind a paywall but the article is about another small pharma quitting AIM, calling the whole UK Market broken with funds wanting to invest only in profitable companies.
Https://www.telegraph.co.uk/business/2024/04/10/london-markets-broken-closed-pharma-boss/
Looks like this is sticking around the 30 mark until we get some Takeover news. I’ll take that.
This company has been doing the hard regulatory and clinical yards and is tantalisingly close to embedding its tests and IP into diabetic and CKD treatment plans in the US which is a huge market. The unknowable is whether they can access the market effectively and overcome the hurdles of suddenly needing operational scale. I think they will need a significant capital injection and operational partnerships. The sale process is one way of crystallising these.
The outcome I hope for is a JV with a distribution partner providing a cash boost to RENX today and a stake in the future profits of that JV.
There are no easy answers here - that's the reality of being a private investor on AIM. I don't think its as simple as to whether DB are smart or dumb - its what is going on behind the scenes that led to this transaction which appears murky. Why are they being allowed to pick up 10% of the company for $4m when as it stands Renx does not need the funding - that's a larger holding than Harwood/Mills - and their 10% holding cost a lot more than $4m. The company has made it clear the formal sale process may or may not result in an acceptable offer - and if not the company will continue in its present form. In the event the company ran out of money with no more funding available then it could go private via a low ball offer from existing majority shareholders or even a pre pack administration. I don't think that will be the case given the recent take up of new shares from the equity placing. The company is essentially owned by 10 major shareholders and its management - who have shown that when funding is required they commit, albeit the recent 'strategic' interest no doubt helped matters. PI's probably account for less than 20% of the shares in circulation so we are all essentially bystanders. The growing II interest is what provides comfort that we won't end up being shafted as they would end up in a similar position - DB Capital included.
One final point - the securities purchase agreement RNS relating to DB Capital includes reference to the funding being used for 'commercial sales' and to 'provide enhanced optionality' during the sales process just to throw some further intrigue into the debate.....SB
They have to follow the takeover code. It's the law.