London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Just tried topping up but can’t. No shares available. Why’s that? Someone’s loading up ?
Pokerchips,
".but the loan terms cant exactly be good or they would have accepted them already ???"
The loan terms won't be good because the lender knows the TRX funding timescale.
Goodness knows they drew attention to it often enough.
That said, I don't think that MidCap has refused to provide access to tranche 2,
as TRX may not have requested access under the terms of the renegotiated loan last November,
and I'm sure TRX knows MidCaps view on access to tranche 2 without formally requesting drawdown.
The recent Covid-19 event has ruined some companies finances, but not so TRX (so far).
For bankers, TRX represents a sound investment in terms of finances not too far from break even, and operations not currently locked down.
We'll soon see which way the cards fall for G&J, but as you say, investment from a larger company who see's TRX as complementary may happen.
"someone somewhere is without doubt wanting to get on board" - Arthrex possibly more than ARMS, but even that is a guess.
Such a shame to see a great company so low in value,let's hope they can turn this around.
B2HS2L
I do believe they will find finance...it is all a case of whether it is as acceptable as they would like it ....and unfortunately tiddlers in this position are to some extent beggers who cant to be too much of a chooser...
Loans would be prefencial because the assets dont go to new shareholders , who would then have a stake in them , despite not originally helping to build them up....but the loan terms cant exactly be good or they would have accepted them already ???
I hope they do pull of what is it they wanted, but I feel they may have to take new investors putting in new equity
I dont know...i am guessing like everyone...but..someone somewhere is without doubt wanting to get on board .....in some shape or form
Pokerchips
Good post.
"any talk of asset sales would have happened well before now, as would any talk of putting the company up for sale. Those things dont wait until this late stage in what looks like counting the pennies in order to keep the lights on."
My thoughts on this is that if 100% of Gareth Jones time were devoted to finding a new loan in the last few months, he would be distraught that there was no fallback position if he failed.
So there may be agreements on asset sales ready to sign on the dotted line if/when time runs out on finding new finances, he would just be covering all eventualities.
Ditto for a buyout, but my money is on Gareth and Jonathan successfully finding a loan in time.
Morning chester,
Your and my sentiments here look to run in parallel, and we all get the occasional negative thought especially after being 'burnt' big time as I was in 2009. However, I do agree with you that there will be some sort of reconciliation here. The company have come so far, have applied for and been granted with the authorisations for their products etc. The demand for these products outstrips supply at the moment, but hopefully soon the B.O.D. will give us a positive solution.
I personally do think the B.O.D. have behaved disgracefully though toward us small pi's and they have been working to an "agenda" here for many months. Fingers crossed for us all who have stayed for the "longer journey".
Hi KT
I ran my own company for 20 years and have understood all the twists and turns TRX have been through. I researched the company and really like where they were as they went from £0 to £1m income. At this time Antony Odell was the MD.
When the fund raiser came along and they raised £40m I was more than positive that the company would push on towards breakeven and then yearly profits. I think if Woodford had still been a force he would have backed TRX with more capital and eventually they would have grown into a very valuable player or been taken over at multiple. That I think was how Woodford saw it playing out.
So now due to CV19 circumstances I feel the options to any company in this situation are becoming restrictive and i would have liked the funding to have been dealt with by now.
So I'm being a realist, I don't think its funding or bust, I think there are many alternatives and I'm preparing myself for whatever the details are.
I'm still very positive on TRX and their original product line. If we shrink back to that in a sustainable way I'm ok to still hold on.
Chester.
Chester. That's the first time I've heard a slightly negative post from you. Keep the faith I'm sure the funding will be sorted. This company has a bright future in these dark times.
I think, but dont know, that now is probably the right time for someone(s) who is(are) already known in the industry sector to invest by taking a stake in the business and purchasing new equity in the business...probably from the US.
The company will now then move from a previously growth termed company to a "show us what you can do with what you now have got" company, and as such its SP will be less speculative and more based on what it achieves, given the investment it now receives..(if it indeed does)
The fund raise equity rise will be accompanied by a specfic 2-3 year plan of action and clear road path of targets and aims
Whether any one on the BOD stays or is replaced will depend on the new key investor(s) and who they might want to bring on board.
The current BOD have tried their best but have run out of runway and are going to no doubt accept they cant go it alone any longer, without new investors taking a stake and probably being part of the BOD
I dont see that involving sale of assets at this stage , but ..it may well involve more focus on US operations and as such have more BOD/NED experience from that area.
I personally would have thought that any talk of asset sales would have happened well before now , as would any talk of putting the company up for sale. Those things dont wait until this late stage in what looks like counting the pennies in order to keep the lights on.
I am optimistic that it is mere fine detail that is being finalised at this stage, and that something will happen on the Tuesday after the Easter weekend...haha yeah..real guesswork on that date suggestion
All pure speculation mind you, on my part.....
With four weeks left I'm inclined to accept any avenue that leads to Tissue Regenix staying in business. I was invested before they bought CellRight and the business was suffering growing pains but the deficits weren't to great.
The board with the backing of Woodford decided to go for the big time by buying CellRight, having a base in the US and getting to breakeven in 2020. Well the numbers just didn't stack up because they needed more cash to build the infrastructure to accelerate the output. So it would be a pity if the CellRight part had to be sold but so be it if it keeps the core going.
How I long, nay yearn, for an RNS saying "Funding Resolved"
Chester.
In the interests of generating discussion, is there any appetite from investors for the following
possibilities to generate funds for company development (in leiu of a loan or placing):
1 The sale of the Cellright part of the business, (the part where the market for bone products
is stronger than the skin tissue cell part).
The IP for this part of the business is not covered by patents, but by 'know how'.
TRX has added value to the $30 million purchase of Cellright by agreeing a distribution
agreement with Arthrex, who are taking all the bone products the company can provide.
2* The sale of the tissue cell part of the business, (for which TRX has had to re-instate
a former agreement with CTS in order to source sufficient tissue to service demand)
These products are covered by patents.
Although product demand is strong, it is not as strong as Cellright product demand.
3 Sale of interest in German tissue bank will not generate sufficient funds to make a difference,
and a profitable and good potential opportunity will be terminated.
4 Licensing of TRX patents to interested parties, in return for up front and residual payments
with which to augment the TRX bottom line, thus keeping the wolf from the door.
5 Share your choice on the bb.
A JV or a buyout has been previously discussed, and has not been discussed here.
*In the above, it is assumed that CTS have not reduced the amount of tissue provided to TRX
after the start of the Covid-19 restrictions in USA.