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Definitely a over reacting
MMS helped by holding back putting sells through
Caused panic
Then later through the morning filtered through then delayed buys
Nothing has changed here it a growing company thats products are in high demand!!!
JHolder, the classic market over reaction to sell down TRX on a RNS which pretty much tells us what we already know. Expect a bounce north later today and through tomorrow I reckon.
Been away from desk for a few hours
Some big trades going through
Looks like a few good hours ahead Of buying opportunity
JHolder, I would say it's already starting to recover. Buys now 4 million ahead of sells for today. Upswing on its way IMHO.
Yes you are right. Fundamentals are still all there. I average about 1.1p so think I will keep my powder dry for now.
Good posts from B2 and Parkez, I seem to remember an article (maybe an RNS) that the company was very focused on partnerships and licensing etc as this takes the pain and hard slog of growing what is a very sensitive business in a highly controlled industry. RE theonlywayis... Not really surprised at the fallback it was getting bit of a spurt on, perhaps we were hoping was a mega goods news RNS and fear of loosing out grabbed what profits we could. I to am all of a dither! but I think that overall I consider this a buying opportunity after all what has fundamentally changed?
I’m surprised it’s fallen so far back, will expect it to recover in the next few days
I am slightly surprised by the extent of the fall back. Dithering whether to top up.
Barnet well done on taking profit on Aim, but as regards the funding news, it was never new News was it and that fact they had only enough to March and now they have enough to April, so cash burn is decreasing daily with the high demand of there products. To those who have invested there was only positive news in that RNS, company continues to grow and looking into adding a 3rd shift, I would imagine they have had many offers for finance for company, will just be a case of which they think will be the best going forward and I would not expect any financial deals to take place until we have the Tr-1 to say link are out and then there will be no holding back this company
From todays RNS
"As discussed above a number of changes in the headcount were implemented during the year to increase processing throughput and reduce staff costs elsewhere in the business". - To me this means that they have hired staff to develop a second shift, thereby increase processing throughput, and made redundant staff who were not working on production.
Since the signing of the Arthrex distribution agreement, Arthrex must be taking all the Cellright part of the business can process.
If there were any staff involved in sales and marketing for Cellright, it is questionable what they would now be doing.
The Dermapure side has sales teams working independent of ARMS medical, so I don't think they are affected.
My guess is that some of these staff are the ones who said they would not or could not redeploy into other roles, and its taken this long for process to identify that redundancy is the only option for these staff members.
If a loan is drawn down, the company becomes less of a target for a predator.
If a placing is put in place, the sp drops through dilution and loss of positive sentiment, but any predator remains interested.
TRX has to wait for the sp to re-establish after Link are out before any fundamental discussions about loans, placings etc can be properly evaluated. A case of seeing the wood for the tree's.
B2HS2L,
The more i think about the licencing the more sense it makes. Glad i am not the only one with this running through my head. TRX have the right product and a very huge market...big enough for a few more producers. The surgeons/clinicians will need a guaranteed supply before adopting. Certainly makes some sense to me, licencing taks mentioned both verbally and in RNS so not totally living in dreamland. Just hope they can get the agreements signed ...ie before end April!!
Sold myself now after this funding news. A good profit having bought at 1p. The money will only last a couple of months and I will watch from the sidelines until resolved. Good luck holders
Every time i read the RNS the more i feel its been composed to produce a negative reaction from the market...Redundancies? why not just say cost cutting?
Wonder why...Management buyout? ...Hope not.
Parkez, totally agree with your 11:24, any placing would have preceeded this RNS.
Also agree they are waiting for something.
Last saturday I placed on this board a 2 part post titled 'Low Hanging Fruit', in which I thought that licensing of the Dermapure patents was the way forward:
1 to generate Upfront and Recurring licensing fee's.
2 to use licensing of Dermapure to ensure that the present industry standard of synthetic mesh treatment of Pelvic Prolapse, is replaced by the use of Dermapure.
It seems they have bought themselves another month with which to achieve their multiple aims, one of which may be licensing Dermapure.
Lets hope we are right, else its drawdown the MidCap facility and pay Libor +6.5%.
There has to be a better offer somewhere, and it obviously isn't via 2Swell and their jv with Amesto Global, or that would have been agreed by now.
TRX have signed the lease on the new facility and no news on how the development of that is going.
Leasing cost therefore is dead money.
"During 2019 we leased a new building adjacent to our existing San Antonio facility which, subject to financing, will enable the building of new clean rooms in order to satisfy anticipated demand from our current customer base and potential future partners."
Production expansion is reliant on funding...FUNDING is paramount and yet these delays?
A placing is simple and quick to organise, could do a bookbuild and have it sorted relatively quickly....but no, imo no placing, and they are waiting for something.
imo this will be knocking 1.0 again soon so much uncertainty
Take the funding requirements out of todays RNS and its a fairly positive reading.
Common sense tells you if a placing was on the agenda it would have come BEFORE this RNS.
Naes. My sentiments exactly however we could still see private bank funding. I believe we are sat pretty either way.
It’s never going to come at a premium. My money is on circa £5 mln @ around the 1.2p lvl, something in region of 400-500 mln shares or so...
You always see a discounted placing following a spike, like we’ve seen here
L.
I would expect if it comes by way of placing, it will be at a premium 2p+ minimum, as once with continuous demand, once link is gone and funding issues resolved, I’d expect a minimum of 5p+ a share and 200m @2p +warrants @4p, would create more than enough working capital, with plenty of funds for further expansion
ok heres a wild thought,
Could this be the source of our funding?
"In September 2019 we also launched a non-oriented version of the DermaPure product specifically for the urogynaecology market. Initial feedback from surgeons has been very encouraging. It is important to note that until recently this market was served by synthetic mesh which has now been largely withdrawn from the market, and where the Company expects to realise significant commercial opportunities."
SIGNIFICANT commercial opportunities?
We know their are a vast number of operations carried out yearly utilising the synthetic mesh...a new alternative is Dermapure,tried and tested with excellent results. Meeting demand is maybe the problem for Dermapure to become the new solution.
We know from the Sept 2019 interview that TRX have been approached by 2 companies under NDAs to use their products, i thought originally this would be away from the USA. but maybe not, could we have 2 USA pharmas about to licence and produce Dermapure under their own brand paying royalties, upfront licence fees being the new funding?
Just a thought.
Nothing new with respect to funding, except they e given themselves a longer cash runway.
Meantime revenue up...
As said earlier, think they’re likely to look at a placing if poss around £5 mln, possibly at a price around 1.2p, somewhere in region of 4-500 mln shares at a guess...
All speculation though....
L
Tissue Regenix Future In Doubt As It Pursues Funding Options
Wed, 22nd Jan 2020 09:27
(Alliance News) - Tissue Regenix Group PLC said Wednesday annual earnings will be in line with expectations, though the medical devices maker warned sufficient funding beyond April this year is not guaranteed.
Shares in the company were 19% lower at 1.41 pence each in London on Wednesday morning.
The Leeds-based firm said its cash position of GBP2.4 million, which includes a GBP1 million revolving credit facility from lenders Midcap Financial Trust, is enough to support working capital needs until April.
Thereafter however Tissue Regenix said it would need extra funding.
The firm explained: "The company continues to experience significant constraints on its working capital however the board believes the available cash runway will continue to support the working capital requirement of the company until the end of April. As a result of this, as previously announced, the board is seeking to secure alternative funding in the near future which may or may not be forthcoming."
During the fourth quarter of the year to December 31, the company laid off 18 employees as part of a restructuring.
Tissue added: "These changes along with other cash management initiatives have allowed the cash runway of the business to be extended."
For 2019, the company expects revenue to grow 12% to GBP13 million from GBP11.6 million the year before, in line with expectations.
Earnings before interest, taxes, depreciation and amortisation are also expected to be in line with expectations.
By Eric Cunha; ericcunha@alliancenews.com
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