Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks for sharing this Rivaldo. Excellent news and great to see the price move out of the 30’s.
Very encouraging info posted elsewhere (by Celeritas) about the new license and distribution deal in the United States for Gelclair and VLG's partner Jaguar Health.
Jaguar Health is expanding its focus to include cancer-related supportive care, with Gelclair being a foundational element in this strategy.
Https://in.investing.com/news/jaguar-health-names-new-svp-of-growth-strategy-93CH-4133486
Jaguar's stock rocketed 44% "after the pharmaceutical company announced a new license for a chemo mouth treatment", i.e Gelclair:
Https://investorplace.com/2024/04/why-is-jaguar-health-jagx-stock-up-44-today/
And:
Https://jaguarhealth.gcs-web.com/news-releases/news-release-details/jaguar-health-appoints-biopharmaceutical-industry-veteran
Beza - the Execs (3) each have 1m shares on option, so dont expect them to buy more…but the NEDs should be…or be paid in shares….
Suspect opportunities have already been identified and are potentially already in the pipeline undergoing due diligence. I expect at least one M&A announcement in Q2/Q3.
Shows the stability and strength of this company to have RCF under 3% … that seems very good and will be a huge advantage funding expansion plans in the current climate…. Pick up some bolt on acquisitions on cheap multiples and they will pay back fairly quick
Good to see the new RCF now agreed - and also (as previewed by whythefuss!):
"New Partner in USA
The Company also announces that it has finalised an exclusive long-term license and distribution deal in the United States for Gelclair, an FDA-approved oral mucositis prescription product, with Jaguar Health (NASDAQ:JAGX). This agreement, spanning 5 years, entails license fees, royalties, and product revenue payments to the Company.
"We are really pleased to have partnered Gelclair in the USA, a market where Gelclair has been present for many years," said Jerry Randall, CEO of VLG. "This new agreement will ensure the continued supply of Gelclair to US oncology patients suffering oral mucositis, and generate meaningful additional revenues for the Company in the future."
Https://uk.advfn.com/stock-market/london/venture-life-VLG/share-news/Venture-Life-Group-PLC-RCF-in-Place-and-New-Partner-in-the-USA/93683690
Now that the dust has settled on the latest update, it would be good to see some decent sized Director buying to further demonstrate their confidence here.
Https://jaguarhealth.gcs-web.com/news-releases/news-release-details/jaguar-health-licenses-fda-approved-oral-mucositis-product-us
New partner in the US for their oncology product
Jatw - lots of different words in your response but seeing straight through that, you are saying the exact same thing I posted previously ie. you have no confidence in the growth and status of the Company in the short, medium or even long term. In response you have simply underlined that.
But you remain a Shareholder!
PS: My user name has nothing to do with football.
Https://m.youtube.com/watch?v=C0I_1xapaXo&t=7s&pp=ygUSVmVudHVyZSBsaWZlIGdyb3Vw
I have been a shareholder since 2018…..including taking up rights in the days these traded at 90p.
I was attracted by their strategy of a growth story with newly acquired brands introducing new distributors through which existing products can be sold. The brands they buy are all small, although they may be leaders within their niche.
My comments about them being a small company are factual - they are tiny and would not qualify for even the smallest indices. Small companies are out of favour hence they also experience the undervaluation referred to by the CEO as a reason why they would not issue shares as part of M&A.
Theirs is a very crowded market (just go into a Superdrug and see if you can locate one of their products without staff assistance to see what I mean). What they refer to as power brands are only within a narrow therapeutic area. If they continue going down this route of small brands they will become an increasingly complex business with more small scale sub-businesses.
I dont see a plan to change this and so they will continue to be a small business (even if they double sales, profits and market valuation they will still be tiny.
I do consider them undervalued by the market, so I continue to hold, but sometimes we need to recognise what is holding back that valuation and I think it is the lack of a core product which has significant potential to change the market perception of this company.
As an apparent Chelsea fan, you will be familiar with the problem of having paid for a more valuable asset that the market now values considerably lower. Do you sell at a loss, or hope that new coach will improve the asset. Chances are the asset limps along for a bit until their contract expires and you have to buy a new asset. The VLG squad of brands is a League 2 squad. How to get promoted to League 1?
Jatw you say “ they are operating a small company in some small market niches and I dont see anything here to change that even if they do increase sales by low teen % for a few years”
Translates to you having no confidence in the growth and status of the Company in the short, medium or even long term.
Are you actually a Shareholder here?
VLG is no stranger to M&A, been there done that, hopefully if/when it will be another good one
Overall, the CEO and CFO know the detail of their company.
I felt they were open about where they see opportunities and we willing to answer questions (which they mostly answered in full).
Good to hear they dont intend to use shares to fund any M&A due to the company being undervalued (and they have made sure they will gain through any market reassessment)
My confidence in the management team is enhanced…..but they are operating a small company in some small market niches and I dont see anything here to change that even if they do increase sales by low teen % for a few years.
Can’t deny there is risk attached to M&A. However, there can also be reward that propels a company forward, rather than treading water (and the SP doing the same or worse). From what we’ve seen since Dec 22, they seem to have got it right with HL Healthcare.
Yes, one can see that Randall is itching to get net debt down so that he can resume splashing the cash on M&A again. Makes me nervous. Buy & build is such a tricky strategy - full of pitfalls. Some managements are good at it, but not many.
Wouldn’t class Earol as a small brand Jatw, hence why they bought it and as I previously said, there was hint of further M&A activity from Jerry Randall. That would be in addition to any in-house product development / launch which they say is “ready”.
They need one blockbuster product (preferably in house created rather than purchased). At the moment they have no “power brands” or if they do they are only powerful in very small market niches.
Extending small brands with product updates and refreshes will still leave you with small brands.
Hopefully this brings in some PI’s who are unsure what to do with their £20k ISA allowance this tax year. Also in general, yesterdays positive update will have been shared across various other media sources and has had 24hrs to sink in.
"Profit growth and lower debt: a lot to like about Venture Life"
Simon Thompson's summary:
For the year ahead, house broker Cavendish expects adjusted operating profit margins to increase one percentage point to 8.5 per cent, which on 7 per cent higher revenue of £55mn could drive up operating profit 20 per cent to £4.7mn. Furthermore, estimated free cash flow of £6.1mn (2024) and £7.8mn (2025) is predicted to slash net debt from £13.7mn to £9.2mn (2024) and £1.9mn (2025). In other words, the £47mn market capitalisation company is on course to be almost debt free next year when it is forecast to deliver underlying operating profit of £6.1mn on revenue of £59.4mn.
The operational improvement in the business and balance sheet deleveraging were key bull points when I suggested buying the shares, at 30.5p (‘Investors are too cautious with this cash-generative company’, 26 September 2023). That’s still the case. Cavendish’s fair valuation of 68p a share is not unreasonable, representing a target forward price/earnings (PE) ratio of 10 for 2025. Buy.
Thanks Krull.
I’ve watched and Jerry Randall appeared convincing when talking about the strength and direction of the business. It caught my interest when they spoke briefly about M&A and I got the impression there will be some activity in 2024.
True!!
I think my comments are slightly borne out of frustration with the market.
Of my shares this, MFX and IPF have all reported great results recently and yet the shares, despite being on lowly valuations are all still trading at the same price.
This looks very lucrative
Starting from 2024, a new revenue segment called Private label will be introduced to the Group, referring to products manufactured by VLG-owned factories, which develop formulations for retailers, who will sell these products through their own retail channels. This is aimed at providing a more comprehensive understanding of our business performance by segregating these revenues from the currently reported segments. As revenue from this segment grows, the Group will consider reporting and disclosing performance separately in future periods.
Customer Brands refers to products manufactured by VLG-owned factories, which co-develop formulations with customers, who will distribute and market these products under their own brand names