George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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.
Oh dear. Can't help but agree Pacman that this is one of those jam tomorrow deals. Again no visibility shown on what it will do for YGEN's earnings in the short term. I am rapidly coming to JAdam's view that shareholder interests in the short term are meaningless to LR. That's probably good for the longer term future but not for me in the here and now. I'm off to ODX, NCYT, SNG and AVCT for big gains short term. Will be back here next month. GLA.
Premaitha Health (former name of YourGene) signed a partnership agreement of Coastal Genomics on the 11th June 2018 hence why the name maybe familiar to some LTHs. The partnerships was to develop advanced technologies for clinical DNA sequencing tests ~ basically to optimise DNA sampling.
We will probably hear that the Placing was oversubscribed though the IR approach has been baffling for many months. My understanding is that the commitments to Coastal Genomics are £11m but the placing will raise £13m. So a headroom of a further £2m for further acquisitions.
With Coastal Genomics having sales targets of US$4.0m for the 2022FY and US$8.5m in FY23, this surely now would have to be added to Yourgene Health targets and a revised broker rating must be forthcoming shortly and cannot await till the Quarterly update. Obviously this is difficult to track down for a YGEN investor but I seem to recall Sales targets was circa £28m for FY22 and discounted for any IONA Nx, Clarigene COVID-19 test and any DPYD sales.
The mention in the RNS of NIPT I think is a reference that NIPT is available to all pregnant individuals in Ontario, and is covered by Ontario Health Insurance Plan (OHIP) etc. Hence the RNS suggesting this will drive NIPT sales growth.
This is outstanding news for shareholders. I sold out my last lot at 19.5 as I had concerns over US and NIPT financing and just thought the Co had lost its way. This move makes complete sense. I actually don’t see this as one of those placings where you can sit and get in below the placing.
I will defo be looking to buy again once it’s settles. Well done to those long. Atb.
Trek
any surplus cash is for more acquisitions?
We are raising circa $17 million dollars. What we doing with the other $14 million. Are we expecting a massive expansion to cope with covid test demand.
The revenues is £0.6m and net assets of £0.8m but the initial acquisition amount is staged as below:
cash consideration on Completion of US$3.0m;
consideration of US$2.5m payable by the issuance on Completion of Initial Consideration Shares at a price of 18.3 pence per share (as described below);
two further elements of consideration of US$1.0m each for early strategic customer wins, payable in ExchangeCo Shares and Ordinary Shares at a price of up to 18.3 pence per share, and subject to lock-up periods of 12 months;
contingent cash consideration of US$2.0m should Coastal Genomics generate revenues of at least US$4.0m for the year ended 31 March (“FY”) 2022; and
contingent cash consideration of US$4.0m should Coastal Genomics generate revenues of at least US$8.5m in FY23.
Looks like cash consideration of US$3.0m?
They have obviously been working on this deal for a long time. It doesn't just happen out of the blue.
It therefore would appear that the SP has been surpressed.
Why, I don't know. It goes against normal thinking of bumping up SP prior to a placing.
Can anyone think of any reason why they would want to do the opposite..
Having another read P3T3R, it looks all about the technology. And it's staggered payments at various milestones.
Guess that's the price for a quick foothold in the americas.
He is the master of M & A after all.
"Unaudited revenues (under Canadian ASPE standards) of US$0.6m"
OMG ... That's a monstrous multiple of revenue we have paid ... Have to trust he knows what he is doing .
Just for interest we are paying 22 x revenues for this company. If that was us we would be valued at 368 million. I'd bite your hand of for a buyout offer like that.
It doesn't explain why the Company would not pump it's own shares in order to increase the Placing price and reduce the amount of share dilution to existing shareholders.
It's all about North America. That's where the money is. Quickest way in. Acquisition.
Let's see how the market reacts. Certainly good in the medium to long term.
Alot
That explains slot.
Oooo a late RNS, out of the blue