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I reckon the 'funding to not be bothered about' was the sale of Dx, which then didn't happen in time.
@Bella we already know AXA Farmington Biotech fund took part in the placing. This likely represents the 'European Healthcare fund'. I would love to see some of the names you mention also added especially the ones linked to EF. If they didn't take part I would want to know why. It seems AVCT has struggled to bolster the register in recent years but have the contacts on the board to change that. How much is the presence of DX potentially putting off investors?
Jive_turkey...yes I would normally agree with you regarding not paying off the bond with cash...however, I did say all or part.
The Bond was issued based on:
'The funds raised pursuant to the Fundraise will also provide Avacta the balance sheet flexibility to continue to execute an M&A led growth strategy for its Diagnostics business, invest in those acquired businesses to drive growth, and to provide working capital for the wider Avacta group.'
I addded paying off the Bond in full or part because if a fund or funds are involved they might call the shots on this and might prefer to fund Avacta themselves.
All speculation though, of course...
Timster...yes you too could be right...
We will only know on Tuesday but if something financially significant is taking place they will have to tell us.
Sigh!!!!
Interesting idea Bella. Definitely possible that the 'important announcement' that it is the sale or spinoff of Dx. However, I don't agree with the rest of the theory. They will never pay off the bond with cash. The cash is always better used to fund the pipeline. Getting new money (either through a sale or a raise), to pay off other debts is simply not something that young biotechs do. They are always cash hungry.
"So what news are they going to give us on Tuesday in addition to the Results...???"
I'm going to go out on a limb here and say nothing or perhaps cohort 2 of 2w dosing starting.
Now here's something for you all to chew over...
In Early 2022 the SP dipped and rose again in just under 4 months as follows:
31 Dec 2021 SP = 126.36
03 Mar 2022 SP = 41.39
22 April 2022 SP = 142.43
WHY....well, did someone know what was going on and wanted some cheap shares?
03 Feb 2022 RNS re AVA6000 Dose Escalation in P1 and then no further news for exactly 40 DAYS...then we get
16 Mar 2022 RNS Avacta sells the Animal Health Division...bingo!!! COINCIDENCE or WHAT???
This was a 40 day news blackout due to the sale of a company Division...not due to a fundraise or results closed period.
So what news are they going to give us on Tuesday in addition to the Results...???
Something to do with DX perhaps...a Spin Off perhaps...
A Spin-Off is when a parent company sells a specific business unit or division, i.e. a subsidiary, to effectively create a new standalone company. As part of the spin-off, the parent company's existing shareholders are given shares in the new independent company. Is that why DX is no longer really visible on the website?
Now if they Spin-Off DX then the proceeds could pay off the Bond - hence the reference to Cash payment in future (you have been told but not how much) and existing shareholders don't miss out because they get shares in the new company too hence the comment about shareholders don't need to worry about finance.
End result = Two stand alone businesses TX and DX in which existing shareholders have a holding in both and the DX Bond is paid off in part or full and TX is fully funded for next couple of years.
Question is who is involved in this and what connections do they have to the European Fund...
Is the European Fund one of these:
Medicxi, Pfizer Ventures, Gilde Healthcare, Advent Life Sciences LLP
Has one of the above invested heavily in the fundraise and they dictated the raise discounted price. At the same time they've brought someone to the table (one of their portfolio) who is keen to take on DX and facilitate a Spin-Off and the 50p SP was to facilitate such a deal/give existing shareholders shares in the new company plus pay-off the Bond.
If the European Fund is one of the above having invested heavily in the fundraise, they too would be an exiting shareholder in such a Spoin-Off of DX and would benefit from new shares/ownership too and hence the 40 day news blackout...our second not first.
Guys please stop squabbling amongst yourselves...open your eyes to what really could be going on.
All the above companies are invested in Levicepts.
Look at the Board of Levicepts....Elliott Foster is CEO and was only brought in at the back end of last year...WHY HIM???? and look who he reports to/sits next to/talks to...
Irena Melnikova, Ph.D. is a Partner at Pfizer Ventures.
Francesco is a co-founder and Partner at Medicxi.
Raj Parekh is a General Partner at Advent.
Arthur Franken is a General Partner at Gilde Healthcare
https://www.levicept.com/management-and-board