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Thanks D-Geeman. That makes sense. It's not a dividend at all. If it were it would result in the conversion of capital to income which would destroy the capital by whatever income tax rate is levied.
Piper, '"dividend" in the spin off ' would arrive in your account as 'free' shares in you account in the spun off company.
Theoretically your AVCT shares would drop in value by an equivalent amount.
That's been my experience anyway, when Tiziana left AIM for the Nasdaq, via a brief stint on the London main market. With TILS / $TLSA the spun off ACUT shares were not traded on an HMRC recognised market so the spun-off shares left my ISA for my Fund and Share account.
Hope that saved you some time..
Sheppy, go easy on Watching2. I have since Watching admitted to an 'average of 66'.
Wiki on IQ levels;
Current Wechsler (WAIS–IV, WPPSI–IV) IQ classification
IQ Range ("deviation IQ") IQ Classification[41][42]
130 and above Very Superior
120–129 Superior
110–119 High Average
90–109 Average
80–89 Low Average
70–79 Borderline
69 and below Extremely Low
Rambo23...it could happen but that's the risk Avacta take if they choose to demerge DX. However, for every seller there's a buyer.
I certainly wouldn't have a problem with it.
@Bella, RE DX a problem arises if existing shareholders are given shares in a new entity it's likely the first thing that happens is a huge dumping of those shares to buy TX shares. I'm yet to find many people who actually want to hold DX. ROI for every £ in TX is a no brainer vs DX so they should realise the cash before any other non dilutive options are considered. Agreed they perhaps have more time now the placing has topped up the bank account but my concern is if the presence of DX is a show stopper for some II investment it should be sold asap.
Oh pipper447 may I suggest you now do some research on the subject...
Sorry shorty
By the way my name is Sheppy not Shorty Watching
Bella. Would the "dividend" in the spin off scenario be treated as income by HMRC?
If they do spin-out DX at some point...it can be listed as a separate company under a new name and existing shareholders could be shareholders in both companies. This then allows DX to carry on with it's M&A policy if they so wish and for both companies to realise their own potential and should TX be taken over or if worst happens and the trials fail then at least existing shareholders will be left with their DX holding.
I'm not saying it will happen but it could and would certainly explain the fundraise, website and AS comments re finance and shareholder value etc etc...
Yeah Bella sounds good to me, as I said we are fully funded and more efficacy results will arrive before we need to concern ourselves with various options regarding more funding imo. Whether funding comes from DX options or licensing deal options or even Nasdaq options, the longer the positive data keeps emerging the stronger the position Avacta are in. We hired a very competent commercial expert in Dec, I have faith he will exceed expectations and deliver for the longterm.
Let’s see I don’t think the share price will go up more than a couple of pence if at all but truly hope I’m wrong. Think more likely to fall but again hope I’m wrong
Sheppy they will queuing up after tomorrow
Sleep well shorty
I also mentioned (again to see who was listerning) they could pay off the Bond...but this would not apply with a Spin-off and wasn't picked up by anyone so I take it many don't understand a Spin-off.
Icecool...I was very specific in my post...and said Spin-off not Sell-off...
'A spin-off, split-off, and carve-out are three different methods of divestment with the same objective: to increase shareholder value.
A spin-off distributes shares of the new subsidiary to existing shareholders.
A split-off offers shares in the new subsidiary to shareholders but they have to choose between the subsidiary and the parent company.
A carve-out is when a parent company sells shares in the new subsidiary through an initial public offering (IPO).
Most spin-offs tend to perform better than the overall market and, in some cases, better than their parent companies.
Spin-Off
In a spin-off, the parent company distributes shares of the subsidiary that is being spun-off to its existing shareholders on a pro rata basis, in the form of a special dividend. The parent company typically receives no cash consideration for the spin-off. Existing shareholders benefit by now holding shares of two separate companies after the spin-off instead of one. The spin-off is a distinct entity from the parent company and has its own management. The parent company may spin off 100% of the shares in its subsidiary, or it may spin off 80% to its shareholders and hold a minority interest of less than 20% in the subsidiary.'
Bridgedogg1...you might find this of interest:
'The Nasdaq Capital Market (Nasdaq-CM) is one of three listing tiers on the Nasdaq exchange, specifically for companies that need to raise capital.
Companies listed here may be small companies with a need to grow capital or shell corporations designed to raise capital in public markets for the purpose of acquiring other business entities.
Companies that don't qualify for the Nasdaq National Market trade on Nasdaq-CM.
Nasdaq Capital Market companies are required to meet a net income standard of at least $750,000, a minimum public float of 1,000,000 shares, at least 300 shareholders, and a share bid price of at least $4 (with certain exceptions).'
Bridgedogg1...you might find this of interest:
'The Nasdaq Capital Market (Nasdaq-CM) is one of three listing tiers on the Nasdaq exchange, specifically for companies that need to raise capital.
Companies listed here may be small companies with a need to grow capital or shell corporations designed to raise capital in public markets for the purpose of acquiring other business entities.
Companies that don't qualify for the Nasdaq National Market trade on Nasdaq-CM.
Nasdaq Capital Market companies are required to meet a net income standard of at least $750,000, a minimum public float of 1,000,000 shares, at least 300 shareholders, and a share bid price of at least $4 (with certain exceptions).'
It seems sensible to me to assume the results have been held back to coincide with the expiry of the 40 day blackout period. Despite the positive science the financials/fund raise have been driving this down from over £1 in the last year. Some clarity on this will surely have a very positive impact on the share price. And as I've said before, mention of a US listing would be nice.
Bridge, given your name this has worked out quite well,
I have this bridge for sale and the toll revenue comes to £10m per year. Will you give me £100m for it please?
(Oh by the way the upkeep of the bridge costs me £12m, so I am losing £2m per year. Anyway, shall I email over my bank details?)
Diagnostics "rNPV/ share (p) 14.3 pence "
Annual results will be as at "audited preliminary results for year ended 31st December 2023" Maybe also get some forward diagnostic guidance .
-------------------------
--Trinity Note :
https://rtfilesprod.blob.core.windows.net/originalnotes/Avacta%20Update%20231214.pdf?sv=2019-07-07&sr=b&sig=fqVH2eWKz0ubrJ0qDPvIzChxsyeEzo4k%2FdOJG7q9HoM%3D&se=2024-04-29T12%3A26%3A58Z&sp=r
"Incorporation of the Coris acquisition (June 2023 Lighthouse) has led to an uptick in our Diagnostics DCF (over and above rolling forwards in time) largely owing to the higher revenues from the combined businesses, plus from future operational synergies. Recall Coris’ FY22 revenues were £4.6m (unaudited), with a c 50% gross margin, an EBITDA of £0.35m, and a £0.02m net loss. Hence, together with Launch Diagnostics (fully consolidated FY23e revenues of £17m), we expect combined fully consolidated FY24e Diagnostics revenues of c £23-24m; more details on our Coris forecasts follow in the next section of this note. "
So 10x revenue is 65p per share then? Just for Diagnostics.
The FY 2023 adjusted revenue for the Diagnostics Division is approximately £22 million and the revenue forecast for FY 2024 is approximately £24 million. The Diagnostics Division is expected to be EBITDA positive in 2H 2024 and cash generative in 2025.
In the placing RNS….. 😉
Deals will be likely, once phase 2 efficacy is published as it’s stated in the investment note we need partners for phase 3, however I do expect other third party deals to arrive not for AVA6000 as the data emerges over the next 2 years. That’s imo though.
Less than 20p a share.
At 20p it would be valued at £75m.
If it was valued at that price it would have been sold and the debt cleared and more money left over in the bank.
Still, we are in a market where small Bio-Pharmas have been under the cosh but I am sure you are right with AVCT's steady hand on the tiller they will have doubled the value of the 2 companies even though they are not making money yet after nearly 18 moths of ownership
“the DX business will be cash generating in 2025” - when was this confirmed?
“when more data emerges anyways” - how much, and when?