Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. 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.
Very good read sorcerer thanks
Superbly thought out.
It's not clear whether the investor roadshow's indicates an interest in bringing in new capital, or simply to bolster interest in the share and add to the weight of Institutional Investors on the register. However, if we assume for a moment that they might be thinking of raising some more capital, then it would make no sense to me for Avacta to be doing so if they knew the results from AVA6000 were any cause for concern. As a minimum, they will have to be open and transparent about what they know ahead of any further fundraise, so if they know the results to be concerning, I think they would have to declare that either ahead of or during the roadshows (and certainly before any further fundraise). That would be self-defeating as the SP would be trashed and they'd never get the funding away because of doubts over the platform.
Furthermore, I can't see any way that they would have made the decision they did on the LFTs if they knew the AVA6000 results were shortly going to knock them back further - you simply wouldn't take two such massive hits to the SP in such close proximity to each other if you then intended to tap up the market for capital. You'd either muddle through with the LFT (like everyone else) or you'd defer the roadshows until after you'd fixed the problems and raise money off the top of the SP spike when that was announced.
So, to me, it's much more plausible that they have high confidence in the AVA6000 results and decided they could take the short-term hit from the LFT to protect the integrity of company ahead of finalising the data and releasing it to the market, at which point they then have a very real opportunity to talk to investors about - they would then be saying something like "We're now very confident we have a platform that works and we want to accelerate the pipeline from 2 trials to 5/6/7/8 all running in parallel, so we can shape the future of medicine - is anyone interested?"
Go to Tesco, ask first person if they have heard of Avacta.
That random person who said no, could be at that presentation.
Can’t know everything about every company at all times, markets too big.
I am a relative newbie and so have no idea how likely a scenario of a cheap takeover of Avacta is. If any seasoned investors are feeling generous with their knowledge then I woudl be grateful to know ... Are there really enough shares in so few (unenlightened) hands to achieve this? Would Avacta actually be defenseless? Would there be enough potential buyers to at least drive up the final offer? Cheers
Thanks for the replies!! Very helpful
Good question, the company has enough money to fund through to 2023 with its current trajectory. You can either think that the investor push is negative, trails aren’t going well, no LFT revenue or opportunity in the long term so Avacta is needing to raise as much money as possible with the current SP to fund itself beyond 2023. Reasons why I don’t believe this is happening at all is because, they have recently chosen the next PROdrug and received IND approval for AV6000 which means that they they are confident in with the current Precision data. Why raise money at the current SP with sentiment so low where as they could raise more money having realised the trail data? Also, if AV6000 data is negative and they try to raise money afterwards then the Company’s rep will be destroyed and will never be able to achieve any funding. AS is an honest bloke (yes - slightly optimistic and currently lack of communication) but he has been as honest as possible. Secondly, Avacta aim is to get the LFT back on the market ASAP which will bring in revenue hopefully for a long time. Which therefore makes me think (aligned with many LTHs) that Avacta is worried that when they release AV6000 data which is positive, large bio-tech firms will low ball the company and due to low confidence, sentiment, lack of understanding the true worth of Avacta’s IP and products (many PIs) and small institutional holdings, Avacta is in no position to defend itself. Hence why they want a broader and stronger investor portfolio. All my thoughts
if AS and crew have sight of positive data for AVA6000, why do we need a push for new investors? If AS and crew have sight of it then they need to let other people know, that's partly what this is doing. Will new investors be actually giving Avacta money, not necessarily, they could be institutional investors who would buy on the open market hence pushing the share price up. This would have the beneficial effect of making a cheap take over harder, and allow additional investment later (should it be needed) with less dilution.
But to reiterate the really simple answer, they can't beat down Avacta's doors if they don't have the information, we Private investors investing with our own money probably have a much much lower risk risk tolerance than an institutional investor wanting to invest Millions at a time. Hence we will make do with rumours, expectations, trawling through papers to get a hint, whereas they will be told the details, probably at quite a technical level for them to make up their mind based on that.
Can I ask what I’m sure is a stupid question. There has been talk of the new consultants coming on board and new investor seminars etc to push for new money coming into the business.However, if AS and crew have sight of positive data for AVA6000, why do we need a push for new investors, wouldn’t we expect them to be beating down our doors if that’s the case? Which believe me for many reasons I really really hope it is! Not being negative just trying to put my mind at rest (a little) Thanks LTH