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Wonder if we’ll see any TR-1 major holding updates?
Huge buys going through at the moment. Presumably to make sure the vote goes through.
Yes, much more economical (for C4X) to do this & allow Polar, II’s etc to buy up PI shares at 7p than do a (fairer) premium tender offer at 12-15p.. then in a few months any remaining PI’s will one morning receive an email saying 750m new shares have been issued at 5p to a new VC and cornerstone investors (polar etc)… no chance to participate.. now 1bn shares free float and you have been diluted 4x
I’ve got to admit it’s a risk holding unlisted shares and the questions, (Why now? Will PIs be shafted via dilution?) are hard to ignore. Just can’t help feeling they’ve done it now because there is an exit around the corner and they are hoping PIs panic and dump the shares before they go unlisted so that others in the know can mop them up on the cheap, hence why I was considering buying. Very cynical thinking. If they drop to 5p or less I might have a punt but otherwise will probably leave this one alone.
No no - i’m firmly in the “shoulda woulda coulda camp” but tends to happen when a stock gaps down 50% .. fortunately I only had £10k in but still frustrating.. they have £20m cash so unsure why they chose now to dump the SP.. especially without a tender offer..
You seem very informed. I take it you’re no longer a shareholder as you wouldn’t want to be exposed to that.
Nope.. they'll just accept £25m from a new VC for half the business.. they may let existing II's participate on similar terms but PI's will not have an opportunity to participate..
Surely new IIs would replace existing IIs and if this amounted to a change in control of the company the minority shareholders could get same price on a non- discounted basis under drag & tag provisions assuming new articles provide for this. Let’s face it, until now it’s been ages since anyone got in at 8p a share and the existing II shareholders would want out at a better price than that, more reflective of the true value, which 8p a share isn’t, hence one of the stated reasons for delisting
Perhaps, but the more likely scenario is the current minority shareholders will be diluted 20x by the new private investors.
LOL, it’s not the board that’s the problem, it’s the AIM market. I was a shareholder until January 2024 when I took profit on the AZ milestone news. If I get a chance I will be back in before it delists. The company is significantly undervalued on AIM IMO and will do better as a private company. You’ll not be able to trade the shares (other than under the Matched Bargain Facility) for 12 months, but with patience the true crystallisation value will be on a future exit and IMO this will be several multiples of the current value. I don’t normally like to hold shares in unlisted companies but this one may be an exception.
The Board should resign. Stock down 50% since their decision to delist. Value destruction for shareholders.
A further -15% down today will not be allowed to stay in ISA , if you do not sell.
AIM shares just not worth risking money on .
Wednesday 27th Mar 2024
This from before the Easter break ,
C4X Discovery seeks AIM delisting but half-year revenue skyrockets
(Alliance News) - C4X Discovery Holdings PLC shares plunged on Wednesday after it said it plans to delist from AIM in London, due to "the recent downturn in the financial markets" hampering its valuation.
C4X shares dropped 24% to 10.00 pence on late on Wednesday morning in London.
The Manchester, England-based drug discovery company will seek shareholder approval to delist from AIM at a general meeting on April 5. It expects the cancellation to take effect on the morning of April 26.
Following the delisting, C4X intends to re-register as a private limited company.
Chief Executive Officer Clive Dix said the decision follows "an extensive review and deliberation to ascertain the most effective way to maximise shareholder value in the longer term and increase the potential for [our] long-term success".
He added that "the recent downturn in the financial markets has adversely impacted our share price, and with it, our future ability to raise funds in the public markets...we can potentially access a larger quantum of future funding required to accelerate our strategy as a private company".
Also on Wednesday, C4X released its results for the six months to January 31.
The company swung to a GBP17.8 million pretax profit, following its GBP5.2 million loss in the first half of financial 2023.
Revenue, meanwhile, soared to GBP24.6 million from GBP1.7 million.
C4X said this reflected receipt of GBP15.9 million from selling the rights to its Orexin-1 receptor antagonist to Indivior PLC in August, and a USD11 million or GBP8.7 million milestone payment from AstraZeneca PLC. The latter, received in early January, stemmed from preclinical progress of C4X's NRF2 Activator programme which it licensed out to AstraZeneca in November.
Research & Development expenses remained stable at GBP5.2 million, "reflecting focused investment in key drug discovery programmes focused on immune-inflammatory diseases."
Looking ahead, C4X believes it is "in a strong financial position with the potential for further milestone payments over the next 18 months".
It said that once it officially becomes a private company, it will be able to "accelerate our strategy and...maximise revenue from our portfolio", assuming it can access those larger pools of potential funding.
An excellent article
The sad fact is that Nomads are letting the market down-most have conflicts and populated with poor accountants who really don’t understand businesses.Some of the rubbish that has been brought to the market by the likes of Finncap is shocking, all fee driven of course
In short, good companies like this are being tainted by dross and the FCA should really be taking a look at how AIM functions
Reminds me of silence therapeutics.with one of the same major investors involved
2 more to delist today , molecular E down 80 % !
Can't see the sense as company will have to flog their shares at a much lower price in the private market than if they were listed, or am I missing something? Or are the directors just greedy bxxtards as they will pick up the shares and company on the cheap 😤
Https://investingstrategy.co.uk/financial-news/is-the-small-cap-market-broken/
Agreed. By mentioning the delisting strategy the board have given the shares a death sentence. Any institutional investors left will be forced to sell over the next 12 months. There will be a lot of undervalued shares on offer which investors should snap up and vote in a new board. The fact that the share price has remained stubbornly undervalued is a reflection of them not the technology. This strategy might suit the directors so they can avoid the scrutiny of the city but I fail to see how it benefits shareholders.
Paul
Brilliant....do you also give advice before the event or just after ?
The bid price is now 10.05p - a poor decision to sell if ever I saw one. It was obvious there would be a knee jerk reaction immediately.
Apologies re a slightly mixed up statement in £'s.
These are more exact.
· Revenue was £24.6 million (January 2023: £1.7m) reflecting receipt of £15.9 million from sale of Orexin-1 receptor antagonist programme and $11 million milestone payment from AstraZeneca.
· Total profit after tax of £17.8 million or 7.06 pence per share (January 2023: loss of £3.9m or 1.55 pence per share).
· R&D expenses remained at £5.2 million (January 2023: £5.2m), reflecting focused investment in key drug discovery programmes focused on immune-inflammatory diseases.
· Net assets of £24.6 million (January 2023: £13.6m).
· Net cash as at 31 January 2024: £13.1 million (31 January 2023: £9.6m), before post-period receipt of $11 million milestone payment from AstraZeneca in February 2024.
Unbelievable value destruction for small shareholders. Shocking exit or no exit option or protection for the little guys. Nasty as hell. Clive as chairman couldn't careless too. He's sucked shareholders dry and decided to call it a day.
The talk of maybe delisting is just a proposal at the moment. The shares will probably still be allowed to trade direct with this company for up to a year as they stated.
So it's not really a reason to panic yet, they seem to be making money too. Cash of £17m approx.
Dr Clive Dix, CEO of C4X Discovery, said: "We have not taken this decision lightly, however, following an extensive review and deliberation to ascertain the most effective way to maximise Shareholder value in the longer term and increase the potential for the long-term success of the Company, the Board has unanimously concluded that it is in the best interests of the Company and our Shareholders to delist from AIM and re-register as a private limited company.
C4X has a successful track record of out-licensed pre-clinical assets to world-leading pharmaceutical companies. The Company has signed three deals which have in total generated $55 million to date demonstrating its scientific and deal-making capabilities:
· In November 2022, AstraZeneca signed a world-wide exclusive agreement worth up to $400 million for C4XD's NRF2 Activator programme; the first milestone payment of $11 million was received in February 2024.
· In April 2021, Sanofi signed a world-wide exclusive agreement for the Company's oral pre-clinical IL-17A inhibitor programme worth up to ?414 million; the first milestone payment of ?3 million was received in July 2022.
· In March 2018, Indivior signed a licensing agreement for C4XD's Orexin-1 Receptor Antagonist Programme which it subsequently acquired in July 2023 for £15.95 million.
Lymie you’re absolutely right. Decent people would have made an offer to buy from the concert party of Lombard, Polar and Griffiths. Its absolutely disgraceful what these crooks have done.
This is a good company, if you held shares at the start of the day, IMO you should hold and not crystallise a loss. This isn’t a company in distress but one with great prospects.