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Agree @fairdealer. If financing was this tight then they had opportunity to raise at just over 70p not too long ago on the oncology results. Why didn't they? Either this situation has been planned (wouldn't be surprised given the dire state of IR) or they were expecting news or funding of some kind that hasn't come. Are they really this incompetent to simply risk the whole company on a punitive deal with OF? That just doesn't make sense to me.
Sounds..the company statement would be believeable had they attempted a placing ot Rights issue, but for reasons best known to the BOD have chosen not too, why??
4d Pharma PLC - Leeds, England-based pharmaceutical company - Says it has ‘no immediate certainty’ of how it will repay the $13.9 million loan facility it has with Oxford Finance LLC. ‘The board has been exploring opportunities to secure additional funding for the company in recent months, however this has proved challenging but 'significant progress' had been made, despite the very difficult prevailing market conditions,’ it says.
I'm sure we would all be interested to hear what this 'significant progress' is exactly.
No 'immediate certainty' may also not mean there is nothing confirmed as yet but that it could be. It could also mean there are no real options. Lets hope for the former.
Mumbo, agree, it was absolute folly to arrange loans from Oxford. It is assumed DP convinced them income streams and or other funding would be achieved. The company, as do most fledgling bio-techs, raise funds annually. Entry to NASDAC, was seen as an additional method to increase liquidity, however the arrival of Oliviera did the reverse, his activities raised suspicions which have not been answered. Why 1 investor was allowed to invest so much without proper financial health checks and agreements is quite bizarre.
crl, who or what encouraged you to invest so much here?
Sang - you are missing the obvious, no one forced their hand to take OF loan. Think for a second….Companies who are not making any money, they should never take loans especially biotechs. Always raise the fund with dilution. Yes, you can get diluted to death by similar charlatans but atleast it’s not sudden lights out.
Perhaps, who knows. If I’m honest I’m not really one for conspiracy I would rather just deal with what we do know.
They face a steep uphill battle but there should at least be a glimmer of hope that there’s enough in 4D to get them through to the other side.
Interesting times either way.
My point is not so much about the future.
It's about what has gone on in the past.
There's probably nothing in this as Stern is a common name.
But I can see that Oxford have an Amanda Stern working for them and we were paying Stern IR led by Lillian Stern. Could they be related?
Basically I think a little UK biotech has been screwed by getting into bed with various parties in the US.
Yeah I understand all that but there is precedent of it happening with other pharma companies so it’s not a lost case yet.
Realistically they need to generate enough to pay OF and have a cash runway through to the end of 2023.
Estimated operating costs for 18 months from April was 28.6M once r&d tax credits are taken into account. So roughly, if they can sell an asset or two and raise circa £40-50M that would be enough to pay back OF (a little less than £11.5M) and give them a cash runway through to the end of 2023. Also, don’t forget if they sell an asset or two then the actual operating costs would be lower than previously estimated so the previously estimated £28.6M for 18 months should in theory last a bit longer and at least take them into early 2024.
But 4D will also need sufficient funds to be classed as a going concern, even on a limited stripped down basis.
What would pharmas be willing to pay for 0518?
They aren't going to make a generous donation to the cause. They will pay the lowest amount possible.
An orange flag for me was last year when DP spoke about their friends at Merck.
Big Pharma is not your friend. It is a profit hungry tiger.
OF can’t just force it to be stripped though. They have to sign off on proposals put forward to pay them back but as long as there is a way of paying them back precisely what they are owed then OF will have no further leverage.
Someone pointed out that on the other open 4D chatboard a poster called One Frankel (OF) opened their account around the time of the OF loan and posted relentlessly negative and disruptive posts.
A bit like Masterblast who opened their account a month after the OF loan and has only ever posted negativity.
I am thinking a conspiracy of OF, Oliveira, Chardan and shorts looking to destroy the company for someone to strip the assets on the cheap.
When I did digging into Oliveira there was little public info available on him but I did come across enough to see that he had a pretty shady reputation associated with being an ex fund manager at Chardan and was banned from acting as a broker in 2 states.