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Merck could be our 'saviours' rescuing us with small change, good business for them scraps at best for us, as now at the mercy of venture capitalists otherwise and they are never good as an option imo. Just hope our DP isnt offered a place at the top table. :-(
Yeah my thinking was that even in the current dire market and the hard bargain that potential suitors would inevitably drive, they really shouldn't need to get rid everything in the pipeline to pay OF + bank a couple of years operating costs
But for the "going concern" criteria that the administrator will apply, so to reprise an earlier conversation they will have to raise enough not only to pay off Oxford F but also find enough operating capital to get them through the remainder of this financial year AND another 15 months after that.... common sense would suggest that they will have to scale down the breadth of their dev pipeline to reduce operating expenses over that period; maybe selling the IP off to one of their partners - or get those partners to pay for the development?
Oh crap. :-(
Thanks oxford, 'nice' doing business with you, ...vultures.
If they can get it out of admin there needs to be a change at the top. I've been a strong supporter and I don't think there was anything nefarious to the boards intentions but Duncan has to fall on his sword. Step back, remain an investor and let someone else run the show.
Pete, I'll need to read the annual report again but if it is just a case of the 13M then given the pipeline assets etc you would think it really shouldn't be that difficult to get it sorted and back operating.
Yes Boonco and all for $13m - or, if we are to believe Sang $5m (plus interest) as $7.5 should still be sitting in a bank account somewhere - ior is that where 4D actually breached their covenants?! Maybe that money has been spent?
In any event to allow a business to go into administration smacks of negligence or incompetence (unless it is pre-meditated) - I really don't know which is the worse?
Merck already owns 4.6% of the company and has formed a strong partnership with 4D... they're a $250B company, if they believe in MRX0518 then there's got to be a chance they keep 4D's business afloat.
So it looks like two things to me;
1) The BoD can save it out of administration
2) The assets are sold, if there is a buyer, and that money is used to pay off OF and other debtors. Depending on the total asset value, we may see something back. The question is, how much are the assets are worth in the current market.
I honestly think Duncan just does not give a ****
If he had any idea of what he has caused, he would not have taken us for a ride.
I knew he had an agena on Tuesday and said so but did not expect full shafting. I have no doubt he has a plan to get his own personal capital back. After the damage he has caused, I think he has a heart of ice regarding our emptional and general wellbeing. Utterly incredible. He had this all planned. I saw it on Tuesday and so did the markets. But did not think he could be so callous. Oxford did not spring this on him.
Hold my hands up - I called it wrong earlier today when I rubbished speculation about the suspension being down to OF calling in the loan. I think I called it doom mongering.
My apologies.
Bug*er.
Sanj after your comments to me… karma sir
That would raise so many questions / legal challenges though?
What i think I'm surprised about is that a placing could have been secured albeit at 100% dilution that would have raised at least 20m covering off either the debt or keeping the current terms on track without revision and allowing breathing room
Hmmm, half of me wonders if this is an indirect way of doing a private equity backed MBO, trying to buy all the assets off the administrator for say 15m, releasing the charges that Oxford have over the assets and then Duncan gets the entire company to sell on later for a premium, shareholders shafted.
If the administrators are any good, they should seek best price for the assets including contacting Merck and GSK if they are interested in the sale. The business should be offered for sale for best offers from across the entire market.
On a positive, Merck are shareholders so should be aware. IF Duncan plays it straight, and that's really the burning question, ultimately SH should get back a significant premium to the closing price as the business assets should be worth more than the current mcap.
However, this is the point isn't it..... 50/50 we will be shafted, see what next week brings
Puts you off backing fledgling Biotech coys full stop doesn't it...
I bailed after the Q&A with a 5k loss. For those out there UI was in Quindell & lost 5 figures after Gotham hit
The vultures will be circling now, looking to pick up the juiciest parts of the corpse.....
A slightly more fortunate position ? !!.. Yeah slightly, hugely more fortunate ! now is not the time to mince about. But well done , I knew I should have at least sold some on the run up to 74p a while back
If the finances were as precarious as this why was 4D spinning so many plates? They had the MRX0518 + Keytruda trial, Bavencio, the phase 1/2 Asthma trial, as well as going after covid last year. Seems reckless to me.
I am in a slightly more fortunate position to most, got rid of about 80% at just over one £, thought i would keep some for interest only as i thought if successful i wanted to be part of it.
Probably last post for me, but i wish everyone all the best and maybe just maybe you might get something back.
Now we know OF want their money back, ordinary shareholders are left destitute.
Administrators only look after the interests of Creditors
Ah well some you win some you lose. No good crying over spilt milk
Sang- you were insistent that the $12.5m drawn dawn wasn't usable in it's entirety and $7.5m had to be put in an account until further amounts were raised, if that were to be the case then it wouldn't be $13.86m to payback. I asked that question at the Q&A but along with other questions didn't get a response. I think this looks like a trap planned by OF right from the start.
I got the feeling Oliveira didn't like the Oxford deal
"Started talking to OF on 23rd and they demanded money on 24th, very good"
Another fine example of what happens when Duncan opens his mouth. OF probably only meant to discuss the weather but after 30mins of hearing Duncan talk about cumulus clouds decided it was best for everyone if they got their £13m quid back ASAP.
Do you really believe those dates ?
How many shares did the Execs manage to sell when the **** was hitting the fan ?
I bought £2.5k at 43p and was at £1k value today. Now zilch.
I am bruised but I'm not going to let me (and hence family) down.
it is in our best interest for sure