The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Cannot understand how a group of directors allowed breeches of the loan agreement knowing what the potential might be. Even more unbelievable when they stood to lose so much. Lost for words but so angry.
It's strange because given your boasts about how much stock you have bought you seem very relaxed about what must be a massive loss.
Porky I reported Taunton to the mods to run a check against your IP address and the account was deleted the next day.
If the company was unable to do a placing when they were solvent how do you imagine they can do one when they are in an insolvency process?
Why would Merck pay the vax milestone payments when they could buy the whole company from the administrators?
@Sang
You are spouting complete conspiracy theory rhetoric nonsense. The poster Taunton Boy was nothing to do with me. Don't know who it was, clearly also bullish on the stock but other than that not me. If i had a pound for every board i post on where they think i'm someone else i wouldn't bother investing. Speak directly to admin at LSE.
As for 4D Yes the situation is dire and we HOPE that a recovery can be made. IF they can sort a finance deal secured against the three Merck vaccine payments then its possible they could come out of administration. A placing could then be completed.
I would rather this business continue with a heavily discounted placing which was what was going to be the case before OF pulled out than it get broken up and sold off, or some dodgy pre-pack deal.
How the hell do you think they can get a "discounted placing" away when they have no authority to raise capital and who is going to participate in a placing where the stock is untradeable.
Obviously not great but does sound like they are trying to resolve it which is a small positive.
12m on debt i think could be funded and I think they could get a discounted placing away to shore up another 25m to trade forwards with if this was arranged.
£5-15m on vaccine sounds really good. That's the debt covered. You would think they could bridge that.
Major worry is if he does try to Pre-pack he says not, hope he sticks to his word.
We wait as wait does
GLA
Just got back from AGM. David (Bondys) summary is spot on. Really didn’t think they would be present, but at least they had the bottle to be there and take questions. They were pushed quite hard on some questions and responded a bit more openly than last weeks Q and A. Do I have faith that this will be resolved to our satisfaction? Probably not as I don’t trust administrators.
They took a dodgy financing deal imo. DP and the other directors own 10% of the stock so they will be feeling the pain more than most. Not to mention it’s their lives work. I remember when I researched microbiome biotechs in the states it was common for them to have £200 million in debt. It strikes me as a little ridiculous that the company can be brought down over a relatively small loan. Hopefully someone has the vision to step up and back 4d. May well have to ring a few changes moving forward but I would argue the promise of the pipeline outweighs 14 million in debt. Just my opinion and I’m not a holder so not biased either way. I hope the Phoenix rises from the ashes.
Some hope, perhaps. Written off my £10k loss in my head, but let's see.
I'd probably take anything now, after all, I was in this for the pipe dream anyway...
hey bruce would you mind if i contact you to ask a few questions about today
Just got back from AGM. David (Bondys) summary is spot on. Really didn’t think they would be present, but at least they had the bottle to be there and take questions. They were pushed quite hard on some questions and responded a bit more openly than last weeks Q and A. Do I have faith that this will be resolved to our satisfaction? Probably not as I don’t trust administrators.
They committed a massive breach of the Oxford loan covenant and were "surprised" that they called it in.
Unbelievable
Yes, a few of us spoke to Duncan and Alex for 10 minutes after the AGM. Duncan was very open. Said a UK bank would never have done what OF did. He was shocked they did what they did as he said they knew everything including the heads of terms from another lender but still did what they did. We need a quick solution here as the longer it goes on, the more likely we will get nothing. Gut feeling is that they will get some form of finance deal done but guess the terms won’t be great. Duncan also said Merck would rather pay a lot of money for a drug that has been approved rather than speculate on earlier trial success. Duncan had said they he has had so many meetings recently with fund managers, banks, finance houses, he is now pushing those too.
Again from Daniel in 4d telegram group
Right. Here goes. Duncan looked awful so clearly feeling it. Lots of questions put to Duncan who answered everything. Oxford Finance pulled the deal even though the company had a heads of terms to refinance with a mix of debt and equity. OF knew that but still pulled the plug. The admin guy was there too who said they are trying to rescue this finance deal which will sort everything, they are also talking to OF but the admin guy said a deal
is unlikely. It rests on this finance deal short term, longer term it is about trying other refinance or offers for assets. If it comes to offers, admin are mostly bothered about getting OF and other creditors repaid. Shareholders bottom of the pile. Duncan was asked if they prepack, there will be a lot of very angry shareholders. Duncan said no plans for that, he is a shareholder as is Alex and they want to save 4D. The company did breach on 2 counts. They renegotiated the $7.5m to $5m but had it held in 2 US accounts rather than 1. Technical breech as they could have easily moved the money into one. One shareholder asked the admin guy if they had gone below $5m privately . He said they had. So major breech. They also breeched a balance sheet criteria because the non plc companies held too much in their balance sheet when the Spanish government made a one off payment to cover furlough workers in Spain during Covid. We are where we are. In hindsight Duncan should have done a placing but he had no idea the capital markets would be so difficult. As asked about milestone payments. They think Merck will licence 3 drugs from the JV vaccine work which attracts 5-10m
US$ each. I asked if that could be accelerated. Duncan is in discussions with Merck but said they don’t work quickly. One shareholder who is a scientist with a huge holding asked Duncan after the AGM when Duncan came round and shook hands with Alex and asked if there were any more questions before we left, from 1-10 Duncan , what are your thoughts thus will be saved to trade on AIM, Duncan replied, a very good chance. I hope he is right.
From Daniel on groups