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.
Hopefully the fact that CF holds a huge percentage of FAST equity will ensure that he is highly motivated to ensure that FAST shares are not too diluted. I think in the long term this has the potential to be a significant multi-bagger, and rather anticipate that there will be a huge spike when trading resumes, followed by a much softer period once all the excitement has died down.
I actually brought 250k shares at 3.2 cents here because I thought they had a good team of oil executives and cash. Interesting developments. I'm hopeful but I think its a long term play. New team coming in is strong
The disease affects 30,000 in the U.S., and 500,000 worldwide, according to the Dystrophic Epidermolysis Bullosa Research Association of America. Amicus calls EB a potentially $1 billion global market. Http://www.xconomy.com/new-york/2015/08/31/with-229m-deal-amicus-gets-a-new-drug-and-maybe-a-voucher/ The global drug market for rare diseases is projected to reach $191 billion in 2019, reflecting a five-year CAGR of 9.2% Http://blog.bccresearch.com/rare-disease-drug-repurposing-markets-poised-for-growth Press release January 2016 European Commission Grants Marketing Authorization for Episalvan® (previously known as "Oleogel-S10") for the Treatment of Partial Thickness Wounds in Adults Http://www.birken.eu/nc/en/presse/pressemitteilungen.html?download=20160122_Press_release_Approval.pdf&did=12
Has already got approval from the European authorities, would this approval make it easier to get the approval of the FDA? Truly impressed by what Cathal has done here, the guy is smarter than we have given him credit for. Who knows some oil co could soon offer us say around £10m for all the seismic data we have from the Celtic sea, the story I guess could still have some more mileage. Well done to the guy with 3m shares, you most likely won't regret it.
Seconded. Well done EB. I have 3m shares here so here's hoping!
Thanks for your research.
On re listing we will have an approved drug by the European regulator, which will be developed as a treatment for epidermolysis bullosa (EB), a genetic skin disease that causes painful blisters to form as a result of the slightest friction. Going public will enable the company to scale more quickly. The disease was the subject of a well-known Channel 4 documentary entitled The Boy Whose Skin Fell Off. Truly awful condition and its nice to be involved in a company that will hopefully help unfortunate people with this disease. On further research "There's currently no cure for epidermolysis bullosa (EB), but treatment can help ease and control symptoms." Interestingly one of the emerging treatments for this disease, a modest sized private company Scioderm Inc, has just had a huge buyout in August 2015 by Amicus with a deal valued at $950M for just this one drug, Zorblisa (looks to be administered as a cream) and its currently in phase III trials.. essentially its a cream that helps heal wounds faster... So to me it looks like in our RTO we have a rival drug coming to the market... Episalvan (previously Oleogel-S10) has obtained the Orphan Drug Designation (which I hadn't realised in my previous post!) for the treatment of hereditary skin disorder Epidermolysis bullosa (EB) from the European Commission. This has passed phase III trials and more recently has just received full EU approval for marketing so to me looks to be in a very similar phase to Zorblisa. Its administered as a gel and also helps wounds heal faster... $950M is a chunky number.... seems to be big value in treatment for this disease. Maybe Harry and co. have plans to fast track Episalvan to the shelf before Zorblisa? No better man for the job.
And 4p was a bold statement and the reason I bought in, good post
The two companies that Fast (Amryt) are buying will be issued shares in lieu of cash so this will be on top of the £20M fundraise. The quantity of these and price they will be issued at is unknown so the resulting market capital and listing price will be an uknown quantity until we hear more from the company. Essentially we will have £30M cash, a series of drugs in different phases with one EU approved (Episalvan) which is ready to go in to the marketting phase which is huge. Episalvan has the proven ability to reduce the healing time of wounds where the upper layers of the skin have been damaged, for example by a burn or during surgical skin grafting - so scope with second degree burns etc to market as a gel to help healing. Im assuming the next step for this particular drug is to get Orphan drug status granted on it for treatment of the rare disease epidermolysis bullosa (EB) which will bring with it a whole new array of financial incentives (again Harry Stratford has got extensive capabilites in this field through Shire which specialised on Orphan drugs). There are also a number of other drugs in phase 2/3 which will be coming to market at a later stage. The £30M cash will be used to market the newly approved drug plus also develop the other drugs. The beauty we have here is a drug with full EU approval ready to go market phase (huge).. a peer comparisson of biopharma in this similar stage are in the £100s of millions. Obviously they will want to price the deal to be attractive so it is set to rocked upon re listing. Essentially this is like an IPO where us holders are in at the "pre IPO" discount price. A number of road shows this week with retail and institutions so will be very interesting to see what interest this deal has in the city... I guess this, along with the equity dilution for acquiting the two companies, will dictate the fundraise/listing price. As people have mentioned I would assume it will be above 3.8p to save restructuring. CF bought his shares at 4p so that may be a good starting point as the floor IMHO. GLA
"My thoughs are... Current Equity = 346m shares x Current SP (2.9p) = ~£10m Future Issue = 250m shares x ~8p = £20m Total Shares in Issue = 600m @ £30m = 5p per share. Then the question is how much of a premium do we add on top for the opportunity...... Even at a very conservative 25%, it takes this to 6.25p..." And where in this calculation is the paper issued to the pharma company being taken over, or are you expecting them to give it to us for free?!
Can anybody share the michael walters article?
Just popping in to say "Hello".
As speculated in the article the appointment of Harry Stratford as FAST NED was a telling hint as to what was to come. FAST announced today that it is in very advanced discussions with Amryt Pharmaceuticals. If the Acquisition proceeds, the enlarged group will become a late stage, specialty biopharmaceutical company and will constitute a reverse takeover. http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FAST/12706969.html
Fastnet Equity – Changing focus to Healthcare Fastnet Equity (LON:FAST) is a casualty of the tiddler O&G exploration sector and had the courage to wisely change its focus and adopt an investing policy. The Celtic Sea and Morrocco Oil and Gas interests have been hived into a new company named Fastnet Hydrocarbons, this was a key move which allows the new Fastnet to focus on the Company's strategy of pursuing acquisition opportunities within the healthcare sector. Value may come from these assets in the future through disposal but the key for now is Fasnet Equity will no longer have any ongoing interest or further cost exposure to O&G. Now, what caught my interest with Fasnet is their cashpile which was noted at US$15.5m in their interims at 30 September 2015, this on my entry was below the current market capitalisation. Obviously the cashpile alone although very chunky is not enough and it’s the moves they are making to enter the healthcare sector which is of interest. The most noticeable recent piece of new is the appointment of Mr Harry Stratford as a Non-Executive Director. This NED appointment for an AIM minnow may be seen as telling of the ambition and possibly what’s to come. Mr Harry Stratford has racked up over 40 years' experience in the pharmaceutical industry and has built two successful publicly listed pharmaceutical companies, he founded Shire Plc in 1986 and was CEO for almost a decade and later the founder, CEO and Executive Chairman of Prostrakan Plc. Cathal Friel, Non-Executive Chairman, commented: "We are delighted to welcome Harry to the Board as a Non-executive Director. We look forward to working with him as we investigate potential acquisition opportunities within the healthcare sector, where we expect his extensive knowledge and experience of the specialty and orphan drug pharmaceutical industry will be of particular value." - See more at: http://www.stockopedia.com/content/four-shares-to-watch-in-2016-vela-croma-fastnet-and-new-116298/#sthash.B7BSMdYv.dpuf
Four Shares to Watch in 2016: Vela, Croma, Fastnet and New http://www.stockopedia.com/content/four-shares-to-watch-in-2016-vela-croma-fastnet-and-new-116298/
Will we get rto details? Surely we won't have to wait until admissions document which could be 6 months away?
Yes, it will be a smaller piece of what will be a bigger (hopefully much bigger!) pie
Does this mean that a person's shareholding in FAST could ultimately become a diluted holding in the new company?
smudgedan, early bird: thanks
Thanks for all your posts EB. I thought you were going to do some work today! I'm very happy to be invested here and equally happy to sit and wait for the story to unfold. I don't think we'll be losing money :-). And I don't think we'll be left hanging on for months before they come out of suspension. Could say GLA but I think we've already had it!
say "FAST & Furious 2016" since last December! Hard work of accumulating shares near 2.50p over. Time to RELAX until everything is over.
Feeling pretty smug today! FAST is my largest holding and I'm relieved they suspended instead of allowing heart-attack trading on this news. Really pleased to see that they are operating a tight ship too, obvious that the details of the RTO had not leaked prior to the reports in the Sunday papers.
The deal will be being valued as we speak. As Dan says we can be very comfortable this is coming back at multiples of cash given the advanced stage EU approved drug and calibre of management. Very roughly a £20m raise at 10p would equate to a MC of £50M with £30M in cash.... Look at the other 4 listed peers with a drug in such an advanced stage and the valuations are big. Very big. $billion range. Keeping feet on the ground here but one thing is 100% certain is we have the best seats in the house to watch this all unfold!! Could be one of the biggest stories on AIM this year IMHO. GLA
Yes, we need more flesh on the bones re the latest news. I was thinking more in terms of bottom value.
The value will be determined by a valuation of the two companies purchased which in turn will be determined largely by their listed peer group. I think we could be looking at several multiples of £30m for starters. Have a look at the valuations of other listed companies that have similar drugs at the stage