Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Kaeren have you read the going concern statement for GDR in their interim report in late March? It's not great reading when you take into account we're now a full week into May:
''At the current burn rate, the Company has a cash runway through May 2024. We are confident that we will continue to gain commercial traction and securing significant revenues, but due to the time required to achieve this, as we have already stated, we will require additional funding. As described in the accounting policies, we continue to adopt a going concern basis for the preparation of the accounts, but the above condition represents a material uncertainty that may cast significant doubt on the Group and Company's ability to continue as a going concern. As set out above, the Company is actively pursuing further equity funding to provide the necessary resources to execute the Company's growth strategy.''
Yes HC I did. I'm watching intrigued from the sidelines and seriously hope shareholders don't get left holding the baby. They must be running on fumes , hope the Bod are talking to numerous parties. Maybe could avail of UKEF , timing though .
Am sure they could put a case forward for export of their tests.
Well there’s the dreaded rns for Genedrive…
It solidifies the point I’ve been making about the strength of cash-rich Novacyt but it’s rather sad for those guys
Very Very sad for Genedrive holders.
Absolutely awful , I hope most escap
Sorry . I hope most escaped , I saw you to try warn HC.
i genuinely foresaw a 1.5p raise, well i wrote in my trading/investing notebook '1.5p-1.75p raise' but it's hard to share your thoughts on that sort of thing without looking like some ******* 'wanting to get in on the cheap' so the most i did was share what went down with yg. in this market it's almost never a good idea to get in before placing news however much it's already fallen, at best you might be on the right side by 5% but at worst, well 70%+ it can be.
Well we all saw that coming, maybe not the size though. 400m new shares. Add to the 140m existing shares. I'm sure they only had around 60m shares in issue a few years ago. Absolutely stinker.
Riddle me this, am I missing something fundamental. How come no cash rich company is just swallowing them whole, if their products are so amazing. They sound pretty impressive to me. Or is that the next RNS incoming after they have had to declare their hand?
Kaeren my guess is that it's a couple of factors but largely this:
'Should the Company receive the net proceeds from the Firm Placing but no proceeds from the Conditional Placing, the Rex Offer or the Open Offer, its cash runway will remain extremely limited, it will only have around seven weeks of working capital and the Company would urgently need to seek further financing which may or may not be available at all or, if available, may be on commercially unacceptable terms and could lead to more substantial dilution for Shareholders than would be the case under the proposed Fundraising.'
So £2.5m (gross) is equal to 7 weeks working capital? That's pretty extreme even if it's partly for a renewed r&d drive. There's also still a lot of uncertainty as to when significant revenues would start to be seen and no timelines for any cash flow break even goals. So an interested buyer was still probably looking at offering around £10m to be accepted by shareholders (they wouldn't have known the alternative was a 1.5p placing) and then immediately put in another £6m for initial funding.
If like you say the products are deemed so good that wouldn't be an issue for a major but for any midcap company, even cash-rich novacyt, it's a risk.
Also, remember the JM(I think) comment that Novacyt through our bioinformatics programme had sight of what a lot of others products could do/were like.
HC In your humble opinion do you think, GDR worth a gamble, if it falls around or below the placing price? All opinions are welcomed.
For me it's a huge risk because they are signalling that they need at least £6m and yet they aren't close to raising that. Today's update:
'Accordingly, the Company needs to raise a minimum of approximately £3.9 million (gross) from the REX Offer and the Open Offer so that the Minimum Proceeds are raised.'
If the share price goes below 1.5p it will look attractive but will mean nobody takes up that offer and then they will possibly go bust - i'm staying out.
HC As always thanks very much
There will be money to be made if you're nimble and get a bit lucky with timing but it's high risk for a number of reasons. I might look to buy in with clarity once the placing is done and dusted but not beforehand.
Anyway I won't talk about gdr again as it's distracting from some excellent recent posts on here... I'm going to report Poidster's post from yesterday later so that nobody misses it.
Don't you dare report it Harchris 😀
We've finally found the culprit
Kaeren punish him with 7 lashes on bare bottom and he will never report anyone!!
Repost / Report
what a difference a letter makes!
Genedrive situation is not unique. Lyn Rees (Novacyt CEO) did the same to Yourgene shareholders.
Haha I bet there’s many on here that do report his posts as they’re so desperate to have such quality posts removed!
Can you stop going on about being negative on Lyn Rees’ past performance with YouGene. Remember as a rule of thumb, past performance doesn’t mean the same for future performance i.e lesson learnt etc like most of us in our career performance appraisals.
It actually strengthens the argument that this is as much broken markets as incompetence unless you think just about every aim CEO has destroyed shareholder value simultaneously?
It easy for you to say that when you have not lost substantial amount money by believing all his stories. So, I will always hold him accountable for that!!