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Cheers for the further explanation Bermuda. The way it's played out is still rotten for those who sold but at least Redmile didn't increase their holding just a month ago, that would've really taken the mickey
However, the sort of deal they announced yesterday is extremely complex and would have taken months to put together. Redmile have done incredibly well buying most shareholders holdings so cheap with such a massive inflection point just around the corner.
Am watching this is it appears to have a few things in common with the situation over at Midatech where I have holding.
GLA.
MTP,
As you know, Redx had previously been in discussions with Yesod for the sale of the company but walked away because 'the possible offer from Yesod substantially undervalued the Company and its assets.'.
That left Redx between a rock and a hard place. It had just £1.9m in cash with an annual cash burn of over £10m but more importantly, it was already propped up by debt. I think it's fair to say that had it not been for Redmile, the Company probably wouldn't have survived and the choice facing shareholders was to accept the 13p -15p (or whatever you sold for) or end up with nothing.
When the funding took place a month ago, it didn't increase Redmile's holdings - they already owned 92% of Redx stock and it wasn't an equity placing but further debt via convertible loans. From memory, I think there was a small equity placing to Sofinnova.
Redx have had a torrid time getting to this stage but they have some great science and I hope they're now able to do it justice.
All IMO of course.
Please correct me if I'm wrong but it seems to me that Redx announced selling up to Redmile for 15p, giving shareholders impression that if it fell through the company would most likely be finished, so most sold out around 13-14p.
They then placed at 15p a month ago directly to Redmile (increasing Redmile's stake to 92%?). Now, a deal they surely knew at that time was coming spikes the SP to 92p.
Am happy to be corrected but it stinks to high heaven from where I'm sitting and needs looking at.
Let's see a quid per share! Sounds about right for a lovely Wednesday...