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So said our Chairperson, Dr Jane Griffiths - not a shareholder as far as I can see. (other director shareholding are minuscule). So either she has been totally taken by surprise watching the shares tank - or she was lying. Whichever, as Chairman, appointed to act on behalf of shareholders, its crass mismanagement and a disgrace. Other options existed but she chose not to take them - I believe in full knowledge of the likely outcome. Karma will reward her appropriately in due course.
I bet the company will be sold soon with institution holders pocket huge money, only small pis to lose out here, disgraceful management!
Swlc, those PI 's that hold onto their shares could benefit from any sale as well as the privileged insiders (the 84% given 'INSIDE' information by the company's BOD) . This panic appears to be private sellers running for the exit on last day of tax year I wonder? 🤔 JMO Adyor!
Moniman, you were right, however there will be future funding required and most pis do not have funds or chance to participate, so their tiny holding will be diluted to nothing before the sale.
Mind you it looks like there were a few porkies being told by the company in this recent RNS 14th Feb 2024, denying press speculation about relisting somewhere else? Adyor!
https://www.lse.co.uk/rns/statement-re-press-report-aqoj8ir7mlbv2br.html
Can't trust management - they'll need future funding
Better stocks out there
The management said the following results and sale of KRAS to Jazz Pharma.....
Financial Highlights:..RNS 15/12/2023.
· Cash balance at 30 September 2023 of £18.1 million (30 September 2022 £53.9 million);
· Post-period a £14.1 million (gross) £13.6 million (net) equity financing was secured with existing institutional investors at market price to fund the near-term value inflection points, providing cash runway into Q3 2024;
RNS dated 7/2 2024...
Further more, following the sale of Kras inhibitors to Jazz Pharma, the company will receive another $10 million...
"......Redx to receive $10 million upfront; potential for up to $870 million in development, regulatory and sales milestone payments in addition to royalties on future net sales....."
.........This agreement will allow us to collaborate on the advancement of novel KRAS inhibitors and we look forward to supporting Jazz in progressing these candidates through IND-enabling studies. Partnerships remain a key pillar of our corporate strategy, allowing us to advance what we believe are differentiated molecules in areas of high unmet need, while also creating long-term shareholder value through non-dilutive funding, with the upfront milestone payment from this agreement extending our current cash runway into 2025."..........
So it doesn't need cash anytime soon if we believe the management's recent statements? 🤔 JMO Adyor!!!!
@ Rayte..
Like you say an £80million company gone down to £16 million in just four days just because it's coming off the AIM market.... to quote the Chairman of Redx Pharma
Dr. Jane Griffiths, Chair of the Board of Directors, Redx Pharma, commented:
............."The Board believes that as a private company we can access a broader universe of specialty investors and, accordingly, a larger quantum of future funding required to execute our strategy and maximise our value in the interests of all our Shareholders.".............
I don't think they have maximised any value for all shareholders this week 🤔? JMO Adyor!!!!!
Interesting how C4 seems to have held up better with similar type of announcement. Guess the PI shareholder base here was just weaker at the onset...
I am no expert on this one but at 4.40 seems a good buy it could rise next week maybe by 2 or 3 p not sure I bought in let’s see how it goes.
The fact that the Chairman said only a few week ago......."Redx wishes to clarify that it is not currently in any process relating to a listing in the US, nor any other jurisdiction......." but subsequently she says this week...."In determining whether the residency test is satisfied, the Panel has regard primarily to whether a majority of a company's directors are resident in these jurisdictions. As noted above, the composition of the Board is expected to change shortly following the Cancellation and Re-registration and it is expected that such changes will mean that the Company no longer meets the "residency test" from that time.".....The Company remains committed to the UK life sciences industry and intends to retain its head office and primary research facility following the Cancellation and Re-registration at its current location in Alderley Park. Following the Cancellation and Re-registration, the Company will continue to evaluate the optimal corporate structure to ensure its long-term success, which could include listing on an alternative exchange at a future date, should this provide appropriate access to capital and liquidity to support the Company's strategy..... "
Yes, and also just read this bit in a Times article from mid Feb:
Lisa Anson, the chief executive of Redx, said that most of the large specialist biotechnology investors were based in the United States, “so inevitably you start to look more and more towards the US investor base. And in order to access those pools of capital you do need to be ultimately US-listed. So we will look at that as a board. We have managed to attract US investment, notwithstanding the fact that we are listed on Aim.”
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Asked whether Redx would look to switch its listing from Britain to America or would have a dual listing, she said: “The board will look at quite a number of options.”
As you said yesterday moniman, perhaps the reason to delist is just to get the valuation up private - before a US listing within 12 months from...?!
Rayte.i saw this yesterday just by looking at the fallers thought rthe same it has fallen too much.
This must recover in the next few weeks even with risk on day traders this must get back to 7/8p possible or am I being mistaken here.
One thing that's obvious is a lot of people have been sceptical of the motives to delist. But I've seen this share on days when liquidity is really low and it can just drop in price with few little trades. I think company is getting out the outlook if they remain on AIM. i.e Having to do fund raisings at dumb price levels just because.
"getting at"
Https://www.lse.co.uk/rns/redx-announces-sale-of-kras-inhibitor-program-ppngbqoo8pjfuap.html
An £80 million Company one week ago reduced to £16 million just because of a decision to delist from a dysfunctional AIM market totally crazy imho. The company has cash into 2025 following the $870 million deal with Jazz Pharmaceutical. JMO Adyor!
I already made my thoughts clear what would happen a couple of day before the announcement, was surprised it happened so fast..
RE: Up on small volumes.
30 Mar 2024 09:09
"It wouldn't surprise me if Private Equity took Redx of the AIM market seeing as AIM is currently being overlooked by investors. With a potential $870 million future payment ms from Jazz Pharma for Kras inhibitors, the current market cap appears very lowly and the Jazz partnership is definitely a thumbs up for Redx. I'll be sticking this one in the bottom draw as anything could happen here." JMO Adyor!