Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Whilst it’s difficult to argue with your conjecture it is surprising nevertheless if it is true that the company didn’t put a more optimistic spin on their announcement, rather allowing the stock to tank once again. Anyway I’m off to bed and hopefully when I wake up the board’s optimists will finally prove to be correct.
Trying to get answers from the company. I have heard second hand so can't confirm yet if true, that company was trying to test the market regarding a raise and wanted to raise at a premium to what the share price was. The reason they were trying to raise is that some of the deals they were hoping to sign in Q4 have been delayed into 2023. the raise was pulled when they didn't get the price they wanted. Like I said this info is not from the company so not sure if true.
Sajay is quiet lately
In the twelve months until cash literally runs out what is going to change?
1. Global inflation will remain high
2. Geopolitical risk will remain high
3. Markets will continue to look to safe havens
4. The door towards the global biotech sector will generally remain closed
5. Rene’s poor to average management capability won’t have changed
6. Rene will continue to have no brand value
This suggests the Board will liquidate assets in a buyers markets, which means effectively selling patents. Would be happy to be proved wrong.
Exactly. It is utterly bizarre. What are the companies debts though?
With the market cap at £8miil and £ 12.5 mill in the bank why would anyone do a deal when the could buy the company and take the cash and all patents and show a profit. I feel for the current CFO she has not many cards to play to get a good deal either for the company or the long suffering share holders.
Some fair comments here.
I would echo the sentiment about how they can publicly state 8 months ago that they would not be raising money through new equity, then release the RNS the other day which opens with 'we've tried and failed to do the thing that we said we wouldn't do'. Absolutely shambolic.
The only conceivable explanation I can think of in their defense it perhaps that as a 'going concern', there is some regulatory obligation to state what steps they have taken to ensure there is adequate funding to avoid them being a going concern. Anyone know if this idea has any credence?
Hi,
There are other possible outcomes mostly negative but a few positive. Personally I’m surprised Fosun doesn’t just take us out, not even pocket change to them. Not sure if there would be any significant legal problems. Or otherwise other mid or large pharmas doing similar. Perhaps they are waiting to pick up everything for virtually nothing but it is at that level really now. Or they view the intellectual capital as insignificant.
I suppose is encouraging that recently new apparently well qualified people have come into the company. Perhaps we are on the brink of a significant exosome break through. Hey ho. Cross fingers.
In since 2013 with many (small) purchases to price down. Even so 80% down to a couple of k. Probably going to ride it out now. Have w/o.
The BOD seems to be preparing people for the battle ahead which could go either way.
Here are some scenarios.
1) A miracle happens and POC is found by one of the companies currently doing the work. They've been at it for a year and there's been no feedback yet!
2) The BOD goes back to the market in Q1 or Q2 and the market conditions are more conducive and less risk adverse, but this is more hope than an actual plan.
3) We ask the Quatar, Saudi Arabia or any of the gulf rich states for the money, they've got plenty of it
4) We ask some dodgy oligarch for the money, but we might have to go to war with Ukraine or join the Wagner Group.
5) If none of the above are viable the company may be put into administration and sold as going concern, so you might get something back.
6) Worst case scenario, involuntary liquidation.
I would personally like to thank the previous board for sitting on exosomes for the past nine years, firing the guy who was in charge of the program, and wasting all the money raised on passion projects that had little chance of fruition.
I hope that they choke on their turkey and may the yule log's role from their fireplaces and burn their houses to the ground.
Merry Christmas everyone and a Happy New Year.
A late large trade not sure if it was a sale or buy. I have been here since 2017 and averaged down many times but now am very depressed about the current situation with so many false dawns
Suggests too me there's no real confidence get any real meaningful deals away cash burn high, enough c them I believe 3rd q 23.Board has concluded that it will not be possible to complete an equity raise at the current time,
Thanks Graffiti, a good summary and as you suggest those with a true inside track, the main stockholders appear not to have the confidence to dig deeper at this stage. C’est la vie of a high risk high reward biotech but no doubt some will soon return to this board to offer unsubstantiated optimism. Let’s hope they’re right.
Not surprising that they weren't able to get an equity funding underway in the current market. The surprise really is that they tried, particularly having publicly stated that they weren't going down that route in the short term. I'd, maybe naively, hoped that there were deals in the offing that, combined with the £10M+ in cash and reduced capital spending requirements, would negate the need for dilutive equity raisings.
That's my big disappointment here: that the rather desperate attempt to raise cash suggests a real lack of confidence in their ability to do deals in the short term. So, I'm pleased that they haven't announced a dilutive funding round, but a little less confident than I was yesterday in the prospect of upcoming deals. I suspect that we're all so far down on our investments here, that we have no choice but to hope that they pull a rabbit from the hat: I think we probably all share optimism about the underlying technology, so let's hope that this is enough and that we get some good news here soon. GLA.
Wow is it really 15 years since Brexit already Prospero?
Agree completely. Just another example of Brexit Britain being a horrible place to invest, and the AIM is completely unfit for purpose. I will never invest in any UK Biotechs again. I had invested in RENE since 2007 but got out at 28p a couple of months ago and have felt much happier it isn't wrecking my portfolio anymore. It's just been a long line downwards for 15 years.
The Labour led Welsh Government invested in RENE. Do you really expect those muppets to be able to pick a winner? But if the senior management are still chums with Welsh Labour they may get propped up with more taxpayers money. Plenty of such scams going on in Wales if you're a Taffia crachach insider.
I would agree with that fwiw. However they stated they would not raise, they also stated they would buy shares and that amounted to token gestures. Regarding financials I’m not saying there isn’t potential but they should have better highlighted what’s in the pipeline. Nothing in todays statement read positive, no idea how they expected market to react other than negatively
Correcting spelling mistake in subject.
A very interesting set of Interim results which need to be read very carefully without concentrating on the forward looking statement:
As noted previously, it has not been possible to complete an equity raise at this current time. The Board will continue to explore alternative funding mechanisms and note that in the absence of any further financing, the Group's current financial resources will be sufficient to support operations until at least the start of the fourth calendar quarter 2023. The Board therefore considers it appropriate to continue to adopt the going concern basis in the preparation of these interim financial statements. However, there is no guarantee that future attempts to secure adequate additional revenues/funding on a timely basis will be successful and, therefore, this represents a material uncertainty, which may cast significant doubt about the Group's ability to continue as a going concern. These interim financial statements do not include the adjustments that would result if the Group were unable to continue as a going concern.
Set this against another forward looking statement;
Fosun Pharma
· In July 2022, a Supplemental Terms Agreement was signed with Fosun Pharma for the Technology Transfer of CTX into China, highlighting continued progress with the collaboration
· The Group expects to receive approximately £1 million over the 24 month period from signing the agreement, of which £320,000 has been received. In addition there is potential under the Technology Transfer agreement for the Group to receive up to £5 million over the medium to long term, with further potential milestone payments of up to £74 million linked to the main agreement signed in 2019.
... and the financials that don't look bad enough to warrant today's drop to 16p (as I write).
I got out at a loss a while back. Actually felt that Iain Ross guy would come up with something. He last stated he would buy shares and do deals and would not be looking to raise capital. Not what todays update says. Dishonest imo and the company are a joke
agreed, only a capital gains offset now
should never ever be a listed company but a university project, and think most if not all on here will never invest in biotechs ever again, they are a dreadful investment
With you there Leem1. Have gone through huge quantities of shareholder cash and goodwill. The only silver lining is when you've lost 90%, the share price fall of 25% doesnt add up to a bag of beans. the fact that a company that is meant to have state of the art exosome tech which as I understand it it is at the forefront of bioscience at the moment cannot raise any meaningful shareholder funds means its pretty much done. Will watch it wilt on the vine and right it off against all those capital gains I have...oh wait :-)
The worst investment and company I’ve ever come across, clueless useless management that deliver nothing whatsoever
Taversham that’s a very big ‘IF’. I saw nothing in that statement to give me any cluethat there’s any good news in the short or even medium term. It screams red flag as does their inability to raise any more cash.
As things stand this is looking like a slow agonising death.
If we can release some good news over the next 6 months the equity raise should be much easier. We shall see.