Firering Strategic Minerals: From explorer to producer. 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.
As others have said, it's sensible and good practise to take advantage of a spike in the share price, no matter if that spike was caused by a factual event or just a rumour, to get a fundraise off.
A few weeks ago, when the sp was circa 11p, we might have been looking at a discounted placing, set, perhaps, around the 7-8p mark. In that context they really have pulled the proverbial rabbit out of a hat by raising at 20p and I can't complain much about it. The fact that the sp hasn't instantly dropped to 20p is interesting too. It suggests the fundraise will be oversubscribed. Looking ahead, I'm hopeful there'll be further opportunities to reduce my holding in RENX at much reduced losses.
The position today is incomparable to where we were 6 weeks ago.
Unhooked - good observations - was thinking similar. That said - this placing does raise some interesting points - specifically around the existing primary shareholders (Sinai, Harwood, Jefferson) in terms of what they know about the unsolicited approach and whether any numbers have been discussed. If so - are they allowed to participate in the fund raise; and is this why the placing share are only being offered to a select number of participants? There was no mention of these three parties taking up the placing which was unusual in these circumstances. Wil be interested to see later today if this is clarified. Having a longer cash runway should help negotiations with potential purchasers - bearing in mind they are raising the maximum possible amount based on current nasdaq 20% rule - with the suggestion that a second placing could take place following the AGM. Also stops a low ball offer forced sale. All medicare, reimbursement, FDA, insurance objectives should be achieved by end of 2024. Interesting times. SB
Silverblade,
You wrote:
"and is this why the placing share are only being offered to a select number of participants?"
Well it's being offered round all of the usual bucket shops that offer all of the bottom of the barrel placings, so you're incorrect to assume it's selective in any way shape or form.
You think a placing is to help the supposed offer. Yet is my view that the supposed offer was to help the placing. Keep the lights on for another few months, with another fundraise likely to come. The difference next time, their wont be as many naïve people who will believe the fluff.
Silver it looks like it’s just US participants taking part so no placing stock coming to market for 45 days from 14th and on NAADAQ if at all because in that time we will know the offer price and the offeree! Market makers are shaking out those who believe the SP will naturally go to placing price but that’s a fallacy in this particular case! I’m happy to buy more however as I am sure many are. It’s a win win situation we are fully funded with also an unsolicited approach takeover offer from top tier BIGPHARMA co on the table to which is a hell of a multibag from these lows! Happy to have opportunity to buy more if sellers want to be frightened into letting go! IMHO DYOR
This was the third worst near-term outcome out of three possibilities: immediate takeover at higher price, placing at market price or placing at discounted price. I will just bide my time here now. Won't be selling, but won't be buying more either for the time being at least.
Hello SB, good to read yr commentary on this share again. I didn't know about the current nasdaq 20% rule, that's v interesting. Step by step is what I think. It could be an interesting summer indeed! Tbh, I didn't notice the placing of restrictions on who will be allowed to participate... Clarification would be helpful.
Sharebel - just a point of clarification - the placing is taking place on AIM. US participants can request shares - but not in the form of Nasdaq ADS shares.
MAJW - my point was to do with a closed placing as opposed to an open retail offering. We have a difference of opinion on the rationale but that's the nature of investing. In the short term the company needed cash and we shall see if this approach works and if there is an appetite to invest at 20p/share. SB
This stock has gone up 170% in less than a month. Of course the shorters are getting excited. The US pushed it up 650% at one point. We all know they need cash. Maj the self appointed guru said this would be 10p for the placing. He pretends he's connected. Now he says 18-20p. Changed his mind already. Shorts are mostly closing. Institutional investors are buying in. Unicorn just took 4%.
I'm not fascinated by what the shorts are doing. I am interested in the business case for this product. It's very good. As I have discussed. Maj doesn't engage with the business case. He focuses on the volatility in the sp to scare people into selling. It can go up just as fast as it can go down. There still aren't that many shares in issue considering the potential for a decent price at takeover.
I think the bidder may have put a caveat on the offer- ie. subject to the insurance industry in the US recommending the test. That would be sensible wouldn't it? They will disclose when the outcome of the consultation is announced imho.
Couldn't agree more UH and SB, well said! I have been watching this from afar, still very much invested here and think the raise purely serves to help the company get a fair and hopefully full price for what they've built and achieved.
The rest is just noise from the shorters, pumpers and dumpers.
Ignore the noise and focus on the prize that's ahead, keep calm, etc.
I think SB's theory that this is going to iis is likely. Harwood et al will probably take the lot. They're hardly 'bucket shop'. They are all well connected. I expect they know who the bidder is and they definitely know what the business case is because it's all in the public domain. US insurance coverage for all citizens who may have or may at some point get type 2 diabetes or chronic kidney disease. It's in the insurance industry interest to get better engagement with this group because they spend 7 times as much on acute kidney disease and dialysis than they do on treatment for chronic kidney disease. Reckon Thermo Fischer and Astra Zeneca will end up fighting it out for the takeover whoever's bid atm. Worth another $5 billion just on additional drug treatment - once early detection is achieved they can prevent acute disease forming but they can't reverse it.
"Ignore the noise"... well said yourself Hawker, especially on this board of late!
Interesting to see that the other biotechs in the Harwood stable, EKF, VRCI and esp TRLS, are all having a bad day today. Worries about Harwood money being allocated/diverted to the RENX fundraise?
I think it's just general malaise, they're all pretty illiquid aren't they, my money's on Harwood driving the value in each of these companies, over time, it's what he does... I'm also watching the XBI ETF which has been consolidating after a recent breakout. There's so much value in these stocks and the wider sector, surely just a matter of time before interest rate cuts lead money flows into this bombed-out and unloved segment of the market.
I’m into my 3rd top up tranche thank you sellers! There’ll be no forward selling of placing shares majority to US and there’s a 45 day caveat NASDAQ anyway from 14th so your expectations shorters and deramping squad that this will sink is misplaced and misguided. What it’s done is provided a temporary opportunity to cover and close for you so be thankful shorts. The offer from top tier BIGPHARMA co will be released well before 45 days + 2. indeed at any time now! The other placing tranche has to be voted on and no timeline given yet for that so many weeks away to say the least! So in essence there’s money secured, we have 10 million dollars assigned cash from 1st tranche heading to our bank account and a strong position from which to negotiate a possible takeover offer which has to be the highest price minimum this traded at over last 12 months. You’re looking at 1.55 basic not including the value equated to the fantastic IP we have! Sellers have not analysed this correctly today - all placings aren’t bad news and in this case we go on, we are not going under that threat ended today. Options are a long and lucrative future or take the takeover deal with min offer price at 1.55 for starters but no doubt will start with a 2! We get to buy more at these low prices to increase our holdings!WIN WIN multiple bag situation all round! IMHO DYOR
...@UH, I also think your point about the raise coming at 20p and not 7-8p is hugely significant and completely shatters the bear case that this is a bankrupt company without suitors. What if there's a cash bid announced tomorrow, the shorts will have nowhere to go to cover their shorts and the larger shorts of Armistice, Millennium, Citadel, etc likely wanted to cover in the $10m raise, but I would be surprised if they got allocated any shares and I would expect them to be covering imminently, well after they short a few more to spook the pumpers and dumpers and improve their chances of covering that is... There's a name for them and their destructive shorting activity, but I'm unable to post it on this forum.
Potential suitors will wait for the company to bleed and run out of cash and will buy it for next to nothing.
Today's RNS was poorly written by an amateur and not a businessman.
MuhammadAli best stick to boxing mate! Lol! IMHO DYOR
Congratulations Muhammadali, idiot post of the day.
Muhammadali 🤣🤣 Why Why 🤣
LOL... Brilliant replies!
Fwiw, I would't be surprised to see the shares close flat to up on the day today.
If I had participated at 20p in the round, I for one would be happy buying a few more at 30p, otherwise why pay 20???
Hawker, yeah the shorters seem to be implying that Christopher Mills involvement and Harwood's involvement is no biggie. Harwood were small cap investment fund of the year in 2023, taking 1st, 2nd and 3rd place. They specialise in M&A and helping small companies to realise their potential. Mills has had several 10 baggers in his portfolio. This will be a 7-8 bagger from here, assuming the consultation goes well. The problem with looking at the sp day to day is that it's stressful and people sell causing volatility. This is only going one way - give it time. Shorters are making some ridiculous and nonsensical comparisons.
The US insurance industry finishes it's consultation next week. Recommendations to follow thereafter. The price is set at $950.00 a test. 10 million people in the US have diabetes 2, predicted to rise. If nothing is done kidney disease will become the 4th biggest cause of death in the US. Something will be done. There's a Democrat in the top job. Thank goodness.
Correcting an earlier post of mine. Unicorn took 1.1% on 4th March after the takeover announcement. Pentwater took 4%. The latter have specialist teams for health and AI. Hmm. Total coincidence?
Apologies for my earlier mistake.