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BasilAlderman,
Fully agreed with your thoughts. I am also waiting for that. Our knowledgeable Thoth2 is more here. He showed us many times the 28P (old money) SP. The other knowledgeable poster RMM does not post anymore. Probably bailed out at 9P.
If RF have been forward selling this week then just the end of day late reported trades sit around 2.2m either way they didn't stop the SP climbing today on low volume... news soon GLA
Agreed Baz. They could go from zero to hero in the blink of an eye (or 12 years)
Laz, Krusty & Colbalt, no one would be happier than me if this rises by x 30 (again) to 390p. It's certainly possible. We might even achieve Potnak and Brighty1's £1 Billion+ valuation on a takeover. That would equate to a x 77 gain from our current 13p share price. I'm here until that kind of deal happens. That's always been my position. We have all seen many multi billion takeovers in our sector. It's why I bought in 14 years ago and have not sold a single SAR share. Let's just hope TM and SP can deliver a deal of that magnitude. We will all be happy then.
Basil, I think LAZ's posting at 11:28 far better explains the overall situation than ever I could! I'm sure you've read it.
I see that your posting has 38 likes which, IMHO, is extremely generous.
Most of the 8 points you made refer to your own investment strategy and a rehash of the consolidations and the collapse of the share price etc and what a pity it was that you never cashed in etc. Yes, we are ALL unhappy about the SP decline and have regrets about not selling etc.
In point one, you comment on why "loyal private shareholders" were not invited to the party. If you were in Tim or John's shoes, would you feel that there was such a group? If they read this and other forums they would not get a warm feeling and I doubt whether the in-box has much bonhomie in it either. They probably decided to pitch the retail offer at £300k to test the water in the knowledge that they would likely not be embarrassed by an under subscription had they initially pitched it higher (which would have been a disaster). They then instruct their agents to find a platform and WRAP was chosen. As the amount of the placing was so small, I suspect WRAP used their usual clients ,of which my broker Interactive Investor was one but yours obviously was not. By the time the BOD were advised of the unexpected over subscription, it was too late to reach out to other intermediaries.
That's my take and IMO.
Hi Basil, interesting read thank you. Re the WRAP offer not being available to all, I did apologise to you yesterday (08.46) for my error following colbalt's helpful clarification, I didn't realise some brokers had effectively been excluded from the raise. Let's hope they learn from this, along with many other lessons they should have taken from the whole debacle. One can only hope that a drop in value of their own holdings from c. £4.8m to less than £200k has chastened Tim and John, I know it would have done had it been me! K
Great post, Basil. The thing that triggers me, is, those with Stockholm Syndrome, those who will point the finger anywhere else but the board. They use whataboutery, it could be worse, conspiracy and they're all out to get us. The recent thing of wanting to throw more money at the RF is weird. It would still mean dillution and again some LTH wouldn't be able to take part. As it stands, the compsny has enough to deliver 1a data and a small runway after. If a company, whose business model is to license at the pre clinical stage can't do a deal at the clinical stage. Then the either the compound is no good or the board are no good. Why would you willingly throw more money their way?
It is what it is, we are here now. The pressure is on the board to deliver what they say they will and on time. Posters here keep telling us how good 1801 is. It's time to see if they are correct.
Refreshingly, a great and honest post. Thank you.
Hi Krusty and Cobalt,
1. The reality is that the WRAP offer was NOT open to a large amount of Sareum's loyal private shareholders although some were eventually invited but too late, for example see Andy's post.
2. I would suggest that the uptake at 10p would have been significantly higher if it had been widened to all PI's via their brokers and that Sareum could have raised much more via a bigger WRAP offer. We will get a lot of waffle from the BOD that this was not possible due to timings but they could have. That's a fact.
3. I'm just not sure if Sareum want a large PI shareholder base (again) as we sometimes are made to feel an inconvenience. e.g. The disdain shown at the last AGM, in particular, was a poor show.
4. It's not a "conspiracy theory" as you state. It's actually based on 14+ years of being a Sareum shareholder and understanding the loyalty of the investor base here. That is something that the BOD failed to do with the WRAP offer.
5. I've been buying Sareum shares at historic lows for many years (14+) and only recently went in to the red here. I had 6.4 Million shares before the consolidation which became 128,000. On the back of an envelope I worked out a while back that I had invested far more than (some of) the executive directors bearing in mind that my shares were not options / gifted but actually paid for in hard earned cash.
6. To witness the shambolic self inflicted share price crash from 440p to 10p has not been a happy experience having been over x 30 up!
7. I'm normally pretty good at spotting a share and selling it at the top. I certainly spotted a good one in Sareum all those years ago but unlike with GGP, ARB, SNG, NCYT, RKH, PYC and a few others that have done brilliantly for me in my ISAS I did not sell Sareum. Instead I believed Tim Mitchell and Stephen Parker's assurances about creating shareholder value. That was a big mistake as the collapse of the share price and value / MCAP of Sareum has been a car crash of epic proportions.
8. It's more than likely that we will get the usual waffle and pompous blustering about creating shareholder value from its new base of 10p (ignoring and without an apology for the share price destruction) but my point is these guys have overseen a -90%+ reduction in value since 2001. That's a fact not a conspiracy theory!
Agreed but not for £800K ; It would be for much less as you need to subtract whatever RF sell their 2.9M shares for .. lets say that is £290K (@ 10p say). Then we only need raise £500K to pay them off
I think they should have another raise .@10 pence This one public for 0.8 million with the stated intention of paying RF back and also give people a bit more warning. The BOD should also participate.
If the wrap had been open to all institutions it would’ve been massively over subscribed. I got a letter from HSBC yesterday advising me of the offer. Two days after the deadline. !! So many PI’s were forced to buy on the open market and most likely bought RF shares they were off loading. I would have much preferred to buy via the wrap and the proceeds go to Sar rather than those hunts at RF. !! So in reality the BOD even made a balls up of the fund raise. Will they ever learn. ☹️. Gla. Andy.
I stand corrected, apols Basil.
Basil, my understanding was that timescales were so short, only brokers on WRAP's client list were approached. It was also quite a modest placing originally. The fact that some brokers were not approached doesn't reflect on the quality of the offer and I don't think any conspiracy should be built around it.
Thing is, regardless of how we got here, RF has had all these shares for next to nothing & they're selling them for next to nothing, mostly to PI's who still see the value here. If they held on to them, they might make serious money. Does anybody here want that to happen? I know I don't.
The WRAP offer was open to all shareholders with decent brokers, if you want to know why your broker didn't participate ask them.
Ofcourse the BOD might not want PIs to hold the upperhand again, as we have in the past. i.e. we know that the wrap was not open to all shareholders. Why not is the question? No doubt we'll get a lot of waffle at some stage about there was not enough time to involve all shareholders etc but the reality is that if this had been offered to as many PI's as possible they could have raised infinitely more funds.
Agree, I am trying to get a call with Tim, but no one in the office answers.
Current buy price is 13.65, showing up as a sell
The question is could the BOD have raised more to pay off RF. If the answer is yes, then why did they not. A possible next question is is there anything we the shareholders, can do to change course. The next question would calling an EGM be helpful in getting a change of direction.
Re-reading the terms of the Equity, RF can at any time request the next tranche of issues once they have exhausted the previous set. I think this is just the next 50% to 65% range of the funds owed to RF. 2.9m taken, remaining 800k owed (after this issue), and this set equates to 300k approx. we're just over halfway through the RF saga.
Damion, they've got used to feeding off investors with raise after raise. I don't think over the past 20 years we've seen much business acumen here otherwise we would be much further forward than we are today....
Good luck, as we are clearly going to need it, Brighty
I see that was the tactic. Tim and Co to blame. PH worth the money.
The only possible way that this makes any sense at all, is that positive news is very very close, why else would they do it. Let’s wait and see.
In fact why are they even talking about spending the extra money on preclinical hasn't every RNS stated that all funds are being directed at 1801, it's like they don't even know what to do with it, how about pay off RF you Muppets or keep it towards P2a or for extended working capital..
Answers?
By the removal of paying RF in "cash" from the RNS and now stating "the Company expects to settle all balances by the issuance of Subscription Shares prior to the Maturity Date" That feels like a kick in the nuts after the extra WRAP raised and to do what crack on with 1802 when they never should of stopped working on it... frustrating as f**k this share.
Let's hope we get a positive RNS soon....GLA