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Sorry, last sentence should read "accountant"
Ripley,
Yes, in principle losses can be offset against gains as far as CGT liability goes,
There are a number of considerations though that can make the actual calculation complicated:
There are different rates of CGT for stocks and residential property. So offsetting one type against another will affect the tax liability.
There is CGT allowance and a personal tax allowance and both may come into play.
A capital gain is taxed when it is materialised so you can't offset paper losses!
Your account will be able to advise you on your particular circumstances.
Ripley
You'd have thought so but others here may know for certain.
Difficult decision whether to hold or sell. The obvious difficulty will be if you need access to the cash and can't sell but the upside is that C4X have great potential and strong leadership and I feel they may be biding their time waiting for conditions to improve for a NASDAQ IPO. If so that problem disappears.
Thanks again Bermudashorts
I have just kept my C4X the ones in the ISA were at the bigger loss , they will be transferd and held in the non ISA now.
As a side if they were ever to go bust , I wondered if you could offset against gains in ordinary acc .
EE, "The exit route here is a corporate deal, at some point in the next year or so, on the back of trial results and proof of platforms….."
Indeed...or as bugs bunny would say ...that's it folks !!
Let's get those deals done ✔️
The exit route here is a corporate deal, at some point in the next year or so, on the back of trial results and proof of platforms…..
I imagine the main reason for delisting being brought up is because finances are steady, and trials are properly established and looking favourable. While anything is a possibility, delisting wasn't mentioned even during the financially very tight times and a trial drought. There will be a few who probably wish they'd thought of stirring the pot with this new bête noir to assist with a bit of trading leverage.
Honestly I don't see Scancell delisting anytime soon. Simply because they're too focused on getting the research across the line to worry about the stockmarket. Whilst this isn't great for investor updates, it's great for pushing their progress forward.
I've always thought of Scancell as a bunch of scientists who occasionally remember they're a public company and then instantly forget again and go back to the lab! To be fair, this is such an important piece of research they're working on, I'd rather it was that way round.
I believe the company will stay public and a buyout will be coming when the research is sufficiently de-risked. Could be Q4 or Q1 2025, who knows. But it will land with a bang.
Thanks all for the insight on this. Ive noted over the last 18 months or so that several LSE stocks have highlighted their low valuations.
Question regarding institutional investor divestments: These have curtained momentum on share price rises every time over the past few years. What options does Scancell (besides delisting)?
Thanks Bermuda,
I think the inability to hold in an ISA would be a major factor in deciding whether to hold or sell up.
Thankyou Bermudashorts
For this post I have C4X disappointment and not sure what to do.
Have some in ISA as well I guess they will have to transfer out to ordinary acc .
Ruck,
Sorry have only just seen your 12.07. As square10 has said retail investors have a choice - either sell at the best price they can get or keep holding. Both Redx and C4X are putting in place a matched bargain facility run by JP Jenkins in order to help investors buy/sell after delisting. Essentially you let them know how many shares and the price and they'll try to match the trade for you. However you can't deal directly with them, it has to be via your broker and there is no guarantee the facility will remain in place in the long run.
If Scancell were to go down this route there would be a third option and that would be simply to vote against the delisting.
If I may- you can either sell in the market-price will be much lower as we've seen from both companies mentioned, or hold shares in the private company where liquidity is very low indeed, hence most sell. I do however believe this is very unlikely for Scancell, at least for the next couple of years
Bermuda,
IF Scancell were to go down the delist and privatise path, what would happen to current private investors. Would they be made to sell and if so, at what price?
1/2
I wanted to comment on Jouang1's post last night. C4X and Redx's delistings are really significant events and everyone who is long on any AIM bio, not just Scancell should be asking themselves the same question. Although it's popular because it's what we'd like to believe, simply stating that it won't happen to Scancell because it runs a tighter ship and has more chances of deals is not the answer IMO.
C4X and Redx are two of the most successful bios on AIM when it comes to deals. They both have signed several deals with big pharma worth up to $2.5 billion and have already banked nearly $115m in milestones and up front payments. Before anyone leaps to Scancell's defence, they are both operating in a very different space to Scancell. They create best in class small molecules - much easier to cut a deal if your developing a molecule that is superior to an existing FDA approved product than if your going after completely novel and unproven targets. So both companies have a proven track record of creating commercially attractive molecules and the expectation of further deals. C4X is sitting on a pile of cash and Redx have a cash runway to 2025 but with additional near term milestones expected.
Whether to remain listed on AIM boils down to a simple cost/benefit analysis and both bios believe the scales have tipped in favour of being run as a private company where they say they'll have access to a much wider pool of specialist investors. Valuations on AIM mean that they'd either have to accept massive dilution with every round of funding or they'll have to reduce costs by scaling back on R&D thereby hampering development of their pipeline. The fact that the redemption date for the Redx CLNs held by Redmile and Sofinnova is fast approaching (Aug 2024) and that they both have a seat on the Redx board must surely have been a factor in the timing of this decision and worth noting this line from their RNS:-
'the limited liquidity in the Ordinary Shares makes it challenging for Shareholders of any size to acquire additional Ordinary Shares or dispose of any Ordinary Shares in the market at an attractive price'
2/2
Having said all of that, the original question was whether Scancell differs from Redx and I think it does for the following reasons:-
1) Scancell are funded through to 2025 inflection points. Crucially the redemption date for Redmile's CLNs isn't until the back end of 2025 and they can't convert before this date. This means that Scancell can afford to wait and see whether market conditions improve
2) Scancell have nearly 930m shares in issue and the bulk are held by retail investors. C4X and Redx have just 252m and 389m shares in issue with a much lower percentage of these held by retail investors. This matters because in order to delist a minimum of 75% of votes are needed and I'm not sure Scancell could achieve that as most retail investors would likely vote against delisting.
3) Both C4X and Redx are further down the deal making road and this combined with the space they are operating in may make it easier for them to raise cash as a private company thus tipping the scales a bit further towards delisting
For all of the above reasons and simply a gut feeling that I can't imagine Lindy Durrant going down that route I think Scancell's situation is different. For sure though Redmile will want to see an exit route here. They may agree to extend the CLNs further and there are other possible scenarios (NASDAQ listing, sale etc.) but one way or another 2025 really is an important year for Scancell.
Apologies for the long post but we focus so much on the science on this bb and it's easy to overlook or underestimate the commercial/financial/corporate issues and bios delisting and the poor performance of the AIM market is something that we should be discussing in an open and balanced way. All IMO of course.
I agree Bobbust that’s some cash burn 🔥
They were burning through the cash at a fair rate £33m for the last year. I think they must have found it dificult to raise any more.
Looks like we run a tighter ship with a longer runnway and more chances of deals to fund the rest of the development