The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Valueseeker you didn't like it when I pointed out the cashflow issues even before the raise, and tried to give me a pretty smart reply to that. You've also been making unsubstantiated claims like how this will have exponential revenue growth, and shooting down other posters who pointed out some of the glaring issues here.
Rather than now trying to present like an expert now, you should be accepting a bit of humble pie and admitting you were wrong. I hope nobody was fooled by your ramping.
Who is going to buy the fundraising at 10p now when the price is 5/6p because of the bombshell to delist ( in 6 months time ??) was delivered during the delicate and sensitive process of the fundraising???
Why were shareholders not told of the decision to delist when they were asked to vote on the fundraising meeting on Monday??????? This is frankly incredible to me.
What going to happen to the fundraising price now. Will Roxi half the price to 5p??????
How exactly is this supposed to encourage investment in smaller British companies, the aim market for emerging companies and the UK tech sector????
All good questions valueseeker, hopefully we'll get some answers over the coming weeks. It also seems very odd to bury the delisting in the detail of a funding RNS, as if it's just a minor formality.
All that is good as an interesting side show( and actually as a means of diverting attention from what has actually happened) .
The fundraising was actually going well. The cash was a life saver to the company assuring it's future.Ok it meant that Roxi was going to get effectively half the company in return but shareholders would still have a stake( which they could maintain by participating in the fundraising) All good, in fact even more so as Curren's control would be lessened.
However the bombshell ( and it's nuclear and the result of this must have been foreseen) was the tactic to delist and take the company private announced at the same point as trying to get a big fundraising through and realise more emergency cash yesterday????
How obliviously destructive of any value that may be being restored. Delisting means existing shareholders are disenfranchised ( basically wiped out) when company go private they can do what they want. They can and usually do, dilute legacy shareholders out of existence. They sideline them, reissue shares, consolidate and generally rearrange them out of existence. My question is why do this now while still trying to arrange a delicate, critical fundraising to keep the very lights on at 10p????
The share price reaction says it all( - 45%in two or so hours?) incredible. If this was always the intention why was this not given out before the vote on Monday so shareholders knew the truth about f what was really happening. Shareholders voted for a fundraising and staying listed not to be obliterated.Why were these material facts witheld from shareholders??
Shareholders were voting without being given the complete facts???
I find it very hard to believe such a momentous and climatic ( read devastating) decision to delist the company and destroy shareholders was made on the day before good Friday and already packing up for the Easter break???hmm.
Frankly incredible turn of events this week
Been thinking about yesterday’s announcement and in particular the somewhat hurried additional CLN, the extensions to the exclusivity angrrement and the irrevocable undertakings that Curren has made. I couldn’t understand why the Board and Curren would do that, as it effectively commits them, but not Rox, to the fundraise and closes down any other sources of finance.
I think, however, there is one scenario where it would benefit all parties to do just what they have done - a takeover bid from another party.
We all know that SND market cap is only a fraction of its true value, brought about purely by the cash position. With support from ROX, the company’s finances are transformed and the valuation would likely rise very significantly - let’s say to a conservative £50m (it’s been at that kind of level previously, and has built its order book considerably since then).
So, for a decent injection of cash, ROX acquire a significant share of the company (50% ultimately, subject to the waiver being approved). That dilutes Curren, but the business is then back on track with its valuation rising, so he owns a smaller share of a bigger business. Everybody’s happy, but the plan has a weakness in it - what if there’s a predatory offer from another party before everything is completed (recognising that the regulatory approval is out of their control)? Another bidder could come in and offer, say, 15p per share now and take the whole lot for about £16m. How could the Board not accept that offer? But, with all of the changes announced yesterday, any offer would now be subject to ROX waiving Curren’s irrevocable undertakings, their terms for which might very well be that the fundraise is allowed to complete on the terms agreed, their loans convert and they want a minimum of x per share to agree to the takeover?
Could it simply be that yesterday’s move was to create leverage in any takeover negotiations? It seems to have been done rather hurriedly, so maybe they felt that the current valuation presents a flaw in their plans, so this has been put in place to significantly strengthen the company’s hand in the event that a third party makes an approach?