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Why would they do a placing when they can use the loan facility …
Apologies if that is harsh, it was aimed purely at those putting a spin on it for their own agenda. I have been stung myself and sympathise with any genuine holder
The gap between the US and UK valuation needs bridged asap, again the US REMAINS AT .566 that’s .445 in the UK yet we are at .175.
Ignore the depressed losers who got stung here at 5p t he y will see their money returned but for now they try to stave off new investors
Riz29
Don’t forget they lied about becoming cash flow positive by H2 2024 before, repeatedly and then did the placings. It feels like the same tactic to boost up the share price with pumping and do the placing like JAllis warned.
Bloody hell! What a research 🧐 JAllis 👏 well done 👍🏼
It answers why there were so many big sells in the past few months. Private investors were buying yesterday considering STX’s cash level against their market cap but nobody probably dug this deep to reveal the truth behind the scene.
Thanks
This is not about being cashflow positive, it's about minimum revenue covenants. I suggest you read the small print in the $20M funding RNS from Sep 23.
Ps. My last post probably explains why the CFO and CEO haven't bought any shares at this price
They in the meeting repeated that the have sufficient cash to take them to H1 2025 , where they will become cash positive
Company must meet minimum revenue targets set by SWK as below.
Trailing Four Fiscal Quarters (i.e., 12 months) Ended Revised minimum revenue targets
Q3 2023 - $8,500,000
Q4 2023 - $14,500,000
Q1 2024 - $15,000,000
Q2 2024 - $16,500,000
Q3 2024 - $22,500,000
Q4 2024 - $31,500,000
Q1 2025 - $38,900,000
Q2 2025+ $45,700,000
If it doesnt meet these targets it must do a placing for the difference according to the following conditions:
"In the event of the breach of a minimum revenue covenant, Shield can avoid default by raising equity or subordinate capital equal to, or greater than, 200% of the breach. Shield has a period of 40 days from the date of breach to evidence to SWK the raising of sufficient capital to cure such breach. Shield can utilise this cure route three times over the life of the facility and not more than twice in any 12-month period."
If it cant then SWK can step in and takeover the assets. This is high risk bet on STX being able to hit these targets. The ability to hit these targets just became more difficult not only by the downward revision in the prescription data but the Texas PMB issue discussed on the Investor call yesterday. It was noteworthy that the CEO said he could not and would not commit to a timeline as to when Texas would be back online. Even if it does come back online how long would it take to come back to the levels previous to the issues? This will impact the trailing 4 quarters numbers and if it means the trailing 4 quarter revenue is not at the minimum revenue level then its a placing for 2x the difference.
Q1'24 trailing 4 quarters (T4Q) are Q2'23, Q3'23, Q4'23 and Q1'24.
Based on RNS data we know revenue in Q1'24 was $4M from 28,800 prescriptions. Company has not disclosed Q4'23 revenue figures but has said Q1'24 prescriptions were 1% greater meaning Q4'23 was c 28,512 prescriptions. Avg selling price in H2'23 was $145. 28,512 * $145 = $4.1M. Q3'23 had 27,750 prescriptions, at $145 per prescription thats $4M. Q2'23 had 15,800. Avg selling price in H1'23 was $119 (see call yesterday) thats $1.9M.
Thus total revenue for trailing 4 quarters to Q1'24 is :
Q1'24 - $4m
Q4'23 - $4m
Q3'23 - $4m
Q2'23 - $1.9m
Total = $13.9m. SWK's minimum revenue target covenant for Q1'24 is $15M meaning target has not been hit and company will have to do a placing within 40 days for approximately $2.2M. And then potentially the same again if Texas is not online for Q2'24/company can't hit that T4Q target. If thats the case and company doesnt hit Q3'24 target either ($22.5m!!) then its failed to meet revenue targets given it can only avail itself of the placing route twice in 12 months according to SWK conditions and SWK has claim over co assets.
To sum it up, seems placing for circa $2m is definately on the cards within the next 40 days and there is high risk of another after Q2 or SWK taking charge of assets if Texas isnt online in time.
£25k buy just gone through - first of many shorts closing maybe
tomorrow will be interesting :)
agreed dr *****o is a simpleton, he follows me around like a bad smell.
Descartes once wrote "Whilst I may not agree with what you have to say I shall defend your right to say it". No-one makes anyone buy or sell shares. Everyone is entitled to say or post what they like within reason. That's the essence of capitalism and a democratic society. If anyone can't accept that then they shouldn't be here.
NG
1.7 burst! In auction now
Take a look at GBP Gordon the nice big vacuum you created with a pump and dump. You sold out there or just pumped it today for fun… watch this drop like a stone tomorrow early doors now Gordon has arrived ☠️☠️☠️☠️
Still 200% in US! Flat from yesterdays rise
In the last week Gordonbennett has been able to predict every daily riser this week....is it a fluke? is he the greatest investor ever? or is he just an ambulance chasing investor? the same old phrases, orders being filled, cheap as chips down here, big volume today, we are due a breakout etc etc... he just turns up and ramps...
Take a look at GBP what he has just pump and dumped....
Good work GB! The mkt is always slow to catch up. Bet if US was down we'd be tanking right now.
US .0566 GBP EQV 0.044 yet we are 0.0165….. go figure! The us value this as it should be
Short squeeze must commence, Us holding strong! This should not be down under 4p really! Metrics are stronger than they were at 5p. Oversold on the back of a data blip
Now no.3 on leaderboard. Looks like the shorts are sh**ting themselves!!
GLA
Now a huge disconnect between the US price, it opened flat which means t he 200% jump remains
It’s only 2.30 Alan! Give it time, US up 200%!!!!
It was 3 times higher than this just a couple of months ago and they seem to have done so well since that drop, you would think this would have gone a lot higher today. It looks like an absolute solid company which is rare on LSE
Had my fingers and toes burnt too many times… as tempting as it may be, I’m not buying anymore…. even if I knew it was another 50% tomorrow. However, I may think about it once I recoup some losses !
Burn them all!! About to pop now with 1.67 to sell
Enjoy :)