Reneuron Share Price (RENE)

Michael Hunt:

https://youtu.be/NsKp92xLzVI

On that volume where does an 11p drop come from?

"Dilution on the cards" - NO
No - that time has past given their stated cash position and the the extra from Fosun. It's also important to understand the Staff and Directors positions. It was only in April that substantial options were given not just to OH but a wide number the base price was £2.22 and I think could only be exercised when the sp is double the base price.

Moreover a day or so later the Non-Executive Directors bought in actual stock (something as a LTH I don't recall seeing before) at £2.25 / £2.28 particularly two key Directors John Berriman purchasing 80,000 and Prof. Sir Chris Evans who now owns 254,605 - I can't see them standing idly by and watch this company fail.

I feel confident the market dynamics have turned a corner.

It says in the RNS, "No trading in the stock - voting control interest over stock transferred to new manager". However if you need something to worry about try this one. W's holding in RENE in aggregate was just below the level at which he would have had to make a compulsory takeover bid for the company. It is quite likely that a big pharma co. will try to acquire them. One way to prevent them from taking over the company is to issue more shares. And we know that RENE will require further capital for the next trials and from past experience RENE goes for broke when they raise capital. Dilution could be on the cards.

Can't believe I've got back in, this company will be the death of me. On the positive side I've bought three quarters of my previous holding at half the price so the downside is less I guess.

GLA, I have no idea if this is a stupid idea or not. I think multibagging is further away and the surgical issues will slow down time to market, but at this valuation, it is too good to miss with the IP they have. A takeover is much more probable now I think.