Renalytix Plc Share Price (RENX)

It’s coming soon… pounds not pence! IMHO DYOR

Mikodx - 100% agree that Renx has huge potential. That said - as we are all aware - the company has an FDA approved product (the regulatory bit); a US government approved cost model (the reimbursement bit); and goodness knows how many insurance/healthcare partners signed up who can access the test (the insurance bit). Despite this - there is little evidence that the clinical market is ready to purchase the tests, despite all the validation evidence available. Perhaps the medicare local coverage determination is the final piece in the jigsaw. In its defence the company has achieved a lot in a short time period; however its commercial and financial approach has appeared at odds with its positive healthcare journey. I do not assume a takeover at a decent price is a foregone conclusion; but given the potential there are pharmas/diagnostics who could view this as a bargain - even at multiples of its current valuation. On the subject of dilution - you are correct to note the company currently has c.124m shares in circulation. My estimate was based on the addition of the 26m second close funding placing shares which will be approved at the GM next week - gets you to 150m. Interesting to see if GB Capital take up their option at 30p by close of play tomorrow - if so that adds a further 8m. The convertible bond holder will continue to be paid in shares - currently 3.6m per quarter based on current share price. There are also a significant number of options available to directors, management and employees - exercisable at various values which will effect whether they are taken up - a further 37m in total. Lets hope we get some clarity soon on what's going on. SB

Silverblade - I agree the dilution is bad, but it's gone from 95M - 120M not 150M. Still not too bad, and the latest dilution should be the last. The company now has enough money to keep the lights on and see out the Takeover bid.

I've only invested in RENX because it has the KidneyIntelX platform which is FDA approved and being used and fully funded by Medicare. It's also being used by major United States Insurance companies and multiple state Blue Cross Blue Shield organizations. RENX has huge potential and could be about to be taken over by a big pharmaceutical company. That's the only reason I'm here, If it was because of it finances, I would have stayed well clear of this company, it burns through far too much cash. This Takeover has possibly come at just the right time.

Trickymatters - Too right, we really should be around the 35p mark, just a couple of pennies short. But it's to be expected as the UK are currently in the middle of a recession. Used to be able to get almost two dollars to the pound, now the dollar has almost the same value as the pound.

1x ADS is equivalent to 2x UK shares.