Member Info for B2HS2L

Thanks guys for your views.

I have limited time at present, but will have more tonight, so will make this do for now.

Chester, I have seen but will have to re-find articles about the refurbishment of the Texas facility.
From those articles timescales might be deduced, however there is no mention of expenditure on capital equipment, so I don't know the timing of investment in plant equipment.

MidCap know that there is a problem with finances scheduled for March, but must also know that TRX cannot fulfil their orders at present, so basically everything TRX manufactures between now and March is already sold.
That being so, they know what income to expect when time for paying an invoice is taken into account. The only unknown is if TRX fail to keep up with current productivity levels because of labour unrest or equipment failure or some other issue.

"MidCap want to make sure their investment money is going to be safe before they jump aboard the Tissue Regenix train. "

As I see it, MidCap could be constricting the rate of plant development because they control drawdown, so in effect MidCap is already on board the train, and they are already controlling the rate at which TRX can invest in Texas, and possibly this is one of the reasons the FD resigned.
They might do this because they want TRX to spend the cash available without a drawdown in the way MidCap wants, not the way TRX wants.
Once TRX has no funds in March, Drawdown might be conditional upon what it is to be spent on.

I hope I'm wrong about this, but it's the way it feels to me.
Hoping to post tonight.

Thanks all.

From the 14 Nov RNS;
"Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."

My problem is with the finances of TRX at present.
They repaid Midcap $5.5Mil, and now Midcap has discretion of drawdown, so not surprised the FD resigned.
Just how quickly can TRX now implement their plans for the new plant in Texas, - is it as quickly as TRX intended, or much faster / slower?
When tranches are allowed to be drawn down by MidCap, we should expect an RNS to advise, - yet no RNS.
So are Midcap waiting for sales invoices to be paid before further plant investment resumes?

Happy to hear your side of this coin.

Futura management should be wasting no time in making 'Placebo' available as a special prescription, in the way MED2002 was available as a special prescription a few years back.

Blaustein, - If Ken James does not understand it we are in trouble.
Have asked the company to broadcast today a denial that GTN was present in the supplied placebo.

I wonder if we will ever know that a mistake has been made.
The 'placebo' provided actually contained GTN..

Lets not forget that the Phase 3 trial had the input of regulators and interested pharma and Key Opinion Leaders.
We need to check what was used as placebo in Phase 2 before further comment.

This is such a big surprise, I think interested pharma might take a while to comprehend outcome, but short term sp will be negatively affected.

Thanks for the historics surfi. This article is exactly 6 years old.

nomlungu
From 14th Nov NS
"MidCap has agreed to add the repaid $5.5 million of Tranche One to its commitment amount under tranche two of the Term Loan, which consisted of $5.0 million and now consists of $10.5 million ("Tranche Two"). Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."

It is MidCap who are waiting for "satisfactory recapitalisation", whilst holding on to the reigns of TRX spending.

So we can only hope that the new Texas production facility is being developed with little financial restraint, and timescales for first production not impacted too much.

This company needs to find itself a more understanding lender.
One who appreciates that the golden egg has been laid, and the goose is currently up for auction, so speed is imperative.

Thanks Liam, - That's on my Christmas list then, since I don't have a birthday between now and Christmas.
Lets hope amazon delivers to the North Pole, and it doesn't get damaged coming down the chimney !

Liam, - Which book or website are you using for reference to translate price action please?

Hmm.. Feb 4th JTP tweet contained Brockham oil sample images showing water content dropping, and the comment
Picture taken of Brockham samples during the clean up. Left is first brine progressing to oil and brine.

"Well flowed naturally even with water which is much heavier than oil dominating flow. Rates increased all the way through. Confident we can get this going nicely, isolating the water is not rocket science. Think we should have perfed in smaller zones to begin with". - Explain that LL, (no point asking JTP).

Midcap has a need to control the drawdown of funds.
From the RNS last week-
" Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."

I see an opportunity for a private equity company to buy TRX, invest short term in completing the Texas plant upgrade, do the staff hiring / training, and sell on for multiples of what was paid. - This would not take that long to achieve, most industries have these p.e. companies.

After all you cannot get a company intending to break even next year with unique products like this so cheaply very often.
There are no regulatory / sales and marketing issues, - its all done and dusted.

Agree it is a little confusing.
There is no sales problem, - sales are great.
The problem the company has is how to fund the extra production required to ship those orders on time, and MidCap want to control company finances. They've made a good start with the CFO's resignation.

From last Thursdays RNS.
"MidCap has agreed to add the repaid $5.5 million of Tranche One to its commitment amount under tranche two of the Term Loan, which consisted of $5.0 million and now consists of $10.5 million ("Tranche Two"). Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time."

Understanding Recapitalization (Investopedia)
Recapitalization is basically the strategy a company uses to improve its financial stability or overhaul its financial structure. In order to accomplish this, the company must change its debt to equity ratio. This is done by adding more debt or more equity to its capital.

There are many reasons why a company may consider to undergo recapitalization including:

When share prices fall
To protect itself against a hostile takeover attempt
To reduce financial obligations and minimize taxes
To provide venture capitalists with an exit strategy
Bankruptcy

To me it seems that MidCap want to stabilise TRX's finances.
They want to see goals met before access to further funds is agreed.
They may want to see how much more product can be shipped in the near future, before further funds released.
Further production improvements must surely be ongoing for the Texas facility?

CFO Mike Barker:
Perhaps MidCap's stance on the re-figured tranches was the reason CFO Mike Barker resigned on the 18th.
MidCap perhaps discovered he was on the way out.
MidCap wanted him out.

2p is where the sp was recently.

Some are unsure why the sp has not moved north as quickly as they expected, now todays RNS gives details about the new loan arrangement.

From the RNS:

"MidCap has agreed to add the repaid $5.5 million of Tranche One to its commitment amount under tranche two of the Term Loan, which consisted of $5.0 million and now consists of $10.5 million ("Tranche Two"). Access to Tranche Two and the final tranche of $2.5 million ("Tranche Three") of the Term Loan remain in place, however the drawdown of these tranches is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time. "

Also

"The Company estimates that, following the Repayment, it currently has sufficient working capital until at least the end of March 2020. The Board is currently considering the funding requirements, and further announcements will be made at the appropriate time."

What has changed is amount of funds available to the board, and there is now a funding hiatus scheduled for March 2020.

It has less capital available due to $5.5 million immediate repayment, so Project management for developing the Texas facility and timescales for getting more product shipped must surely be negatively impacted by todays loan re-arrangements.
The company might no longer be able to make its own decisions about what is financed and when in the Texas manufacturing plant.

So I feel that until further information is made available, 2p per share is no longer fair value for this share, and that is partly reflected in why the sp has not headed north as fast as some expected.

Hoping for more news from the board soon.

Taking into account the difficulties the company is experiencing trying to manufacture enough product to satisfy demand, the difficulties with funding production increases, and the present share price.
I don't see the lender pulling the rug from beneath the company, as the inability to manufacture fast enough is the root cause of present financial problems.
Progress is in hand.

That said, any competitor might be licking their lips and making plans for a bid, - Opportunity knocks etc, - or is that too fanciful?
After all the company intends to become profitable in the not too distant future, so much of the hard slog toward profitability has been achieved.

If someone wanted TRX, I think the problems experienced by the sp attributable to Woodford share ownership might have alerted a competitor to a low bid opportunity.
Now compounded with problems maintaining the covenant of a loan (and the effect on the sp) must be the icing on the cake, so any interested bidders watching closely might feel the time is now right.
A quick resolution to the loan covenant issue required here for sure.

Ergo.
If JTP were not employed by ANGS, and were not such a large shareholder, perhaps the sp could improve from the influence new investors might fear he still has with nominee, GL,
once they had completed the due diligence they might perform on any new investment (!).

RXDAV,

Have signed up with Penningtons early August, and checked this morning that I am registered as having an interest in 'exacting retribution'.

They say they are meeting with council next week to establish how they might proceed and advise interested parties later.

If you had been Lucan, wouldn't you have required Tidswell to provide some answers, - I know I would.
If oil maturity is an issue, I don't believe Andrew Hollis and / or Tidswell have been doing their jobs properly.
Lucan says he has confidence in Tidswell, but we should not be having confidence in either.

That's probably why Angus is going gas, lots has been extracted, and presumably maturity isn't an issue.

Lets hope they don't put Tidswell in charge of connecting the gas field.

No dates for loan repayment, - not good enough.

https://www.thelondoneconomic.com/lifestyle/my-business/energy-giant-founder-reveals-spectacular-blueprint-for-2019/15/03/amp/?__twitter_impression=true
JT-P's March 15th interview, - he doesn't mention Brockham or try to 'big up' its prospects. Instead we get:
“The company is set to become a technical partner on several big and exciting ventures, we will unveil those details shortly".
Several? - I hope we don't get more surprises before the CC.
As for becoming a technical partner on ventures (note the plural) various, the Brockham failure and the way it was handled will leave a very nasty taste in the mouths of any prospective partners, so maybe the gas field is all that will be announced for now, unless Clanwilliam has other (no cost) projects up the other sleeve.

Talking of partners, how will the Balcombe partners be retrospectively viewing their decision to allow Angus to become a 25% partner and operator in the well now? - Surely they must be looking for a solution to this dilema.
Work with Tidswell? - If there is no option, - but make sure there is a site ban on acid..
Can we be sure no acid has been used at Balcombe, as I believe it was acid that screwed Brockham prospects?

+++++++++++++++++
I got from Alan2017's posts, an interpretation of the companies RNS's. These have been critisised here for being not crystal clear.
He got much right when 'reading between the lines', and not much wrong. I didn't get anything from his spats with Pboo et al, but his technical and timescale explanations and deductions provided a better steer than most contributors.
If he is not to post here again, then its time for me to move on.

Yanis: Make sure you have a copy of the website pages concerning Brockham for future use, I have.