Member Info for Bella6532

LLP...one for your list perhaps...

https://servier.com/en/therapeutic-areas/cancer/

Avacta Group plc

Karen Harrison, Group Communications Director

I'm sure you guys have all seen this...

'More than six million new cancer cases could be diagnosed in England between now and 2040, according to leading charities.

This would equate to a diagnosis every two minutes, which is up from one every four minutes in the 1970s.

A coalition of more than 60 cancer charities, known as One Cancer Voice, is warning the government must take urgent steps to tackle cancer care in England - including faster diagnosis targets and better prevention policies.

The analysis carried out by the charities is based largely on pre-pandemic data and suggests cases will increase by 14.2% over the next 15 years, with diagnoses of some of the most common cancers reaching all-time highs.

This includes over a million new prostate cancer diagnoses, and more than 900,000 for breast cancer by 2040.'

BV..i wasn't thinking Partners but Licence. Look at the ARM model. AVA6000 is like a template. Others just do a Licence deal to have Avacta work up PreCision with Licencees own product and I was just thinking the chemo products in the same group as Dox would be an easy drop in as they are all very toxic and ptone to horrendous side effects. The wicked side effects are very costly for both the patient and healthcare systems.

As I said..just think out loud...

LLP...why so many products still in trial stages on your list?

LLP..what about Pfizer/Epirubicin? Like the Red Devil it has horrible side effects.

Just thinking out loud...Dox works on it's own but it's a nasty piece of work. Dox/Precision also works with little or no side effects and it patients appear to be able to golerate much higher doses...what's not to like.

So, would it be a relatively cheap investment for say Pfizer to get Avacta to run up an Epi/PreCision which, once AVA6000 is approved, may not even have to go through a trial process...or perhaps just a small safety/MTD trial. From Pfizers point of view if the side effects are reduced to virtually nothing and patients tolerate higher doses what would the payback be for Pfizer?

B2HS2L...I'm not sure about partial payments...personally I don't think so but I could be wrong....

I think we've just been told all 3 will happen before 15 January 2026 and that's why the market has reacted today so positively.

o Entering into any partnership or other agreements in respect of its pharmaceutical products;

o Any strategic investment into the Company; (HR/KKR investment)

o An equity fundraise' (I think this will be an HR/KKR London Based Fund set up)

Page 2

OK so now we get the Terms/Conditions:

'The Amendments are subject to the following conditions having been satisfied by 15 January 2026 (the "Long Stop Date"):

· Avacta completing a fundraise of, or receiving gross proceeds of at least £13,000,000 in aggregate on or prior to the Long Stop Date by way of:

o Entering into any partnership or other agreements in respect of its pharmaceutical products; and/or

o Any strategic investment into the Company; and/or;

o An equity fundraise'

A) What are the chances a Partner or Licencee will want to front up 13m before 15 January to be set aside until July 2026 to pay off the next 4 Bond Repayments (July 2026, Oct 2026, Jan 2026 and April 2026)? I'd say unlikely but that's not to say a Product deal cannot be done.

B) What is the likelyhood of a company like HR (or their new owners) coughing up £13m on the back of an incoming Deal/Deals - ie if they were given assurances a deal would be done (LOI for example) based on good results from 1b or a Deal with a Pharma to work on their own warhead/Precision product - that Near Term Deal CC referred to. I think this is highly likely.

C) Equity Fundraiser - is this an 'if all else fails' or. ' deals not signed/agreed by 15 January 2026' get out...possibly.

So, a very intersting RNS IMHO and it perhaps contains a tad more than initially though particularly re timescales/who pays for what when etc...

In my experience, it's often about what was not said in an RNS that's someone more important.

This RNS is all about the Bond and the Qrtly Repayment Terms though 2026.

RH said it would be easy to raise the money to cover a couple more payments which has now been done. Each rasied £3.25m. The first raise netted £3.1m and the Bond Payment including Interest was £2.964m and the Bond Balance = £22.95m which leaves 9 more Qrtly payments @ £2.55 plus interest.

Repayments in 2026/27 are predicated on Avacta basically raising the money upfront to cover 4 Qrtly Payments. £3.25 x 4 = £13m.

OK so I think we're all clear with that bit...

Then we get this bit:

'Quarterly Convertible Bond repayments and interest in respect of 20 January 2026 and 20 April 2026 payment dates will be deferred until 20 October 2027 (together, the "Deferred Repayments")'

Now assuming it's not a typo and they do mean 20 October 2027 and not 20 October 2026 the 2026/2027 Repayments will be:

Jan 2026 £0

Apri 2026 £0

1. Jul 2026 £2.55m plus interest - paid from £13m fundraiser made prior to 15 Jan 2026

2. Oct 2026 £2.55m plus interest - paid from £13m fundraiser made prior to 15 Jan 2026

3. Jan 2027 £2.55m plus interest - paid from £13m fundraiser made prior to 15 Jan 2026

4. Apr 2027 £2.55m plus interest - paid from £13m fundraiser made prior to 15 Jan 2026

5. Jul 2026 £2.55m plus interest

6, 7 & 8. Oct 2027 £7.65m plus interest

9 Jan 2028 £2.55m plus interest

At this point the Bond is fully paid off.

OK I think we all get that bit too...now it becomes interesting - two more dates for your diary. 30 June 2026 and 1 October 2026 ...Based on what happens leading up to these dates and I can only think it's to do with a major investment which will give Avacta the cash to make the deferred payments earlier then they will be brought forward accordingly - one or both. Now I say investment because if a Partnership and/or Licence Deal is done, would they want and upfront payments spent on paying off the Avacta Loan - I would say not and I think this revised Bond Payment structure is to satisfy Partners/Licencees not get them involved in their money buying down our Bond deal.

'Upon the earlier of (i) the date on which the Company publishes the data readouts of its Phase 1b trials of FAP-Dox (AVA6000) in triple negative breast cancer and (ii) 30 June 2026, the Bondholder will have the right to accelerate the satisfaction (in cash or shares) of one of both the Deferred Repayments and in addition, from 1 October 2026, at any time accelerate the satisfaction of the quarterly repayments on the Convertible Bond, subject to a maximum of one acceleration per quarter'

OK so then we get the terms:

Continued P2

Key date for your diaries...15 Jan 2026 ...need to receive £13m by this date.

Plus next Qrtly Payment will be July 2026 but they don't mention how this will be paid...unless I missed something.

Heights obviously don't want to allow full buy down just yet but have caved somewhat re terms/payment dates.

'The Amendments are subject to the following conditions having been satisfied by 15 January 2026 (the "Long Stop Date"):

· Avacta completing a fundraise of, or receiving gross proceeds of at least £13,000,000 in aggregate on or prior to the Long Stop Date by way of:

o Entering into any partnership or other agreements in respect of its pharmaceutical products; and/or

o Any strategic investment into the Company; and/or;

o An equity fundraise'

Spread: 3.00 (5.882%)

IMO it would be a no brainer for Avacta to enter into a Royalty deal with the likes of Healthcare Royalty hopefully their new owners will be happy to make such an investment.

Avactas tech is new and very exciting...right now they're starting to form the first snowball in their hands (Phase1)...soon it will be big enough to set on the ground and slowly roll to collect more snow (Phase2) and it's at this point we hope it doesn't collapse. All being well the snowball starts to grow and grow and to get a nice round snowball it needs to be rolled in another direction (Phase3)...now it's starting to get heavy so more help is needed to grow the snowball...(Investors)...bingo it's now big enough and a second snowball needs to be started (2nd Pipeline Product) which grows quickly as wd now have the skills and experience plus it doesn't need to be quite as big as the first. Bingo, done and now we need help to lift it up onto the first (Licencee). Finally the third snowball is started (3rd Pipeline Product)...wow that goes quickly and another Licencee steps in and up it goes on top of the first two. Finally the snowman is built and what happens next....

I would like to win the lottery but it's most likely not going to happen...

It's a bank holiday week and any news will most likely be held off until the market is fully back to work unless it's so price sensitive it has to be released straight away.

Sometimes investment can be better than T/O....

'Nvidia's position in Arm Holdings (NASDAQ: ARM) amounted to nearly $136 million at the end of Q4, or roughly 45% of Nvidia's stock portfolio. The position used to be even bigger, considering Nvidia sold over 850,000 shares in the quarter. Arm is a British semiconductor company that owns the intellectual property rights to the technology that powers many modern-day chips found in a range of technology devices made by some of the largest companies in the world.

In 2020, Nvidia actually tried to buy Arm for $40 billion but regulatory roadblocks squashed the deal. The failed deal turned out to be a blessing in disguise for Arm because Nvidia invested in the company's initial public offering and Arm currently has a market cap of nearly $130 billion. The two companies have long collaborated, as Arm provides key technology that Nvidia has used in most of its chips including its next-generation Blackwell GPUs.'

Per Avacta RNS 28 May 2025...

'David Bryant is a highly experienced international pharmaceutical executive with over 35 years in the industry. He has a strong track record in commercial leadership roles at GSK and Pfizer and was one of the original management team at Clinigen Group, from its 2012 IPO on AIM to its sale for $1.6bn in 2022. David is currently an Advisor to Healthcare Royalty (HCRx), a US-based healthcare focused private investment business.'

Did he know about the acquisition when he joined Avacta...was this a jumping ship move or will his roll with HCRx now they have been aquired by KKR & Co continue as before.

'Jan 3, 2024

Appointment of David Bryant as HCRx Adviser for the United Kingdom and European Union

HCRx is pleased to announce that David Bryant has agreed to become an adviser to the firm for the UK and Europe.

Mr. Bryant, who is based in the UK, will assist HCRx in identifying potential royalty acquisition and credit opportunities across the United Kingdom and European Union. David brings a wealth of pharmaceutical, transactional, and operational experience having served as the Chief Business Officer at Clinigen for over ten years through its acquisition by Triton Partners. Prior to Clinigen, David served for two decades in commercial roles at Pfizer and GlaxoSmithKline. “We are fortunate to have someone with David’s experience as a resource in the UK and Europe,” stated Clarke B. Futch, Founder, Chief Executive Officer and Chairman at HCRx; “We look forward to growing our presence in the European biopharma ecosystem.”

Our New NED's announced end May...so who knew what when? and is he still going to act as an Advisor???

'New York, July 30, 2025 – KKR & Co. Inc., a leading global investment firm, today announced that it has acquired a majority ownership stake in HealthCare Royalty Partners (HCRx), a leading biopharma royalty acquisition company. This strategic partnership will enable KKR to enhance its capabilities in biopharma royalty and credit investing, while expanding the firm’s existing footprint in the life sciences ecosystem.

Founded in 2006 and headquartered in Stamford, Connecticut, HCRx has a strong track record of investing in commercial-stage and near-commercial-stage biopharmaceutical assets. Since inception, the firm has committed over $7 billion in capital and today manages approximately $3 billion in assets with a portfolio that spans over 10 therapeutic areas and over 55 products. HCRx’s deep expertise in royalty monetizations, private debt and corporate financing solutions presents significant opportunity given the biopharma royalties market is currently addressing only a small portion of total biopharma capital needs.

“As the biopharma industry has grown and matured, companies are increasingly seeking to partner with investors that can provide a range of capital to meet their financing needs. The HCRx acquisition supports KKR’s ability to provide comprehensive solutions across the health care spectrum and meaningfully expands our life sciences capabilities to address market demand,” said Ali Satvat, Partner, Co-Head of Health Care and Global Head of Health Care Strategic Growth at KKR. “We were drawn to HCRx given our long-standing relationship with the firm, its market leadership in biopharma royalties – an asset class with growing demand – and the expertise of its leadership team. We are deeply impressed with the differentiated platform that Clarke and the HCRx team have built, and we look forward to welcoming them to KKR.”

As part of the transaction, HCRx Chairman and CEO Clarke Futch will continue to lead the HCRx team and will maintain an ongoing substantial minority interest in HCRx. HCRx’s team will collaborate closely with KKR’s health care team to provide a range of financing solutions across the biopharma sector.

“Joining forces with KKR marks a significant milestone for HCRx. We share a common vision of supporting the growth and innovation of the biopharma industry,” said Mr. Futch. “With KKR’s resources, expertise and similar approach to partnership, we are well positioned to scale our platform, more comprehensively serve the landscape of biopharma companies and continue delivering value to our stakeholders.”

https://www.hcrx.com/kkr-announces-strategic-acquisition-of-healthcare-royalty-partners-expanding-the-firms-health-care-franchise-and-enhancing-its-life-sciences-strategy/

Coris Sale Completed

Next week or due holidays W/C 2 September

Notice of Results

W/C 8 September

Interim Results

30 September

Qrtly Business Update

W/C 29 September (probably not on same day as results)

Anything else between now and end September will be a bonus.

Anyone got a theory on these very very late July trades just put through?

28-Jul-25 16:15:57 48.00 140,000 Unknown* 67.20k O

28-Jul-25 16:15:57 48.00 -140,000 Unknown* -67.20k