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This was posted elsewhere, thank you to the original poster:
As a retired medic with a degree in medical physics, I have been intrigued by TRX for some time. TRX's platform of products is deeply impressive. My anxieties have centred largely on the difficult time the Board has experienced with the long term illness, then retirement (1st August, 2019), of Steve Couldwell and the very short tenure by Mike Barker of the post of CFO (appointed 28th August, 2019; resigned November, 2019). Kirsten Lund, the current Group Finance Director, does not sit on the Board. This leaves the Executive Chairman, John Samuel, as the major leading light. His history is, however, significant. He was CEO of Molnlycke Health Care Group, building up this corporation to a buyout by Investor AB and Morgan Stanley Principal Investments for 2.85 Billion Euro in March, 2007. Molnlycke developed single-use surgical and wound care products, so his prior experience is very aligned with that of TRX. My impression is that Samuel has taken a very firm grip of the tiller and he has been Chairman of TRX for nearly twelve years (appointed April, 2008, not long after the highly successful buyout of Molnlycke). I detect his fingerprints all over the revised loan agreements announced by RNS on November 11th and 14th, particularly the latter. Having paid back the $5.5M of Tranche One, MidCap has added this to its Tranche Two of $5M, thus amounting to a $10.5M future facility. The Tranche Three future facility of $2.5M remains in place. The Term Loan of $2M (Tranche One) will be repaid beginning on July 1st, 2020 across 48 months. Quoting from the November 14th RNS: "the drawdown of these tranches (Two and Three) is now subject to MidCap's discretion and satisfactory recapitalisation of the Company at that time." We cannot know exactly what Samuel's strategy is, but his options are open. With his prior contacts, he may approach another lender at more favourable rates (TRX are currently paying US LIBOR + 6.75%); he may choose an equity placing or a rights issue. Whatever, I sense that Samuel has the bit between his teeth and, with an impressive reputation to maintain, will do his utmost to maximise the potential of this very promising Company. Very best of luck everybody !
I genuinely believe Woodford was bang on, on this one. FDA approval and future technology already generating cash - feels good.
The only concern is dilution - I just hope they’ve got someone on board who’s got a grip of the finance situation (internal or consulting as discussed previously).
My feeling on the departure of the previous FD was that he was out of his depth, which is not unusual in these fast growing technology companies. Would love to see a big hitting finance professional brought on board soon.
lejjb, the guy who posted that (stocktrend2) is an absolute weasel. He was deramping solidly for the last few weeks and claiming a placing was definite and we were heading to 0.5p. So yes - take with a large bucket of salt.
Presuming one of the numpties has just posted their usual spiel with no regard for what has actually just been said.
Let’s see who’s right in the timeframe I’ve suggested.
Don’t let them tempt you out of your shares.
1. A change in mcap due to share price movements is not wasting money - to suggest it is, is completely false logic. The company is investing and growing for the future.
2. Reporting a reduction of a significant holding isn’t required during the process of reducing.
Best wishes.
Bertram