Member Info for BigDave13

As highlighted yesterday, Vela have registered as a seller of up to their full quota of securities per the SEC prospectus. Option will be exercised and shares sold, only question now is timing and price. Can't see a time limit on the offer but it does include some warrants priced at $11.50 so maybe CDT price will slowly drift up towards that. All to play for.

Nominee Accs should be included as part of the free float.

More from the prospectus, refer SELLING SECURITYHOLDERS section. Looks like once option is exercised, the shares will be offloaded pronto as part of this new offering (alongside Cizzle holding)!

We are registering for resale herein up to 976,000 shares of Common Stock which may be issued upon the exercise of the Vela Option, which number of shares of Common Stock assumes the full exercise of the Vela Option at an exercise price of $5.00 per share.

According to the latest SEC filing doc, Vela can receive up to 976,000 shares (refer JB post earlier)

I would expect it very close to $5 now and definitely $5 at end of US trade today. There is a small hangover of >$5 trades on Oct 04 and these trades should drop off end of today, so I expect RNS from any time tomorrow onwards. Agree that this is a big deal and should be announced promptly. Have they sold off ENET yet to fund morning elevenses?

Best outcome now is for CDT SP to remain well below $5 which will 'force' the BoD to retain the shares rather than sell and re-invest in the UK small cap market that they acknowledge is currently facing many challenges. Unless SP spikes to $20 again, then sell up and stick the full amount in a money market account at 5% for the next year or three..

Day 7 of sub $5 trades, 3 more to go

It seems that FB has accepted & retained the consideration of 20m shares and granted IP licence. Next and final step is to transfer IP.

Some merit to that strategy. Bring the average down to these levels and then wait for SP to hit $20 again & walk away with $40m+

Today is Day 6 where SP High/Low is under $5 (source yahoo finance). At this rate, next Wed is looking good for optimal 10day vwap. News back end of next week?

LOL!!

Not sure if you have seen this but there is some info in the Admission Doc, available on the website. Refer section 9.1 IP Sale Agreement dated 26 February 2015 as amended by an Addendum dated 20 May 2020

https://investors.truspine.org/docs/librariesprovider61/archive/admission-document.pdf

According to Yahoo Finance data, there was a high volume trading on the 04 Oct, about 80% of last 10 days. This is the day price spiked to 8.75 before dumping. May need to get this day out of the equation before the put option can be maximised.

I think vwap may still be > $5 as some higher trading days remain in the 10 day period. Maybe another week or so at these lower levels to hit optimal vwap?

Conduit is the original funding vehicle for SGS itself. SGS originally held 22.5% which has been diluted over time to their current level. The last set of Accounts report this Investment with Nil cost/current value.

SGS at no. 3, Vela could enter at no. 7 if they play their cards right. No sign of EML, what does this mean for the Igraine investment?

https://www.marketscreener.com/quote/stock/CONDUIT-PHARMACEUTICALS-I-159626213/company/

Corvus Capital https://corvuscapital.com/

Yep, may need some sort of announcement from CDT to put a rocket up the SP (after Vela exercise option)

Https://finance.yahoo.com/news/conduit-pharma-ceo-tapolczay-biopharma-132916007.html

Thks JB, I see that consideration now quoted as $5.1m - when/why change in value?

Total consideration payable to Vela upon exercise of the option is $5.1 million (£4.0 million) worth of NewCo shares, following the consummation of the Merger, at a price per share equal to the volume-weighted average price per share over the ten (10) business days prior to the date of the notice of exercise.

I expect the BoD will be glued to their screens to 9pm each night waiting to execute the sell order. “Sell, Mortimer! Sell!” (google it!)

On another note, are there any tax implications if a large (or small) gain is made. From the Accounts

There was no charge to current or deferred taxation in the current or prior period. A deferred tax asset relating to losses carried forward has not been recognised due to uncertainty over the existence of future taxable profits against which the losses can be used. The Company has unused tax losses of approximately £6.7m (2022: £6.5m). At 960k shares, I make it losses would be fully utilised at a sale price of ~$11.80 ($11.3m/£9.4m). Presumably tax would be applied to gains over and above that level.