Member Info for Boonco

When used as an adjective motive means causing or able to cause motion

"So out of Administration by midnight on Monday coming to comply with Armistice's terms!"

Only if "The Company exiting administration by no later than 8.00 a.m. (London time) on 14 February 2023;" is code for midnight on Monday.

No need to randomly guess the timeline for exiting admin, just read the RNS from 30th December specifically point b and c of the section titled “Subscritption Agreement” which you’ll find towards the end of the RNS.

Armistices subscription is conditional upon 4D exiting administration by 14th Feb 2023 (point b) and admission will be no later than 2 months following the date of exiting administration (point c).

“Subscription Agreement
Under the terms of the Subscription Agreement, Armistice has agreed to invest up to $15,000,000 for the purpose of subscribing for Ordinary Shares and / or Pre-Payment Warrants (the "Subscription").



The Subscription is conditional upon:



a. The requite authorities being passed by the Company's shareholders to give the board of the Company all necessary authorities and waivers to enable the issuance of Ordinary Shares, the Pre-Payment Warrants and the Ordinary Warrants in accordance with the Subscription Agreement and the Loan Agreement;

b. The Company exiting administration by no later than 8.00 a.m. (London time) on 14 February 2023;

c. Admission being effective by no later than 8.00 a.m. (London time) on the business day falling two months following the exit from administration; and

d. For each subscription other than the $6,000,000 funded on Admission, no liquidator, receiver, administrative receiver, administrator, compulsory manager or other similar ofcer has been appointed over the Company.”

The objectives of administration are laid down by statute. In other words the objectives of an administrator are the same irrespective of which party appointed them. The fact that OF appointed them gives OF no advantage in the process.

The first objective of administration is to rescue a company as a going concern so that it may continue to trade. If this proves impossible their objective would then become achieving the best outcome for creditors as a whole. If that can't be achieved their attention would then turn to doing the best for the secured/preferential creditors with others following and shareholders bottom of the pile.

Thanks for the AGM feedback

Dyl, you might want to read the financial sections of the annual reports before reflecting because the typical annual cash burn wasn’t close to 50-70M. 2021 was in the 50’s because of one off costs associated with the Nasdaq listing otherwise the typical annual cash burn has been low to mid 20’s.

Perhaps, who knows. If I’m honest I’m not really one for conspiracy I would rather just deal with what we do know.

They face a steep uphill battle but there should at least be a glimmer of hope that there’s enough in 4D to get them through to the other side.

Interesting times either way.

Yeah I understand all that but there is precedent of it happening with other pharma companies so it’s not a lost case yet.

Realistically they need to generate enough to pay OF and have a cash runway through to the end of 2023.

Estimated operating costs for 18 months from April was 28.6M once r&d tax credits are taken into account. So roughly, if they can sell an asset or two and raise circa £40-50M that would be enough to pay back OF (a little less than £11.5M) and give them a cash runway through to the end of 2023. Also, don’t forget if they sell an asset or two then the actual operating costs would be lower than previously estimated so the previously estimated £28.6M for 18 months should in theory last a bit longer and at least take them into early 2024.

OF can’t just force it to be stripped though. They have to sign off on proposals put forward to pay them back but as long as there is a way of paying them back precisely what they are owed then OF will have no further leverage.

https://www.proactiveinvestors.co.uk/companies/news/181680/redx-pharma-set-to-exit-administration-after-us40mln-sale-181680.html

Roache, no redx’s shareholders didn’t lose their shares. They did end up being diluted once they were trading again but that was because a new ceo came in and she attracted some new investors.

Plan for the worst hope for the best.

The majority of companies don’t make it back from admin but it does happen and if it happens with 4D then it won’t be the first pharma company to achieve it. As someone correctly noted yesterday, similar happened to redx pharma when Liverpool council called in the 2M loan it was owed. Some assets under development were sold for $40M and the company came out of admin on firm ground. Redx’s pipeline wasn’t as promising as 4D’s.

Time will tell.

I know I’ve needled you at times for some of the things you have said on here crl but honestly mate I wouldn’t give up hope just yet.

The small sticky finance situation aside 4D has a a lot going for it and entering into admin isn’t automatically end game. Given the potential 4D is sat on you have to think the business can be reasonably saved whether that’s 4D less a couple of assets or the whole business sold to another company as a going concern. Although it could take longer I’ll be surprised if we’re waiting longer than 8-12 weeks to learn of our fate, 6 months tops. Admin automatically ends after 1 year.

Probably because they didn't want to sell them, were trying to secure finance and didn't think Oxford would pull the plug.

Sang, if they can get enough for assets in pipeline to pay OF their 13M + bank a couple of years operating costs then they should be able to get up and running again with a slimmed down pipeline.

That's the hope anyway.

Yeah my thinking was that even in the current dire market and the hard bargain that potential suitors would inevitably drive, they really shouldn't need to get rid everything in the pipeline to pay OF + bank a couple of years operating costs

If they can get it out of admin there needs to be a change at the top. I've been a strong supporter and I don't think there was anything nefarious to the boards intentions but Duncan has to fall on his sword. Step back, remain an investor and let someone else run the show.

Pete, I'll need to read the annual report again but if it is just a case of the 13M then given the pipeline assets etc you would think it really shouldn't be that difficult to get it sorted and back operating.

Hold my hands up - I called it wrong earlier today when I rubbished speculation about the suspension being down to OF calling in the loan. I think I called it doom mongering.

My apologies.

Bug*er.

Saying they think delisting is no worst than saying going bust, as you did earlier crl.