Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
So, by my reckoning, Avacta will need 12 months projected cash flow by end of March 2025 in order to continue as a going concern. That would mean until end of March 2026. That would mean that the statement "That cash, based on our current runways, takes us through probably to the start of 2026", whilst 'encouraging', means that another shot of funding - from whatever source - will be required to be on the account before the end of March.
I'm not an accountant and can't read financial statements so please put me right if I am, hopefully, wrong about this.
Going concern
These financial statements have been prepared on a going concern basis, notwithstanding a loss of £24.95m and operating cash outflows from operations of £21.8m for the year ended 31 December 2023. The Directors consider this to be appropriate for the following reasons.
The Directors have prepared detailed cash flow forecasts that extend to at least twelve months from the date of approval of the financial statements. The forecasts take into account the Directors' views of current and future economic conditions that are expected to prevail over the period. These forecasts include assumptions regarding the status of therapeutic development collaborations, the AVA6000 clinical trials, and product development projects together with the Launch and Coris sales pipelines, future revenues and costs, together with various scenarios which reflect growth plans, opportunities, risks and mitigating actions. The forecasts also include assumptions regarding the timing and quantum of investment in the therapeutic development programmes.
Whilst there are inherent uncertainties regarding the cash flows associated with the development of both the therapeutic platforms, the Directors are satisfied that there is sufficient discretion and control as to the timing and quantum of cash outflows to ensure that the Company and Group are able to meet their liabilities as they fall due for at least twelve months from the date of approval of the financial statements. The key factors considered in reaching this conclusion are summarised below:
· As at 31 December 2023, the Group's cash and cash equivalents were £16.6m (2022: £41.8m).
· The Group completed an equity fundraise in March 2024, which raised gross proceeds of £31.1m (£29.4m net proceeds)
· While the Group does have external borrowings in the form of a convertible bond with principal amount remaining of £40.8m, this liability can be settled by the issue of new equity, rather than cash, at the discretion of the Group.
· The Directors have considered the position of the individual trading companies in the Group to ensure that these companies are also in a position to continue to meet their obligations as they fall due.
The Directors continue to explore additional sources of income and finance available to the Group to continue the development of the therapeutic platforms beyond 2024. The sources of income could come through the licensing of assets/targets from the proprietary Affimer® and pre|CISION™ platforms or through additional therapeutic collaborations, similar to the LG Chem and Daewoong collaborations, which may include up-front technology access fees and significant early-stage development income, or through additional equity fundraises.
Based on these indications, the Directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements ...
Don't worry notrex, CC will have her own loyal support in place soon enough - or she won't be effective as CEO.
Does it do any good to rake up the details of that disastrously priced placing when those responsible, AS and TG*, have gone? Doing so wouldn't change anything as changes (will) have been made already. It could only be for the morbid curiosity of people not privy to what still might be confidential or commercially sensitive.
* Assumming TG's days can be counted on digits.
Chief Scientific Officer - chemistry, pharmacology, pre-clinical development
Chief Medical Officer - clinical development
Chief Financial Officer replacement
I wasn't expecting any information about the 'European specialist healthcare fund' (aka AXA Framlington Biotech) as Avacta have no right to disclose what the fund is, nor about Q2W cohort 1 as there was nothing about it in today's RNS, but I wasn't expecting CC to duck questions about the 50p placing. Clearly it was arranged in advance so that all the questions about the placing could be lost in the questions about strategy.
As a warm-up act, you've just died and disappeared behind the curtain kat.
Anyone know what time the main attraction is on?
So you'll now refuse all medications. Fine. Your choice. Maybe toddle off and get some more DJT stock when the market opens?
You know kat, there are wonderfully effective drugs for all sorts of mental conditions.
I'm intrigued kat. Tell me more about Avacta's covid mRNA vaccine adventure.
I'll be glad to see it limp over 50p for starters.
Ah, the old ones are the best! "Potential" - one of the classics.
Oh very Tap!
So what are AVA6000's clinical advantages kat?
🤣🤣🤣 kat knows how to find the Avacta website!!!!
🤡
So what is the lead asset? What are its clinical advantages? Those are simple questions. If you don't know the answers, you know nothing about this company and your opinions are less than worthless.
Kat, what do you know about this company? Tell us about its lead asset.
Everything Alan said can now be disregarded. All change. Let's hear what the new CEO has to say about operational activities and the company's future strategy.
And another one:
With the BoD's commitment to "the need to more clearly communicate with shareholders and other key stakeholders" will Avacta now move to Nasdaq-style quarterly detailed reporting of financial and operational activities.
1. When will Tony Gardiner be replaced
2. Why hasn't Q2W cohort 1 been reviewed by the SDMC as anticipated.
Whilst we may not get answers there and then, if enough of us send in our own versions of these questions at the start of the presentation at least CC will be fully aware of our concerns.
TG now sticks out like a sore thumb as the only remaining one without pharma industry experience. His days are surely numbered. What's CC's email address...