Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
Plenty to look forward to. 2019 going to be a very big year for the company by the sounds of it.
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"I look forward to updating the market on progress during 2019 which I expect to be a year of very significant progress for the Company."
https://investegate.co.uk/avacta-group-plc--avct-/rns/agm-business-update-and-notice-of-results/201901210700045586N/
"The partnership with LG Chem...is a major milestone for the Company. This deal, potentially worth over $300m and with a significant upfront payment..."
"As we expand those data-sets across our in-house programmes I am very confident that we will see additional significant licensing deals that transform the Company."
"The research collaboration with leading scientists at Tufts University Medical School...is an exciting prospect that has got numerous large pharmaceutical partners interested in the Affimer TMAC(TM) programme."
"The licensing deal with New England Biolabs is a perfect example of the type of deals we have in the pipeline of Affimer reagent evaluations and I expect that we will see more of these deals emerge in 2019 with both large and small partners across multiple markets."
"I look forward to updating the market on progress during 2019 which I expect to be a year of very significant progress for the Company."
https://www.investegate.co.uk/avacta-group-plc--avct-/rns/agm-business-update-and-notice-of-results/201901210700045586N/
The share price can certainly move very quickly when it gets going:
"we would point out that the share price rally in the first two months of 2018 that saw the shares move from under 10p to as high as 35p was almost exclusively driven by announcements relating to positive progress being made with Nuvec. Moreover, subsequent progress with Nuvec has been hugely positive."
Worth watching closely for the next leg up.
First Equity - Top 10 Micro-Cap Picks for 2019
"We believe that the shares are currently materially undervalued, with the wider market having failed to appreciate the potential value of Nuvec."
"We are of the opinion that the current share price offers an incredibly attractive entry into a biotechnology that has genuine potential to make a real impact on the rapidly growing vaccines and therapeutics space."
https://gallery.mailchimp.com/d266f47cec87da1170bcd0f35/files/5bf0e4f5-88e8-428a-841e-63d25ffd8bf2/Top_10_Micro_Cap_Picks_Part_I.01.pdf
A dip presenting itself today for a pullback entry opportunity.
The last RNS provided a liquidity event which allowed the likes of Aviva to reduce their position and the other instis to buy.
The next positive RNS and it'll be a lot more difficult to buy a decent position since the recent insitutional purchases have tied up the loose stock.
And of course it's not just a single positive RNS expected. There should be several of them over the coming months.
I can see the price being chased a lot higher as the news starts to flow in earnest.
Pullbacks like the one today offer the chance of getting in on the cheap before those inevitable strong upswings.
Latest presentation from October full of useful info and worth a read:
"Considerable uplift opportunity
Significant milestones should be achieved in the near future that would support considerable valuation uplift and bring Avacta inline with comparators."
https://tinyurl.com/ybl6sybj
A firm price today despite the small sells.
Instis mopping up in the background perhaps whilst small PIs sell. I know which side I'd rather be on.
A little profit taking to be expected I suppose with so many traders in the market these days. But they're missing out on a very much bigger opportunity here imo.
The company is at an inflection point. It's hugely undervalued compared to comparitors and with multiple catalysts in the weeks and months ahead, I expect the share price to move very much higher over time.
There's a strong few years in this imo Ramptastico.
Potential highlighed here:
https://www.youtube.com/watch?v=zS3RF7xV1_c&t=980s (from 16:20)
The risk in not holding here is that at any time another licence deal can land.
And then you're left having to chase much higher prices. And probably not able to get the volume you want since the instis have been greedily buying up the free float as we know from recent RNSes.
The CEO and brokers state that multiple licence deals are expected in the coming months and that the LG Chem deal is likely to act as a catalyst to accelerate those deals.
So there's not a single possible share price driver, but multiple.
And then of course there's the chance of a bid. Novo Nordisk is known to be sniffing around. And with all those evaluations of Avacta's tech currently ongoing, then Novo might not be the only one looking to snap up the entire company on the cheap
Brokers also of the same view:
"This provides evidence that the licensing business model for therapeutic Affimers has merit, potentially catalysing further deals" - finnCap
"It is an excellent and valuable partner for AVCT, and likely paves the way to further major deals" - Hardman & Co.
The CEO certainly reckons the LG deal will act as a catalyst:
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Q - "Do you reckon this will help accelerate other agreements?"
A - "Yes, I think that's very likely. The validation of the Affimer technology through these types of commercial partnerships should certainly be a catalyst for others, yes"
https://www.youtube.com/watch?v=_KWbXryTiNg (from 3:07)
The recent LG Chem deal, which is very significant compared with the market cap, is only just the first of multiple anticipated deals in the coming months. As Hardman notes, it was a "wake-up call for the market".
$310 million potential for one deal. Multiple such deals and we're taking into the billions. Against a market cap of just £42 million. The mind boggles.
It's easy to see why the institutions have been loading up around current prices.
The comparatives highlighted in recent presentations show that just a little further down the line, similar companies are rated at multiples of the current valuation.
And with M&A picking up in the sector and company awareness increasing, the likes of Novo Nordisk could well be considering bidding for the company.
The story is just getting started. As per the Avacta tweet, "Looking forward to a great 2019!"
https://twitter.com/Affimers/status/1082928417132154881
Yes, looks like institutional buying throughout the day. Plenty of chunky block purchases.
http://www.lse.co.uk/ShareTrades.asp?shareprice=AVCT&share=avacta
The instis know that multiple deals are likely in the coming months and will be be keen to load up whilst there is the liquidity.
It'll be a lot more difficult to buy when the deals start coming through.