RE: Balance12 Jun 2022 13:28
“Clearly something major has happened”…
From my own experience in business here’s my take; SBTX is a tiny company compared to Croda and so Skinbiotix is extremely important to it and it’s investors. To Croda, Skinbiotix is just one of many plates it needs to keep spinning in order to maintain its position as a leading ingredients supplier to the cosmetics industry. It is hugely important for SBTX that Croda committed to spending the £5 million on the production facility. But for Croda, with a market cap of around 9 Billion, that production line is pocket change.
An agreement has been signed, we know it’s ‘on track’ for revenue this year, we know a change to this would be immediately RNS-able. I suggest to you that as per the agreement, Croda has taken the science for testing, production and sales and are getting on with it in the background without making the big song and dance that a smaller company like SBTX would be making about the process. We have never been told to expect any more information than this. I could imagine whilst our share price is crashing, if SA contacted Croda for an update to report to the market, Croda would shrug their shoulders and say they are doing their job and that’s it - they won’t care as much as us about rushing the progress because it doesn’t matter to them what the market thinks of the project like it does to us.
At the Manchester meet SA told us they had the full day meeting at the end of last October and most of us, me included, Elric included, took that to mean we would receive news after the meeting, but SA never said it. It seems the board was slapped with a load of NDA’s and all that we have heard since is that it is officially on track, and unofficially through IR that we might see some signs of Croda’s sales material by the end of this summer. Other investors think that we won’t know a thing until we see a product on the shelves and figure it out for ourselves, due to the NDA’s.
So to say that clearly something has happened is pure speculation. I think it’s natural to be concerned and inquisitive when your investment has dropped by a quarter or a half, and natural to become suspicious about all the mights and maybes. I have my own set of concerns but I do really feel we might start to have had some good news come through by the time the general market stops getting battered on a daily basis and that might steady our ship.
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