Who gains from this?13 Mar 2024 12:30
Indulge me a bit on this because I'm struggling to see a winner from the current situation but I can see plenty of potential losers.
Without debating each reason in detail, I see the main factors contributing to the current position as follows (in order of damaging effect on the SP) IMO:
1) The RF deal.
2) The UK MHRA farce.
3) The uncertainty around 737.
4) Management naivety and insufficient professional support.
5) General economic conditions.
The RF finance was arranged to provide funds for getting 1801 through P1. Hindsight seems to indicate it was a bad deal.
If RF have been selling shares and driving down the price until we are at current levels, aren't they just going to end up with a large quantity of very low value shares and if the company is driven to the wall, who's won? Can we seriously believe that Riverford are in the business of actively putting their cleints out of business?
Are we really thinking that Tim and John's years of work is on the line for £300k? That's peanuts and I can't believe that the BOD can't easily raise that sort of money from a number of sources.
It was a truly terrible RNS written in that cold clinical way only boffins can manage. They should be getting advice and guidance on how to paint the best possible scenario. All they've done is created fear in that it's £300k or bust!
All IMO.