Member Info for David1951c

All entities looking to do business with EQT or their technology will check them out including financial due diligence. The banks will do the same. The fund raise puts them in a much stronger position to proceed with existing and get new customers. Financial strength makes EQT a much better proposition. I understand PIs fretting at the low SP. I first bought in when SP was well over 1p but have averaged down. The funds should support the next 12 months developments and EQT start making real profits. The placing price hurts short term but I believe the company have the best chance to succeed and bought some more.

Thoughts - for what its worth! I have been watching this for some time. The fund raise seemed at a low price and I held off as with so many cases the SP drops back towards the placing level in the absence of big news. The last update on 19 June seemed positive but not compelling. SP has been dropping since then and the general uncertainty about UK (unfortunately) makes me cautious. The update mentioned that the six months results and update would be on 19 August so I decided to wait. I am not a large investor and would only normally put a max of £10k in a single share. However as I follow the market daily I feel SPs are more driven than ever by news and Costain need to show that they can manage the difficult situation and make money.

I looked at this as a possible but based on the 2019 financials and the fund raises in 2020, this does not make a good business case unless they sell assets. I have been in Thor for three years and that has not been my smartest decision. Assets may be good but making money is necessary. At least there is GGP to thank!

IG - I am not a regular poster but held shares for a couple of years. I posted on this earlier in the week. I sold some at 0.63 to realise a profit and in expectation of a raise. I have seen this so many times over the years. It is the shocking level of discount that baffles me. Look at e-therapeutics 2 days ago and others e.g. AFC (25%) recently. The good news is the company is in a better place to expand and when potential partners look at the balance sheet through financial due diligence they will be more comfortable. The debt position is now much better / lower and 95m warrants expire on 6 August .

The placing is not a big surprise as it is needed to propel the company forward and improve the balance sheet to make them a good partner for existing and an increasing pipeline of new projects. The discount is a disgrace and their advisers should be fired! They could have successfully raised at .55 or more. I will add through the Primary Bid and probably buy more in the open market if it drops back. If the raise enables them to cross the hurdle of income exceeding costs and to grow the business more quickly, it may not look so bad a shafting of existing PIs in 12 months time!

In 2019 Q2 update was on 2 August. Q1 2020 update was issued on 16 April. Hopefully the Q2 2020 update will be out in two weeks or so. If Q1 momentum is maintained, the higher PoG should mean a material increase in revenue and cash as well as a reduction in debt to well under $30m. Good news should spur the SP as it looks low compared to others on AIM.

Last year the 6 months trading update was on 16 July so there should be a RNS at the end of next week or beginning of the week after. Not sure why SP has dropped back below 7p but an opportunity to buy 2 x 100k this afternoon and some bigger buys today too. There is a lot going on their three sectors Defence, Space and Energy - the annual report is an encouraging read.

Thanks for replies so far and clarification. I re-read other RNSs and Align research note. I will wait and see the position at end of July. I intend to add and it is just a question of timing.

In looking to add here, I checked the warrants (page 56 of 2019 R&A) at 31.12.2019 totalling 664m with various exercise prices and dates. 276m were exercised in June bringing in about £900k based on RNSs. Year end cash was £400k so the overall cash position could be getting tight. Is this correct? It is possible that EQT could do another fund raise on the strength of the higher SP, which might make sense to support the ambitious plans.
I think the company has great technology and lots of potential but more money may be needed to progress / complete projects, satisfy financial due diligence of contracting parties and get to the desired positive income level. I may wait for a few weeks to see what happens.
There are warrants of 95m @0.75 with final exercise date of 6.8.2020 so it will be interesting to see what happens in the next 4 weeks.

The material increase in business in H1 should be quantified in two weeks or so. Hopefully the increase in volume previously advised will be maintained into H2.
From a previous RNS "The Group will provide a more quantitative update of the first half's trading to 30 June 2020 during mid-July 2020. The Group will also hold a special virtual shareholder event after that announcement, further details of which will be announced by RNS in due course."

I may be a novice but the list looks very simplistic to me based on old almost out of date data. Looking at production forecasts (000s oz), costs and potential profit compared Mcap relative to the others I decided that HUM offered greater upside from here. Also compared to Ariana and AAZ which have already both shown large increases, I feel this is one with greater SP uplift potential. With debt likely to be paid off this year, 2021 could be a bumper year.

Alwayswinning - A lot of shareholders have made large amounts on Avacta and believe the company will succeed and aren't too bothered about ups and downs. A lot of Avacta shareholders also hold ODX and want both to succeed. Time will tell!

Thanks. I hope you're right as my numerous holdings have been diluted too many times. Fortunately I am significantly up on this one.

I say this as a shareholder that I would not be surprised to see a fund raise as the cash resources are not significant in relation to the number and size of the projects PHE are and want to be involved in. Other parties carry out financial due diligence to assess and ensure the strength of the company. There have been a lot of fund raises recently and there will be more. PHE are in a good position to raise at a much higher SP than a few months ago. Other companies I have shareholdings in like SNG and Avacta have done so. Same may apply to Eqtec in which I hold shares. No-one likes it but it seems a fact of investing in smaller companies.

Good news and a further step forward. Of course it is impossible to estimate in financial terms. Hopefully success in Brazil will lead to other countries.
More news on a number of fronts expected by 31 August.

As a LTH (in this share almost 2 years!) my main gripe is the lack of clarity on possible time scales in announcements. Some investors' expectations are unrealistic because most do not realise the amount of time these developments take. It would be helpful if some idea of the steps and timescales were given to avoid the impatient selling.

Just made small 50k buy also showing in red!

In December the guidance on 2020 revenue was an increase to £4m (from £1m) and it would be good to know if the latest developments will mean a material increase.
The SP fall back is disappointing but typical of AIM in the current trading world. I just remind myself of the many things happening and quite likely more to come. Patience will be rewarded.

Post Year-End Events in 2020:

· January: Cooperative alliance agreement with Innocare Group, Shanghai, China;

· February: First RAWTest commercial agreement and AI partnership with Acumen Software of South Africa;

· February: Launch of ecowaterOS consortium for real-time water monitoring, recovery, treatment and recycling;

· March: 3 year, $3.75m (£3.12m) bacteria production agreement with Modern Water plc;

· March: Labskin expand York UK Laboratories by 100% to meet increased demand;

· March: Production commenced of bacteria to detect water contamination amid COVID-19 public health crisis;

· March: c£2m confirmed orders in Q1, 2020 leading to new investment of £250,000 to ramp-up production;

· May: Double production of Modern Water reagent bacteria to meet increased demand;

· May: RAWTest AI real-time alert system to be retrofitted in new Modern Water's Microtox units;

· June: Labskin partners with University of Aberdeen to test COVID19 anti-viral skin and dental products.

According to the last update in early June, there are a number of studies with news due in Q1 2021 but this relates to the first quarter of the new financial year beginning on 1 June. Am I correct? If so there are significant near term developments to be announced by 31 August with more to happen before 30 November. ONC seem under the radar based on poster numbers (thankfully) but have the potential to become much bigger with all they have going on.

Adam - you will hopefully take heed of the well intended advice such as from Mowzerrocks such as spread of risk and ignoring the numerous really horrible people who appear on this BB and many others. I have been lucky with Avacta as I started building a holding in 2018. If I could give one more suggestion is do not be afraid to sell part or all if the SP falls dramatically say by 20%. Then hold onto the money and if you really believe in a share then buy back in at a lower price providing the company passes the investment tests you apply. The biggest mistakes I have made on other shares is holding on expecting good news that always takes longer than you hope for! There are so many possible companies on AIM but a lot of them are big gambles. A few come good and being in one of those is great. I believe Avacta have the potential to be a great company and a superb investment. However nothing is nailed on!