Member Info for David1951c

SP of numerous small UK pharma companies have risen in recent weeks from very low levels. I bailed out of this one last year at a higher price and have been tempted to go back in. However the funding situation concerned me as y/e cash was down to £1m and even with tax credit and small upfront payment from the last collaboration, there is a risk that Sareum will need to raise as Avacta and SNG have done recently. Having done very well with those I have sold a few and wish to reinvest. What are the views on likelihood of a raise?

All companies or collaborations aiming to produce tests of any type will be working day and night to progress their own. Being first is not the only measure. Producing simple and more importantly accurate and cost effective tests is another need and with the huge volume required many producers will be engaged. If the first ones are reliable then they will steel a march but others will be needed too. Hopefully Avacta will be in there at a sufficiently early stage to participate in a critical collective effort. Look forward to more RNSs next week.

Mentioned in yesterday's RNS. With the urgency of the situation, it would not be a surprise if discussions will continue over the long weekend. Another RNS could well come out on Tuesday or Wednesday next week.

News on discussions with other potential partners could come quickly as all pharma companies need to be very fast moving. The volume of tests required is enormous and will require many companies to meet the demand. I invested in this more than a year ago because of the many prospective developments. Spend time if you haven't already, researching the company. I managed to buy more at 39p.

RNS mentions discussions with other parties are already taking place. Given that time is so important no pharma companies want to be left behind. Another announcement could come within a few days. With the critical need for simple and effective testing in UK, it is quite conceivable that Avacta will be involved in their home territory too. It may be tempting to sell but the bigger prizes may not be far away. They have already raised funds and any collaboration need not involve them in great expense. Big pharmas have the resources and reach to make things happen very quickly.

Invested here some time with multiple collaboration agreements in place on a range of developments. Today's RNS shows even more potential for growth. What is potentially significant is the possible agreements with from discussions with other partners which are under discussion. From the RNS "Hundreds of millions of tests will be needed for population screening and we will be working hard to deliver an Affimer based solution on Cytiva's platform, and potentially on the platforms of other partners with whom we are in active discussion, as soon as possible. We are aiming to have developed Affimer reagents for a COVID-19 test by the end of May that can be transferred to...……...

SP drop is unwelcome and unexpected. Trading update is quite positive but lacks substance in some areas. Phrases such as "high demand" and a number of agreements with tier 1 companies, do not give much guidance to the scale and likely revenue increase. This seems to be the best place the company has been in for some time and it is a good time to buy (I did 0.69). Hopefully the next trading update won't be too far away and will be more meaningful.

Clearly the company have the capability. Before coronavirus struck the business was heading in the right direction operationally and financially. In the short term it is whether the increased demand for their services is as high as it should be and if they have staff and resources to meet that demand. Already this year they announced two significant contracts and it more announcements might be expected if the contract wins and order book are growing apace. Possibly companies are too busy to make announcements! With Mcap of only£3m and no debt the potential looks rosy.

Last RNS gives increasing confidence that the funding to develop both mines will be forthcoming and non-dilutive. The prospectus (300 pages) released last June refers to costs of the construction phase of $1m (for BMV 50% share) so the funding would be more than sufficient to reach production which could still commence this year. The development permits were received in November and December so although there may be a delay due to C-virus there is a good chance the timescales are still achievable. Management and directors are very heavily involved as major shareholders which will fuel their plans to get mining and production underway. Costs are low and the margins higher than with most gold producers. Hopefully new investors will have time to research and assess the prospects.

Yes this is a success story and I am happy to be an investor. There are a couple of points to make. Firstly if this is a nailed on success why offer shares at 35p. Surely 40p or more would have been possible given the interest in the company and the potential. Poorly advised by their brokers. Secondly why not offer existing shareholders a chance to buy at 35p now. New investors come in at a low price and some will sell as soon as a good profit can be realised. Where is the recognition of being a long term shareholder who have supported the company so far?

The placing does not come as a big surprise as it was clear from the half year results that additional funding would be needed at some stage. As an existing shareholder will I be able to buy more shares at 35p? If not it is another example that shareholders who have supported a company are severely disadvantaged and new ones are given a big incentive, which seems unjust and uncaring. Of course if the SP falls to 35p or below I will be able to buy more anyway. Surely SNG could have included an offer to existing shareholders but I cannot see they have.

With the large number of development areas and collaborations it would be comforting to have a more regular news flow. I guess the whole industry is focussed on c-virus research and finding solutions. However, the large drop today on the back of a relatively small total sold volume is very painful to watch. 20k more bought as the upside here is potentially huge.

With the Government's pledge to massively increase public investment in R&D (also to encourage more private investment) will companies that need funding like SNG and Avacta be in line for support? Development takes years and there appears to be a shortage of InstitutionaI investment at present. These companies have huge potential to develop life saving and changing treatments so would be ideal candidates for assistance to support and accelerate their progress.

Given that unrestricted cash materially exceeds the Mcap, RRE looks to be in a much better position than heavily indebted producers and they should be better able to weather the stormy oil price world. It is difficult to work out at what level production costs (for gas and oil) are not covered in the latest price slump. Website refers to operating in sub $50 environment but how about sub $35 or $40? Hopefully RRE Board and management have a plan to deal with the low price world for the coming months and will be able to reassure existing and potential new shareholders that their position is sound and remind of the opportunities that this gives for acquisition at favourable prices.

The last trading update mentioned that results would be coming out in late March and hopefully will include an update on the many things that are going on. Cash at Dec 2019 was £8.7m and should be enough for into 2021. It is not long to wait so hopefully the sellers will hold on for three more weeks especially with the enormous potential.

In previous two years preliminary results have been released on 25 February and 15 March so 2019 should be due soon. There is a lot of potential and some further good news on progress could provide further impetus. However, the cash position may be getting tighter with a lot happening. Company is debt free so will they borrow or raise? Other possibility might be funding from a pharma partner to accelerate developments and trials. Anyway glad I held on to these even during the big dip.

With more than 20 evaluations and projects in train and additionally more licencing agreements possible, the potential is huge and the future exciting. Given SP volatility inherent on AIM it would be good to have even more frequent updates to convince shareholders to hold onto and increase their investment.

The SP increase today is very welcome but it is not clear why? Updates on production look positive but it is difficult to assess the financial position. The last financial year showed a significant deficit and overall costs still on the high side compared to income. It is difficult to assess how much income has increased and if expenses are anywhere near to being covered. Also there is no news on Champion for some months. Happy with SP direction but will it be sustained?
Also

Not possible to say how much the two main investments might be worth. Each look to have plenty of potential and if Q2 sees listing or IPO there is not long to wait. If TSI are able to raise in current market conditions then they must believe in the future potential. Interest in POW / KKME may be an incidental without much or any real value at this stage.

With the two main portfolio interests coming to the market possibly in Q2 this is an attractive proposition with high risk and reward potential. With possible around 20% in Brandshield and 7.5% in WeShop, TSI's Mcap of £5m could be worth much more. it remains to be seen if market conditions are favourable in Q2. Today's SP rise may be related to the increase in Power Metals in which TSI also have a holding. Managed to add yesterday at just less than placing price so hoping TSI's plans materialise on time.