Member Info for Donato84

the spread on here is ridiculous..

This is similar situation with a company called Staffline, once just shy of 30% often people buy on the thought bidder will have to make a bid, but sometimes as Staffline has shown they do not cross that threshold for whatever reason, I believe the highest price paid in the last 12 months for this would be something like 0.45 so that is where his bid might need to be if he wanted to make one. Worth keeping an eye on this, cash shell mcap typical mcap 3m, this is currently 4m, the cash shell status does not give any indication what the incoming RTO could be, if it is good then this can be worth a lot more- things to consider, people involved, any previous tax losses that could be used for new company etc- this is one that looks very interesting. Worth testing dummy buys to see what availability of the stock is like-

Not that I am aware, under takeover rules they have a mandatory offer for 15.5p this means one could wait until the last moment and if the price in the market is lower accept the bid via their broker. Another interesting point I read somewhere that a delisting is a possibility only after 75% of the voting rights are secured. As the offer document was made available after the bidder had 50% this means that the bidder needs independant shareholders majority vote to delist I believe. If the companies intention was to delist they would probably not be looking to buy 75% of the value of the company at 15.5p, also worst case scenario a delist possibility means you still are a shareholder just not on a listed market, as this company clearly values redx I do not mind keeping my holding until such time. Company needs to give 20 days notice to delist also so this will lead up past the offer end date at which point an individual would simply take up the offer to sell. IF a delist was announced as an intention it may be an excellent opportunity to buy more on a share fall as either they will have to honour the 15.5p buyout or the company gets taken private. Interestingly enough I read somewhere that if the bidder buys higher than the offer made in the market the entire offer needs to go through at that price. Someone correct me if I am wrong here, I have had to refresh my knowledge on takeovers over the weekend. As I understand this will be a costly excerise for the bidder if the 90% is not reached, I still think there could be upside here, but we are drawing close to the deadline as the price is so close in the market doesnt make much sense accepting the offer right at this moment..

No as far as I understand and reviewing the corporate action I received if you do nothing you will keep a hold of your shares, unless Redmile achieve 90% acceptance this will then mean your shares will be taken mandatorily at 15.5p. Its a very unsual situation and one I have not been involved with before personally, if the share price drops this creates an almost arbitrage trade for any new buyer at 15.5p by the end of the month, but if they do not buy in the open market or attempt to then they run the risk of not achieving the acceptance rate of 90% which means they company needs to reapproach in a years time. Would be worth calling your broker to get a better picture as this is how I understand the situation to be, whatever it may be I am not accepting the offer unless I have to as do not have a large holding here and would rather hold out to see what may happen..if price goes to 50p then maybe I will be interested!

Well it may very well still go through at 15.5p if investors handover their shares on the cheap, or if they somehow get to 90% through larger institutions, I believe they will provide regular updates as to acceptances nearer the time, as mentioned before this does not look to be a mandatory takeover investors still have the choice to hold on to their shares which may be a very good option dependant on the companies future updates. An interesting strategy now would be for the other bidder to try and buy the remaining shares in the market thus preventing Redmile getting to 90%. Having had a look at the pipeline the company looks promising, there are a number of biotechs with 100million valuations that arent doing anything tangible compared to this company. Its a shame the management went for the short term fix but the existing shareholders hold all the cards here IMO..

I must have been asleep to have missed this share in March! Oh well must be some others out there still..

This is an extract from what my broker has sent as the coporate action-
"If Redmile receives acceptances under the Offer in respect of, and/or otherwise acquires 90 percent or more of the REDX shares and assuming that all of the other conditions of the Offer have been satisfied or waived, Redmile intends to exercise its rights pursuant to the provisions of [sections 974-991] of the Companies Act 2006 to acquire compulsorily the remaining REDX shares on the same terms as the Offer."
It seems that the 90percent mark is needed, it doesnt make much sense to accept as it seems the floor for the share price is 15.5p as this is the price Redmile have been buying in cash for, I believe they must be only on around 60% by now not including automatic acceptances. If this was a mandatory offer then why does it look like they are buying in the market so close to the offered price. If they do not get the 90% I think under takeover rules they are blocked from making another takeover offer, within a 12 month period, if that happens the company has the funding but will need funding options again by around August, Redmile would not be paying 15.5p if they were about to go bust IMO , they may extend the offer also, once again do not really know if they can extend indefinitely. As the share float grows smaller then the price will get more sensitive to positive news. I believe we are due the data for RXC004 in March. Still to play for here, I for one am not happy with the derisory offer on the table, the science is clearly good but management team inept/poor considering they are consistently running on fumes, the company has a potential $200 million in milestone payments from Jazz, they have an anti infectives subsidary that really should be coming up with a lot of interest right now with all thats going on, they have managed to sell one of their products few years back also for around $40 million, so they are capable of a few suprises here. The long term shareholders are the ones taking a hit here, this used to be a £1/share a while back, the risk/reward here is good still dependant on any updates the company may have. By holding out until the last minute it looks like the price may rise in the open market nearer to the deadline, just my opinion dyor.

I have looked at this company, I would have thought their testing kit could possibly be repurposed, am I missing something here?

I have looked at the Belluscura product looks promising, does anyone know what the fair value is currently and what sort of cash reserves this company has? rgds

This company looks interesting, I am curious how their treatment would work in light of the current situation.

I am holding as near to the end of the deadline date which I think is around 30April, it looks like a lot of the bigger share holders have cashed their chips, means that the remaining circa 35% odd needed for the bid to be pushed through would come from individuals hands. If this is the case then redx may be trying to buy the shares in the open market, which would push the price I imagine, as there is a small float now available- I am no expert but I think if you google the takeover rules they need about 90% acceptance. If they have less by the end of the deadline the takeover could fail and Redmile could become just a large shareholder. There are many companies where the shares are tightly held and not a lot are available to the public, this is obviously not what Redmile want but they may not want to risk waiting right up to the deadline for individuals to respond to the offer document. This company should be worth so much more than 15.5p a lot of lesser bios out there riding the Corona bandwagon, its clear this company has interesting tech as two rival bids are after them. DYOR as always

My broker has not sent the offical offer document as of yet, I believe that once this document is published there is a 21 day period but I am not sure on this, there is also a general requirement for a 90% acceptance rate I think before they can push the deal through at 15.5p, the current shares outside of the bidders ownership is circa 32% they would need to buy a percentage of these in the market which may push the price a lot higher considering the available float and current share price, but who knows. I will be keeping an eye on this, also will be looking for the data due which could come out any moment now. Still a chance it get in with a potentially limited downside.

I am new to this stock I have been following it, does anyone know of the status of the sale iclaprim? I enjoy investing in biotechs and have had some great sucesses in this field. As seen lately the sector seems hot with this epidemic unravelling there is demand for companies doing useful things in the world of medicine.

I think its 75 or 90% acceptance needed for the takeover to go through, so even if 50% are accounted for if people dont want to see this go for cheap they will vote accordingly. I for one think the company is working on various things that are worth a lot more than this measley offer price, Redx Anti-Infectives for example is an interesting subsidiary, also the company should have clinical data due for RXC004 one of their main assets, this I believe was due to complete around March 2020. This takeover looks like its trying to get pushed through quickly, with two seperate bidders, I do not understand though and maybe someone can explain to me why Redmile are able to pick up so many additional shares and the price has not moved up? I think there is still scope for this to get an enhanced bid for the available shares correct me if I am wrong, possibly by another interested party or if new data comes out valuing the companies drug targets higher. DYOR

People do not really understand the potential here, this company is one of the few out there dealing with fibrosis ( scar tissue) it is believed that covid19 causes lung fibrosis, this company could be developing a way to reverse this damage done to the lungs (IPF). A number of big trades post TO offer announcement would indicate a potential to go possibly higher from here. The date I believe is 14th April, but with Redmile holding nearly 50% of the stock there could be a good move to the upside if it is believed the company is worth more than 30million, (which I believe personally is a super low ball figure) 15.5p should be more like 60p which gives a MCAP of approx £116m should be nearer to a reasonable valuation. DYOR as always.

First post here, been keeping an eye on this company for quite a while now, for me it looks very interesting, the company have a deal with Jazz pharma in the US for royalties up to 200million US, obviously this might take a while to get going, but it is this ROCK2 inhibitor technology which will be a game changer if proven. Currently the market for a NASH (fatty liver disease) solution is in the billions, with no FDA approved drug as of yet, this is an exciting market to be getting involved with. Even though the takeover didn’t go to plan I would be very interested to know the offer that was rejected. With a current mcap of 14million with funding being announced and over 40 percent of the share float unavailable, good luck getting into this one early. In my opinion this is well over a £1 with the right data. Bio pharma seems to be the big play at the moment with the Coronavirus, etc, this will be one to watch..