RE: Nick18 Nov 2023 15:16
Nick: To me, in hindsight, it was clear he wanted to create pre-placing share price-enhancing hype and leave it hanging that there might be transformational licencing news when there is no chance whatsoever.
Answer: I addressed this yesterday in the interview. Your opinion makes no sense for the reason I stated. It creates more problems due to the inflated discount on the “pump.” Nick: “Note the change to ‘early stage’ negotiations with regard to multinational deals.”
Answer: Again, I picked up on this and put this to him. Again, he clarified this. Nick: 2) “You asked him about funding in the first interview. He could have said we need to raise funds because we have the results coming and we would have the ‘going concern issue’ flagged up.”
Answer: No he could not. As per regulations, he must adhere to certain guidelines. Regardless, without a better understanding of the monthly cash flow situation, it was evident that funding was necessary before considering any M&A. As an investor, like many others, I anticipate that any such funding will be accompanied by options for CLN, debt, etc. Of course, if the answer was no, we are not intending to raise then yes, he could answer. Nick: 3) “He was in hype mode like he had never been before. He said he'd worked for multinational companies and been responsible for products with 100’s of millions of revenues but he’d never seen anything like what he had in front of him now. Really? So why buy a series of tiny cosmetic companies when one or two would do the job to roll out these potential hundreds of million revenue products he already has internally?”
Answer: When SA is saying; “never seen anything like what he had in front of him” I think he is referring to the science and the multiple opportunities across multiple platforms and potential commercial partners. We do not know the half of it. Dr Kelly gave us a hint, hence the excitement. It is becoming increasingly evident the Croda/Sederma partnership is much bigger than anticipated.
Nick: 4) I was aware that he wanted to do a small acquisition and maybe one or two very small bolt-ons. A decent enough strategy if it allows the likes of Axisbiotix-ps to be rolled out significantly through an acquired sales channel. The scale of the acquisitions disappointed me and raised a lot of questions about the strategy. Generally, I don’t like growth by acquisition, as TW says 70% of acquisitions fail. Look at a stock like Totally who attempted that approach. Aside from the risks it can create overhangs and haven’t investors experienced enough of that with the annual share price demise when OPTI decide to sell?
Answer: I generally agree with you and by default, Tom. I did state as much in the interview without labouring the point. We will have to wait and see what the first two are. I suspect a third will be much further down the track by which time I suspect, hope, and pray, Croda/Sederma royalties are dropping,
Sign In
Follow the stocks
