Member Info for elrico

https://lemminginvestors.blogspot.com/2018/06/skinbiotherapeutics-one-to-watch.html

Both insight and guidance from SOH. I queried both the placing and timing, given SOH was on record at UKI that OPTI had funds for existing commitment and BE expected this year. The following is from SOH to me in response to my queries. I'm sure you will agree if you revisit the RNS and listen to the proactive interview, you will see OPTI had being given the rush or potentially losing a multi million deal. SOH: Discount was 1p at 62p on a 63p share price at Thursday May 24th the day the sales were agreed after meets on 23rd and 24th. Typically subscription letters would go out and back on Friday but as it was the day before a bank holiday the II�s didn�t come back till the Tuesday so announced on Wednesday. If it was a planned placing we would have gone out weeks before or after the annual report when the share price would be less volatile as anyone will tell you the difficulties of brokering II�s with a fluctuating share price. I would agree with you on the ideal timing but we have to give commitments to partners to invest in the manufacturing before the deal would progress. I couldn�t give that commitment without the funds being in place so the deal stalled. As the RNS makes clear rather than delay and possibility miss the opportunity we decided to take available money at around market price. Its a 7 figure deal excluding royalties so if delivered will be of substantive value. Sometimes there are things you don�t like doing but have to look at the bigger opportunity. I have a track record of using funds to create value (see SBTX mkt cap ~�18-19m on a �750k investment; Opti ~�55m on �5.8m funds) and if we get one or more pharma deals across the line it will be worth it. Thanks for your continued support.

Korg - The problem you and the other clown on ADV, Michellemouse have is neither of you have any business acumen. OPTI's low cost business strategy has been explained in great detail many times. Allow me to remind you. https://issuu.com/smallcapgrowthreports/docs/opticommercialstrategy081017 People like you seem incapable of seeing commercial traction, thus revenues coming on stream and each deal has got bigger. Has it not occurred to you that each deal helps establish the "intel inside" strategy, which in turn increases IP value, thus market value of OPTI. This never discussed and always missed by many investors. The placing RNS was a big red flag, which clearly demonstrated OPTI had been given the hurry up by some of their partners, which will bring commercial revenues on stream much quicker. If you cannot see this, then I suggest investing is not for you. LGG probiotic strain cost �73m, OPTI have 8 strains. Do the maths. IMHO OPTI is under valued, profit or not profit. The only thing holding OPTI back at this moment in time is II wanting to see the evidence commercial traction is going to build revenues. Given the level of commercial progress (13 COMMERCIAL DEAL IN 12 MONTHS) one can only conclude serious revenues are building. Each partner has double digit growth over multiple years. Surely you see OPTI's BOD have picked partners carefully and with proven historical commercial growth. 5 of OPTI partners are expanding production capacity at a cost of multi millions to them and not OPTI. Why do you think this is? Have a guess. Now perhaps you can return the courtesy and explain why you constantly bash OPTI? If you have a short, fine, I have no issue with that. Just be honest, it's all anyone can ask of each other.

Prob find a large sell from YSF near the bell. This volume has come from somewhere.

Q&A with Peter Lagan, CEO of PharmaBiota https://twitter.com/LEMMINGINVESTOR/status/1002510092779081729

Boyzee - The market is aware these type of collaborations take time to develop into revenue bearing commercial agreements. Today's news is merely confirmation a global corp is interested in evaluating SweetBiotix; "evaluation agreement with a global dairy company for its SweetBiotix� calorie free sweet fibres. The agreement grants a non-exclusive license for an evaluation period to explore the potential for using the SweetBiotix� technology to reduce the sugar content in a range of its dairy food products." If this develops into a commercial agreement, them I'm sure the SP will react more positively, assuming the corp is named. There are only 6 global corps with the sale volume mentioned in the RNS.

Paul Scott had an ideal opportunity to better understand OPTI earlier this year. I put him in touch with SOH. Whether the timing was wrong or not I don't know. I seem to remember he (PS) went stateside a or so after initial contact. As far as I know, he didn't follow up with SOH and I don't think SOH went cap in hand to PS. It was a long shot because I know OPTI is not his sort of company for a number of reasons.

Boyzee - I think we are really talking about cash. Warrants may not show as a revenue item, but they are a cash item, which is why I pointed out the �64k from the warrant in Feb 2017. It's important to know because there is c�200k outstanding which ultimately boosts the coffers. Another important point not covered, the cost of IP/TM related fee's will also be reducing as the business matures, this is where much of the cash burn is.

Boyzee - I think we are really talking about cash. Warrants may not show as a revenue item, but they are a cash item, which is why I pointed out the �64k from the warrant in Feb 2017. It's important to know because there is c�200k outstanding which ultimately boosts the coffers. Another important point not covered, the cost of IP/TM related fee's will also be reducing as the business matures, this is where much of the cash burn is.

Per touched on this during his proactive interview. Steve Riley needs c2-3 months to fully implement the business. It's a steep learning curve for him. I guess if it was to be a matter of days, we would be thinking there can't be much product to list. ;)

Read it and I pointed out his errors. Somebody of his rep shouldn't be making them; We all make them of course. TBF to PS, he doe's make it clear it's not within his comfort zone or the type of stock he invests in. However, it is very clear he doesn't understand the business model and until revenues become visible, its one to avoid. In short, PS like profitable businesses, divi stocks and retail specialist. So a pre-commercial loss making company is never going to float his boat.

Surely - you shouldn't be too shocked. I have often made clear I am NOT an accountant. In any event, we are detracting from my main points; which the reasons for the declining revenues for the period. While I accept I may have incorrectly put the warrant funds on the wrong col on the balance sheet; ie - the money received against Share warrants is shown under Equities & Liabilities....which will be pretty minimal in the scheme of things. The biggy is the increased loss, which I pointed as being the transfer of IP to SBTX. Same with the increased admin costs associated with the IPO. I missed the seasonal adjustment for GoFigure sales. Typically, 4-5 months post Christmas being ripe for bumper sales, tapering off during the summer for obvious reasons. The cash figure of �1.25m is viewed as "strong financial position" which suggests to me (perhaps not you) BOD are happy with the anticipated revenues coming on stream. It was only a month ago SOH made clear he was happy no funding shortfall to see the group through to break even in the current financial year. Playing devil advocate for a moment - should one or two of the larger partners let the group down in terms of product launch eta slippage, this could impact of funding requirement; If this became an issue, OPTI have SBTX on the books.

Example: 06 February 2018 - 800,000 ordinary shares in the Company at an exercise price of 8p per share, providing the Company with proceeds of GBP64,000. Seems clear to me OPTI received monies for the shares, new equity. I haven't data mined the accounts for the period, or completely digested today's results. However, I do know warrants were issued in the period, which in part will account for a decline in revenues, as will license fee's as these progress to commercial.

Read the warrant RNS's.

" what have warrants got to do with revenues?" Really! If don't know the answer to this there is no hope for you.

Believe, I have. You are misrepresenting his points. Firstly, he believes 200p would be fair value, not a predictor. This was based on what Chr Hansen paid for a single probiotic strain, LGG. OPTI's LP-LDL strain is scientifically superior and has the ability to enhance the LGGas has been demonstrated, and gaining serious attention. SOH has always maintained commercial deals take c9-12 months to conclude, from initial discussions to sign-off, large MN deals can take longer. We are seeing the fruits of these coming through. No idea where you get bigger sellers from. Volume is not even daily average. You either see commercial traction or you don't. You can lead a horse to water.....

Deary me. Don't allow TW's slating of your Range Resource moody the water here fella. Revenue are down due to fewer warrants in the period Increased losses �460k is non cash, ie transfer of IP from OPTI to SBTX Increased cost are SBTX IPO cost,non recurring Cash burn remains the same Fully funded with revenues building You have a lot to learn, me thinks. ;)

Orangetree - Show us where the BOD have even hinted at the following quote of yours...."Given how management in previous years have said they expect OPTI should be rolling in the cash by now." I would wager that statement is a figment of your imagination. SOH only started talking in terms of break-even in 2018 last year. If you don't see significant traction the company has made while maintaining tight fiscal control, then you show no acumen for business.

not self select investments. The usual suspects would be better of investing in a Woodford fund. Iv'e read some tosh in my time, but offering investors "waffle" when it is a standard YE update for investors that don't read BBM commentary. What were some of you expecting? There is a long list of commercial agreements, growing in both size and pace and now leaning towards pharma. The logistic of each deal is complex and takes time for these to be put in place and rolled out....most of if not all will be throwing off cash for the next set of result, but some of you won't be patient enough and bail.....most likely to repeat the same mistake you made here in the assumption the grass is greener. I daresay most will have looked at the headline loss and increased one-off admin and spat your cornflakes out. The increased loss is NOT cash burden, it's a transfer of IP to SBTX. The admin one-off is the cost of the IPO. Was it worth it? Uhm....�250k worth what in today's money? Look at the interim cash of �1.9m and YE cash of �1.25m. The burn rate is consistent, which means no bailout placing, fully funded.

Boyzee - You're asking appropriate questions, not mischief making. ;) I know SOH tired and weary of reiterating there will NOT be a placing, sneaky or otherwise. However, as I have pointed out before, he did issue a caveat....subject to an investment opportunity similar to SBTX. He has fended off approaches from II eager for a placing so they can get the size of stock they want in one hit. He has flatly refused. OPTI business model is such it doesn't require cash injection for the final push, the partnerships take on expenditures to promote, market, and commercialise products. OPTI just sit back and ring the cash register.