The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
RvR Is fantastic
Its not about 'contract value' its about follow on products/partnerships
At this stage you are never going to be given a multi-million dollar contract without first completing trials etc.
The £200k they just received is to cover RnD
As per RNS
'The first contract is for the development of an Optimer pair to a neurodegenerative biomarker for use in an immunoassay platform.'
The second contract is a follow-on contract for the final stage of Optimer development to a neuronal protein target for immunohistochemistry (IHC), following positive results in the earlier stages of Optimer development. This builds on the adoption of our Optimer-Fc platform for use in automated IHC workflows.'
Top 5 pharma so not short of cash *should* the trial be successful, IF they do produce what the top 5 pharma is looking for then you can expect seven figure follow on contracts
For now with a large cash position, I wouldn't be looking at contract values but more look at the partnerships and developments being worked on, no guarantee of success but that's where the value is
Was aware of a few CSGO sponsors but made a list here: mostly betting companies, so could be a deal with Sky Bet?
https://twitter.com/glr_1990/status/1695024531251814492
But one thing is clear, if you have a solid CSGO team you are getting sponsored, interesting to see rival gambling companies back rival gamers! In the last article it mentions RED competing with Sportsbet, very interesting!
As per my relatively negative(ish) but I thought on the money post the other day, GILD have since impressed showing their strong partnership with Sky, reminding us they are capable of landing major deals and creating strong relationships with Partners
In the last week we have the huge announcement of creating a CS roster, men and women's teams now, CS being one of the biggest e sports platforms in the market and now our own street fighter tournament and roster
Surely sponsors will be very impressed, would expect one to land shortly
Looking back, its been a really awful performance on the sponsor front in 2023, maybe I am being too optimistic but they need to start converting sponsors
To date, this year the largest sponsor they have signed is ~£230K PA from Hummel (£700K over 3 years), they've signed a lot of 'kind' partnerships but nothing of real value
We've also been informed that Bitstamp has mutually agreed to terminate a £1.5m PA contract, that's going to have a crushing impact on revenues going forward if not replaced
I am bullish here short term, I think the recent CS announcement (esp using a fund to create it) was a brilliant move and I expect a partner/sponsor in the coming months to go along side this
new CEO only been appointed since Feb and certainly couldn't have done much more to date, has done a really good job of getting the costs down and creating a better foundation for growth just need those sponsors over the line
Technically Bitstamp are still paying until the end of the financial year, so we may have someone lined up to replace it on official termination, lets hope we do as that news among others (cash burn) really sunk the company to its current extremely low £3.6m valuation
The upside is massive if we can onboard the 'advanced' sponsors we talk about, but the reality is we have only converted one deal and its £700K over 3 years
Either a flurry of sponsors land in the near term (which I am betting they will) or we have to ask for more funding, and likely massive further dilution / Wipeout for holders , important to be bullish and optimistic but not forget the reality here that if sponsors are not onboarded before Y/E 2023, the company will likely be in a lot of a financial trouble
GL to the board you have my best wishes and I do believe they will succeed
More than I am getting in my current account! (0.25%) shocking! :P
On a serious note, CS:GO does have a lot of gambling sponsors and the odd crypto and alcoholic beverage (Absolut) so one hopes we are in discussions with large names in the industry, if I had to bet (no pun intended) id go with a gambling company - come on GILD you've made the right moves behind the scenes the last three months but it really is time to put pen to paper and start converting potential to revenue :)
It's not going to go below 4.5p as they've 'sold' 30% of the company for that price (yes aware need to convert but without large profitable contracts, they'll end up having to convert)
Anything less than that will surely attract buyers
Someone offloaded 135K, its not much, they likely bought it yesterday so selling for a 20% loss
Im happy to be patient and wait to see
A. what this CLN will bring in the next 2 months
B. What the strategic product is
At todays price £2.5m (pre conversion) it wont take much to do 200% IF they finally do release some positive news that isn't behind an NDA, never known a company to sign so many NDA's really is incredible
Can't argue with that fox, you are spot on in your assessment and this is clearly their last chance before the company either goes bust or gets diluted to oblivion
One has to hope this new product, which will be a 'cornerstone' solution offered by the partner, is a game changer
So many failed partnerships, ICL, Shiptek, Cubemonk, Zero Motorcycles, Cropx, Bosch, DHL etc. the list goes on sadly, we have had some big names partnered but nothing ever materialised
Last chance with the US partner, to see if they can get Tetis out there, and this new product as a cornerstone solution, if its a company like Maersk then we've got a real chance, if not then I agree this company will go bust or get diluted to oblivion list 2024/early 2025
As for the $50m+ contracts, very odd that they were allowed to be signed off - but investors know themselves if there isnt an upfront payment or commitment then it isn't worth the paper its written on
Always an intraday RNS with #TRAC
Lots of their business in the US so usually around 1-3pm
I've pinned Aug/Sep as strong newsflow, you dont loan someone $1.3m USD (with $600K of that going to a third party debt) without having a strong order book, plus the loanee is the partner, if we are drawing down $600K between now and the end of September, one would think that order value will be 5x that minimum, so could be looking at some multi-million orders signed in the next couple of weeks
Ewave mobile isn't going to change the fortunes of the company, but yes it helps even if nobody outside of this board has ever heard of it
Weve had Bosch, DHL, ICL, CropX and Zero motorcycles and our valuation has never been lower
The new strategy has failed to date, but this loan can change things as its from a trusted supplier, a partnership so to speak, and who knows maybe this new collaboration product will take off (literally) - shame they have to keep it behind closed doors, as once again not naming the blue chip client impacts the upside to the company, if they increased the SP by enough and created a solid business plan, they could pay off the CLN with an equity investment at a much higher SP, surely that is the medium term plan. Good luck team lets hope they can do it this time around as the dilution with the current agreement may leave them vulnerable for a hostile takeover.
I had this month pinned as the breakout... they've got $300K coming from the CLN this and next... say they have pending orders to fulfil, so be interesting to see what the orders are... also shouldn't there be a TR1 soon? This 'partner' has taken a huge chunk of the business, who are they?
Also would be interested to see how they are doing with the air tracking product for a global name, lets hope its Maersk and not an international company nobody has heard of but has a few offices around the world.
If HyProMag listed today on the LSE (likely be £30m+) but at face value for what Cotec paid, lets say it listed at £15m GBP with board members Julian Treger, Braam Jonker, Will Dawes, Alex Lemon and John Singleton and Lucio Genovese do you REALLY think it would be sitting at £15m!
Two fully funded plants *(both worth £5-6m each and could bring in ~£5-10m USD of revenues PA)
100% ownership of the technology
There is absolutely no way it would list for less than our current market cap, never mind the £15m face it has been acquired for - then you add in a future JV with Cotec (~40% I reckon we will own) they could be providing access to ~$30m USD (own pockets and grants) its just insane!
This is all without the GIGANTIC SONGWE RARE EARTHS PROJECT! Currently one of a few construction ready projects globally and outside of China! In a 'usually' favourable jurisdiction! Fair enough they want a bit more after being taken to the cleaners the last few years / agreements, cant blame them but it will be a win win for everyone in the end.
Considering I thought the MDA would land in July/Aug 2022 *(not 2023!) I am going to go with the following predictions!
MDA Sep 2023
TEP Update Oct/Nov 2023
Cotec JV / expansion into US Dec23/Jan24
Other news that could land
- ofc if/when any of the above do land, then you have a staggering amount of follow on news
MDA would be financing, offtakes, strategic investors, buyers etc.
TEP would be OEM contracts, partnerships, quality of the product, scale up financing (JV with an auto OEM?) expansion etc. etc.
'And certainly those self same directors have not deigned to appoint anyone with greater experience than their own rather limited faculties.'
You never heard of Jones Group?
https://finance.yahoo.com/news/mkango-appoints-jones-group-international-060000403.html
Jones Group International, a Washington, US based advisory firm led by retired General James Jones, former National Security Advisor to President Barack Obama, will assist Mkango, advising on US critical materials security, energy security, market access and trade promotion.
If you think they are not involved after the DoD visited the site personally, think again!
If a company valued at £24m cap signs the biggest commercial deal in Malawi in over 10 years, when 75% or more of that companies market cap is currently covered by the face value, no forward looking valuation of HyProMag / Maginito then one wonders how many multiples it will add to the SP
Hmm not the best price, giving away 29.5% of the company as well so they've diluted their own holdings by quite a sum however does open the doors now for newsflow with funding issues now out of the way, the supplier will become the largest shareholder in the company by some distance - they have really screwed this up for both themselves and the valuation of the company over the last 12-24 months but I feel this isn't a terrible deal in the current market and with such a small valuation (Still only ~£3m post conversion) they have set themselves up for success if they can deliver - no excuse now with a good partner on board and cash in the bank, lets see I am backing them to turn this around.
Will have to hope they get a good offer during the FSP
Not in the strongest position cash wise, but it has fallen from 150p down to 5p so someone might see value in their tech, if they can prove that they will be profitable in 2 years and if someone can use / find value in their Optimers / Aptamers technology (which is a binding drug delivery style technology) then they might be able to find two bidders that can edge each other up
Very difficult situation still but a little bit of hope for shareholders, if the above is in any way rampy I apologise as this is high risk due to the cash position which could ultimately still wipe out holders, I've took a small punt simply because they are doing an FSP and I am sure they wouldn't have even bothered if they didn't see some value, although ITS did one and it came back a disaster if you recall (£500K they sold it for in the end)
Shame they can't announce who the collaboration is with, like ONDO previously and ACT today (both done over 150%, ONDO 300%+) by partnering with large players, if we are truly with a leader in the shipping industry, then the valuation will soar, yet nothing mentioned so the SP remains depressed... hopefully the company will not miss another golden opportunity to create value.
Hmm you may be right
we own 80% of HyProMag, but Cotec will get a 50% stake in the US sub directly (not via Maginito) so correct would end up being 60/40 in favour of Cotec
I can live with that but thanks for pointing it out!