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The fundraise is done, as I expected, and oversubscribed to £6.4m (before expenses), subject of course to passing of resolution which will also happen.
The retail offer is pretty meaningless given you can buy in market at 0.331p now. So, I suspect it's a non-event and hence they raised above amount.
As of now, you can either add in the same way the institutions and directors have or just hold.
I am with the Sorcerer (and Davand) - the deals will now flow, conservative forecasts will be beaten and quite frankly, a takeover at 3-4p likely thereafter (as part of the strategic investment). They all get a slice of the action. All planned.
There is fundamentally a great core business and technology - we just got shafted by poor financial planning and management, unless of course we follow their actions / lead today.
Was so flabbergasted by the placing at 0.3p that I only got a chance to read through the interims in detail.
Growing core by 20% and expect this to be the case or more in the next 2 years. Lots of wins but realisation of revenue from their implementation is later.......
Still investing lots for growth (£1.1m Canada, £0.6m US, £0.8m R&D, working capital) is good. BUT poor financial planning and funding to do so, very poor. We really didn't need to get here! £10.1m in stock and debtors!
There is a solid business here, just not properly executed financially! Barry H has a lot to answer for.
Oh well, get the funding done, grow the business and get to CF positive.....then maybe we might realise 10x revenue of £28m valuation which would on fully diluted be 10p.
As I said, institutions and directors contributing £5m does reassure me, even if it feels like daylight robbery! And so avoidable in my view.......
Nor sure I understand your question Sorcerer.
The 383m shares being taken up by the existing directors are independent of whether they are directors or not - it is shown today since they are directors. Looks like John Brown, Bill Chang and Lyn Rees stumping up £100k, £600k and £250k respectively. Guess they will know if the company has a future!
The 1,283m placing is a done deal. I wouldn't be surprised it is announced as closed and done tomorrow, subject of course to resolution being passed.
Then there is the 333m retail offer.
Sorcerer, I am truly baffled with the placing price too........especially given my view that they have effectively done a pseudo rights issue exercise.......perhaps it is to ensure take up.......
I am going to get it out of the way. This is absolutely appalling. I never expected we needed to do a placing, especially after the interim update, let alone one at 0.3p! The low share price is also a reason I didn't expect us to go down this route.
They mention divestment and strategic investment by a partner, and I reckon that got delayed resulting in the need for this. Nonetheless, the poor working capital management is another huge disappointment even if EBITDA came in as expected.
Now, onto the placing. Having read through it all, we are raising up to £6m with 2b share issue. This is split 1,283m with institutional investors, 383m with the directors and 333m will be retail. That's roughly 64.1%, 19.2% and 16.7%. I obviously can't work out the exact splits of the share register today, but I reckon not far off today's proportions. So, effectively, they are doing a rights issue without calling it one. I was hoping it there was a fund raise, it will be a rights issue and if the proportions hold true, then I am more comfortable with.
The interim update suggest NIPT new clients with annualised income of £2.7m and Ranger running above $2m now. I know how many will feel right now, INCLUDING me, but I intend to take up my retail offer (will see details tomorrow) because I suspect they know where this is going too in 2023!
BGF asking for non-exec director on Board so long they hold 10%+ also suggest they will be picking up their allocations to keep at same percentage or more. What I can't understand is why do it at 0.3p and not say 1p, with less shares? Same money!
What a shocking state of affairs. But I will be holding on and participating.
I correctly identified Labcorp as one of the unnamed customers (subsequently named).
I referenced Pacific Biosciences some time ago. Watch this space.
Am also keeping a watchful eye on Thermofisher and Illumina.
I am here. Added some this week as I said I would.
I am with you Twix - think they are waiting for deal closure to land with interims due before end year (calendar).
Will be also good to hear progress on Ambry - NIPT there and oncology here.
Assembly technician being hired in Canada. Think you only need assembly folks if you are needing to install quite a few Lightbenches!
Natdan, have a read of below:
https://www.yourgene-health.com/images/investor-relations/YGEN_Open_Day_Business_Update__FINAL.pdf
Stats20, so you are saying the large holder selling down has not communicated to YGEN or that they are colluding and withholding info? If the former, then how is that YGEN fault? If the latter, I think you will find most of the major shareholders are respectable organisations / individuals so, unlikely!
I really think we should stop such conspiracy theories......
.....and I also hope YGEN will announce the big deal / takeover that I think is imminent!
My thoughts are:
(a) There is either a forced liquidation (and as share price falls, it continues) or portfolio realignment - nothing more sinister than that. But this will end at some point;
(b) A significant commercial deal under negotiation (perhaps the Nesbitt referred to deal) - multi-million Ranger tech supply agreement, with upfront payments + warrants for equity at say 5p conversion rate.
As far as I can see, company performance on track. But not our SP! Let's see.
Hi Twix, I am afraid I don't focus much on my average since I have accumulated over time. One thing I do keep track of is what I would like in return - 12p+ for me. So, I guess my average is high single digits.
The article posted by FF just validated what I think / feel. We are only starting our journey of significant growth. Adoption of a disruptive tech takes time, impinged by Covid, and now with 3 megalabs including Labcorp effectively having validated it, and potentially another big one far exceeding them, then many will come onboard. Those names remaining anonymous will eventually also disclose to call out their competitive advantage having adopted earlier.
Increasing number of NIPT lab installations: +15 this year, tick;
Increasing adoption in Ranger: 3+ by end this year, tick;
Switching of genomic services to replace Covid: Move into Oncology with Ambry, tick;
Need fundrasing: Company already said as much they can, ie no in trading update.
I will pick up a few more this coming week.
I am still here Twix, and still holding my just under 3%, so yes, nursing a huge (paper) loss!
I have written quite a bit recently - and I refer you to my post "Way Overdone" parts 1 and 2 for my take of matters and why I sincerely do have faith in Lyn, despite the abysmal share price.
I am definitely in the camp that part of management's responsibility is share price performance - it effectively is the market's "vote" of their and company performance. BUT, I also sympathise with Lyn that it is ultimately not in his control - and given our share price action this year, I tend to agree. I wrote recently about the "disconnect" and this is definitely a case in point. There is literally nothing to explain the fall to below 2p other than a seller, for whatever reason, needing out or MM feeding on sentiments and trying to instigate volume. Look at today's action - less than 500k shares traded ie less than £10k and more than half buys, and we fell.
YGEN is now worth £15m - even in distress, it should be worth more. And I don't think we are or should not be! Revenue generating, and will be EBITDA positive next year, growing again and with a disruptive tech. Goodness, if I had £15m, I would take it over. I am trying to release funds to double up......the share price is simply too disconnected now!
I think Lyn & co have done well pre, during and now post Covid. People talk about having some faith, this is the time.
https://www.brrmedia.co.uk/broadcasts-embed/636a5d5473b22f035bb813c3/yourgene-health/?popup=true
Who said being a disruptor is quick and easy!? But it will certainly pay off........ 3 x megalabs and going......
Yes Twix, it is possible Taiwan may be sold. And Lyn said in 27 July IMC that strategic review to be concluded end of this calendar year. With activities improving, and investments made, perhaps we will get decent money for that.
Listening back to the Q&As, Lyn was quite categoric as late at 27 July that no further cash needed!
I don't know Twix.
It's clear there has been a seller - this could be due to forced liquidation or portfolio strategy realignment.
But that too will clear.....
Looks like there was a new set of projections out post trading update, with EBITDA 22/23 of -£1.4m. This is very much in line with my thinking and on that basis, we will end up with cash post debt repayment of £5m before working capital / investments consideration as at end March 2023. As I said, there was significant working capital to unwind as at March 2022. And if that is unwound, can counter investments, if any.
Then the company is EBITDA positive going into FY23/24 and forward. So, I continue to believe there is NO fund raising exercise, as pretty much said by YGEN in their latest trading update. I also think YGEN can negotiate deals with partners to augment cash position - Lyn has done that before and will I am sure consider that again.
It is very easy, and understandable, to link the share price and company performance. But, they are not always linked - I have seen many instances of such broken links, and it is identifying where such link is broken (too high / low), and where it is unjustifiable, that brings the best opportunities. In YGEN's case, it is definitely the case. And because our SP has been decimated, we make up various theories and conclusions, including slating Lyn and management.
I have done a lot of research, even more so in recent times, and nothing I have found suggest anything other than continued progress with YGEN. A simple google into NIPT market and little YGEN appears in the list of key players. The Ravgen case, with damages awarded subject to appeal, has also ignited Ranger opportunities and it also explains the confidential nature of its implementation to date. Oncology is also a big space we are entering into.
It is easy to forget that Lynn, appointed in July 2018, concluded (a) Illumina settlement in September 2018 and (b) capital & loan restructure with Thermofisher in February 2019 ie within 9 months of his joining. We then expanded and enhanced our portfolio of products & services and channels through acquisitions of Elucigene, AGX and Coastal Genomics. We had Covid over the last 2 years which one should also not forget delivered record revenues and profits.
The company's market cap today is £16m! How can that be right??! YGEN is expected to record £21m+ revenue and GP of circa £12m. And we are growing our core again at 20% growth rate, with Ranger experiencing even higher growth rates (and only just beginning). The Company also issued its trading update on 3 November 2022 - unless I am misreading it totally, it pretty much said they will exercise controls over discretionary investments and working capital, to manage the group's financial position IE no placing! Further, it said they will make the necessary decisions as commercial progress in the 2nd half becomes clearer IE even that may not be necessary yet.......and sounds like some there are commercial deals in play. I wouldn't be surprised with a deal involving an injection of capital for growth by one of our partners, perhaps with warrants and some form of exclusivity / royalties model.
Lyn has brought us the Illumina settlement, Thermofisher capital restructuring and record FY21/22 during Covid. I have FULL confidence Lyn will deliver us more deals & performance that one day, we will look back at 2.3p and say why didn't we add more.
I do hope though Lyn, if you are reading this, give us some pre-Xmas cheer - your patient shareholders deserve it!!
I just read through some of the research reports and press on Ranger Tech - it is very impressive.
We definitely have an amazing tech that will not just save costs in Streck v EDTA tubes but also laboratory re-run costs. The tech can be extended outside of NIPT into various segments too, again proven.
Our NIPT solution with Ranger has been running for years, successfully.
Let's dream......
Labcorp, already using Ranger on oncology, will put a cheeky bid in at 8p. That equates to less than a quarter of their settlement cost of $270m with Ravgen! Using Ranger alone will save and payback within a few years. And they can probably replace their entire NIPT offering with YGEN's.
Illumina, not to be left behind, makes a counter bid at 10p;
Roche comes into the game and goes for 12p;
Labcorp comes back with 15p;
But finally Thermofisher / Life Sciences swoops in, exercising their warrants and buys us for 17p.
There you do. My thoughts. :-)
From the July FY results presentation, they confirmed it is Labcorp + 2 others, as opposed to 2 in CMD.
They RNS'd the first one in March 2021 and second in June 2021. They told us they were negotiating a third during CMD.
So, I can only surmise, one of March or June is Labcorp + ANO.
Then they signed another without being able to RNS due likely to client confidentiality.
As I previously said, to now declare a run rate > $2m per annum is pretty impressive.......and will likely grow fast with wider adoption and across more segments with existing and new clients. Don't forget as well, implementation would have taken longer last year due to Covid. And new one just in.
One thing for sure. Their behaviour and RNSs (nature and volume) do not look like a company looking to do a placing. And the trading update pretty much said that.
If it was, the 15 new labs would have been RNS'd separately, the new megalab and various other developments hidden within presentations.
So, I imagine the Board must have a plan or know of THE plan!