Sensible Thoughts23 Nov 2024 16:09
I'm sure you are all aware that the LSE is technically ducked for companies wishing to raise funds for leading edge developments. Its also ducked for established companies who provide a sniff of a small profit warning. I have seen multi-billion companies recently loose half the share value based upon minor announcements, I'm not sure why but any announcements generally on the LSE can loose huge % on share price and don't warrant it. For example VTY and Wood lost billions, whilst the business model being sound and order books good they announced that they needed to do some internal audits to verify some financials and lost half their value in the process. Billions, not millions. The US market is more stable hence why so many companies are moving there.
As for HEMO, they need to raise cash for this development. I think the Prevail investment was an attempt to pump up the share price buy it didn't work. I suspect the £600K recent "investment" was to pay Prevail for their services ( it was a placing in disguise imo) .....as the shares issued to them last year for the trial are now worth 6 times less than the original investment. They were probably hoping the SP would be much higher by now leading up to the trial.
Going forward , if HEMO don't get one of the pharma's on board or listed on the US market or some form of development grant, they will have to keep coming back to the pi's via placings. I don't think a ii would invest at this stage as there is still a lot of cash needed to get this to a point of success and any investment would be a big gamble for a ii. Not sure how this is going to end up TBH if funded only by pi's on the UK LSE.