Member Info for HedgeHogarth

An RNS can drop anytime between 7am and 6:30pm

Nothing at 7, I guess Haywain and I retain some hope of an intraday RNS - Don't let us down Vladdic

If not, we bow out of the competition and let someone elsme take the glory

A maximu of 8 trading session left now until we are hopefully crowned as clincial. I would be surprised if it goes to the wire - so hopefully it will be in the next trading sessions .

The next fund raise should be significant - £15-£20m to see us deep into 2025 and able to fund phase 1/1b and start phase 2.

Given the share price in the last 3 years - I would snap someone's hand off if they invested £15m at 6p a share. The sort of investors who would provide that WILL hold - so if the SP is 7-10p it will not drag the price down. If the SP is 8p and you wake up to ews that Hemo have secured £15m funding and have a cahs runway into 2026 we will all be very happy. £15m is lot of money and would be a great validation of the science and potential going into trials.

We all need to think differently - £15m at 6p would be 250m new shares which would dilute existing shareholders by c20%.

But - the value of the a company with £15m in the bank and avle to fund trials is worth a lot more than 20% more than a compnay with £1m in the bank and needing to raise imminently

Agreed Tylo

Good effort and I like your approach

Only issue - you have based it on the wrong cancer.

HEMO are trying to improve outcomes for AML

Please ignore my treatment of VAT - I'm not clear of the VAT treatment but added it in to be prudent

I know there are some very specific rules on VAT governing this space.

I disagree Tylo - they will absolutely have planned the rental proposition to make money.

Lets take the iPhone 13 Pro Max 256 GB

MMAG but it of customer for (£350) (in excellent condition)

Lets assume it costs then up to (£50) on logistics and a light refurbish

So they have paid (£400) for device

Option 1 - They sell it for £650 (incl VAT) 'in excellent, pristine condition' and make up to c£120 Gross Profit after VAT and shipping costs).

Option 2 - They rent it for 12mth @ £36.99 per month. That's £370 revenue which @70% Gross Margin is £260. One year later they will then sell the device for up to £400 which is £330 after VAT. So that's a combined net revenue of £590 less the cost of the original Handset (£400) leaving a Gross Profit of c£190. The financing cost incurred by MAG is est. between £10 and £20 per device) This reduces the profit to c£170.

You see that it is the loan and the onward sale that contribute to the profit.

So renting , should be a lttle more profitable than selling the phone outright, But renting = debt fro MMAG right now and then are managing their business to avoid increasing debt at this time.

We are already starting to see Hemogenyx gets coverage in news places

If/when the clinical hold is lifte and they can starting anncouncing trials we will see Hemogenyx get lots of PR and coverage in both the investment media but more importantly the pharam and Biotech

They will also have an opportuntity to feature more prominently in Biotech conferences

All the above will absolutely drive engagement and new investment

Not that our resident troll(Robswire) EVER answers any questions aimed at him

However, I will answer as its a reasonable question

(1) I would expect the cost of the handset to come through in depreciation (NOT EBITDA)

(2) I would expect the cost of financing the rental agreement to come through as 'financing cost' (NOT EBITDA)

There are a few costs that I would expect to hit EBITDA that are asscoiated with the Rental Income.

1. Cost of a case + screen protector

2. Repairs on warranty (although they may be able to recoup some through manufacturers)

3. Bad Debt (Which is in line with industry average)

Depending on their accounting policiy the phasing of the costs and revenue may differ

However - on average I would expect the Rental Revenue to be at c70% EBITDA Margin

Tylo

I think you have not quite understood the Rental Piece. here are my thoughts:

- It's proved highly compelling as a proposition for customers and has sold well

- In theory, it's a higher margin proposition vs selling a phone outright (Howvere, this will only ver be really tested over time when baking in things like; bad debt, non return of device, cost of finance, re-sign rate

- I expect the number of customer at any given time on a renatl props to remain broadly stable until such time the company has a better funding solution; the company are not growing the rental base because in doing so will increase net debt and put themselves under pressure with the banks. (They are selling an alternative prop to consumer using Klarna or Paypal - who in turn allow customers to spread the payments)

- ALL rental devices come back after 12 months - the compnay will already have factored in a level of depreciation to the asset as it will be 1 year older and have greater wear and tear

- The 70% retention rate will refer to how many customers choose to extend for another 12 months with a new rental device. Note - this % is very similar to the long term trend on retention rates for standard 24mth contracts sold by carriers

Most of the debt is actually a good thing. E.g using indicative numbers. If the compnay had £10 Debt - that would be covered by the contracted recuring revenue stream (e.g. 40k customers paying £20 a month with avg 6mth contract remaining = £4.8m) AND it is funding the working capital which is the handset on loan to the customer (Assume 90% customers return their device at resaleable value of £150 = £5.4m)

ALL the big carriers all take on debt exactly the same way; they sell a handset receivable to the bank to accelarte their cashflow

I predicted the 1st Feb - so happy to see no RNS today :-)

Still a chance to top-up before, what we hope will be, a great RNS

Not Hemo

Got a dummy quote of 3.3p for a sell - so some of those late one may even be sells which is an even better sign that if they were buys IMO

MMS must have buyers lined up at north of 3.3p :-)

Looking very good for the week - glad it is only Tuesday

We'd better not get it tomorrow! My guess was Thursday

And besides - another 24 hours would give me a chance of freeing up some top-up funds

(as per an earlier message, I also wrote a polite note to Guy Field who was responsible for buying and sell MMAG for Cannacord)

But their policy is not to share their rational for any transaction

Yes really - why wouldn't as a serious, engaged investor in the company. I also reached out and exchanged messages with Steve Oliver.

I've not got anything to share beyond what i have already done so and have not picked up anything price sensitive from these interactions.

Damian is a smart, good guy. He has worked directly with a couple of my colleagues. I shared with him a few of my own personal thoughts / ideas that I have, as a shareholder and having spend 20 years in an adjacent industry, would be looking at if i was CEO of MusicMagpie.

I dont even dare to dream - could you imagine....

I did not get involved with He1 - and have no idea if it is over or under valued

Whereas if the same happened to Hemo - I'd feel so much more confidence in thr rise with my extensive research and hsitory here

Tylo - His name is Damian Hanson. It was RNSd at the start of January. He 1% holding is in the summary I shared on X today.

I have been in contact with him to wish him luck with whatever the reason he invested - be that to pursue a role in the new ownership or simply because he recognised it as a great investment opportunity. We have since exchanged a few messages and agree on a number of things

There is a good business here that if managed properly should deliver £10-£20m Profit per annum and be valued around the £100m

Even if half successful - i makes the current mCap look ridiculous

Patience will be rewarded here. The alternative is to sell at an ll time low.

You dont get knowledgable local successful entreprenuers like Mr Hanson invest £100k if its the dog that the haters want you to think.

Be careful who you trust on here

And they have no choice - the daily RNS are regulatory