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I understand TF did not want to participate in the recent placing and accepted some dilution although they were supportive of the acquisition. Still it seems cash is no longer an issue for now.
Nothing new it seems? They still emphasize no clinically significant difference in liver enzymes between Iclaprim and vancomycin so I still can’t understand what the problem is. Why does it take 30 days to send out minutes of a meeting? I am the company secretary for a large private company and I send out the minutes of board meetings the next day so I don’t forget what was said and agreed, and to give the board members a chance to review the minutes so they don’t forget what was said and agreed! Bl00dy bureaucrats!
They can’t buy if they are aware of any undisclosed price sensitive information so unlikely to be any major announcements for a little while. I would like to know when we will find out if TF is going to invest further following the recent placing.
Just watched the presentation and feel excited about the prospects especially the market entry into US and China. I didn’t like the constant use of my and I when this is a team effort and feel he is taking too much credit for the litigation settlement when this was nearly done when he arrived, but minor points. I suspect we are looking at more acquisitions and this is why we raised more money than we need for day to day requirements. When do we find out if TF will buy more shares following the recent placing?
We will see flipper, it could be positive, it might not. It has certainly put short term pressure on the share price but we are all in it for the long run. You are confused about the cash surplus of £3.1m because you are omitting admin costs of £2.1m that bring the ‘cash surplus’ down to £1m. I am interested why revenue growth stalled at £3.6m in 2018 at Elucigene and feel they should have explained that. Having said that a multiple of 2.5 times revenue seems low and could reflect the fact the company has lost its way a bit and needs the focus and skills of the YGEN team. Time will tell.
Good to see we will probably have enough cash now to see us through, although at the expense of some heavy dilution. A couple of early points and I hate to be negative. Elucigene revenue growth stalled in 2018 versus 2017 and profits fell so it would be nice to know why that was. Of course multiple paid was low to reflect that but would be nice to know there are no underlying issues there. I would also have liked to see Lyn Rees buy more shares than £25k worth, seems a token gesture to me. At least Bill Chang is investing hard. Let’s see what the market does tomorrow.
Just read the finncap note and although they are perhaps in the dog house they are still our broker so their forecasts must be worth something. It seems that as things currently stand we don’t need to raise any more funds whether by share issue or debt facilities so I am struggling to understand the share price reaction to the trading update. The market has misjudged this in my humble opinion and I feel even more confident now. The market will work it out.
Just love putting the blame on lower cash on Brexit! Priceless! Do they indicate further funds will need to be raised in 19/20?
We had a cash outflow of c£2m in the last six months. It seems operating cash burn is improving so with c.£1.3m in the bank it could last 3-4 months. The disappointment for me is there was no confirmation these funds will be enough to see us through. If it isn’t I would have liked us to raise funds at the same time as the trading update because it just creates uncertainty and a drop in the share price. I am confident but I still think the Board is making schoolboy errors.
Revenues ahead of Hardman but cash lower than expected at 1.25m vs 1.55m.
I think we should have one by 15th April. It’s possible and consistent with the half year. Anything above £9m sales will be positive for me. GLA
Agreed. Can’t understand it. All headwinds have fallen away, we should soar now. Only long term issues I can see are an improved test from a rival or a new technology but that is some way off it seems and we should therefore enjoy the ride now.
I hope you’re being sarcastic. Only the educated among us can use sarcasm.
Let’s hope they refuse to pay for the reports.
If he is moaning it’s a good thing because his opinion is worthless!
Yes agreed so much positive news this week, must be some profit-taking. Revised Hardman report was also more positive today although it smacks a little of incompetence that they couldn’t get it right in the first place. Only worry is the steep drop in R & D expenditure because surely we need that to keep ahead of the pack but it is great that further placings seem unlikely because of lower net debt at end of FY2020, exercise of more TF warrants and/or bank finance, and we will be EBITDA positive in FY2020. I don’t have enormous confidence in the Hardman report though because of their errors and also the fact they are including the £1m litigation settlement to Illumina in FY2020 (paid in FY 2019) and they exclude the research income we are likely to have in the coming years. Sales forecasts look a little light generally to me.
Meant fundraising not placing
I am hoping they will give us sales figures to 31 March 2019 in the trading update that I expect in April or May. They should be able to!
Would be interesting to know how long the ‘initial period’ is that the share price must sustain a rise of 50% above the exercise price of each warrant tranche.
Thanks both, wise advice. I have quite a lot invested here so will probably wait for the funding RNS. This was clearly a shock to the BOD but the price has been decimated and there will probably be a more favorable entry point again after the placing. Good luck to all.