Member Info for Hemo

My understanding is the warrants are issued on top of the loan as a sweetener and to give TF the chance to buy shares at an attractive price in the future. The warrants are separate to the shares once issued although they are of course linked at issue. I think the object of the Board is to encourage TF to exercise the warrants and then use the proceeds to pay off the debt. I suspect they are hoping that TF will then write off the remaining debt. To my mind this is very naive because TF are not a charity and will act commercially, particularly given the involvement of Illumina. If they exercise the warrants I suspect they will then want more equity to write off the remaining debt, which will leave them with a greater shareholding. They are not going to give away anything for free. And I doubt very much they will pay 24.6p for any shares when they can buy them in the market for less than 9p!

We need 5% to call an EGM. Happy to put my name to it because this cannot go on. I have 5.1m shares.

I'm sorry but the sale and leaseback is a poor deal and does suggest some desperation to raise funds.

The yield on this deal for the purchaser is 10.3%, which is incredible and is almost junk rates.

I am the FD of a retail company (another sector facing significant difficulties as we all know) and we did 3 sale and leasebacks this year at an average yield of 5.7%.

And why undertake this transaction when you are up for sale, why not wait a while? Unless you are desperate for cash or don't think a sale will take place.

Great post, gives some balance and different perspective to the current terrible share price.

Checked the portal this morning, still no update. Must be waiting for some news to trigger a review of their forecasts.

Agreed, would be helpful to have this on their bios on the website. I was expecting more news flow since the placing but I guess AR’s purchase of more shares indicated there was nothing commercially sensitive to reveal at that time. Still I would expect more news of contract wins around the world and there is nothing hindering their announcement now the litigation is concluded. We need to build some momentum and as flipper says the coming weeks before the interim results would be the perfect time.

To be honest I’d take $50m!

Agreed. I can play Cassandra, notaflipper does a great Mr Micawber and your Polonius is superb, but at the end of the day it’s just words and opinions. We are in a better position than we were but it’s simple that the Board just need to deliver on the potential. I still suspect that the position with regard to TF is more complex than some believe. I mean after all the support they have given us having basically saved us from extinction they are not going to be happy with a position whereby we are selling Illumina and TF products outside the PPA territories. Our indebtedness to them gives them a lot of control and they are not going to give that up by offering gifts such as debt write-offs without something significant in return. It would be naive to think otherwise. Time will tell but I am optimistic. I just lack confidence in the Board.

I remember your ironic remarks about the new CEO turning up to the AGM without a new strategy. How do you feel about it now? Strange we have had no reports back from the AGM. Did anyone go or was it just the directors?!

I can’t make the AGM today because flights from the Channel Islands to Manchester are over £320 (another story) but I hope the Board get an absolute roasting today because the share price is a shambles and says everything about them and the performance of the Company. Sub-9p now, utter disgrace.

And some people are overly positive! It's good to have a balance.

I'm not talking about Illumina's own CE-IVD test or the technical issues surrounding the use of Illumina and TF instruments or TF's approval of the settlement.

I'm talking about what happens when we get a client outside the PPA territories when we have an Illumina test and a TF test? Do we sell them the Illumina or the TF test? We say we are platform-agnostic so the corollary of that must be we don't sell them either test, we let the client decide, which must surely upset TF if the client picks Illumina because we haven't sold them the TF test? On top of the fact they have only 20% of the sequencer market this deal with Illumina may make it harder to change that through Premaitha.

I'm saying I would like more clarity on the TF relationship going forwards and I'm sure this will come out of the meetings over the past week in the US. TF have such a huge influence over us operationally and financially that I would like more certainty over our future relationship with them.

I am intrigued by the position TF finds itself in and what it’s next play is in this complex saga. I would also like some reassurance on their status in the NIPT market and their intentions regarding Premaitha.

It will no longer have a NIPT foothold in the PPA territories, which it will have to cede to Illumina.

It seems that Premaitha is now platform-agnostic, which suggests to me that in the PPA territories they will sell an Illumina product and outside the PPA territories they will sell either TF or Illumina products according to customer demand. That must irk TF and I am worried we are at risk of alienating them.

There is talk now of a debt for equity swap and even a debt write-off. Where will that lead us? TF could have 20% of the equity .What does it mean? TF could exercise their warrants at an overall price of say 12p and then we use the proceeds to repay the debt but then we have a significant shareholder who could effectively be supporting a major rival if Illumina take most of the business.

I don't think we can keep both TF and Illumina happy and we have to get in bed with one of them wholly. It seems it should have been Illumina from the start but we are where we are and we probably need to split the company in two as has been mentioned previously and work with Ilumina in PPA territories and TF outside. I don't think it would be so much of an issue if TF didn't have so much influence and control over us.

But it needs clarity and resolution because I don't believe the line that we can work with both and everything will be fine with the best of both worlds for Premaitha.

Yes we were clearly misled by whoever said that. AR definitely did NOT say we would not require further funding. You can’t believe anyone.

My word I didn’t realize there were three people doing the same job, that really is taking the ****! The Board certainly needs to be held accountable at the AGM. And this whole leaking information to that idiot Tom Winnifrith has to stop as well.

I note the first loan of £5m from TF is not due for repayment until between December 2022 and December 2023 and the rest not until December 2023.

The finncap report may be out of date or produced by an unreliable broker with an agenda but it definitely suggests we will need c£3m of funding next financial year. This is because we will be spending £3m on R&D and £3.5m in capex in this financial year and next. Most of this will be probably be on the new Illumina test and contributing to existing customers’ platform migration, but also on the development of other new products. I agree that the revenue projections seem light (how can the forecasts for India be only £0.75m in 2021?) but you have to factor in there will probably be low growth in UK/EU as customers wait for the new Illumina solution. I think additional funding next year sounds credible so we urgently need confirmation of that. I note it says in the report that we plan to discuss the TF funding structure post-settlement. Hopefully that means they will look to convert their warrants and not that they will seek repayment! I presume there is an agreement that they don’t need to be repaid until at least after 2021. I am thinking of going to the AGM on Thursday so we should all try and put together a list of questions for anybody who definitely decides to go. Apart from those issues mentioned above I would like to know why we need a Chief Business Officer and a Commercial Director. I will think of a few more in the coming days.

There are sales and profit projections available now through finncap, see RNS Reach of 12th October that refers you to a portal to get their research. Sales current year £8.5m, next year £11.9m, 2021 £15m, full break even not expected until after 2021. Funding of c.£4m needed next year, not sure if will be equity or further debt. Seems we are still in bed with finncap although they totally messed up the placing.

I liked the update. There was at least more communication. Trade was better than we thought in H1. We know when we are getting the interims. All payments and actions have been completed in relation to the litigation. We know there will be an update on the strategic review by the AGM. A small step but positive.

I hope they are not fixated on a ridiculous price for Mankayan after the nonsense CB was spouting earlier in the year about $250m. We should honestly take $50m if we can get it, let’s not be greedy and just get on with completing the disposal. I will eat my left buttcheek if we get $250m!

I will try and answer this tonight but in the meantime has any date been set for a meeting with LR? I live in the Channel Islands and could fly over for a meeting on 25th October in Manchester at about 10am because I have another AGM to attend that day.