Member Info for Hemo

The more I think about it in the light of the recent form of order hearing the more comfortable I am about my investment here and the more surprised I am the share price has not re-rated somewhat. It is only the UK that is affected and as we know that will soon represent less than 10% of our revenues. We have a year to grow further the rest of our ex-UK revenues. Even if the judge stops us selling IONA in the UK (unlikely) it shouldn’t matter that much. It is unlikely Illumina will go after us in the EU because of the competition investigation. TF have reiterated their support and even offered funding without further dilution, showing their understanding we are undervalued and they have contributed to this situation. The costs of £1.5m for Ilumina’s legal fees are manageable. 10% of revenues seems to be the likely damages so based on Flipper’s calculations less than £200k. The judge may go back for this £200k or it may only apply to future sales. Either way it is not the end of the world. The costs of the appeal and defending the 321 claim should be less than we have incurred to date. I believe the judge will throw out this 321 claim anyway for abuse of legal process. We will need further funding from TF if we continue with the appeal and the 321 claim goes ahead but it should be capped at no more than £3m. They should provide it. Finally I think the judge will eventually impose a settlement if Illumina don’t play ball and it will probably be around 10% of revenue. All in all I am more relaxed about holding here. I would like a settlement like everybody else but I am happy to hold even if we continue with the legal process, knowing TF are with us and the huge opportunities that exist outside the UK.

Agreed need more information or speculation gets out of control. Why leave now when on cusp of success? Is there an issue? Do we need an expensive full time CFO? Is he a sexual harasser?! Never good to publish news like this on a Friday afternoon either.

We need outlying sales forecasts from 2018. I presume there will be a new Hardman report in February with these in.

Thanks flipper. I guess the other dynamic is this 321 claim scheduled to be heard in March. Will there be a settlement before then, particularly in light of the US Ariosa verdict? How does this 321 claim now fit in with the appeals process for the other claims? Could the judge find against us and then we also appeal that? Could we win that claim for various reasons including abuse of legal process? So many questions, it is all so complex but drags on and on. We need an outcome soon though. I note gross margins were 48% H1 17/18 so 10% even 20% of revenues on UK sales should be affordable as long as it is wrapped up with a deal to pursue no further claims and a small financial payment. The problem will be their view of the EU and they may be reluctant to include that in any deal.

Flipper What do you think are commercially viable settlement terms? I know it’s a difficult question as you are not an insider but I would love your perspective. What is a fair licence fee? 10% of sales? Thanks

Why are we drifting down? With metal prices firming, the political landscape softening in the Philippines and Argentina, and the proven reserves at Choco and Mankayan, we should be moving up. Just shows how poorly managed this has been and continues to be. When we will get some bl$$dy positive news? Just the departure of Read would be enough for me!

I can’t understand why the judge didn’t impose a settlement at this hearing if we were prepared to make a reasonable offer and Illumina were being unreasonable.

Good news I guess but this still drags on for another year. Still open to a settlement, accepted grounds for an appeal, funded by TF, reasonable costs, time to develop the business further so all ok on those fronts but there is still the threat of not being able to offer the test in the UK in 12 months and the uncertainty that creates for new UK customers. It's a shame the judge did not impose a reasonable settlement at this stage as it seems he had the authority to do so. I wonder why he didn't when we must have articulated in court the settlement terms we could agree to. I don't think Illumina want to settle at all and will fight this to the end. It's a shame a settlement wasn't wrapped up in the recent deal between TF and Illumina. Let's hope the EU Commission get a move on with their investigation. How long does it take ffs. I hope the ongoing threat of this stops Illumina from pursuing litigation in the EU. I guess we will all now be researching the appeals process! Where will it be heard? Who will hear it? What do we have to prove? What is the detailed basis of our appeal?

I think they have to disclose at 3% holding don’t they so hopefully an RNS soon because they must be close to 18m shares now? And if it were gold fields they have to disclose every 1% increment I believe?

2m buy just before the bell? As said here seems someone is accumulating.

Was that in an RNS Bakky?

We’re leaving a settlement a bit late aren’t we? Are we going to do it on the steps of the court on Monday?

Spread quite tight then, pressure building?

Was the 2.5m at 0.49 a sell?

Thanks flipper we may have the provision available but that is surely irrelevant - we need the cash. TF must want this resolved quickly now because I agree with your point that this legal uncertainty must be preventing people signing up to our service and that is terrible.

Yes I bought 1m today to bring my average down to 1.5p in the belief that corporate action is imminent as suggested by Olivier’s departure and the fact that Read’s appointment can only be temporary until either a takeover or funding is agreed for Choco.

How must Mr Reads massive ego feel when his appointment as CEO is greeted by a 17% drop in the share price?! He’s lucky it’s not more though.

Should have got rid of Read as well.

Agreed. Apart from the fact that Read is a waste of space and a windy blagger it may suggest Olivier is not confident. Having said that Olivier has not done a good job and has presided over and achieved nothing other than the massive destruction of shareholder value. I’m amazed he has got another job as CEO he should just stick to using his technical expertise. Perhaps he was removed for poor performance.

No I average 17p now but I would take 15p as things stand.