Member Info for Hemo

I have been doing some desktop research on the takeover code. My assessment is the following and I caveat this heavily because I am not a lawyer (although I am a chartered accountant, chartered director and company secretary). I also own over 700,000 shares in Premaitha. Third party makes offer: Third party can make an offer at whatever price they like to secure the approval of board and shareholders. Offer must also be made to TF for its warrants. If price exceeds exercise price of warrants third party pays offer price less exercise price of warrants. If price lower than exercise price third party doesn't need to pay anything for the warrants. TF makes offer: TF can make an offer at whatever price they like to secure the approval of board and shareholders. Their warrants are irrelevant because they are their own warrants, they haven't paid anything for them and they haven't exercised them to buy the shares. If they exercised the warrants and bought the underlying shares then they would have to pay the same price to all shareholders, but where is the incentive to do that when the market price (and probably takeover price) is significantly less than the exercise price? In my view the price of the warrants is a red herring and not relevant to the price an acquirer would have to pay to buy Premaitha given the market price of 5p and the legal and funding uncertainty. People talk about a fair value of 20p but this is nonsense if we are not a going concern and can't pay our bills without the support of others. If the legal hearing at end of January goes against we are worthless. If a third party or TF bid for us they would probably pay not much more than the current price. Perhaps our greatest hope would be a bidding war. Sadly I think our only option is to settle with Illumina before the end of January because the risks are too great in not settling given the potential appeal costs and uncertainty, reimbursement of Illumina's costs and damages. I'm just trying to be realistic because pinning our hopes on TF's warrants is not valid (unlike Illumina's patents!)

Sorry notaflipper but I still don't understand, particularly the comment 'TMO would want any potential third party to cove their highest executable price of 24.6'. Forgive me but unless there is a legal reason a full offer for the company has to be at a price equal to or greater than the highest price paid by the acquirer then I don't see why TF couldn't just offer a slight premium to the market price? Also are your %s right because wouldn't the exercise of the warrants mean a further increase of shares that would increase the 321m in issue? Just looking for clarity, I appreciate all your contributions.

Flipper can you just clarify why an offer from TF would need to be at 24.6p or higher? Do you think TF would be prepared to walk away from us? If not, then I think it is worth buying more but I was disappointed not to see more indication of support in this RNS. After all they are now mentioning going to the London capital markets and Asian investors. I think TF is the only likely buyer but their ongoing commitment is a risk.

I’m betting on Thursday!

Yes I don’t think we can rely on that and therefore the assumption about migration of platforms in uk/eu is invalid as well I’m afraid. What is the source of Brainspark’s opinion? Everything is up in the air.

Yes although unaudited there still has to be a statement in there that the Company is still a going concern and why. This could be the sticking point and I’m sure there is either a lot of activity going on to justify that (negs with TF and ILL) or hand-wringing, Hail Marys and sticking of heads in the sand.

My worry is we are struggling to prove we are a going concern because TF can’t or won’t provide further or enough funding and the costs and damages of the suit are more than we can afford. Therefore we are struggling to sign off the accounts. If TF were going to buy us out surely they would have done so by now? We are a sprat for them and would have planned for this outcome surely. I can’t see any other source of funds other than TF. I suspect Illumina is playing hardball as you would expect when they have won so resoundingly. It doesn’t bode well and will certainly mean a difficult Xmas for Mr Little et al.

The trouble of the delayed publication of the interim results, particularly when its pushed back to the thinnest shortest trading week of the year is it creates uncertainty and feverish speculation. Are we going to be taken over by TF? Are we negotiating additional funding? Are we about to reach a settlement with Illumina? Are we a going concern? What else could be going on, good and bad?

Squeaky bum time releasing results on one of the thinnest trading days of the year if it’s tomorrow. Good day to bury bad news? Or an early Xmas present?! Could be next week though...!!! Come on TF, rescue us from this misery! I suspect it’s mostly your fault we reached this place in the legal process.

Early Xmas present?! I think TF owe us one.

Can we stay focused on NIPT please?

Why are we getting £111 a test in Europe and only £50 in the Middle East, based on the last two RNSs? Is the Middle East lower margin or Europe higher cost? Seems strange the differential and no explanation why. It’s important as well if ME and outside Europe is the future as we all expect.

I suspect interims will not be this week but the week after, along with news of a settlement with Illumina and further funding from TF, or perhaps even a takeover? We might also find out when the next court appearance is. I don’t want much for Xmas! There will certainly be news on funding though because I’m sure we are running on fumes right now.

I haven’t seen any of the Board doing interviews after this disastrous announcement! They must all be very ashamed. They must have been expecting a totally different reaction to the 15 November RNS but misjudged it badly. How did they get it so wrong? Did the market simply understand they wouldn’t be able to raise the money to finance full-scale mining at Choco?

How long do we think the £500k raised will last us?

Well well what an absolute stinker of an RNS today, criminal really after the RNS three weeks ago. I think this is certainly the last roll of the dice. I wonder how long £500k will last but it doesn’t exactly improve our negotiating position when any buyer of our assets knows we are on life support. I expect an announcement within 3 months about one of the assets, let’s hope they can pull off a deal to make up for the catastrophe this useless BoD has created. And I hope they take their salaries in more shares priced at least above 1p. I don’t know whether they are buffoons or criminals.

What’s going on with the money Genoma owe us? It’s taking a long time to resolve. In the light of the court verdict I would also say they were wrong not to pay us but they were right to look for alternatives.

Market must be expecting a placing now. Why can’t we just sell Mankayan for $10m, which is what I was told it was worth under the proposed punitive mining tax regime in the Philippines? We were recently considering letting it lapse.

Market cap is c.£16m. Why are the latest contracts worth only £50 per test? I agree we need to settle with Illumina now.

Good to see some numbers but £50 a test seems lower than normal?