Member Info for HotblackDesiato

Hi Mafuta - just pinged an e-mail off to both IR & Info @ Sareum just in case they're ignoring one of the mailboxes.

I'm trying to remain stoic but I've got almost 6-figures sunk into this so am feeling a bit nauseous at the moment.

Hi DP - not directly as they no doubt like a bit of privacy however I believe I tracked down the person who introduced them (or at least one of them anyway) via Linkedin.

A poster here who attended AGMs mentioned the name 'Pascal'. I typed 'Sareum Pascal' into my search engine (Duckduckgo) and scrolled down the results to find someone who fitted the bill. It took only a few seconds to find the person's linkedin page and I'm guessing they are the 'introducer'.

Hi all, I'm still of the opinion that if the HNWs are still on board they may take the view that they'll bail us out but only if they can replace Parker with someone of their choosing.

Hopefully this may reassure folks in the event things go bad to worse but please remember I'm not an expert, just a punter. I'd appreciate if someone can reply to this thread to either confirm my understanding or not.

Looking at who owns the intellectual property, the link to the various patent applications indicates Sareum Ltd.

https://worldwide.espacenet.com/searchResults?submitted=true&locale=en_EP&DB=EPODOC&ST=advanced&TI=&AB=&PN=&AP=&PR=&PD=&PA=Sareum&IN=&CPC=&IC=

So who owns Sareum Ltd? Companies House says there is just one individual with significant control - Sareum Holdings PLC

https://find-and-update.company-information.service.gov.uk/company/04863659/persons-with-significant-control

Sareum Holdings PLC is what we're invested in and no individual person has significant control i.e. the company cannot be sold off cheap without shareholder agreement.

https://find-and-update.company-information.service.gov.uk/company/05147578/persons-with-significant-control

So if I'm correct then we all own a share in the IP. The BoD will know they're outgunned in terms of not being able to accept any offers unless enough of us also agree.

Probably cold comfort at the moment but better to know where we stand should the brown smelly stuff hit the big twirly blades.

Stay strong, people.

Evening PCS/SOG - considering we must be in the final few days of the 1a trial, is it fair to assume we currently have enough funds to complete it? If so, then I don't see why we can't then do a public offering based on positive results & 737's on-licence to "...a company that is committed to advancing promising oncology programmes." (That's a quote from the answer to Q19 from the Dec AGM.) After all, SAR was clearly able to raise funds when it had nothing much beyond an idea.

It's been a heck of a day but I just wonder how much worse things could have been if everyone had dumped all their shares the day the RF deal was announced. Everyone selling up en masse would have destroyed the sp within a week meaning the Oz trial might not have been able to progress as far as it has.

Regards.

Evening FatherT - I get where you're coming from but presuming good P1a data then it seems plausible 1b would also be good. We're getting so close to the point at which 1801 could be licensed it'd be almost crazy not to get it across that line.

Exactly, SmartInv.

The original RF deal was for £5m and we've used, what, about half so far? So even if the BoD waited for the next financial year (a few weeks) and raised funds then, they could surely get enough cash to complete P1b. Yes there would be quite a dilution but so what when the survival of the company is at stake?

Presuming the HNWs are all still invested, they will not be content to watch SAR die off, leaving them nothing.

Based on what cash is required to get through to the end of this year i.e. P1b, you'd think one or two of the HNWs would prefer to put their hand in their pocket for another million or so rather than potentially lose everything.

And just to throw an crazy notion out there, what if one of them suggested RF to us, knowing it would torpedo the sp? They could then swoop in to take over the funding and get a significant number of shares at rock bottom pricing compared to their original buy-in. These people don't get rich by chance.

Hi Blue - perhaps Birch did try to steer them away. We just don't know. I imagine the next Investor Meets event will be rather busy with many shareholders out to get answers.

I wonder if RF's own BoD maybe thought they wouldn't have the funds to meet the next drawdown so sold off the SAR shares at an accelerated rate hoping the sp would drop far enough that they wouldn't be obligated to lend further based on the terms of the agreement.

You'd have hoped Clive Birch would have been monitoring things closely what with being a chartered accountant and all that. Surely he should have been looking at the sp drop and strongly advising alternative funding would be required sooner rather than later?

Well that's a bugger and a half.

Don't know if a HNW will step in to protect what's left of their original investment. Perhaps the BoD will look to sell off our interest in 737 to keep the lights on?

Hi Preyno - whilst that might be an interesting premise, the related RNS noted it's gone to a private biopharma company.

Hi Damion - to reverse the sp trend we need a new financing arrangement from a committed source i.e. HNW/punters or a licence deal. With the end of the current financial year in sight there will be increased buying over the next 6wks or so as punters use up their current or new ISA allowance. The resulting increase in volume might shift the sp briefly but in the absence of other factors, RF sells will keep a stranglehold on things. There may be enough buying to swallow up whatever RF has left and sustain a higher sp for a short while but the next tranche of RF shares required to fund P1b will probably see the sp slip back again.

On the bright side, people should be able to fill their ISAs with dirt cheap shares and a licence could appear early in the 1b phase.

All just guesswork for now.

Morning SOG - History page shows updates

https://clinicaltrials.gov/study/NCT02797964?intr=CHK1%20SRA737&rank=1&tab=history

Hi C79 - I'd also pondered the 'what if' of someone getting 737 to intentionally hinder progress but going by the known terms of the deal, the licensee will be handing over additional fees made up of up to US$1.0 million cash and 500,000 shares in the Licensee Company upon the sooner of 12 months following the signing of the Licensing Agreement, or the event of the Licensee Company achieving certain commercial and material financing objectives.

So we'd assume the BoD will have to name whichever company we'll have 135,000 shares in as and when the time comes. That should allow us to look at their own pipeline to gauge their direction and intentions.

Maybe Boundless Bio pre-empted their listing when they added that clause into the agreement (assuming it's them as their CSO was also CSO at Sierra!)

Morning SOG - whilst Sierra might appear to be a good candidate there must be lots of other private companies, each protected from public view by the pharma's that own them. If any trial under control of the subsidiary fails then it's at arm's length of the parent company and won't create such large headlines.

It does make you wonder who was in the orderly queue - only small biotechs or did one or two of the majors also take an interest?

Someone attending the next meeting should pump the BoD for off-the-record info to be shared freely here!

Hi LJ - no idea how much water the lawsuit holds. As someone here pointed out at the time, every merger/takeover in the US will probably see some activist shareholder(s) shouting foul and calling for legal action.

https://lawstreetmedia.com/news/health/shareholder-sues-oncology-company-over-securities-violations/

I was only thinking 737 was maybe back with Sierra as they obviously have prior knowledge/trials and patent applications not to mention now being 'private' but that probably means nothing in the world of big pharma. SOG put forward perfectly reasonable thoughts as to why development stalled so we're currently in the dark, not knowing in which direction to stab.

On the bright side, I think the 1801 MAD study should be completed this week or next so news must be just around the corner.

Regards.

Evening Leggster - yeah, as far as I can see the earliest milestone is simply dependent on accessing funding or even sub-licencing as the RNS refers to commercial objectives.

Thereafter the RNS stated, "Additional payments to the aggregate amount of up to US$289 million may become payable to CPF under the Licensing Agreement, subject to achievement of certain development, regulatory and commercial milestones." So this would probably include the payment clauses relating to getting 737 into patients that BenH alluded to.

Although I've previously suggested 737 might be back in the hands of Sierra, as they are now a GSK company I can't see how funding would be any sort of issue. I expect I'll continue to overthink things until the truth comes out.

Hi Ben - from the Jan 2nd RNS, "An additional fee made up of up to US$1.0 million cash and 500,000 shares in the Licensee Company (the "Consideration Shares") may be payable upon the sooner of 12 months following the signing of the Licensing Agreement, or the event of the Licensee Company achieving certain commercial and material financing objectives."

The above only talks about commercial & funding objectives rather than clinical progress which suggests the milestones may appear sooner rather than later since (I'd assume) funding needs to come before clinical trials start.

If I've interpreted this correctly, it might seem a bit odd as you'd expect a biotech company to be looking at clinical trials to indicate progress/success whereas the above maybe suggests that they have a different business model in mind, or CPF have recognised this approach could actually be better in the short term for CPF/SAR as the milestones will be based on funding rather than trial outcomes i.e. any trial would probably take longer to design/begin compared to arranging funding.

All just guesswork for now.