Member Info for howdlep

The good thing about moving higher on much larger daily volume, is it allows profit takers to exit and new investors to enter, with their own targets. Of course, any sustained move creates a dilemma for old holders, as they wrestle with the psychology of remaining out as price rises. This all creates a situation where good news, via an RNS, results in a much more rapid rise. Do not be surprised to see 5p rises in a day, as investors struggle to build a meaningful holding.

There is potentially so much news flow due over the coming weeks, some of which will be company making. The time to be buying is now, as NT will become a common occurrence.

Zak notes the rising trend channel base making good progress with the break of the Nov/Dec resistance at 1.6p. Above that, target 2.4p by as early as the end of this month. With the MA50 line (V shape bull flag) rising, it gives a nice look to the situation.

https://zakstraderscafe.com/bulletin-board-heroes-january-16-2/10569/

Portfolio loading and share dealing now fully operational.

Not a day for this to happen.

Thanks Max.

For those without Linkedin, you can register via Blackford over on X:-

https://x.com/howdlep/status/1879077223275348301

And HL will take 450k @ 1.425p and only offer very little for full.

Interesting. Is a buy order being worked or is there an anticipation of news? I suspect both

For those that are unaware, Michael is a Director of IQAI and co-founder of Imaging Biometrics. He is also the spouse of Kathleen Schmainda, PhD, a professor of biophysics at the Medical College of Wisconsin. Kathleen is a holder of 4.65% of the issued shares in IQAI.

Prior to IB, Michael was a foundational member of Prism Clinical Imaging, secured the initial investment for the company, and served as president and COO.

I have long since thought that IQAI should acquire Prism, given the potential revenue stream that the partnership offers.

The following is information taken from the Investor Relations on https://www.iqai.ltd/

Michael has a 20-year history of successfully building global medical imaging businesses including Prism Clinical Imaging and Imaging Biometrics. As co-founder of IB, he has overseen all aspects of the company's development, operation, and growth since its inception. He has established strong collaborative relationships with leaders in the medical imaging field who drive new product development and has led the translation and commercialisation of sophisticated imaging solutions, achieved regulatory approvals in the US and Europe, and global product adoption.

Michael's career began with 3M Company, a company renowned for bringing new products to market, where he held leadership roles across multiple industries including the life science sector. Prior to IB, Michael was a foundational member of Prism Clinical Imaging, secured the initial investment for the company, and served as president and COO.

So yesterday we had total IQAI volume of circa 1.27m, the vast majority of which were sales.

Well we know both Trevor and FAB have already sold their entire, combined 29.51% holding in IQAI to Braveheart (BRH) at a price of 1.1p per share. That price was obviously very acceptable to Braveheart and reflects the fact that Trevor is also CEO of BRH. Clearly, he would not have sold those shares to anyone else at that price.

Since then, Trevor has purchased the entire FAB holding in BRH at a price of 3.5p per share, along with additional open market purchases of 425k and 100k shares at 4.0388p and 4.977p respectively. This takes his personal holding in BRH to 25.65%.

So as we know neither Trevor or FAB sold shares in IQAI yesterday, that prompted one or two to speculate that BRH may have been the seller. Given that they hold 65,415,862 shares in IQAI, I think we can pretty much be assured that they are not starting to sell their position at circa 1.4p!

Quite simply, BRH need huge news to unwind a 29.51% position. That will come in due course, as we have previously speculated.

So that leaves yesterday's seller/s to be private investor/s. I am very happy for that to happen. Can you imagine the price today that those same investors would need to pay to purchase circa 1m shares?

Additionally, contemplate the magnitude of the mark up when good news is released.

This is what makes investing so interesting. Sellers can continue to be right, until they are wrong. The same applies to buyers.

As for future placings, if there was to be a BRH one, why would Trevor buy BRH shares on the open market?

If there is one thing that Trevor is not, it is daft.

With IQAI, it is much clearer. They cannot have a placing below 1p, as that is the nominal value of shares.

This all points to much higher share prices for both BRH and IQAI before any future placings are considered. But remember, in the case of IQAI, there could be third party investments from partner/s. If this was, in part, via share issue, it would allow BRH to increase their direct stake in IQAI without going above 30%.

Of course, this is all speculation. However, I suspect some of these scenarios are about to play out. We will know soon enough.

MM's were keen yesterday to raise the bid on a paltry 50k total volume. Today they have raised the offer after a little flurry of 3x150k buys. Are we close to a more substantive move higher?

Chart https://invst.ly/17yhsj

Hi maximillion68,

There are a lot of variables re TB and BRH/IQAI.

We know BRH bought the combined 29.51% holdings of TB and FAB in IQAI. So, as TB and BRH are a concert party, re their joint holding in IQAI, there is very little room for either to add, unless there was an IQAI placing. However, TB could still issue new loan notes in IQAI without affecting the percentage. It is only an issue when the debt is converted into shares. By then, we could be a totally different company. Even bought out by big pharma.

As for TB purchasing small amounts of BRH, that is less clear. Currently, he holds 25.65% so could add a further 4.35% or 2,767,831 shares. As of 2 December, there were 28.08% not in public hands, so 2.59% held by other Directors like Vivian David Hallam. I guess there could be an opportunity for TB to add here, if one of the Directors left. Alternatively, he could take part in an BRH placing. But is that going to be at a lower price if TB is adding on the open market now? A cynic would say small purchases might tempt BRH pi's to add, so forcing the share price higher. Then they could place. Surely not! What is for certain, is that TB has only used £90k (buying FAB holding in BRH) plus the open market BRH purchase, of the £503k he received from his sale of IQAI shares.

What is apparent to me, is that the MM's seem ready to move IQAI higher. This will happen with news or just more volume. Today the bid moved higher on a tiny total volume of circa 50k. Should this happen, it would make TB's decision to sell his shares a very strange one. But then, he always has good personal reasons for his actions.

Phil

Tyke,

You state "So now somebody else has increased their holdings in BRH."

If you are referring to the RNS from Autins Group PLC, then Braveheart have increased their stake in Autins from 28.5% to 29.09%.

As for your comment about BRH shareholders receiving a special dividend, might that not come from the sale of shares from one of its portfolio companies other than IQAI?

It would seem they want a maximum interest in both IQAI and AUTG.

Phil

Typo, that should have read 750,000 @ 1.499p

We have a 760,000 buy at 1.499p gone through just after 4pm.

Let's see what tomorrow brings.

Tyke,

Click boxes to the left of Versions 5 and 6 and then press compare. It shows all the changes between versions.

Tyke,

My two posts were very generalised and were intended to promote discussion. So thank you for replying.

Variation would exist with both methods. However, I hope and think we will go down the direct funding route. This would allow charities and foundations to take part more easily. Also with our market cap being so low, a phase two equity stake would be very high proportionally. However, do not rule premium deals, as the share price would be re rated on a deal announcement.

That said, I guess we shouldn't rule out hybrid funding, with a combination of the two.

As ever with IQAI, every announcement generates new questions. I am just happy to be accumulating before the big RNS arrives.

Cheers

Phil

2. Taking a Stake in the Sponsoring Company

This approach involves a third party acquiring equity in the company sponsoring the trial, providing funding that the company can allocate toward the trial or other operational needs.

Mechanisms:

Equity Investment:

The third party purchases shares in the sponsoring company, often at a discounted price, as part of a funding round.

Convertible Debt:

The third party lends money, which converts into equity at a future date or milestone (e.g., trial success).

Licensing or Partnership:

In addition to acquiring a stake, the third party may secure exclusive rights to commercialize the treatment if it succeeds.

Advantages:

Broader Financial Support: Equity funding can cover not just the trial but other operational or developmental needs.

Incentive Alignment: Funders gain upside potential if the sponsoring company succeeds overall.

Strategic Partnerships: The third party may bring additional resources, such as expertise or connections, that benefit the sponsor.

Disadvantages:

Dilution: Existing shareholders lose equity, reducing their ownership percentage.

Complexity: Negotiating equity stakes, especially with valuation and control issues, can be time-consuming.

Loss of Control: Significant equity sales might give the third party influence over company decisions.

Key Considerations for Sponsors:

Risk Tolerance:

Direct funding minimizes dilution but could impose strict conditions. Equity sales share risk with the funder but reduce control.

Time Horizon:

Direct funding is better for short-term, trial-specific needs. Equity stakes can support longer-term company growth.

Strategic Goals:

If the goal is to establish a long-term partnership (e.g., commercialization assistance), equity investment might be more suitable.

Example Scenarios:

Direct Funding:

A patient advocacy group provides $2 million to fund a Phase 2 trial, with the agreement that the group will receive access to anonymized trial data and a small percentage of future royalties.

Equity Stake:

A pharmaceutical company invests $5 million in the sponsor, acquiring a 20% stake and securing the right of first refusal for Phase 3 trials and eventual commercialization.

Conclusion:

The choice between direct funding and taking an equity stake depends on the sponsor's strategic priorities, the third party's goals, and the nature of the trial. A hybrid approach, such as partial funding combined with equity investment, might also be possible to balance the benefits and risks of both options.

Funding an FDA Phase 2 trial can be approached through direct funding or by taking a stake in the sponsoring company. Here's how each approach works and their respective advantages and disadvantages:

1. Direct Funding of the Trial

This method involves a third party (e.g., an investor, pharmaceutical company, or institution) providing funds specifically for the trial, without acquiring equity in the sponsoring company.

Mechanisms:

Grants or Donations:

The third party provides money explicitly for the trial as a grant or donation. This is common with non-profit organizations or government funding bodies, such as the National Institutes of Health (NIH) or patient advocacy groups.

Clinical Trial Agreements (CTAs):

A contract is established where the third party agrees to fund the trial in return for access to data, intellectual property (IP), or a share of future revenues if the treatment is commercialized.

Venture Philanthropy:

A philanthropic organization funds the trial but may expect a financial return (e.g., a share of royalties) if the therapy succeeds.

Advantages:

Non-dilutive Financing: The sponsoring company retains full control of its equity.

Faster Execution: Direct funding agreements can be faster to negotiate than equity investments.

Aligned Focus: Funds are restricted to trial-related activities, ensuring resources are used as intended.

Disadvantages:

Limited Upside for Funders: Funders may not benefit from the broader growth of the sponsoring company.

Stringent Conditions: Funders might impose detailed conditions, such as milestone-based payments or data-sharing requirements.

Short-Term Commitment: Direct funding may only cover the specific trial, requiring the sponsor to seek additional funds for subsequent phases.

Continue to the next page....

Tyke,

You ask "could we all get the early Christmas present we are hoping for? Or do we find out the partners are BRH and TB?"

Well, if we look at the Braveheart interims for the period ending 30/9, it shows that they have cash and cash equivalents of £1.11m. Since then, they have acquired TB's and FAB's 29.51% stake in IQAI, for a cash consideration of £719,574.48. That leaves very little cash to fund/part fund a phase II trail and continue funding their other investments, unless they undertook a placing. That seems unlikely, especially as TB stated in the BRH interims that:-

"The Directors believe that the Strategic Investments continue to be the most likely drivers of growth in shareholder value over the remainder of the current year and so have concentrated the remainder of this CEO Statement on their operations and prospects."

He also stated that:-

"We have implemented efficiencies and continued to cut costs, including Board fees resulting in annual fixed costs being reduced by around 20%. Work will continue to improve the value of our investments and to seek opportunities for enhancing shareholder value."

This being the case, I would expect BRH to realise multiples from their IQAI investment, once further IQAI news is released. Then maybe they will issue special dividends to their shareholders and have a placing, which would allow them to take part in a much higher IQAI placing.

All that said, if I had been TB I would have maybe sold my IQAI stake and partially replaced it with new IQAI loan notes. That way, he benefits from both his IQAI and BRH holdings. But I guess, a lot more will be revealed in due course.

@ZaksTradersCafe notes the breaking of MA200 @ 1.35p for the 1st time since the end of Jan. Now looking for 2.4p by the EOY. Ideally, stays above the MA200 on an EOD basis over the near term. 50 day line already rising & we can see those long clear candles as well.

https://x.com/Share_Talk/status/1859947191928045843

Personally, I think price will smash through 2p on high volume, once the Phase II partner/s is announced. As that maybe as early as next month, we could have a very interesting end to the calendar/financial year.

Here are the thoughts of ChatGBT:-

Key Price Levels and Timeframe:

Price Levels: To confirm a saucer pattern, IQAI would need to:

Hold GBX 1.00 as the low.

Gradually rise above GBX 1.40, with higher lows forming during consolidation.

Timeframe: Saucer formations are long-term patterns and may take 3-6 months to develop fully. If IQAI remains stable and begins a gradual rise by Q2 2025, this could validate the pattern."

Future Price Prediction for Saucer Formation

If IQAI is forming a saucer:

Current Stage: Bottoming phase near GBX 1.00.

Expected Development:

By early 2025, prices might slowly trend toward GBX 1.50-1.80.

Breaking GBX 2.00 with increased volume would confirm a breakout from the saucer.