Member Info for Hulver

that could potentially be a fit 'some corporate news' that others alluded to just over a week ago.

Has anyone else noticed the new company just formed March 21 CellBRate Life Sciences LLC - co-founder and ceo, vm sandler (per LinkedIn bio).
Is this going to be an SPV to separate off - CBR? - also a play on celebrate ?

Further to my posts of 12.16 and 15.06 yesterday, I went back and looked at the initial conversion and the same principle seems to apply there to:

The first conversion gave rise to 13,131,313 shares.

13,000,000 shares seem to have been sold on at 6.25p (they were converted at 4.95p being a 10% discount to the 5.50p close so a profit taken there, which possibly goes to the person ultimately behind the CLN facility). The remaining balance of the shares converted 131,313 was exactly 1% of the amount converted 13,131,313. So that seems to be a 1% commission taken by Mint for arranging a conversion and sale/transfer to that new shareholder (possibly a finder's fee). On yesterday's conversion we noted that the commission was exactly 2% of the shares converted - to me that suggests the two new shareholders are different client types (maybe one introduced by Hemo and the other by Mint), or perhaps that the first conversion was actually for the person ultimately behind the CLN facility, to become a shareholder.

With both yesterday's 14m and the first 13m conversion falling below the 3% threshold for disclosure at the respective times it suggests that they were for different new investors.

So to me this CLN facility does seem to be a flexible and sophisticated mechanism for placing shares. Perhaps Mint has been engaged to find and place shares with institutional investors but just perhaps (and more likely I consider) Hemogenyx are controlling when/if the loan notes are converted and to whom such shares will be issued.

As each conversion takes place , that money (along with any profit between conversion and placing price) effectively reverts back to the person behind the facility reducing his/her exposure. This also allows for such placing proceeds to be recycled to Hemogenyx in the event that they wish to take another drawdown on the facility. The fact that the facility provider receives a capital profit on the transaction compensates for there being no interest on the loan notes converted. Any loan notes that are not converted will be repaid with a 14% return. The profit on the two conversions to date (assuming the sale price we see on the trade is correct) was 6.25 - 4.95 or 26% on the first conversion and 6.65 - 6.30 or 5.55% on the second and the facility provider has de-risked to the extent of £1.55m.

As I said yesterday all very intriguing - a learning experience as we go along. I would welcome any other views or expansion on this and I wonder who the new 'placees' are that are joining us?

It's great to have posters sharing their thoughts and resources for the benefit of other investors and 'quelling the plague of sowers of the seeds of doubt'.

Nextlink,

Eli or any other related globalco is another possible angle I hadn't thought of. At some point there are other loans to be repaid or converted.

My thoughts were that these conversion shares are being placed with specifically sourced institutional or high net worth investors and perhaps there are terms/constraints understood between Hemo, Mint and the underlying CLN backer as to how and when they will be converted and to whom they may be offered, perhaps Hemo even 'approves' them. There's clearly an attempt to keep this new shareholder(s) unnamed.

The first conversion was similarly under 3% at that time. Someone reported that this was a fee - which I was sceptical about, but didn't have the time then to satisfy myself that that was the case. My initial thought then was that that was also a new not to be named institutional or HNW investor.

Vlad has many significant connections and there could be a number of academic institutions and organisations that may wish to be involved in the next stage of Hemogenyx's development. In the latest podcast Vlad mentioned that there were a number of different financing routes offered to him, maybe the CLN conversion is affording some of those close supporters that opportunity and we are just going through the process of getting them on board ahead of updates.

In time more will be revealed, we can only surmise; but in my mind this is a single new significant (and possibly 'approved') shareholder and for me that's another positive development.

Re people's expectation of a TR-1:

The conversion will give rise to 14,285,714 shares which when issued (expected 6 April) will take the total number of shares in issue to 468,795,217.

14,000,000 shares have been sold on at 6.65p (they were converted at 6.30p so a small profit taken there). The remaining balance of the shares converted 285,714 is exactly 2% of the amount converted 14,285,714. So that seems to be a 2% commission taken by Mint for arranging a conversion and sale/transfer to the new shareholder.

Now 14,000,000 on its own will be just 2.986% of the total shares in issue 468,795,217 after conversion and therefore below the 3% threshold for making a TR-1 notification. So we will not know who this new investor is either.

It's intriguing the lengths that they are going to and the steps that continue to be taken (through the time I have been invested) to keep things under wraps. Just how big is this going to be? - that's my thought.

RNS 13 Jan 2021
"With the phase of the Agreement relating to the development of the antibody completed, under the Agreement, as of 11 January 2021, GlobalCo has three months to exercise an option to license the Company's intellectual property necessary to exploit the CDX antibody on an exclusive worldwide basis ("Option"). In the event GlobalCo and Company are unable to reach an exclusive licensing agreement within six months of GlobalCo's exercise of the Option, if any, or if GlobalCo does not exercise the Option, Hemogenyx Pharmaceuticals will have three months to exercise an option to license the GlobalCo's intellectual property necessary to exploit the CDX antibody on an exclusive worldwide basis, followed by six months to reach an exclusive licensing agreement."

So HEMO has an antibody that GlobalCo are undoubtedly very interested in. Will they be able to agree on a price at this stage?

In my view GlobalCo will exercise their first option; but I'm expecting that reaching commercial terms on a licensing agreement could take longer. Presumably not purely a financial decision, given their work to date there's potential future collaborations to be considered, from both sides. Interesting - and as you say - all to play for; the work has been done.

per VM Sandler, Share Talk Podcast (8 March 2021):

“We happened to partner with this big biopharmaceutical company almost now three years ago because they gave us access to their IP and their capabilities of protein engineering. Without their expertise and these capabilities it would be very very difficult for us to engineer this antibody to the level it is right now.”

"to the level it is right now" - imagine what that means in Vlad's world; he would certainly know.

And so why wouldn't GlobalCo want this antibody having put three years collaboration into helping Hemogenyx get it to that "level it is right now", ready for IND enabling studies and application?

Great interview, confirms the company is progressing everything as previously reported, also notes completion of successful collaboration with J&J on mice, quiet confidence about CBR platform (other cancers next?) and mentions certain other things being developed - 'we might have some unexpected announcements, let's put it this way'.

As an investor I'm really pleased with the way this is taking shape. It really is beginning to look like Hemo has unlocked a fountain of development opportunities to save and extend quality of lives.

Totally agree, glad to have added to my investment position earlier in the week. The company is on its way to the next stage now.

....and it looks to me like these new shares are safely in the hands of a new LTH.

Those whose comments in recent weeks served to try to bring the share price down have no grounds for complaint given the opportunity afforded to Mint. This seems a sound investment management decision by Mint and a similarly sound investment decision by the new shareholder.

AREAL, The fact that they stated that they were continuing to work together on CDX pointed me in the direction of the next thing, after successful development and selection of the antibody, being the IND application enabling studies (I assume there is test data required to support an application). I am assuming these studies could still be worked on jointly, no matter whether Hemo or Globalco end up making the CDX IND application, but I have no knowledge of the process involved and am happy to be put right if it is an unrealistic assumption that they would be able to work together on such studies (adjusting for the value of such work, whichever way in a deal settlement).

The 3rd Feb drawdown announcements mentioned:
"Use of the Financing Facility in no way affects the Company’s current agreement with GlobalCo, which is still in the process of assessing whether to exercise an option to exploit the CDX antibody on a worldwide basis, as announced on January 13, 2021."
and;
"For example, the Company may use these funds to complete IND-enabling pre-clinical studies for its CDX antibody, if necessary, in the event that GlobalCo declines to exercise its option to license the intellectual property necessary to exploit the CDX antibody, as discussed above."

In the above they use the words, "to complete IND-enabling pre-clinical studies" - perhaps I read that too positively as an indication that such studies were already started (but I expect not complete by the time the option period expires). The first para would imply that Hemo are waiting on a decision from Globalco (yet at the same time we are told they are still continuing to work together at the moment - I was just trying to make some sense of that).

My take on it is that they are already now progressing with the IND-application enabling studies (that were referred in the CLN documentation) required for the submission of the IND application fro CDX; in that way ongoing discussions do not delay the CDX IND application any further - Vlad does not want anymore delays.

His other tweet from a couple of days ago seems to refer to the fact that a better deal (for shareholders) will be obtained at the point of having achieved Proof of Concept for CDX. In this case, I can see that it may be favourable for both parties to execute a deal once Proof of Concept has been achieved - and therefore come March/April we may find that a decision to continue working together until Proof of Concept has been achieved is the next outcome.

Must be Lilly the Pink, for she invented medicinal compound

let's take a drink, ..........champagne perhaps!

Interesting choice, I'd like to think there are some similarities between the culture (innovation and quality) of House Veuve Clicquot and that of House Hemo; a culture driven from the top.

https://www.veuveclicquot.com/en-gb/our-house/madame-clicquot

Similar to his 31/10 tweet: "One ping. One ping, only!"