Member Info for IntraVnus

The survival of the hardest.

I think RUA being lumped in as a “bio” does it no favours. The company is an industrial manufacturer that makes devices using its own cutting edge valuable and proprietary processes.

They happen to require strict regulation but there are no pharmaceutical unknowns involving drugs. Elasteon is fully approved and that’s to do with its properties enabling physical implants to be accepted by the body.

RUA, as an investment, is scarred by a long history of aborted attempts to compete directly with majors but now the strategy is entirely different, effectively morphing into a pick and shovel supplier at the behest of the majors. More manageable, more profitable.

When climbing a rickety staircase, ignore the wobbly steps and, instead, look up at where the top step is located! You will get there with patience and care.

There’s been a few modest round number purchases today. I always think buyers in round 10k multiples are the more serious types with greater staying power. The 50k upwards are the ones to watch for me albeit they are not much more than £5k in value.

More likely people recognising the general value on offer here.

Touch wood the selling pressure has abated. Might we now see a stealthy rise while everyone is looking the other way?

Last selling of any real note was early this week on the RNS issue but there were plenty of buying trades as well, many below the mid-price giving the impression of selling to the ticker followers (including a few today from 10.67p upward).

Last sell today of 13,927 was from one of the many who don’t know what they are buying and sell two days later when it hasn’t bought a free toy for them from Argos. They bought these Wednesday at 10.77p, sold today at 10.62p. It’s what we are up against in illiquid stocks.

SamSmith.1800, you kindly updated us from the AGM with a few points. One of these was:

“- heart valve - engagement with multiple parties all of which who are very impressed. Expecting commercialisation this year “

I usually get to the AGM but couldn’t this year, but my experience is that information is gleaned either from the Q&A after the formal business is done or from general discussions with individuals over coffee afterwards.

I’m curious about the comment that all parties are impressed because my reading of the RNS’s we have had to date point to any real data on RUA’s heart valve work only being shared under a signed Material Transfer Agreement with the one major party.

I know RUA has also talked of “shortly” letting the wider industry have access to a “data pack” but I’ve seen no further confirmation of that happening.

The trading update released on the day of the AGM simply said:

“As previously announced, the AurTex™ leaflet material has been tested by a potential partner and having concluded this initial stage further data is now being shared.”

No mention there of sharing with wider industry but significantly it confirmed that the major under the MTA was continuing to go deeper with RUA although it was a just a statement about further data being shared with no context given.

I know that the board talk to industry players often but what I am trying to understand is how all other parties that do not have an MTA can have a proper view.

In conclusion, to try to gain perspective, I am keen to know which board member at the AGM stated that commercialisation was expected this year and was it at the Q&A or chatting individually with someone?

Many thanks!

For the record, Coloplast A/S is listed in Denmark at a current market cap of DKK 193Bn or GBP 20Bn.

Sounds like Coloplast to me. With them now dependent on Abbis continuing to manufacture for them, the relationship between Coloplast and RUA is being strengthened.

On top of that, there is the £700k (so far) additional work with the existing US customer that itself could develop into a longer term supply.

The market is blind to all of this so far.

This is possibly about getting into a stronger relationship with Coloplast, I would surmise. A slow burner share but my betting is we will rise steadily from here as it all sinks in.

There’s no harm in bumping up your turnover by 100% with similar gross margins. The overheads can be worked on but this new acquisition is already cash flow positive with only a high sounding depreciation charge causing an accounting loss in 2023.

Picking up a good business from a liquidator (effectively at the request of a key customer) sounds … well, sound.

Hopefully the DD clears quickly.

“…The nature of the transaction has precluded an extensive financial due diligence process and post-acquisition a detailed financial forecast for the Abiss business will be developed.”

Exactly my thoughts popeye62.

Never mind, those prices will soon be irrelevant if the messages in the recent RNS’s lead to any progress.

Odd situation currently. MM bidding 150k online at 10.611, yet other one offering plenty at 10.60. Who knows what here?

Getting back to the opening post about director options, the full position is this:

Bill Brown:

Date of grant: 8 June 2019 - No. of shares 1,121,072 - Price 30p

Date of grant: 19 June 2024 - No. of shares 1,400,000 - Price 11p

Lachlan Smith:

Date of grant: 13 December 2022 - No. of shares 120,000 - Price 44.5p

Date of grant: 19 June 2024 - No. of shares 1,200,000 - Price 11p

John McKenna:

Date of grant: 8 June 2019 - No. of shares 469,531 - Price 30p

Date of grant: 19 June 2024 - No. of shares 225,000 - Price 11p

John Ely:

Date of grant: 2 December 2019 - No. of shares 120,000 - Price 92.5p

Date of grant: 19 June 2024 - No. of shares 150,000 - Price 11p

Geoff Berg:

Date of grant: 2 December 2019 - No. of shares 120,000 - Price 92.5p

Date of grant: 19 June 2024 - No. of shares 225,000 - Price 11p

Ian Ardill:

Date of grant: 19 June 2024 - No. of shares 150,000 - Price 11p

Other employees:

Date of grant: 19 June 2024 - No. of shares 300,000 - Price 11p

TOTAL = 5,600,603

The 19/6/24 RNS said the total was now 5,625,603 so there must be another 25,000 in the staff totals or those have lapsed and they didn’t allow for that. Either way, the directors are well motivated to jack up the share price!

They need to start thinking about uses for the cash which is half the market cap. Mind you, they earned £225k interest up to June on it! Given the bright prospects outlined, I find the valuation to be mightily low! I’ve therefore bought in.

…. as the final results commentary hinted at strongly.

Yes, I believe we are in a spring loaded mode awaiting a trigger event….

Can still buy 100k+ at 10.6. Singer on offer at 10.6 but other MM’s are on 11.5 and 12 so I’m guessing Singer has this morning’s stock to unload or further orders to clear.

Subtle switch of publicly stated timescale on Contract Manufacturing business?

24th July 2024:

“Our stated ambition for Contract Manufacture is to double the scale of the business over the medium term.”

27th August 2024:

“RUA is currently engaged in a number of potential developments which would add to growth in the short term.”