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Well played NickE. This is what attracted me to RUA years ago!

Bill Brown once told me that the last great feeding frenzy in this market was around 2015 when TAVI was the breakthrough (feeding the valve into the body via artery and catheter). Several technologies were bought by all the majors for those nine figure numbers way before official trials. Edwards made hay with that.

Polymer (ie, non animal derived) materials are likely to be the next. Whilst Foldax has some pure polymer valves already in patients in early tests (IDE - Investigational Device Exemption (IDE)FDA (.gov)https://www.fda.gov › medical-devices › investigational-... ), RUA have pushed on from their own pure polymer prototypes to create a composite material which is textile based and mixed with Elast-Eon polymer to create a material far stronger and thinner than pure polymer.

Thus, if the major sees this for itself after testing, the prospects here are good. Given that other majors are swimming in the same pool, they might want to pay well to secure the technology.

It wasn’t on RUA’s website when I first posted the original links three weeks ago. Just updating that fact especially as their commentary is noteworthy.

Further to my original post, RUA now have this achievement up in the RUA Medical website. I hope they are publicising it to the medical fraternity and journalists!

https://www.ruamedical.com/young-scottish-engineer-of-the-year-2024/

Indeed let’s trust in a decent update with the finals.

The fact that, at this late stage, the board have positioned themselves and some employees via options to benefit from any takeover or return of capital seems significant. It’s rare for an options RNS to make a point about this when it would usually be a standard part of the option clauses. It’s almost like they want to avoid being accused of moving the goalposts at the time a later event like a takeover occurs.

CTSFO, yes that would be certain but that’s par for the course for the majors. The BIG issue here is the ultimate need for the market to find a suitable replacement for using animal byproducts like collagen. These are affected by supply chain risks and limited life in younger patients who will need re operating on in time.

If RUA’s material is shown to have the promise of overcoming these two limitations, that could be enough for a major to want to secure the rights to it despite the early days of trialling. That’s their usual MO in these situations.

Many thanks NickE for sharing your findings!

If you’re in the market for 50k-100k lumps at these prices, you can thank the sellers for the opportunity!

The board update this week can be summarised by:

- The board is now “agile and focussed” toward creating “shareholder value”

- The staffing and management structure have been slimmed down.

- The focus is on three things;

- (a) expanding the profitable contract manufacturing operation

- (b) commercialising the heart valve material (by licence or sale)

- (c) finding a partner to take on clinical trials of vascular graft

- These three things aim to work the company towards overall profitability and cash generation.

To reward management to increase shareholder value that should follow if the above are achieved, further options were granted on top of existing ones at 11p, exercisable after 3 years OR EARLIER IF the company is taken over or there is a return of capital.

This last bit is interesting. Might there be a route out via a partner for the vascular trials? Or is it more likely there might be some action on the heart valve material which is currently being looked at under an MTA by a major?

With regard to the heart valve, a RUA employee recently won the Young Scottish Engineer of the Year award for his work on the heart valve made from RUA’s material. I don’t know what kind of evidence the judges sought to determine amongst all the entrants who produced the most amazing work but I would remind you of the official announcement:

“Our 2024 Young Engineer of the Year Award (YEYA24) in partnership with The Incorporation of Hammermen of Glasgow was presented to Ross McPhillie of RUA Life Sciences for his role in developing a prosthetic heart valve prototype that is transitioning to commercialisation.”

Those last three words can be taken either as industry bluster or carefully scripted phrasing. Given the sensitive nature of the product, I ask myself if the company had to vet the press release and were happy for the phrase to be used in publicity materials. Either the company is confident of this “transition to commercialisation” or they are putting out a flag to alert other potential partners.

Plenty to speculate about but I am encouraged that they have settled the management structure, are fixed on their aims and have been explicit about benefitting from their options in the event of a takeover or a capital return, both of which I would suggest are feasible as a result of the heart valve material and, perhaps, the vascular project.

Strange that sellers are still out there at this level. Another 110k at the close. They are not convinced or are impatient.

It’s giving me opportunities to keep picking up below 11p which I regard as a floor with the options announcement by those who are closest to the action. I’ve bought quite a few this week between 9.94 and 10.99.

They've previously said results will be in July this year and that's the usual form of recent years.

GreenEyes1, there would be 3.6M new shares issued down the line if and when the holders exercise their rights to buy them at 11p (3 or more years or after earlier takeover/capital return). There are already close to 2M shares under option and those would also be issued if taken up. So, as with most option schemes, a dilution when the shares are eventually issued but only in the sense that the share price might be higher at that time. They will still result in money of 11p a share being injected into the company's bank account on the share issues. Meanwhile, we holders should have benefitted from the price rise from today.

In the past, they've bitten off more than they can chew by trying to finance heart valve development and vascular graft clinical trials in-house while under-capitalised, which resulted in over staffing and under funding. They now see, I believe, that if they can development a basic cash generating business like contract manufacturing and licence out and/or sell interests in the cutting edge developments, then all could be dandy in the garden. While they are at it, line up some options! Good thing is it is done at the market price which is also the placing price that the rest of the plebs paid to refinance this vehicle. So far so good.

”All outstanding Options shall be exercisable on the expiry of the period of 3 years from the Date of Grant, with the usual acceleration of vesting in the event of a takeover prior to the final vesting date. Additionally, if a return of capital is proposed at an amount per share that is greater than the exercise price per share of these options, they will vest immediately prior to such return of capital to allow option holders to participate.”

Getting their options in place ahead of such possibilities?

RNS out. Worth reading. Lots between the lines in there. I am encouraged they still talk of partnering the vascular grafts. Could all be hot air but no benefit to the directors for 3 years unless prior takeover etc.

Every time the bid hits 11, it flushes out the wet wipes who want their impatient money back from the placing last December. Hopefully, the share will leave this level behind soon.

Agreed, good summary from NickE.

Noted 90k bought at full ask on the bell. Cenkos went on the bid at the close.

There won’t be updates until final results are released before end of June

I’ve hit the offer, 30k at 10p flat (mid price). Be valued at a little above cash at this rate. All tiny sells, just no buying interest. The board can’t be accused of inflating their share price, lol!

Anyone invested here should have already watched the recent presentation which deals with all the issues you seem to be concerned about, especially worth listening to Stephen Easton the COO. Also, stick around for the Q&A.

https://youtu.be/n7ICmNGjGhg?si=v0JwLdL4Q3yKOS01

Correct NickE, the 10.68p for 50k was a purchase (mine). There’s still 50k available at 10.7 should anyone want it.

To me, this share is so ignored and unwanted, it’s a bit silly. Obviously, there is baggage left over from the fund raise last year that was announced a few days after that big spike when they gave the impression they were not going to raise. I was not impressed with the way that was done. It “wasn’t cricket” but investing is played with a hard ball and it doesn’t pay to hold grudges and get emotional.

Look at the situation now in the cold light of day. Is it a good bet now? The main risk to short term price is that they say the material under MTA is not being taken further by the major. But, as said by others, the basic CM and royalty businesses are still producing and they’ve definitely put the lid on R&D spending for now (eg, Vascular mothballed until a partner can be found).

Let’s hope for some positive noises.