Member Info for IntraVnus

Why such small parcels, bud?

Just to follow up my last post, Bill Brown has a tendency to provide a shopping bag full of updates in one RNS. So, likely as not, the next update will be like the last one, a bit about each division with the odd tidbit thrown in to each.

Unless something major occurs which must be announced as price sensitive, my bet is it will be a long list of updates on each division as part of the final results commentary.

You never know, he might pull a rabbit out!

The current problem as I see it is that six months ago, 60%+ of the current float was issued at 11p. Six months on, a lot of those holders are maybe frustrated by a lack of action and seeing other shares kiting up, are bailing with their investment intact. Notice how it sells off every time the bid gets above 11p. 60% is an enormous overhang. It needs a catalyst from the company to take off. At least some update will come by end of July with final results….!

I don’t know, Tiger, I’ve posted several times that RUA is not waiting on the FDA for anything right now and also it no longer plans to make its own heart valves.

The FDA is only in the background for approving marketing of a vascular graft (which is not a heart valve) made with Elast-Eon sealant but that needs £6M+ of financing by a partner (not yet found one) and will take a minimum of three years from when it starts trials (if it does).

RUA currently has a developed material that may be suitable for making a heart valve with and the material is being looked at by a major heart valve manufacturer under an MTA. We need this major to want to progress to some kind of licence.

Other than that, RUA has existing income from contract manufacturing of other medical devices for third party medtechs and earns royalties from legacy business signed years ago.

Until something significant happens on these fronts, you will need to be patient!

Small volumes and today 2/3 of the volume was from three large purchases (116k, 57k and 50k). Daily marks up or down by MM's should be ignored. They have a duty to balance their books daily, we holders don't.

Someone has seen fit to pay £60k+ for 5M today at 1.24p.

The patents in RUA are held by RUA Biomaterials Ltd so are separate from the trading business of RUA Medical Devices Ltd which runs contract manufacturing. They are also separate from both the development companies, RUA Vascular and RUA Structural Heart Ltd. Each division sub-licenses the IP from RUA Biomaterials Ltd, whose own royalties and fees are currently earned from its legacy deals with the likes of Abbott Labs (for pacing leads), etc. It is widely acknowledged internally that those old deals were negotiated from positions of weakness many years ago when the old Aortech was nearly broke!

The Scottish Engineering Awards 2024 took place last week:

https://www.scottishconstructionnow.com/articles/scottish-engineering-recognises-home-grown-talent-at-glasgow-awards-dinner

https://www.heraldscotland.com/news/24342122.scottish-engineering-awards-winners-2024-revealed/

“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.

Bruce Wood, Deacon of The Incorporation of Hammermen of Glasgow, added: “Once again the standard of young engineers entering the competition has been inspiring, with outstanding presentations revealing the depth of engineering talent that Scotland can be proud of. Choosing a winner amongst such high standards is always difficult, but in Ross McPhillie of RUA Life Sciences, we have a worthy winner.

“Ross aimed to innovate heart valve technology by developing a prototype which successfully lasted 200 million cycles in durability tests and is now transitioning to commercialisation. Alongside Ross, all our finalists, should be proud of their outstanding achievements and they are a true inspiration to Scottish engineers, young and not so young.”

Continued…..

It’s possible the rest are less than 3% but the TR-1 rules are loosely adhered to on AIM!

My understanding is that a lot of the raise relied on being able to offer tax relief via EIS and VCT to high worth investors.

Dowgate Capital took at least 6M as they increased their % even after the shares issued almost three times. Similar increases were taken by Clive Titcomb. Peel Hunt as Principal took around 2M but have since sold some. Most of rest of the >3% list is brokers acting for retail shareholders.

It’s possible all the rest are

Important distinction with RUA’s polymeric material is that the polymer is interwoven into fine fabric. The other polymeric HV competitors (read Foldax) created theirs from pure polymer which doesn’t have the amazing properties that RUA’s composite has exhibited in their own tests.

This was an accidental finding to some extent because it came out of the work done to create the surgical textile grafts sealed with Elasteon polymer that are awaiting a clinical trial.

This is the reason they are saying the testing is so good in terms of existing valve materials. I don’t believe that anyone has a lead here but of course it’s all about whether the major looking at the material thinks it has legs in forming heart valves in their own designs using this new material rather than animal tissue. I hope that RUA’s management has been able to make the case adequately.

They are not waiting on a valve to be approved (no regulatory body involved). They have a material being tested by a major heart valve manufacturer. If they like it they might go for a licensing deal. Being connected to a major would be the driver of share price, not the amount of the licensing deal.

Https://wp-aortech-2020.s3.eu-west-2.amazonaws.com/media/2023/07/28115440/NOV8-100035_RUA-Annual-Report-final.pdf

Page 37 (options) Page 38 (shares held)

I expect the Odd Investments 22M is a part of the 1p placing, not a market purchase. The 5% is also a fiction if it is 22M since there will be over 1Bn shares out there after it all settles. That will take Mr Odd back under 3%.

Some people here talk of heart valve approvals. That’s misleading.

All we know is that the company’s textile/elasteon composite material (used in its prototype heart valves) is being tested by a heart valve major under a Material Transfer Agreement. RUA is no longer making its own heart valves in its R&D programme, the company can’t afford the years of trials needed (which is also why it’s wanting a partner for its vascular grafts clinical trials programme).

Talk of waiting for “approval” is also a bit misleading, as all we want to hear is that the major is impressed enough to want to license the use of the material for its own purposes. RUA has previously said it hopes initially for a license that will help cover the costs of its R&D programmes but obviously more agreements in the future.

The key is to get the major to agree any kind of a licensing deal, however small to start with. It’s the kudos of having a major take an interest that should shoot the lights out in this share.

Also, it would be nice if RUA can sign an MTA with another major as they’ve said they are actively seeking to do this. That will also get interest firing!

Agree popeye, prob a stale holder from the open offer/placing at 11p. So many peeps get bored these days.

The selling has generally been well absorbed though. Mm’s bidding well above 11 today despite the “quote” being 10.5.

No worries. I’ve been to the recent AGM’s in Scotland and can vouch for their decency and experience, albeit with AIM companies, they could all ultimately be masters of the three cup trick as they charm the watch off your wrist! This company has ultimately been a disappointment to its shareholders since the early 2000’s but I remain excited by what this latest composite material will mean for the heart valve industry. Maybe I am already hypnotised……

Check my thread “Edwards and the majors” from earlier this week, just for the potential upside on heart valve material.

As for cash burn, that’s been high in recent years due to the intensive R&D that’s been put into the vascular graft (now looking for a major partner to spend the £6M needed to take through clinical trials). That spending is done as they have agreed FDA protocols for trial. Just need a partner!

The grafts work did provide the bonus of identifying the material that they’ve now got under a MTA with the major heart valve co so it could ultimately be a top investment in R&D.

The contract manufacturing side is growing and that is profitable. Overall, then, cash burn should be reducing sharply.

I hope it’s at least three years before cash is a worry again. I really hope it never is again if these three divisions get results!

Thanks Jimzi. I’m glad someone took note :D

Amati subscribed for 8% (then around 1.7M shares) at 120p in the Dec 20 placing.

They dumped over half at prices from 80p downwards after the 510k FDA setback in 2021. They hold 775k now which, after the last 11p placing leaves them at 1.24% so not declarable if they sell the rest. I don’t think they will. Little point.