Member Info for JAllis

From the interims:

"We have also continued to manage our cash burn during launch and scale of ACCRUFeR® while strengthening our balance sheet by implementing innovative financing solutions like the working capital financing with Sallyport in April and adding $5.7 million through the milestone monetization agreement with AOP Health International Management AG post period end."

The AOP monetisation is *financing* not revenue. Meaning its recognised as a liability not income.

Todays announcement means the company must achieve $18.4m in revenue in addition to the $12.1m it has in H1 24 to avoid a breach of the loan covenants. And Q4 is usually the quiet quarter for scrips due to the holiday period.

Its facts bankboy. Company needs to generate $20m by Dec 24 else its in breach of the loan covenants.

Steve is yet to backup his claim that the AOP loan will be recognised as revenue.

Where did you see that Steve?

Steve - Nothing to suggest it is from any of the related RNS'. More a loan than revenue considering the interest rate terms etc.

Correction - if $8.6m is achieved in Q3 then STX needs o achieve $10.8m in Q4 to his SWK target. If $7m is achieved in Q3 then STX needs to achieve $12.4m in Q4 to hit the SWK revenue target otherwise a capital raise will be required.

I dont see the company hitting the Q3'24 revenue target as being particularly difficult insofar as the SWK revenue targets are concerned - it only needs to achieve revenues at around the same levels as Q2 i.e. approx $7M to remain compliant with the rolling twelve month SWK debt conditions.

The bigger challenge will be meeting the Q4'24 SWK revenue target of $31.5M for the rolling twelve months to Q4'24. With $12.1m revenues in H1 and lets be generous and say they hit 25% growth again for Q3'24 and achieve revenues of $8.6M in Q3'24, STX would need to take a whopping $12M revenues in Q4'24 to meet the SWK debt condition of $31.5M. That equates to a approx 40% QoQ increase from Q3 to Q4 - a quarterly increase i dont think the company has ever achieved and one that will have to be done in what is traditionally the quietest period of the year for prescriptions.

Per the conditions if the revenue targets are not met then STX needs to raise 2x the revenue gap in debt or a fundraise.

Any thoughts on the paediatric study and the results that were due back by late Aug which have not arrived yet?

What impact could a negative result on these have on the SP?

********

Shield is enrolling patients in a paediatric study, which if successful, could lead to an expansion of the indication and uses for Accrufer®/Feraccru® in both US and EU markets. The study, a requirement of both FDA and EMA, is enrolling patients with iron deficiency ranging from 12 months to 17 years of age. This is another population where iron deficiency is prevalent and similar challenges to OTC irons exist. As part of this study, Shield is using a new liquid formulation, which, if approved may offer an alternative approach for those who can't swallow our current capsule formulation.

Don't bank on them not having to raise cash...

Oh dear, Urraca. Judging by the big sells, looks there is someone else that doesn't like the uncertainty surrounding the company's ability to fund it's obligations and the prospects of a cash call.

The issue is not a belief in the board's ability to get a deal over the line but how that deal, particularly the development of the as yet *undeveloped* PSCs, will be funded.

Farm in is for a separate asset and due later in Q4

Still a question of how will the undeveloped PSC's be funded? Bit of an avoid until that's cleared up unfortunately

Debt? Granted its an option, i guess there lies the gamble - is the financing going to be debt or equity raise

To respond with ad hominem suggests a satisfactory answer doesn't exist. From a corp overhead perspective he co is funded to Q1 2025, but the discovered resources are discovered and require development - LBE at present does not have the funds to develop them on its balance sheet. Company needs to raise capital

How will the company fund the development of any discovered field awards?

A placing along with the announcement of the awarded fields is plausible...?!

Are a broker like, HSBC, AJB, Hl, IG. The 10m they hold will be on behalf of many clients. Just because some of their clients have sold taking the holding in Oberon's name from c11% to c10% that does not mean all will be selling.

Price action also suggests this is not the case.

From the CPR on the Helium measured at the Hillison #1 wellhead;

"Helix contracted GeoFrontiers to perform a gas-in-soil sampling around the Hillison #1 wellbore and found anomalously high helium concentrations. The method uses a probe that is hammered down about a meter into the ground and a sample is drawn and run through a gas chromatograph that measures the concentration of helium. In this case, it is possible that helium trapped in the subsurface, possibly from the inert gas tested in the Amsden, migrated up the wellbore, resulting in the anomalously high readings. Background helium concentrations from the soil sampling ranged from 5.22 to 5.40 parts per million by volume (ppmv), which is roughly the concentration in atmospheric air. The sample taken from near the Hillison #1 well had a helium concentration of 12.47 ppmv, which is more than twice as high as the highest background reading of 5.40 ppmv."

Haha filthy, good to see you admitting he's not ruled it out. Nowhere does he say 99% either so let's not put words in AB's mouth.

Safest way to leave it is, equity placing is a possibility just as non equity funding is a possibility

thanks, atb

Like i keep saying if he has then post the link to the interview or RNS but none of you on here seem to be able to do it

Filthylucre - i dont doubt he is, hence why he has not ruled out a placing

Have done and no such RNS or interview exists where AB has categorically rules out an equity placing to raise the £20M they need to fund the drill