Member Info for JimiHendrix

The “threat” bit is really the standard pre-insolvency caution: “highly likely… take steps… to protect the interests of… creditors” if the conditional raise fails. That’s classic AIM phrasing to flag going-concern risk ahead of a vote, not saber-rattling. 

On David Nugent, the text is matter-of-fact: he requested a board seat; the Board would consider it conditional on him providing material additional funding; he was wall-crossed, declined to participate, and has not signed the confidentiality agreement; and they “would welcome Mr Nugent providing a viable alternative”. That’s unusually direct to include, but it’s descriptive rather than belittling and even contains an open invitation.

Roger “So why the desperate rush to get this next round of funding and massive dilution (again!) inked in over the next week or so?”

Quite possibly they want financing sorted before transformational news. NHSE or any other large organisation is not going to open a large purchase order or contract with a company on its knees with no funds to manufacture and deliver on the order. They’ve been working on longer term funding for months and needed immediate funding sorted by mid October, the same clients were interested in providing the longer term funding so prudent to get it sorted asap.

As soon as it’s done they can start ramping up manufacturing too.

Well they said several months ago they were looking for long term funding so believe that’s what this is.

In terms of next summer there are some serious news events and progress expected by then that will almost certainly mean the share price will be multiples of where it is currently. Bear in mind if CYP2C19 commissioning goes live they will be EBITDA positive much sooner that stated, it’s just impossible for them to include that until the guide and toolkit is published by NHSE.

When the share price is much higher I expect some of the warrant holders will exercise at 0.4p which could bring in another £5m which is more than enough to get to the conservative EBITDA positive date stated in the recent RNS.

The issue price is 0.20 p per new Ordinary Share for both the 400m firm tranche already admitted and the 1.4B Second Admission shares.

The price has already been confirmed in the RNS, same price as the 400m.

There isn’t a newly discounted price, the new shares will be issued at 0.2p the same as the 400m.

Warrants are set at a premium 0.4p. My expectation is positive news early 2026 could easily take the share price up to 1p. Then at that point we might see people exercising their warrants at 0.4p which could bring in £millions of extra cash for the company avoiding the need for any fundraising next summer. Then hopefully plain sailing to EBITDA positive.

Roger, I believe the easiest way for them to take the IP private would be the result of a NO vote leading to administration. The doctors you mentioned or a party inc the directors would then be able to buy the IP for peanuts. That would be the very scenario you’ve been warning about, and I’m quite sure the directors will do well from it. The private investors would pay the price Losing everything.

Rud20 “ Another word of warning all, take on board or not, DYOR all. This will soon have nearly (or over) 4bn shares in issue if warrants take up (but certainly well over 2bn, touching 3bn if nobody takes any warrants in future. The SP is currently .023p, prior to the inevitable 1bn shares being added after the vote mid October.”

There will be approx 2.4b shares in issue. The warrants are only exercisable at 0.40p or over and would provide the company with loads more cash if exercised. For that to happen from today’s share price would require a 90% or so rise in share price, and none of the warrant holders will sell at breakeven (0.40p) so anyone exercising will be expecting decent upside above 0.40p

Amers, the board can simply request suspension and administration if they do not believe there is an acceptable funding option. David Nugent has not so far committed to providing alternative funding and has refused to sign confidentiality agreements necessary to gain a seat on the board.

Until something more concrete is unveiled then it’s highly risky voting NO. I certainly can not afford to lose my investment.

What the company hinted at if there is no alternative funding offered and a NO vote, is suspension of AIM trading and administrators put in to protect creditors. Shareholders typically get nothing. I believe David Nugent needs to provide his funding offer and sign the standard NDA if seeking a board seat, this will restrict his ability to buy/sell his shares which might be why he seems reluctant to do this.

For me the board and David Nugent need to discuss his funding proposal and announce the option to the market before the voting cut off date.

It’s unreasonable to expect shareholders to vote NO before any certainty that a serious alternative funding solution is going to be offered. Without that confirmation I’ll be voting YES.

Perhaps rescheduling the GM until a week later would provide more time if there’s a serious funding offer.

He can pursue a seat without taking inside info beforehand, but if he refuses insider status/NDAs while also seeking influence over urgent financing, the board is justified in saying “not now.” If he truly wants a seat, the cleanest paths are: (a) deliver a superior, fundable proposal and accept insider duties; or (b) requisition a GM and win more than 50% vote—recognising that, once appointed, he’ll be an insider with all the trading restrictions that implies. (ChatGPT opinion)

Process matters: A director appointment needs due-diligence, NOMAD comfort, Schedule 2(g) disclosures, conflict checks, and usually either a board appointment subject to ratification or a shareholder vote. That can’t be done credibly on the fly.

No NDA / proof of funds = no seat: If a prospective funder hasn’t signed an NDA or provided firm, verifiable terms (and ability to deliver now), granting board access would expose the company to selective disclosure and legal risk.

…

I don’t believe the board can give a seat without going through the correct processes.

My concern is the board ask for immediate suspension following a NO vote, to ‘protect creditors’ threatens administration. So I agree with others that David Nugent needs to outline his plans and sign the necessary documents.

Undecided again here, Mr Nugent may need to provide the company with his financing plan.

Amers, I’ve decided to vote NO aswell, in support of David’s intention to gain a seat on the board and hopefully provide a better non-dilutive funding option, in the best interest of long term private investors.

Roger’s agreeing with you, EC

Roger, it could be the same Allenby clients but none of them hold a particularly large individual stake after the 400m and no sign of a concert party. If the 1.4 billion shares goes ahead one or a concert party will need about 700m shares in order to reach the 30% threshold triggering rule 9 mandatory offer. So far it appears the placing shares are being widely dispersed amongst Allenby clients, with only one around 3%.

Digging deeper with other models…

Allenby’s “clients” in a placing like this are funds, HNWs and small investment boutiques that specialise in AIM placings.

These AIM placees are generally opportunistic investors looking for upside + warrant leverage, not co-ordinated acquirers. The Panel watches “acting in concert” carefully, especially in micro-caps, so any whiff of collusion would be investigated.

Great posts Amers.

ChatGPT is useful here… Allenby’s corporate clients are themselves small-cap operating businesses. Funding a cash offer for Genedrive would be dilutive for them and outside most of their stated strategies.

Each company has its own board and public shareholders; joining forces would require separate shareholder approvals and a clear industrial rationale.

Allenby, as Genedrive’s NOMAD, would face an acute conflict of interest if it tried to orchestrate a bid: the Code expects the NOMAD to remain independent and guide the target on fair-dealing. That makes Allenby an unlikely ringleader.