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Does anybody know how much the equipment is worth? The contract clearly states that they can sell it and use the funds to pay back anything owed and keep the rest. I’ve read a couple of posts recently saying it’s £20m worth.

Well worth reading the bits from the contract I posted last night.

That seems to be the case here. Couple of things that are clear is that the DHSC had to collect the machinery within 1 month which they didn’t, and we can now use it. Also if the machinery was not used for its intended purpose before the final date then we can sell it, and from those funds we would need to pay the DHSC back up to a maximum of what we owe them.

The RNS today didn’t include a demand for payment or a timescale, it very much appears that the ball is in our court.

This bit…

“ 3.2.3 Seek refundable returns and cancellations of the same and/or re-sell the land, equipment, materials or services at prevailing market rates,
and shall pay (or deliver in another form of equivalent financial value) to the Authority the value of any refund or any proceeds from the sale received up to a maximum amount equivalent to all Funds which have not been repaid to the Authority by way of a deduction from the Charges.”

How much is the machinery worth? It seems to say here if I’m reading it correctly that they can now sell the machinery if they want and from that pay back the DHSC the preproduction funds…

“ If, before the Final Date, any Relevant Asset becomes redundant, or is otherwise not used for the purpose of Supply of the Goods to the Authority pursuant to this Contract for whatever reason, then to the extent it is reasonably possible without causing significant financial loss to the Supplier, the Supplier shall (including, where required, subject to and using commercially reasonable efforts to:
3.2.1 Deliver or make available the same to any third party notified in writing to the Supplier, or
3.2.2 Repurpose or reuse the equipment, materials or services for alternative activities or projects, or
3.2.3 Seek refundable returns and cancellations of the same and/or re-sell the land, equipment, materials or services at prevailing market rates,
and shall pay (or deliver in another form of equivalent financial value) to the Authority the value of any refund or any proceeds from the sale received up to a maximum amount equivalent to all Funds which have not been repaid to the Authority by way of a deduction from the Charges.”

This is interesting considering they tweeted that they CAN use the machinery. Also the bit about the DHSC retaining the right to purchase all goods made with the machinery even after expiry, and the option to effectively take a cut on anything produced if they want to. ODX aren’t allowed to sell the machinery as far as I can see, however the fact that DHSC haven’t collected it during the 1 month timescale (page 136) will surely have legal implications… if ODX is now stuck with this machinery there’s no way they’ll need to pay back the £2.5m. I might be wrong here but seems DHSC have breached the contract by not collecting the machinery? (See my other post)The Supplier shall not be permitted to use the Machinery or Tooling to manufacture any Goods or any other goods for supply to anyone other than the Authority without the Authority’s prior written consent which it may withhold or issue subject to conditions in its absolute discretion. If The Supplier is permitted to use the Machinery and/or Tooling to manufacture goods for supply to third parties the Supplier may be required to pay the Authority an amount for each item manufactured at the rate specified by the Authority from time to time.2.3 At the expiry or termination of the Contract (other than termination by the Supplier in accordance with clause 13.7 or termination by the Authority under clauses 13.3.1 or clause 13.3.2(f), the Authority shall retain the right to purchase all of the Goods produced by the Supplier. This is a priority right for the Authority and shall exist for as long as the Supplier manufactures Goods using the Machinery.

Could this be why they waited a month before seeking confirmation that the contract expired?

Machinery Collection
5.1 At the Authority’s cost, the Authority or its nominated agent shall collect the Machinery and Tooling from the agreed collection point at the expiry or termination of the Contract Period within one (1) Month after the expiry or termination of the Contract Period and the Supplier shall make it available for collection.

…well “within 1 month after expiry” has now passed, and they haven’t collected the machinery. Is this why ODX tweeted recently that they can still use the equipment I wonder. Not sure, but it sounds like they had 1 month to collect the machinery which has now lapsed.

Here’s the contract for anyone looking for it… https://atamis-1928.cloudforce.com/sfc/p/#0O000000rwim/a/4J000000kI0H/EySZ28HhbGWp.KyQFExkrBzY54f6HXd6hOd1W5fDn3E

Yes approval is key.

Maybe ODX will propose that the government fast track their CTDA approval and in return ODX give them a slice of the income from sales to repay the £2.5m. Who knows, but their use of the word "proposal" tells me there's definitely more twists and turns to this story.

Does anyone have a link to the original contract? I want to reread the specifics about the government prepayment. I think the fact that they’ve used the words proposal suggests there may be a new deal to be made. Also Colin confirmed in a recent tweet that they are able to still use the government equipment.

I don't think anything will come from the DHSC request for a proposal about repayment, they haven't demanded it, someone at DHSC is just trying it on. I actually don't think ODX would have heard from them again if they hadn't persisted so much in seeking confirmation that the contract had expired or not. Also the fact that ODX's legal advice has confirmed they don't need to repay it makes me very confident it won't need to be paid. The legal team have a good track record, afterall they are the ones who confirmed the contract should be considered expired.

If there is a proposal it might well be along the lines of the original contract, in other words ODX will pay it back from revenue from test sales. The DHSC might then renew the contract or draw up another for them to manufacturer a certain amount of tests. There's no way they are going to waste the infrastructure they have helped set up.

Hopefully at least one approval next week and a positive resolution to the above.

The legal dispute will go on for months I expect, so there are no worries imo about funding. The legal decision will almost certainly be in ODX's favour too. In the meantime we will get the approvals we are waiting for and sell tons of tests through DAM and new partnerships.

From a legal perspective they won't need to pay it.

Yes, from the presentation it sounded like they were getting close to concluding the question rounds and satisfying the authorities. I would initially expect 50p+ on approval, but likely much higher over time, especially with CTDA approval hopefully about to be granted.

So much negativity on this board! It's clear imo that it is traders looking for a low entry. There is zero chance of a placing at the moment, a relisten to the presentation is all that is needed to confirm this if anyone is starting to doubt. When these approvals start coming the shareprice will move swiftly north.

I think there is a good chance CTDA will land this week, when it does it'll be 40p+ in minutes. The DAM deal should prove to be very lucrative, we just need that dam approval :)

“South Africa's daily Covid cases soar 467% in a week with 16,055 new infections and hospital admissions surge 365% to 279 amid Omicron wave - as country warns its R rate could be 3.5“

“ Public health experts in South Africa and the WHO have insisted cases are only mild and vaccines should still be highly effective against the strain, despite a lack of data. But UK Health Security Agency epidemiologist Meaghan Kall warns that data currently suggests Omicron may be 'worse' than Delta.”

Also worth bearing in mind most hospitalisations happen 10-12 days after first being infected so it’s still too early in most countries who have only just started seeing Omicron. The percentage of Covid cases in general that result in hospitalisation is around 2% I think, so wouldn’t expect any severe cases yet.

Hopefully it turns out to be really mild, but going by what’s unfolding in South Africa it doesn’t look like it.

This has been examined months ago, Walbrook said they believe the "yes" is refering to the device itself not the test. Test CE mark expected next Friday.

It is interesting how dificult it is to buy online at times this morning. With all the stock sold over the past few days market makers shouldn't be short of stock, if they are then there must have been or perhaps still are some massive buys in the background. Either that or the mm's are simply trying to weed out the weak holders... in otherwords they're trying to give the impression there is less buying demand than there is.

Yes 3 days since the big drop, it looks like the dust is settling and I expect we should see this building to a decent bounce now imo. Colin's questions and answers in the next couple of days should dimistify a few uncertainties.

Colin was simply saying that he believed it was imminent, it’s difficult to take that out of context haha. He also acknowledged that he was wrong.

What we need confirmation of is whether their tests works with Omicron. The vast majority of LFTs are expected to work, nevertheless confirmation is needed, and will likely boost the share price.