The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Forward selling placees: Do I take their shares now or vote down the resolution and then sell mine to them for much higher. The latter sounds more attractive and will certainly pave an exit. If the vote is a no, short time SP spike will grant an exit and if it's a yes then funding secured and debt cleared gives a foundation to build on in 2021. In both cases it's a win-win.
The company won't go bust. They have cash and access to a decent chunk of the Mezzanine loan. Today's raise at 4p is simply baffling. They were H1 cash generative, had £1.3m in bank and over £1.4m available from an existing facility which was much less dilutory than today's raise. They have advanced negotiations for multi million £ deals and this is what the produce for finance, shocker. I'm in from 6.2p and therefore less affected than LTHs but nevertheless it's a shambolic mismanagement of shareholder trust
This new finance arrangement is much worse than any they had in the past. People blame the CLNs but they were being converted at much higher and nothing like the quantity of shares announced today. We also had the nominal buffer of 10p to fall back on but that's gone.
One must also bear in mind that this vote gives the company the right to raise at anything above 0.1p! The nominal goes from 10p to 0.1p. I will not be voting yes to this knowing full well that they have access to capital. The Mezzanine loan did not damage the price this hard and is still available for drawdown.
They had £1.3m end of H1 and over £1.4m credit facility still available from the CLNs which were less dilutory by a country mile. The company is not about to go bust. Today's fund raise is a total mismanagement and disregard of existing shareholders. I will obtain vote by proxy form when published on the website later and vote against the resolutions. Should the raise get voted down, there will inevitably a price squeeze. The company has access to capital and will have to start taking shareholders seriously before proposing such a ludicrous price. Let's see how this plays out.
Lot's of forward selling going on today by investors who are hoping to cover with placement stock. Imagine if the resolutions get voted down at the GM. 90%+ of voting in retail hands. Could see an almighty squeeze. I am considering as voting against as I find it hard to believe they couldn't come up with better financing terms, 4p is farcical. If we get majority vote against, BoD would need to reconsider terms and probably consider coughing up some funds from their own pockets too.
I have revised my new target down to 8p. This will take a few months in my opinion unless news lands sooner than anticipated. The churn will continue in the fours as existing holders average down and new investors come aboard awaiting the inevitable ramp. Think we are down here for 2 months. Company will provide a H2 trading update which I expect to be poor given the wording in today's RNS. All bad news will have been priced in and 2021 will be underway with cash in the coffers, no debt/CLNs and a plethora of opportunities. With the vaccine roll out trading should resume to a level of normalcy. It's a buy down here imv
How many holders are planning to vote down the capital reorganisation? They cannot issue stock at the 4p placement unless it is voted through by shareholders. The Company currently has received irrevocable commitments to vote in favour of the Resolutions in respect of 9.2% of the equity base only. That's 90% of voting pending.
Excellent RNS with funding terms secured on favourable terms. 7.5p warrants to pay back loan is 41% premium to current price. Board are starting to move this forward. With multiple work streams and now cashed up to fund, think next 4-6 weeks will be massive
Selling down here is akin to a mugging. This is a strong buy imv. There is a possibility our seller could drag us down to the 5s and if so I intend to carry on buying. One rarely catches the bottom although there seems to be a decent support here. I hope LTHs get to their targets but I would put a ceiling at 20p for now and discount any pie in the sky valuations. Market mechanics will do its thing and the SP will remain 6-20p range bound until something big pops up. Until then trade the ranges is the way to go
I hear you buddy. Downside 6p, sell at 12p. This is the easiest bag you'll get. Happens every year, sometimes twice. I've been in and out of WSG and very happy with the 100% returns. Back again and hopefully not long to wait
The way I see it, downside takes us to low 5s, upside 20p+. Risk reward ratios skewed to the upside in my view. When the share price turns so will the sentiment on these boards. It always does and I this time the case for it is even stronger than previously.
I see some very upset LTHs here and rightfully so. It is frustrating when a share price cannot hold a level but in my view this has always been a traders stock up until such a time they nail a MSC backed with significant revs. However, what is clear is that the price has fallen back even though the fundamentals are the strongest for years. The market is not pricing this correctly or fairly. The valuation will come in line and sentiment will shift when the market wants. In the meantime savvy investors will recognise the cheap stock on offer, position accordingly and patiently wait for pay day. Think Q1 2021 we will be trading much higher and I am happy to keep buying at this level until the purse is empty. Good luck folks
New Align article published today outlining the near term valuation catalysts
http://www.alignresearch.co.uk/ascent-resources/ascent-resources-bit-claim-slovenia-seems-keen-settle-cases/
Interims out this week. I expect the good progress from last year will continue to reflect in the results. Hopefully this should get some momentum behind the share price. Pre-covid we were heading to £2+ and since then none of the excellent string of news items have been priced in. This can move very fast with a bit of buying pressure
I've communicated with Jose recently and he has been clear that our major shareholder wants a trade exit. Companies with far fewer deployments than Mirada have sold for between $30m and $90m over the past few years so it's anyone's guess what we could go for should a takeover bid come in.
I genuinely believe there is a real chance of a takeover bid here. They are rubbing shoulders with multi billion blue chips and, as a tech minnow operating in an exciting sector, it's only a matter of time before Tinajero forces a trade exit.