Member Info for JSB1989

I have received the tender offer information from my broker. I’m not touching it. The technical charts are primed for a significant breakout way north of £2.50. The tender offer is holding the SP back. The tender will be finalised by 24th June and the brakes should be off.

Another $5 million to PureTech after the sale of Alkili. Wasn’t the best investment but it’s not why most would choose to invest in PureTech. I’d rather they streamlined to 3-4 solid assets.

Dallo - spot on with your post at 11.23. Invesco will be holding out for much more than £2.50. This exercises will take more shares out of the hands of retail investors.

Scooby - having looked at some tenders (from other companies) with premiums significant to the current price, you often find the gap closes between the current price and tender price.

Whilst you could sell for 250p and potentially buy back cheaper, you also run the risk of receiving your proceeds and the SP has rocketed past the tender price already.

Only if it’s fully subscribed. In the RNS this morning they have stated the following:

Shareholders can decide whether they want to tender all, some or none of their Ordinary Shares or ADSs in the Tender Offer.

It’s guaranteed profit if you bought much cheaper or you want to exit from your position as 250p is the highest the share price has been in the past 12 months.

If I had some spare cash available now, I would buy at 226p and tender those shares for a quick 10% which is a great return for a one month hold. PureTech, the big shareholders and ourselves will mostly agree that 250p isn’t near to fair value hence why I’d rather sit out for a bigger return (fingers crossed) and keep my shares. The results of the tender will be interesting to see if it is fully subscribed or not.

You keep your shares Lesley. Either the shares in issue are reduced by 13% to which your shares ‘should’ be worth at least 250p each or if the tender offer isn’t fully subscribed, we will split the remainder of the $100 million pot as a dividend.

The tender offer price is lowball but it will get rid of some weak holders or traders and PureTech know they are doing this on the cheap.

It will be very PureTech of them to complete the tender and then accept an offer in the summer for a big premium. I will stick with them and retain my shares for bigger prizes.

The price should start closing up towards 250p in the next month.

I find it very strange that it’s now two months since they announced the tender offer and there has been no further news on this. I don’t understand why they even bothered to announce the plan so early. From start to finish, this will likely take four months and is essentially capping any movement on the share price at a time where the market is moving well.

The tender offer is taking forever. We haven’t even got a circular out which will require 3-4 weeks before closure. At this rate it will be late June-early July before that is out of the way. It’s essentially capping the SP at the moment.

Interesting theories about the tender offer. I’m undecided on what to do on whether to allocate some shares or not and the %. It’s my biggest holding by a mile. 250p is very undervalued but it’s debating whether the market will clock onto the value.

Oldbutnowisa - I can’t see them taking many or any of the entities the full way to commercialisation alone. I’ve been reading the annual report and they have mentioned partnership scenarios if LYT-100 is successful in Q4 and moves forwards to Phase 3. Gallop will shortly follow in the footsteps of Seaport with a financing round. That won’t leave any wholly owned entities which I’m happy with as I like the model from a risk / reward perspective. Unfortunately it’s not one which the market appreciates.

One thing holding the sp back is the lack of clarity on NAV as none of the significant founded entities are listed. If Vedanta or Seaport were to list, we’d have a reference point for a valuation.

Agreed Scooby. I thought that the results would lead to a sharp move to close in on the 250p mark. Now I’m hoping the outcome of the tender offer will move it there.

The new management have a tall order on their hands to change the minds of the market.

Nothing particularly of note to add from the webcast. Again, the reaction of the SP is very Puretech. The tender offer will at least remove 36 million more shares and the mechanics of this should squeeze the SP.

The new CEO said he is committed to unlocking value for the company. When pressed on this, he repeated part of the presentation.

Presentation at 2pm alongside the release of the annual report. I will tune in and summarised any points additional to the RNS today.

$575 million in cash before the Seaport financing ($32 million) and tender offer ($100 million) so the company will have around $440 million.

I’m guessing next week we will have the information for the tender offer.

CEO Chowrira has highlighted that the market hasn’t fully recognised the value on offer.

Annual report and presentation later today which I will be watching.

The new management certainly need a better way to communicate the value held within the company. The management have said previously that the company is chronically undervalued but that hasn't improved the situation. We will know by tomorrow if they have been effective with this communication.

There are so many biotechs that are on the knees due to lack of funding and market conditions and Puretech could really exploit this in their favour. They will have almost $500 million in the bank (with more coming in by September) so why not pick up some assets or take positions in companies before sentiment in the sector turns up.

We are all missing something Doff! When the share price was 400p (£1.1 billion valuation), they had $480 million cash. That is likely to be an additional $100 million and a pipeline which is much farther advanced. I appreciate the markets were toppy back in early 2021 when Puretech were at 400p but they have progressed a long way since then and I think that 400-500p would be a much fairer valuation.

I can see either a takeover coming, a structural change to the company or change in strategy very soon if the market performance doesn’t turn around soon.

Let’s assume they have $575 million (pre tender) in the bank and the market cap is $690 million. For $115 million, you are getting $400 million in KAR-XT royalty payments ($50-100 million due in the near term), 100% ownership of Gallop and LYT-100, significant stakes in Seaport and Vedanta of which Puretech’s stake is worth north of $100 million in each based on the last fundraises.

The results will be interesting to read on Thursday. Let’s see if they address the disconnect between market performance and company performance.

Everyone will be able to tender at least 14% of their holding regardless. Invesco hold 24% of the company. I don’t see them tendering any shares and I think other big holders will follow suit. If you tender all of your shares, you’ll have most of them taken for 250p.

Once 14% of the shares are off the market, the share price will move up towards that figure and possibly beyond.

Good to see the enrolment has now completed and the topline results are on track for Q4.