RE: Those who dare wins ....17 Oct 2023 11:58
The "prevail"ing share price of the market was irreverent not the price paid, I would argue people should concern themselves less with what the SP was and actually focus more on what they finally paid. The price paid was based on a valuation, a discounted valuation assigned to Hemogenyx in agreement between Prevail and Hemogenyx, likely back in January when the agreement was drawn up. Had the investment groups all picked up Hemo and pushed it back to old highs of 10p+ the agreed 6p would STILL be what they had paid, likewise had we been attacked worse by shorters and trolls and price driven to 1p 6p STILL would have been paid. Because that is what they agreed based on what they valued the company at(discounted). This was a strategic investment and they now own 1% of Hemogenyx in exchange for getting Hemogenyx to the start of the clincial trials stage, I dont know why this is controversial or causes so much debate.
Lets simplify this:
Hemogenyx signed a CMO agreement with Prevail. The initial fee for this work to get the company to IND status and ready to start trials is 1% equity stake in Hemogenyx.
Forget price paid or market price, they were paid 1% equity stake in Hemogenyx to help prepare for trials. When IND is passed and company needs more money to actually start the trials it will probably be with additional cash injection from Prevail again at some agreed valuation in exchange for equity. There was some back and forth for accounting purposes as the cash came from the parent company to Hemogenyx back to Prevail to keep their books in order, but bottom line is they have been paid 1% for their work.
The entire arrangement is great for Hemogenyx, prevail and us shareholders and its legit, above board and transparent. Prevail valued Hemogenyx > 6p per share and people can either agree or disagree it makes no difference to Hemogenyx, Prevail or myself what other traders think. Prevail and Hemogenyx did the analysis, they came up with the valuation, they know more than us.
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