RE: Can't even sell29 Jul 2024 12:39
As I mentioned before, why not explore loans, convertible notes, and other financing methods? Diluting the shares means diluting the crown jewels. When you dilute shareholders' equity, you're limiting your future funding options. There are many ways to secure financing, but share dilution shouldn't be one of them. If anything goes wrong now, all funding avenues might dry up, and the company could return to private ownership.
Regarding share consolidation, the company would first need to buy back its shares, which would potentially raise the share price to about 0.60 if it bought back a billion shares. For example, if Aptamer bought back a billion shares at 0.20 per share, they would need £2 million, more than they made last year. To stay afloat, they need to make £4.9 million in profit and an additional £3 million for share consolidation, assuming a 2-for-1 share price rise to 0.60 per share.
In essence, Aptamer needs to make at least £8 million next year to regain prominence. I don't see them reaching that level. The real question is when will shareholders feel the pain. I am a shareholder too, but I can't recommend others invest heavily in this stock, as it is not being managed well financially, in my opinion.
The only sunlight I see is future contracts especially in organ transplant but we have to wait and see.
My thoughts are my own, biotech companies can be lucrative investments but remember OCTP who decided their shares were worth more and so delisted.