Member Info for Luckenbach

One skenario could be that one or two big foundations would invest in Faron. This could bring in so much money that Faron could be strong enough to negotiate and partner with as many as possible companies and Bex could be brought widely available for as many as possible cancer indications. That could support family Jalkanens desire to grow this company as a Finnish company and still reach the market efficiently in multiple indications.

Potential foundations could be the biggest owner of Novo Nordisk, the Novo Nordisk Foundation. The other one, albeit a little bit smaller one, could be the Bill and Melinda Gates Foundation. Novo Nordisk is famous for Ozempic and Wegovye and they are doing so far their best business ever. The foundation owns 28% of the company and has more than 70% of the voting rights. The company cannot be sold according to foundations rules but the company is listed in stock exchange. Anyway the competition is getting worse by Eli Lily and others. Prices are getting down. Even the patents are running out in China soon.

Foundations just like many BPs are seeking their next golden eggs.

I think many things here are shaking hands nicely. The foundation could get 25% of the company in a private issue with something like “a billion dollars” in cash. Bayer and MSD etc could get their partner deals and Faron could continue as an independent company being someday listed in New York. We could sell or hold our shares and enjoy dividends. Faron would be healing patients widely and creating wealth.

This above is fully imagined scenario. Anyway Jakanens are increasingly blaming the lack of domestic funding and risk taking. Real national and international Finnish success stories have been a result of foreign or historical impacts in a way or another says Markku Jalkanen in his recent comments as a columnist (Bioneer)in one of the main newspapers in Finland. I think selling the company would only be Jalkanens second best choice. The President of Novo Nordisk Foundation is actually coming to visit Finland in the coming days say Finnish newspapers, as a speaker. Bill and Melinda Gates foundation visited Novo Nordisk earlier this year.

With this or any other kind of scenarios the future of Faron will be humongous I think. Anyway some kind of a foreign impact expected. AIMO

Not saying that, absolutely not. The point is that there’s been board changes and CEO placement. No more turmoil to be expected in these positions. We and potential partners can trust on Markku and other board members to be trustworthy board directors and the newly chosen Juho as a new CEO. You don’t have to be unsure if your speaking partners in partnering negotiations were going to change

CEO change was expected to happen anyway someday as well as board changes. Now we have a freshened mix of directors that can carry on with all that experience the company has as a legacy.

All my best wishes to them to carry on.

Anyway interesting to see if they make any additional hiring or continue as lean as they are now.

And they have a nomination committee now in place maybe not only because of egs. The committees naturally monitors board and C-level positions.

Even if you have obvious good candidates inside, you still need to search and check the availability of even better fitting candidates from outside the company. I think the CEO appointment here is based on the egs principles. In general the sad fact is that more than a half of the new CEO’s fail within 18 months. A poor outcome in financial or strategic achievement. But the explaining reason behind often is the managers personality with at least two or three harmful or more characteristics that are expressed especially under pressure or situations where one feels free from control etc.. That affects the team and their ability to jointly perform because the manager defects the purpose of the team without understanding it itself. So that’s it in general and I don’t know anyone at Faron in person.

And don’t blame these people because they are on average different kinds of normal people with higher ambitions and talent. It’s the decision makers.

Thank you Markku and congratulations Juho! It’s been a pleasure to follow your presentations and hopefully we’ll get the next news and presentations soon!

I think there’s been board changes, hiccup and now CEO placement and this is a sort of a good signal for potential partnerships they know who are the speaking partners for them from now on - whom to trust in a long run. Table is clean.

Just a little bit more data and partnering or an M&A. Placing Juha confirms the chosen way?

At the end of the todays rns

“The Company's current cash balance is sufficient to allow the Faron to continue its operations into April 2024, however whilst the Company is in advanced negotiations to complete the remaining bridge financing of approximately EUR 5 million shortly, the Company notes that there is no guarantee that the required funds will be raised.

The Company will update the market in due course of any material developments as soon as practicable.”

I like that!

I thought I heard them saying the results are excellent e.g. in OS and quality of life. They are confident that the clinical results continue to be at least at reasonable good level. Far more in addition to the results they are constantly developing their understanding how Bex works which increases the likelihood for further success.

Excellent presentation yesterday. Wasn’t that a one kind of a testament? On the table is possibly not only achieving MDS BLA but a form work for casting a fundamental cornerstone for oncology and immunotherapies?

It’s time for Mr Zambeletti to deliver and midwife. Come on and bring it in to the daylight. I’ll invest in the company that acquires us.

What are the odds for an acquisition versus share issue? Acquisition prices are not high now because of some unsuccessful deals like Gileads CD47. The price was close to 5b. That’s why LTHs are holding? How about a valuation in a share issue? hmmm? That is why traders are selling?

Actually the presentation didn’t say anything about a share issue? Correct me if I was wrong.

Stunning!

..analysts evaluations fit best for well balanced portfolios.

…and to make it clear it’s only up to clinical success at this point. Clinical results do define the success and there is no correlation to analysts evaluations. IMO

…but of course at times like this the root cause is the scarcity of money for many. Still there is an abundance of money for good investment opportunities like we can see in some hot shares how the sp skyrocket. Hopefully someday any day soon here as well.

Someday we know if the sp drop happened due to a gullible trust, unfortunate mistake or because of a manipulative action. I am not that imaginative that I could guess who all could be benefiting now. With lower sp it’s possible to spread the ownership wider. Would be also interesting to know who are the investors in that particular IPF fund committed to Faron?

I like their approach. Firstly the unfortunate hick-up solved and now apparently positive clinical information landing. Financing will be arranged in a way or an other way combining various vehicles like convertible loan, loan, issue and maybe by means of business development agreements. Rather interesting period ahead of us before the AGM. The AGM invitation landed rapidly after the yesterday’s information session on time three weeks and two days before the AGM thus confirmed the current status of matters. It will be glorious days ahead of us if the clinical results continue to be good. IMO

Yes Drac, the hype is gone if there was anything bigger than the forum here? For sure there is a professional audience much more pragmatic and knowledgeable than us, just to remind that these forum’s here are not the only truth. No problem but in business matters it takes a while to come out from the “Death Valley”. This is a natural and a dangerous phase after great expectations when still not knowing how it turns out. Financing plays the most critical role in this phase. But at the end it’s the clinical success that matters at first. So what can you say to investors now? We are far from the power point arrays of the expression of various CDs now showing patients healing in various clinical cohorts. We know the market potentials. But I t’s only the approval or any other official indication towards approvals that can bring us further.

Great we had this RNS! Now it’s up to the clinical succe and the business development and potential partnering or M&A news.

Yes Sax, so far they’ve done marvelous job!

So if they announce a rights issue I am pretty sure biggest owners do have something to believe in it. With the same breath I could guess them being able to convince anybody else? If that’s enough to RNS already, we’ll see hopefully soon.

Btw. would it mean you could get one share with 1,5£ against 10 shares to fill your obligation in financing 10m. With the need of 25m it could mean three shares each with 1,5£ a share and one share for free?

I think you are correct with your calculation.

Rising 10m when Mcap 100m would make 10/100=10% and with Mcap 250m it would make 10/250=4% . And if 10m wouldn’t be enough and the need were 25m, the respective percentages would be 25% and 10%. Huge differences that break mental covenants.

In both Mcap you need the same sum of money per share, financing 10m would mean 15c and financing 25m would mean 37,5c. With amount 5k shares it makes 750£ or 1875£ out of your pocket and with amount 5m shares 750000£ or 1875000£ out of your pockets. To negotiate these sums with your own bankers can be different when your additional need is +10% or +25% to your current wealth. Of course in Finland some people do grow money in trees literally.

I think the future financing will be a combination of vehicles. When successful with the RI, then easier to lift money elsewhere too and conversely. Positive news could change the situation.

It wouldn’t make any sense to make a rights issue when the SP on purpose at lowest levels. Why? Let’s think the company would need a certain sum of money to continue with clinical trials. The only thing that matters is how big proportion that sum is compared to the market cap. When the SP at lowest the dilution biggest. Who would like it? Biggest losers would be the ones who were not able to participate the issue even though they own shares and were entitled to use the rights.