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Why are some here acting distraught as if a few weeks ago the actual CFO told you all they were doing an equity raise/placing.
He even told you all there would be an open offer for you to participate in.
Anyone holding after hearing those words is down right bonkers, either that, or they literally wanted to lose money (unlikely).
Shame on the rampers on here who tried to quieten the likes of myself offering a logical opinion.
Some reality setting in now it seems.
Funding next, in a brutal market to seek it.
3p to 3.5p would be a major result at this juncture.
Aber wrote:
"This should be back at 103.5p ... PRE-RF deal share price .... fingers crossed for a good rise now .. especially if they now release the MAD news"
You are aware that the company did an equity raise last month, that involves Sareum's broker for institutions and their pharmaceutical analysts to assess what funding level they'd value the company at, and 10p was what was deemed suitable.
The irony is that the retail offer ended up being bigger than the actual placing, because there are considerably more naïve retail investors than there were/are willing expert analysts willing to put money here.
I forgot what a madhouse this is, it is great fun.
Rebster,
Yep, i'm back after originally shorting this at 103p, and advising you personally that the RF deal would have a huge negative impact on the share price, -75% later, I'm sure you will say you were right to hold on to your 'golden tickets'.
Again, no emotion for me on this latest trade, I follow LSE very closely, and the characters that turned up on this bulletin board are synonymous with Pump and Dumps, so I i fully expect a lot of that fast money to empty over the coming 3-10 days.
For anyone with RSP access you will see that WINS are sitting on the offer, constantly offering shares.
For anyone with any knowledge of the markets, that means Riverfort are selling.
Finally, for anyone with an ounce of sense, the share price will only go one way when Riverfort are unloading.
FInally, finally, that direction is not up.
DeAar,
Well said.
The rise of the last week was predominantly down to some very active pump and dump gangs.
I know the long term’ers will refute that, but refuting things I’ve said on this board is a common theme historically.
I suspect this will retrace closer to 12-15p over the coming week or two, this would still be 20-50% higher than the placing price, which is still very impressive.
"this is far the best choice of stock right now on the market ..."
Considering it's one of the few unfortunate companies that has literally told the market it's about to carry out a placing, it's quite literally one of the worst choices on the stock market right now.
But each to their own.
Daffy Picker,
If you listen to the presentation you will hear the CFO explain that they have a burn rate of £400,000/month.
So that means they had enough funds for approx 3 months cash remaining as of 20th March 2024.
That means in June, the company is in administration if they don't complete a fundraise. A company will never leave it until the final month before they run out, because that is financial suicide.
I mean even leaving it until 2 months remaining means they have virtually no corporate leverage.
A fund raise is close, when it lands precisely is not known, could be this week, could be the next couple. It's going to be brutal in any case.
SAR is actually a very good comparable actually.
Both GDR and SAR appointed Riverfort in an almost identical CLN finance capacity.
Both saw their share price weakness significantly over 6-12 months.
Around 4 weeks ago, the lowest SAR had touched in the market was around 14p, the recent fundraise was done at 10p, thus a 30% discount to the lowest market price.
I suspect those same discussions will take place at GDR. The lowest recent market price was around 3.2p, if 30% discount is applied to that, you’re at just above 2p.
Eureka,
For my personal wealth, I’d prefer this share to rise higher because it’s such a bullet proof shorting opportunity.
I don’t think most of you have any idea how difficult it is for pre-profit companies to get funding away at the minute.
AIM darling AVCT is carrying out some ground breaking cancer treatment trials and it had to raise at a multi year low. SAR the same recently.
You have to be aware that Riverfort get all of their warrants repriced at any new placing level too, that is a massive burden on the share price.
Any brokerages/Placees will be well aware of that fact, and hence I think GDR will be lucky to even get 3p in a fundraise.
This mindless rampers have left, reality is setting in now.
KatStrangler,
Buying a share about to raise funds via a placing is about the closest one can get to setting fire to their cash.
Maybe it’s a strange hobby of yours, each to their own.
Strangled Kat,
Yes I do know the future here is pinned, it’s pinned to a fundraise that the company documented in its interim results on the 28th March, and as per the words of the CFO just three days ago.
The only think I ask is you keep buying on margin, so that those with grey matter can gather more borrow.
Appreciated
This was 3.2p to buy a week ago, and that was before the CFO went online to say a retail placing was in the offing.
So anyone saying it’s cheap to buy at 5.6p is simply stuck from being spiked higher.
Let’s be realistic, any placing participants aren’t going to suggest paying nearly double what they would have one week ago. Hence why a 3p level placing is extremely likely.
Eureka,
It’s 4% down and NT to sell.
The book was horrific before, ie. It was a fake puff up by the market makers on open to make it look like there was a fraction of interest. There wasn’t, and there isn’t.
Eureka (ironic),
Nobody sensible does buy before the CFO tells you he’s working on a placing, that’s the point.
I don’t doubt there will be buyers in the market, but that’s because some people are financially illiterate and lack common sense.
System Zero,
For the avoidance of doubt RE funding, the CFO said in the meeting on Friday that a placing is the preferred method of raising funds (over any further Riverfort style deals).
He also said there would be a mechanism for retail investors to take part in the placing via Primary Bid / Rex.
What I’ve never quite understood, is when this knowledge is passed on by the actual company, people opt to buy in the market, rather than wait for the placing/retail offer.
At least by waiting for that you actually contribute to funding the company.
Buying now at 6p+ is only going to result in a major loss on placing day, and your cash just effectively disappears, versus your cash funding the company in the placing at my guess, 3p to 3.5p.
Cash your gambling chips in at the kiosk on your way out.
KatStrangler,
Ironically, I want this higher and ideally these buyers on margin so that more borrow becomes available.
If you’d like to oblige to the above, I’d be more than appreciative!
Katstrangler,
Nothing above 3p is cheap here, anyone with a modicum of intelligence absolutely does not want to buy shares in this company at this juncture.
The serial losing investors/traders have turned up on the bulletin board to try and ramp this one last time to lessen their losses.
This is literally the most repeatable trading pattern a man can have, investorace and co are simply a gift to those with cognitive function.
How accommodating.