Hardman and co26 May 2021 12:00
Investment summary: The Shield-led launch of Accrufer was always the best option, in our opinion. Although the fundraise was dilutive for shareholders, they were all invited to participate. Now that the period of uncertainty is over, coupled with the listing on the OTCQX market in the US to raise awareness and improve liquidity, we are starting to see a recovery in the shares. The actual launch of Accrufer in June will be the next catalyst to narrow the valuation disconnect .
Valuation: DCF-modelling each of the three main income streams – the US, Europe and China – generates an NPV, which, summed together, gives an EV for the group of $852m/£608m, or 281p per share. The current share price is clearly applying a very heavy discount for the execution risk associated with Accrufer.