Alva + Subcontract Model19 Feb 2022 08:20
"Marik- What if there is more to the sale of Alva?
What do you understand as to the sub-contract model?"
My understanding is that; it was an exercise to reduce costs. With pros and cons of reducing the burn rate substantially via reduced overheads. But even those not singing ODX praises agreed the ODX had sufficient cash in the bank to last till mid-2022 excl. claim from the DHSC. Perhaps prudent to ring fence, but very unlikely required to pay. Selling Alva and the streamlining of the directional change would certainly reduce overheads and move ODX towards profitability (by how much remains to be seen). Combined with the £5m fundraise and the sale of Alva, this would be sufficient to keep them going for a reasonably good period of time.
Following a sub-contract model comes with its own issues and dependencies which are not as simple as they appear (I'll explain another time - DM me if required). What we know is that ODX were correct to RNS the CE-mark for self-use as we now know that it clearly moved the share price sig. (up ~15% on 03/02/22). They also submitted the CTDA on time and stated "Omega has now submitted all available data ahead of the deadline of 10 February 2022". The FDA approval for professional use is in the pipeline. They had their own production facility and potential new agreements lined up for the LFT's. Viral evolution, especially the rise of Covid-19 mutations over the last two years, make it evident that we will be living with the virus for a long time. Be that as a pandemic and localised transmission, it won't go away soon. So the idea that LFT's will be done away with etc. is not true. But, the sentiment for LFT's will ebb and flow as new Variants of Concern are identified. Furthermore, contrary to some comments, ODX did manage to get new Institutional Investors onboard, that's more than one. Yet, even with CK "resigned", the placing price is not above 5p?! Why? A good question.
Why the sell-off of Alva? Another very good question. Was it a stipulation of the fundraise by the new and existing II's that ODX focus away from Covid-19 testing? If it was, then I believe it was a mistake, that's my opinion. I know from reading some of the previous posts on this board, that quite a few are sceptical on both the virulence of Covid-19 and the effectiveness of the vaccination program. What is crucial is the preparedness for future pandemics and VoC.
I remain on the fence on ODX and I believe the management should explain to retail investors what took place, especially decisions taken within and outside their control within a timeline going back to last November. If they can do that, then there might be a possibility to gain back some of the RI confidence.
Here is a very strange tweet which might be interesting for some of you to look at:
https://twitter.com/Rockyneverquits/status/1494717968827269124
GL
Sign In
Follow the stocks
