Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
From the FAQ: What IP protection do you have around the product? Is it just for the specific formulation? Could asimilar product be easily developed?• We guard our IP carefully. We have filed a patent around AxisBiotix-Ps™. We also believethe complexity of the formulation would make it difficult to replicate.Is there any more info about the patent and IP? It's not great that they don't have a patent IMO, and if it's a selection of bacterial strains then I don't see how they could patent that. I don't know anything about their technology - is it just a selection of bacterial strains?
Sorry, found them.
Hi, I saw in the Proactive interview that the pictures are apparently on the AxisBiotix website but I can't seem to find them. Could anybody be generous enough to post a link to these before/after pictures?
Yes, the higher barrier to entry will be advantageous later.
I think that knowledge of this kind is useful to Agronomics investors. If any company develops the needed genetically modified cells which can overcome these barriers it'll be seen as a golden ticket holder by venture capitalists who will help it to scale up to production. (At this point, an Oatly-like valuation would be fair)
If that company is in Agronomics portfolio then that's good for us. If they aren't in Agronomics portfolio and Agronomics holdings aren't indicating any progress to making similar GM cells then I'll be worried.
Alternatively, it might not be a company like those in Agronomics portfolio that develop these genetically modified cells. It could be a University or research institute which patents and licenses the cells.
https://www.wired.co.uk/article/cow-cell-lines-cultured-meat
Very well researched article. Surprised me with the current hurdles for cultured meat technology, particularly this one:
"Most cell types can only divide between fifty and sixty times before they break down – a theoretical limit that is even harder to reach when cells are taken out of their host animal and grown in bioreactors instead. If the cells reach this limit before you’re ready to turn them into muscle fibres and fat cells, then you might end up with a bioreactor sloshing with inedible meaty goo. The leader of Mosa Meat’s cell biology team, Joshua Flack, says that they haven’t yet managed to make cells taken from muscle tissue divide 50 times. "
Additionally, this point:
"This last point is key. Right now, the cost of producing cultured meat is between 10,000 and 100 times higher than conventional meat, largely because of the expensive fluid called growth media that cells are grown in. Unless companies can find a way to reduce the cost of growth media, or use less of it, then cultured meat will remain eye-wateringly expensive. Genetic engineering might be one way to get around this. "
These hurdles definitely seem like they can be overcome in the next few years with a bit of luck. However I'm left somewhat doubtful of Bluenalu's prospects in the next two or three years in terms of being able to drive down costs to have a viable product. Thoughts?
I'll sell a few shares for some of what these guys are having. Seems like some strong stuff.
80p in the next few months.
Ouch. That did sting but I'm buying the dip. Momentum is high enough that we'll be back at 40p soon anyway.
It looks like we're heading down to 32 after a bit of exuberance on the top of huge volumes. It seems to retrace and consolidate for 6-8 weeks before the price pushes up again. I'm glad. It shows interest is gradually building in cellular agriculture investment.
Stocks such as CRISPR involved in genetic medicines, as well as anything EV-related have all been booming lately. Many of these companies have no products and trade at some insane multiples.
Hopefully when Bluenalu shows products in the second half it'll bring in a whole lot of new investors. I don't think they will care about NAV, especially given the recent focus on growth stocks in the tech sector. So many stocks are priced at how well they'll potentially be doing a decade down the line - just look at Tesla.
The word 'repayment' was used in the company announcement which I quoted.
'Following agreement with Galloway Limited, the full loan repayment of the £1.9 million Galloway Facility will be applied towards a total Subscription by Galloway Limited for £2.9 million in the Fundraising.'
I am aware that it was converted into equity as with all other investors, and that it is beneficial to the company to generate capital.
My post wasn't questioning the benefits of share issues, it was about timing the purchase of shares. It might not matter to the two previous posters since you may have held shares since the price was much lower, but it's probably more relevant to people who aren't sure whether to buy on the current volatility at an all time high. It's quite a common question, so don't be offended at me rocking the boat. I'm sure my post alone won't get in the way of your returns. :)
It appears that the last major share issue was at a 6% premium to the last reported NAV a month prior. We are way above the last reported NAV now.
Did anyone notice how much of the last share issue went towards Jim Mellons Galloway Limited, to pay them back for their nil interest loan? I pasted the information from the announcement below.
(As announced on 1 July 2020, Galloway Limited, a company indirectly wholly owned by Jim Mellon, provided the Company with a nil interest unsecured 6-month bridging facility of £1.9 million (the "Galloway Facility") , which was subsequently fully drawn-down in September 2020 to take advantage of the opportunities available to the Company at the time. Following agreement with Galloway Limited, the full loan repayment of the £1.9 million Galloway Facility will be applied towards a total Subscription by Galloway Limited for £2.9 million in the Fundraising (which sum is included within the £10 million aggregate gross proceeds of the Fundraising detailed above). Accordingly, a total of 48,333,333 new Fundraising Shares will be issued to Galloway Limited at the Issue Price and the Galloway Facility shall be cancelled with no further sums due to Galloway Limited.)
When Jim said they would seek to put in 500 million in funding for Agronomics, it doesn't seem unlikely Galloway Limited (Subsidary of Burnbrae, another fund Jim owns) will be involved again.
I'm going to keep an eye out for any further large nil interest loans to Agronomics which might be repaid with upcoming newly issued shares here.
If the fund is determined to raise capital, maybe around eight times the current MCAP, then why are people buying so high above NAV? Surely the time to buy would be in the second half of the year after a possibly very large dilution. Is there a counterargument to this?