Thoughts4 Oct 2019 11:54
Tbh the placing was BS and the one thing I disliked about this company is the complexity between the broker and people at the top, probably explains how they got that placing away so quick. It’s also frustrating how they’ve raised when the SP could’ve really run away.
Read into it how you want, but i’m almost certain there was some mates rates and forward selling shenanigans going on, it’s pretty clear there’s an overhang being drip fed along with the traders looking for a quick buck exiting at huge losses, but it will dry up pretty soon IMO.
I was also struggling to get my head around the frequent raises on any rise, but the SP and low volume of dilution each time is telling - why not dilute by 20%+ and raise a few million at once and attach some warrants to it like every other AIM company. From 1p-9p is a huge deal for LTH likewise 16p-7.5p for traders.
The follow up RNS may feel lacklustre due to the expectancy of established contracts upon approval, I’m not sure if it’s prudent for the big money companies/hospitals to be speculatively having serious discussions with non approved products - it would probably begin now, at what speed is largely unknown, but the large amount of effort required to get this across the line should peak their interest.
“These discussions are continuing” should provide some comfort, I’d also say the market size of $2.3b is quite significant.
The lack of mention of the Cortech agreement is also rather strange considering it was the catalyst for the initial SP move, unless it is forming in part with current discussions.
For those suggesting it will drift now that the sell on news approval RNS is out, you have to remember FDA products command value in itself and you bet there will be eyes on this once it settles.
Putting the BS aside, fundamentally I believe it’s now by far one of the most undervalued companies and have no doubt it will continue to rise once the games are over. Sorry for the people that got ‘spiked’ but a little patience and it will move back up and way over IMO.
You have a funded, main market company with 40% held by the directors, a readily marketable FDA approved product , 5 year grant funding, high margins, low overheads, no debt, and multiple other products in development for £11m Mcap....
This is easily a 3 digit Mcap company in the making, it will likely be bought out before it reaches 4 digits but you can’t have it all.
AI is the future ;) DYOR etc
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