RE: Coverage in UK Investor Magazine6 Jan 2025 14:23
Genflow's business funding plan is through non-dilutive research grants and lucrative licensing deals, JV partnerships and ultimately acquisition by Major Pharma. They currently have plenty of cash going forward with another £700k expected 2025 from their €1.55m grant award May 2024 ( see below ) and have only just received confirmation of an additional €4m grant ( 21/20/24 ) which will start coming through this year as well. Genflow have only had one placing since IPO and that was to facilitate Institutional Investor, Premier Milton's 9.2% share holding, with the rest of the placing shares fully subscribed by Directors and Major shareholders and no doubt something similar for any future placing to allow Institutional investors both here and the US to take up positions. The future is very bright for Genflow and every chance a truly stellar 2025 lies ahead for all concerned. Exciting times!!! Gl :-)
GOING CONCERN
30th September 2024
As the Group's assets are not generating revenue, an operating loss has been reported and an operating loss is expected in the 12 months to 30 June 2025. However, the Directors believe that the Group will have sufficient funds to meet its immediate working capital requirements and undertake its targeted operating activities over the next 12 months from the date of approval of these financial statements.
As at 30 June 2024, the Group has cash resources of £1,139,859. The Group received funding during the period to support working capital requirements and to support its scientific research and development work streams. In April 2024, the Company completed a placing and subscription which raised £715,000 (before expenses); and received the second tranche of the grant from the Wallonia Region, totalling €350,000. In May 2024, the Group secured further grant funding of €1.55m, of which €777,273 has been received and the remainder will be received in 2025.
Management plan to use these funds, and future grant funding, to meet the working capital requirements of the Group and to further its research and development activities. In early 2024, management prepared a forecast covering 18-months and believe that current cash reserves plus the receipt of committed grant funding in 2025 will adequately cover the working capital requirements of the Group. Notably, all research and development costs are discretionary and therefore, can be reduced if necessary. However, the Group will need to seek further funding to progress the Group's research workstreams and to progress to the clinical trial phase. ( €4m non-dilutive grant funding secured since this statement - 21/10/24 )
As such, the Directors have a reasonable expectation that the Group has, and will have, future access to adequate resources to continue in operational existence for the foreseeable future and, therefore, continue to adopt the going concern basis in preparing the interim financial statements.
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