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Shorting and "Bear Raids"

Momentum Shorting: While original longs are selling, "momentum" short sellers do often enter on days 3–5 to ride the downward trend. They bet that the forensic audit will find even more "black holes" in the accounts.

Borrowing Costs: However, for a distressed AIM-listed stock like SBTX, it can become very expensive or impossible to borrow shares to short, which often limits how much of the fall is actually driven by new short positions.

Key Insights:

Bottom Line: You are seeing capitulation. The move from 12p (post-resignation) down to 5.37p today (post-forensic audit news) represents the market moving from "this is a management issue" to "we don't know if the accounts can be trusted at all".

Institutional Activity: Major holders like Rock Nominees (holding ~20%) and Brierwood (holding ~6%) are under intense scrutiny; any signal that these "anchor" longs are trimming their stakes would cause the multi-day slide you are observing.

So the million dollar question is - does it make more sense for the major shareholders to sue or not sue and hope the lack of suing will allow the share price to recover quickly?

My feeling is if the ZENAKINE contract is sound and we get the 10%+ royalties then all will eventually be fine.

If not then class action and company probably folds.

So if we all agree auditing costs are not going to be the main worry of potential investors. The main worry must be litigation costs....

How much is SBTX realistically liable? I guess that is the nub of the issue.

Estimated Cost Comparison

Investigation Type Typical UK Cost Range

Basic Fraud Detection £5,000 – £15,000

Small Business Dispute £10,000 – £25,000

Complex Corporate Forensic Audit £50,000 – £250,000+

Given the 40% share price plunge and the need to restore market confidence for the upcoming HY results, the Board is incentivised to "act quickly," which often involves intensive, high-cost resources in a short timeframe. For a company with a cash position of £2.92m (as of 13 February 2026), these fees represent a material but manageable impact on working capital.

My original feeling was the company was worth 10p to 15p without Zenakine. The reason its now 5p is because investors are worried about litigation and costs of auditors. If and when these are resolved it should recover to 10p-ish without Zenakine.

If we get Zenakine it will go up loads.

If there is lots of expensive litigation it will not.

The LONGER the gap between the results of the investigation and the next RNS the LESS LIKELY the news will be good. I say this because the normal human instinct is to rush to tell good news and delay if its bad. Its just human.

Having said that, I'm just talking statistics, what actually is going to happen is anyones guess.

Laura: Go to ADVFN and look at netcurtains activity my name is all over the place on : LGEN, PHNX, CLIG, ADM, MNG, ABDN, INVP, DUKE, CAV

Please stop aimlessly chatting to me and wasting my time. Thank you. Just stick to your own posts but dont keep asking me silly questions. Thank you.

Good lord no. I have been investing a lot today though. Mainly in big dividend yield companies.... Will not touch SBTX again with barge pole until people stop playing football with it and it gets back to sensible talk about Zenakine progress etc...

Way too many daytraders playing at present...

So not my cup of tea. I like an AIM stock that is quiet when I buy.

Yes - after 12 noon to 1pm it rose up to about 6p from a low.... This is roughly the same time TW appeared on the web (google times).

TW stands for tom winnifrith....

He runs a website..... Where I would need to pay to see what he wrote after the "their".....

I just wondered if he thinks there might be some money coming....

It would explain the spike north.

I cant be arsed to pay but just wondered if he was thinking the same as me:

TW

"3 hours ago — One missing "if" is that if Croda haven't yet paid SBTX any royalties then they surely will owe some since they have been manufacturing their"

Belgrano: I wil buy any more - thinking about it - until either there is NEWS or the share becomes "dead and buried" and no one writes here anymore and there is only the odd trade here and there - then I might buy a few knowing that is truly (touchwood) the bottom of the bottom of the bottom.... Until then I'm just observing and generally making positive posts (As a small holder of the shares).

Laura2022: I have no idea what you're talking about.... You seem to be giving me an answer to a question I did not ask? I sold most of my SBTX a long time ago - I dont think you can blame me for the sales now. Indeed I bought a few the other day as it was so low... And now its even lower (falling knife)... You can see by my sales and buys I appear to be a contrarian - no one is following me - that is almost a 100% certainty.

Thanks BigPunt that is an interesting take on the issue that no one else has mentioned as yet. Thanks.

Bel: That seems reasonable - I guess. So its the late comers to the wake that are behind todays flurry. Might well be....

Sure PP, that is a reasonable plan... But it does not explain why people are selling today - Because using the same logic you should also sell when the dust has settled and the full facts known... So really it cuts both ways.

My feeling is ZENAKINE is a relative success (eg its a success for SBTX - not so sure about Croda's hopes for it though).... So we might not have got £770K just yet but we must of got something - surely - possibly £500K.... It makes no sense that it is zero.... Zenakine is clearly selling globally...... I mean its nuts to think its zero.... It must be something.

Anyway - its a bloodbath today... Everyone and their dog selling....

So obviously not a day to go against the flow....

At least not yet.

What I dont understand about human behaviour is if the holders of the shares did not think it a sell on MONDAY, TUESDAY or WEDNESDAY when the price was a bit higher, why do they think it a sell now when it is lower?

It does not seem rational.

Will the Chinese buy SBTX?

The inhouse magazine medical professionals in SE Asia:

https://healthcareasiamagazine.com/healthcare/news/neurocosmetics-reshape-skincare-79-favour-natural-tags

"

Biotechnology companies are also investing in neurocosmetic ingredient research and development. In the UK, Croda International collaborated with SkinBioTherapeutics to introduce Zenakine, described as a neuroactive ingredient designed to increase melatonin production, improve sleep quality, and reduce skin stress.

"

Khan said growing awareness and increasing consumer preference for neurocosmetics will provide manufacturers with opportunities to differentiate from competitors. He added that investments in neuroscience will support evolving consumer needs and strengthen brand loyalty.