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I run a small research Company with limited resources.
It is 2018 and I have several promising lines of research and insufficient cash to take
either forward.
A Company, which is growing rapidly offers to collaborate on one idea.
It offers laboratory space, cash and a few of its own salaried staff to assist.
I agree and we set up a subsiduary Company to carry out further research, which
may or may not lead to a commercial product.
Imagine my shock when I realise they want a large slice of the cake, in the event
all the large amounts of cash and other resources lead to a valuable commercial
product.
Fortunately I had my old friend C J Sterling to advise me.
So I never signed the agreement or set up the subsiduary, I told them
to sling their hook.
The idea.
We still don't know if it is commercial, we never did anything to
progress it. We are waiting for someone to give us huge amounts of cash with
no expectation of reward.
Is a wholly owned subsidiary of Hemogenyx Pharmaceuticals Plc (LSE: HEMO).
I am sure C J Sterling is well aware of this fact and any dilution as a result of Orgenesis
converting their loan relates to the subsiduary not Hemogenyx.
See below from 19th October 2018.
According to the terms of the agreement, Orgenesis and/or one or more qualified investors (the “Investors”) will advance to Immugenyx a convertible loan in an amount of not less than US$1,000,000 (the “Convertible Loan”). As part of the Agreement, the Investors shall have the right to convert the outstanding Convertible Loan amount into either: (i) shares of Immugenyx at a price per share based on a pre-money valuation of US$8,000,000; or (ii) shares of Orgenesis’ common stock at a price per share equal to the weighted average trading price of Orgenesis’ common stock for the three trading days preceding conversion.
There are to many variables and unknowns to predict the outcome
and there are valid arguments both positive and negative.
One thing I think we can all agree on.
Mint will be looking for returns vastly greater than 10% and have no
concern on any negative effect on Hemogenyx.
Two few things stand out.
The size of the facility against the current Market Cap.
The number of projects Hemogenyx are working on, with ongoing
collaborations with major Pharma and Penn University.
Any one can result in further news, some being well overdue.
It is possible that Mint may only have one shot at making a killing.
That first £12 miillion Conversion, together with the 5% arrangement fee.
Any further conversion is at Hemogenyx discretion.
Before that date they may have received sufficient cash from
deals signed.
It is even possible they are subject to a Takeover.
Either making the first conversion, the last conversion.
It's poor previous history, with a major investment going into administration
has brought us to this low sp. The consolidation is a result of this.
It has a low Market Cap, with many illiquid investments, which collectively
exceed that Market Cap.
I believe it is perfectly capable of a large move, however it could be in either direction.
It is large Market Cap Companies which do not make major moves, for obvious reasons.
As I was saying.
Not to mention its collaboration with Farmacore in Brazil to develop a
Covid 19 Vaccine, which the Brazilian Government may fund.
This is indeed the time to be loading up on these unloved and unddervalued
stocks.
Yes it is unloved, below the Placing price of 65 pence.
Current Market Cap £7 million.
Ignoring the Holdings in 14 other Companies, Glycotest eventually reducing to 40%,
8 others typically 15-20% and looking particullarly at PDS.
5.76% Holding in PDS valued at $2.63 million, moving into Phase 11 trials on two Cancer
Treatments.
Just like NSCI it to is unloved $33 million in cash and a Market Cap of $45 million.
Not to mention its collaberation w
Impossible to be clear on what is happening and the rigged market is designed for that purpose.
We have seen an awful lot of medium and small sells over the last few days.
Yesterday a few sizable buys from Wednesday popped up and today that chunky sell from
Thursday.
From the last RNS of further delay, the wording does suggest the deal is ready to sign.
I am thinking as we move into late November we will start to see the price begin to slowly creep up.
It is hard to believe big players are not aware of the potential here and I recommend the article attached.
https://financialpost.com/investing/the-secret-trading-strategy-from-the-1930s-that-hedge-funders-dont-want-you-to-know-about
My understanding that shorting is mainly concentrated on large Cap Companies
FTSE 350 and especially FTSE 100
Via CFD's etc it might be possible indirectly in a stock like Hemo.
Here we are at the close, steady selling all day, medium and small trades and up at the close.
Suggests to me that there are sizable delayed buys to show in the days ahead.
I listened to most of it.
My take is that all is going well and they have ample funds, covering 2021
News on most lines, now in Phase 2 won't be until well into next year, barring bad news.
However as regards Farmacore, any news positive from the Brazilian Government could
be a very different matter
There have been no end of discussions on this topic.
Look at the price, it was not possible to sell anytime yesterday at 43 pence.
If you want to believe it was a sell that is entirely up to you.
As it was from yesterday, it is a Buy
This is a young business.
I do not hold, i note change of Auditor and other unsettling indicators.
I am curious and will watch its progress.
What does suprise me is its £157 million Market Cap.
That is a lot of good news already in the price.
Medium Buy delayed.
Just bought 14.5k at 46.35
It is obvious many haven't a clue what they are invested in.
and I wasn't expecting that 200K Buy from yesterday to appear.
Not small change.
Results alone were unlikely to give the sp a boost.
It is all the other News we are awaiting.
In the aftermath we many exiting. Some
who see it only as a Covid stock
who thought the results would send it higher.
who Trade, often on very short timeframes.
It is possible we may see it lower yet.
Just remember we are awaiting News on many fronts, any one
of which could send it sharply higher.
It will come out of the Blue and you won't be able to Buy in as it Gaps Up
Pumpky back talking tosh as usual.
You know as well as I do they are only having to cover listing costs
and a handful of staff.
The Companies collaborating with them are covering most costs, probably
even the staff i have just mentioned.