Member Info for NFTs

For those who don’t know or cannot work it out NXP002 is not the NXP002 back in 2019.

It failed on durability testing which is the easiest and supposedly most straightforward part yet it wasn’t durable in rats. This is why previous lot bailed out. It cost a lot of money to stamp bad data and now bad history against NXP002 as a standalone drug for IPF.

So to try rescue it they stopped halfway through second attempt duration of action studies. This is the statement prior to those studies.

“However, as announced on 30 May 2022, no conclusions could be drawn from an additional study undertaken to investigate the duration of action of NXP002 formulations.

The Company has now initiated further studies as it continues to generate a robust pre-clinical data package to support the progression of NXP002, both in terms of product development and business development discussions. These studies will directly address issues faced in the duration of action studies. Firstly, the Company will investigate a new formulation of NXP002 for inhalation, delivered using an alternative method designed to ensure consistent and controlled exposure is achieved. Secondly, the Company will explore a new range of doses to best optimise efficacy of treatment.

The eventual aim of the studies is to confirm the formulation's positive pharmacological profile towards the treatment of lung fibrosis and inflammation via inhalation and to assess its duration of action. The studies will begin in August 2022 with results generated throughout H2 2022 as development milestones are achieved. Data from these inhalation studies will add to the Company's current compelling pre-clinical dataset, to best support the development of NXP002 as a treatment for IPF and potentially other poorly treated fibrosing interstitial lung diseases. Further updates will be announced in due course, as appropriate.”

This obviously failed again and rather print and stamp more bad evidence against NXP002 standalone drug they stopped and changed to trying to prove a far smaller potential of NXP002 SOC to aid treatments in both Nintedanib and Pirfenidone.

This is nothing like what they had and with the tiny amount of cash to try do more expensive human tests, it’s a long shot to gain enough clear evidence to try sway a backer to come in and either buy the rights or JV development.

Now considering Nuformix have basically nothing but a poor website a few old patents and some hanging in there part-time directors milking the last of the reserves to try get a quick options payment out of a last minute deal as payback, you are asking a lot imo!!!

Should raised proper cash last year and got on with a proper development rather than trying to be cheap.

This is a SOC not direct IPF single treatment it’s for a combined effect Earl due to it failing durability on Rats and they had no cash to do proper tests on Humans after that so decided to take it to a SOC line and do some basic low level human lung sample tissue tests to try gain some easy data to help get interest. It’s a low level effort to save what’s left.

IMO too little too late and they have no cash and cannot raise again till AGM or do an extraordinary AGM and get another raise voted due to main market limitation’s on how much you can raise.

So in current markets they basically cannot get funds without more evidence but is it enough. Obviously the salesman will only tell you what you want to hear otherwise what’s the point in carrying on.

But

IMO the data will not be enough to clinch a serious offer as further expensive studies need doing to really prove clinical readiness.

How does an institutional single UK holder get away without notifying the market of being above 3%?

New Ordinary Shares will represent approximately 4.7 per cent. of the Company's enlarged issued share capital.

Also how does Lanstead get away with not properly notifying the market as they cross each %. The excuse of they are still in position of selling is BS

It’s just manipulation and Dan and Julian slack at chasing these things. Guess they are too busy with their virtual business of SFA!

It will be a heavy dump from anything above 0.25 and the coffers are emptying fast.

Roll on AGM if they can hang on and get anything.

Only thing that will move the dial is a deal. As soon as data is released with the obvious small result the selling kicks in as all try to bail out as then it’s a distant silent wait for fund raise or a possible early deal to which nothing currently available. One thing is for sure if Kissei were still interested they would come fwd and help raise and take on the works. Count them out after the last messing about.

They need further tests prior to being phase 1 ready and there lies the problem. No cash, company basically broke and praying for lifeline to drop on its lap. Wait for administration then buy it and payout to BOD.

A tiny sliver of lung done on the cheapest possible method to gain some data.

lol don’t underestimate it lol

I’m sure the three amigos in the other chat room who know everything are ensuring they pass on not just what they want you to hear now are they?!!!

The reality is the cash coming in has only just covered current works. The results have been tactfully delayed to hide the problem to try hold market up to get that last 70k in and try keep it up till news.

The news will be positive but these are really small tests that are only pre clinical stuff to try show drug companies to try come in and take it out or try find it.

The problem they have is they don’t have cash whatever they say. They are doing their very best to try hold this together but delays in trying to force a deal will probably only lead to suitors tactfully holding NFX to ransom to get this exceptionally cheap regardless of the hype.

The change due to poor durability on rats for NXP002 which probably would not have happened if Anne had listened and kept it on track with just human testing rather than waisting £1.5 million on rats to achieve a small amount of data.

The rats durability studies are there in the system for NXP002 regardless of whether it does on a SOC route now or not and that is unfortunately bad baggage as pharmaceutical companies will also look at this data and then question is it going to transfer issues to humans. So Durability limited very limited tiny single lung study now by Newcastle will be hampered by the far larger failed studies previously on rats.

Convertible bond costs



In October 2022, the Group issued senior unsecured convertible bonds ('the Bonds') of £55.00 million to a fund advised by Heights Capital Ireland LLC, a global equity and equity-linked focussed investor. The Bonds were issued at 95% par value with total net proceeds of £52.25 million, and accrue interest at an annual rate of 6.5% payable quarterly in arrears.



The Bonds contain various conversion and redemption features. The Bonds have a maturity of five years, and are repayable in 20 quarterly amortisation repayments, of principal and interest over the five-year term, in either cash or in new ordinary shares at the Group's option. If in shares, the repayment is at the lower of the conversion price (118.75p) or a 10% discount to the volume weighted average price ('VWAP') in the five- or ten-day trading period prior to election date. The conversion price may reset downwards at 18 months, depending on share price performance, and save in limited circumstances there is a reset price floor of £0.95.



The bond agreement contains embedded derivatives in conjunction with an ordinary host debt liability. As a result, the convertible bonds are shown in the Consolidated Statement of Financial Position in two separate components, being 'Convertible bond - debt' and 'Convertible bond - derivative'. At issuance, the total inception value was £55.00 million, being the principal amount of the Bonds, with the initial carrying amount of the debt liability element being the difference between the inception value of the convertible bond and the fair value at inception of the derivative element. Given the option of the bondholder to convert the bond at their discretion, the debt and derivative liability elements have been classified as current liabilities.



The derivative element has been measured at fair value using a Monte-Carlo option pricing model, which estimates the fair value based on the probability-weighted present value of expected future investment returns, considering each of the possible outcomes available to the bondholders. This therefore falls under Level 3 of the fair value hierarchy. Significant assumptions used in the fair value analysis include the volatility rate, risk-free rate and expected dividend yield. At inception, the fair value of the derivative component was measured at £35.00 million. The fair value at the year-end date was measured to be £39.10 million, resulting in charge in revaluation of the derivative being recognised of £4.10 million.



Transaction costs of £3.41 million have been apportioned between the derivative and debt liability components according to the relative inception values. This has resulted in £2.29 million of transaction costs being recognised at acquisition, with £1.13 million adjusted for in the carrying amount of the debt liability at acquisition.

The issue is funding and nothing to do with any poster stating the obvious. If people are trying to average down be prepared as 2 million now will be more than 50% dilution of the SP.
I am surprised that management have sat on their backsides to raise capital so late here in this market. That’s exactly what happens to others that shut the doors. Too little too late springs to mind here. Protect what you got as managers are not looking out for you here they are looking out for their pet project which was supposed to find cash easy here over on the UK main market!!! Oooops

Yeah it’s looking very serious now.

The fact is if they had funding ready then you would got that done before telling market.

The lender must be nervous (rightly so) and questioning hard proof of profitability as and when realistic here.

The problem is they need fair few million to tie them over and cover overheads and expansion drive to try get profitable which means even more costs and risks.
A lender say now only gives them 1 mil well that’s 25% this company stock which they have to shift and this will not fund them for a year with SP plummeting as they try sell to get funds back to then be called again.

So a lender will be wandering well how much do you need to get to a point of guaranteed profit in reach.

This now and current SP is causing a problem as it means massive dilution making the lender stuck with too much risk etc.

This could get a surprise RNS saying sorry we failed to reach amicable funding agreement’s and share suspension etc!

Simple fact is it’s taking longer and longer to see any profit margins overtaking expansion and costs. Catch 22 is this business has to work hard to find high end targets so it’s not high volume turnover but requires more costs and time to find buyers and with any retail a lot don’t succeed.
US is not booming at all and the individual hotels / casinos are not going to turnover the huge volume this needs to make a final profit. Too competitive in UK and imo US is also so APAC is their target audience. Its expensive lightly flavoured water is just as good at Fevertree but a lot cheaper. I buy Fever but this stuff is too expensive imo.
They will need borrowing in excess of 5 mil even if they can achieve profit in next possible 3 years if they continue expanding fast enough. Freight is definitely a lot cheaper which undoubtedly will save this or they would gone under now imo.
The fact is they will raise too little and require it again next year where again it will be even more dilution.
I honestly don’t now see this as a valid investment until they show a true chance of successful profit but that will be after many more shares printed here.
Just my opinion so don’t get upset now. But it’s been showing now unfortunately to be true. I liked the idea but realised like most these little businesses they cannot achieve it without massive cash behind them to keep it growing.

“ These conditions, together with those mentioned above, are considered to indicate that a material uncertainty exists that may cast significant doubt on the Group's and Company's ability to continue as a going concern. This is largely attributable to the short-term liquidity position the Group finds itself in due to the ongoing expansion across the globe and the progression towards being cash generative”

CAR3Y

The only Halfwit here is the one that kept holding this baby. If it raises much above a penny then that should keep the lights on till next Christmas but it will be done in a way where the lender can sell out but keep options and then they will do the same at half that again next year until the inevitable happens. They need more than the current MCAP now just to get to a point where this company if it did everything correct it may make it. So the chances on that are low. So any lending will be harsh on holders.
No point holding till this goes sub placing even if you want to try recover. I’d stay completely clear this imo it’s now in death spiral situation on lending and warrants.

Let’s see hey!

Firstly my name are those initials.

Secondly I spoken only a few times here and if you read them they hit it nail on the head!

Your personal childish attack I understand as you have lost money and want to lash out. Perhaps if you learned to listen you may gain a little more experience rather than chasing losses. We have all been there but being spiteful is pointless.

Personally I think this is going to liquidation as I don’t see this ever making a profit now. They are just chasing a pipe dream. Loads of medals and revenue is for show but where is the dough (profit) Very doubtful that any secured lending will look at this in easy terms as they will ask same questions!

As I said.

They need money. Anyone holding or bought is just feeding the lifestyle business here currently.
Those figures are a lot worse than I expected. The growth is tiny it will take years of investment to get this to make any money if it ever does!

Good luck but those figures are all you need to see. Sorry for those holding here still as this is dropping a lot further and those holding will struggle to sell on the weakness but you took your chances and ignored the obvious.

As stated by the CEO
This is not following mass market model this is following the high end lower turnover market and that is not a good market in Europe. US is a ? And Asia APAC is their market.
The problem is inflation and generally a struggling market. If they can survive till they have enough growth to cost then fine but the issue is it’s taking longer and the market is tougher far tougher with the need for significant cash to keep the business going it means one thing and that’s why they listed here in the UK and not New Zealand purely to tap the market for raising capital.
Keep feeding them that’s fine but they are in a difficult situation now.

The full reality is this company needs to increase sales by a factor of 7 x before it will start to see a profit margin in total gross income to expenditures especially with rocketing inflation costs eating deeper into the margin. It’s a high cost high margin business plan that would work but timing on this is crucial and having the bucks to take it to that point is high. They are using up the cash now rapidly after early last year buying products ahead to reduce overheads that will have easily now been churned over so now it’s costing more and more to try upscale the business.

I don’t see it getting there before another big raise of cash. They need probably another 3 mil to cover next two years and that’s being optimistic.
Their model is to be cash positive in 2025/26 and that was before all this high inflationary uptick kicked in and the delays in getting US going.
The more they expand the bigger the turnover. But turnover for show but where is the profit!!!!? Few years yet if they can keep it going!

It really does not matter as the price will be achieved on acquisition and that will be for the entire group with positions and format made to hold in the directors and knowledge.
It’s a simple as this. You just wait and Major announces a price and with that another May bid higher etc. No need to keep asking for a change of exchange as in the timeframes it’s just a total waist of energy and cash to the company. It’s not going to be here as is much longer.

What was that car salesman Tim doing these days. All seems a bit orchestrated on timing etc…. Jimbo away hey ;)…
Just musings on the show!!

There was never going to be any issues with results the issue is cash etc. These tests are not cheap.
As I said last year they need to bite the bullet hold AGM and raise what they need to give legroom for inevitable negotiations.
It’s great they are moving fwd but every time this company has raised it’s always done it the wrong way too little too late and got caught with its pants down.
Just raise a £mil now at 0.2 which is what they should have done imo or even lower etc regardless of further results as we know they will be good but that’s not the issue the issue is money to give the company grounding.
Anne and Alistair completely screwed the cash by playing the wrong agenda. NXP002 has and is the only line worth pursuing but they are against the wall cash wise here.
It’s no good asking PI’s for cash as it will be pennies and they are all burnt here and nervous to keep feeding dilution.
I believe it needs one big raise which is the price we pay for what precious BOD have done but that will then deliver what is required.

As it stands you now have Lanstead sitting on say 50 plus million stock to flog also latest 35 mil which will be flogged into a stock that has only data to provide on a cashless floor where it’s hope and prayers for a genie to arrive with a cash pot for the IPF early stages data!
It’s not a good position so getting negotiated deal will be tough.
If however they had £1 mil on this tiny running costs then they would look mighty strong.
Let’s say they get a deal after that well there is double the stock nearly now so 10p is now 5p but if they doubled stock again that’s 2.5p so 10 bags from there!!
So that’s a good deal but people need to perhaps place some their cash and buy up stock on a raise and show the market they are genuine rather than using free stock issued as a pretence to being invested.

AGM raise cash then wait for deal. That’s what the business minded need to do here.

Only my opinion, good to see it living longer but this is now a ship that’s bailing itself faster and faster but the bucket that’s left is too small for the flooding ingress.. needs a rescue asap. That’s a proper raise!

Two seniors at AstraZeneca on the likes, I don’t find this surprising in any format and I’d expect this closeness there to grow to a big cheque but will it be the winner?