Member Info for notaflipper

My understanding is that to date TMO have loaned Premaitha $11m which wold be wiped in the vent that remaitha fold under the pressure. July 2017: 28,938,797 new ordinary shares in the Company exercisable at 10.725 pence Sep 2016: 17,094,018 new ordinary shares in the Company exercisable at 11.7 pence Dec 2015: 20,325,204 new ordinary shares in the Company at an exercise price of 24.6 pence per share None of these share prices have been exercisable due to the falling share price. Indeed TMO were expecting to have a significant shareholding this evening which they are also adjusting to. So offically nothing as they do not sit on the BoD or Management team or officially hold any shares and the loans are only payable in 2023. But Premaitha's growth has undoubtedly been helped by them and if there was to be further funding it could from them. So they would not want to burn their bridges. Illumina could look to play hard ball with Premaitha and Ariosa/TDL and take their chances nothing changes in the appeal but then on the other hand they would just push TMO and Roche's back up. Today was a bad day. We just have to decide whether there will be bounce, how high and when and when a deal (distressed buy-out or settlement) will happen. If either of these were to happen it is not unforeseeable that Premaitha (with 5% global share of a multi-billion dollar industry) could recover LTH's money

TMO have warrants which when vested in the expanded share capital will equate to 30%. The Form of Order Hearing (the Hearing) will be scheduled in late 2017 / early 2018 which suggests either December or January, worst case February. The BoD will have till then to make a deal happen. As they were 'probably' in negotiations before the High Court hearing the negotiations probably are well versed, obviously today�s decision changes the dynamics, but it should not mean that a deal is not possible in the next month or so. Obviously we all want this tomorrow.

Exactly and usually as the pawn between major players you would have expected they would have benefitted in a beauty pageant. Instead the narrative is that Illumina have punished us and Thermo Fisher have bought us in a drip feed fashion on the cheap. Well no more. Premaitha will have to seriously consider whether to settle and pay a license fee and some legal costs. Part of this would mean switching platforms to Illumina sequencers. TMO will not obviously like this so they too will have a stake on what Premaitha does. It should be noted that this judgement has significant impact for the Harmony test as well.

The options available to the company are still the same. (1) commercially settle; (2) sell at distress or (3) fight on. Only at the next hearing will the judge decide if an interim payment is required. Only after all appeals and failure to secure a commercial arrangement will Premaitha have its operations affected.

No your right. But what I meant is that they will need to come to a commercial settlement with Verinata for the use of the Quake Patents and Illumina for commercial purposes of the Lo 2 and Lo 3 Patents or otherwise appeal the decision

For Loc 1 they can do it in Taiwan and ship back.

SL comments at the end��In addition we are accelerating plans to broaden the menu of tests we offer beyond NIPT and which should be cash generative in 2018. We will also focus on mitigating any financial implications of the litigation." No RNS on institutional sales today. No RNS on Director Sales today. No Press Release from any NHS trust or private clinic. Life goes on.

The judgement today concerned three UK patent families, ("Lo 1", "Quake" and "Lo 2"). The Patents comprise three principal patents and two divisionals, namely: i) EP (UK) 0,994,963 (�Lo 1�) which claims a priority date of 4 March 1997 and concerns a method of detecting the presence of a paternally inherited nucleic acid sequence of foetal origin, which is not possessed by the pregnant female, in a maternal serum or plasma sample. ii) EP (UK) 1,981,995 (�Quake 1�) which claims a priority date of 2 February 2006 and concerns a method of detecting foetal aneuploidy in a mixture of maternal and foetal genetic material in a sample of maternal tissue by digital analysis methods. EP (UK) 2,385,143 (�Quake 2�) is a divisional of Quake 1 and claims the same priority date. iii) EP (UK) 2,183,693 (�Lo 2�) which claims a priority date of 23 July 2007 and concerns a method of detecting foetal aneuploidy in a mixture of maternal and foetal genetic material in a sample of maternal tissue by random DNA sequencing. EP (UK) 2,514,842 (�Lo 3�) is a divisional of Lo 2 and claims the same priority date. What did the judgement say: All of Illumina�s patents were valid For Loc 1 (European Patent (UK) 0 994 963): Infringement only in certain respects. For Quake (European Patent (UK) 1 981 995 and its divisional, European Patent (UK) 2 385 143) and Loc2 (European Patent (UK) 2 183 693 and its divisional, European Patent (UK) 2 514 842): the Judgment also deemed that the IONA test infringes the asserted patents. It refused the Company's application for declarations of non-infringement in respect of two proposed alternative methods of performing the IONA test. So for Loc 1 it was a �mixed� result and Quake and Loc2 a loss. Options for the company are to whether to appeal at the next High Court hearing within 3 months� time. They are undoubtedly going to say very robustly they want to appeal and fight to bitter end which results in share dilution worries. Otherwise they can seek to form an arrangement with Illumina the exclusive licensee of these patents. Other option is find a buyer who is prepared to fight on with Illumina and understands the risks. Must keep in mind Premaitha are a global company and have a 5% share of the global market and are still talking of breaking even in 2018. Today was a disaster. No doubt. But there is still scope for recovery.

I think some further reading of the RNS is required. Illumina will be seeking at the next High Court meeting to request an interim payment for costs to date. For the Loc1 family of patents it "invalidated a number of claims of the Lo 1 family of patents and decided the IONA test infringes that patent in ONLY SOME respects." There is a potential for a deal for licensing and payment of legal costs fefore then. The company in the RNS reconfirmed its plans to issue new and broader range products and also reconfirmed that it will be breaking even in 2018

Exactly. They were on target for breakeven in January with sales growing. This is still a viable company. The options they choose going forward will determine though whether they dilute the share base to focus on the 10% to 20% or take it on the chin and focus on the 80%.

At the next High Court hearing Premaitha will be told if they have opportunity to appeal. Although Illumina will want everyone onto their platform they will also know appeals can drag. With Great Portland street they tried to force a licensing deal upon their rival test (approximately £75 per test from memory). As the cheapest test the IONA Test could afford this. In the event of a sale to a third party TMO still want the sp to clear 27p to be able to clear all their warrants.

With approximately 30% shares under warrants already you would suspect TMO. Any further share dilution would effectively take their stake close to 50% so just get it over with. Otherwise Roche as co-defendant who also lost today. They will have to appeal regardless.

The company has still 80-90% of its business intact and has the option to license rather than pursue appeals and focus on the 90%. That of course is if it doesn't sell itself at a distressed price. Tomorrow St George and 40+ clinics will still be selling the IONA test. There's been no news today of any institutional sales. It's a shit day but hopefully there will be more RNS in the coming days. With the granting of options and increased stake by the BOD I think they've been caught out as well.

That's a possibility but issue of further legal costs and damages and timeframe will only be decided within another hearing within 3 months time.

I'm just wondering whether there will now be a distressed sell @ 27p+.

And are we still buying long or taking a short position?

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Afraid to say we will not agree on this. The AGM resolutions allows for both. Although they can potentially have a the consolidation without a further share dilution the expectation comes from this happening together. Happy for us to disagree though. As you say though it's not expected and one would have imagined the options being granted afterwards especially after the trial verdict

I am not sure if this announcement may also suggest that the expected share consolidation (as well as potential share expansion) has been delayed but I thought it would have made sense to delay this announcement till afterwards. As in lieu of cash bonus it does however. Indicate that there a strong belief of achieving 10p shortly

The key thing is the exercisable price. The BoD have already demonstrated their characters over the past 3 years no point discussing it