The discount to £17.28 should not be very much. The Board have given approval, Comcast want to complete by end of Oct, so the interest cost is currently around .3%, assuming an annual interest rate of 3%. The price should be just above £17.20, but there will surely some mischief making.
ITV is a different beast to Sky: one is free to air, the other subscription. Disney will have funds available, if they tender their Sky shares to Comcast, and want to buy more content. Liberty Global, John Malone, holds 10'% of ITV. If he wants to sell, he'll extract a stiff price.
@comeonvog
If the triasl cost 6 million, and the cash balance at the end of June is less than 6 million, how will they fund it, on top of the overheads. Agree that a placing does not have to be large but they will need to find way to cover the likely shortfall.
Market Cap is now 16M. According to the last set of accounts, FUM has racked up cumulative losses of 24M, the tax effect of which is over 4M. 3M of that is not carried in the accounts. Cheap as chips in the hands of someone who knows how to execute and monetise CSD 500 and hopefully the pain relief product, and secures patent protection well in 2030s, before MED 2002 arrives. Now out to enjoy the Swiss sun.
Barder's interview reminded me a little of McCarthy of IMM a few months ago with the Phase III trials of Lupozor. Safety is fine but will it show a marked difference when matched up against the placebo?
The last two placings were done at 57p, one two years ago, the other in March 2014. They raised £12 million on both occasions. Lombard Odier, or Henderson as it was then, bought half their holding in 2015 between 25p and 40p.
If FUM want to bet the house on MED 2002, they need to find a much faster way of cashing in on CD 500 rather than a haphazard distribution strategy as described by JB in the interview. Otherwise it will be a placing at around 15p to raise ???
At the AGM , FUM reported "completion of a signnificant out-licensing agreement for MED 2002 remains a top priority for the company and while negotiations proceed we wil continue to maintain the momentum in the product's development". It also reported that it had a strong balance sheet.
Today, it is saying "focus on further development of MED 2002 to optimise optimal value for shareholdrers, subject to funding, with further realisation of value from pain portfolio. In the majority of cases, commercial partners would like to see positive Phase III data.... Consequently the Board recignises the importance to shareholdrs of achieving this milestone (completion of Phase 3 trials) in order to maximise shareholder value".
Basically FUM has failed in the objective it set itself at the AGM. Shareholders do not spend the whole whole summer to discover in September that the company states the bleeding obvious that the company would get a better price with completion of Phase III rather doing a deal before the start of Phase III. Why did it go down this route when it could have got a placing a way at a better price. It is interesting to note that FUM includes the word "majority", this means they may have received some offers but the Board felt that they were going to have give too much away. Heads should roll or as I have said before management's hand will be forced by the major shareholders.
Well this mornings price action knocks the breach of the falling wedge theory on its head. However it now raises serious issues for the company as to what price they can obtain additional financing. I can see the institutions stepping in here (they hold 25%) and either forcing cut price deal from a major so they can get the investment back or requiring changes in management in exchange for further subscription. FUM is not the type of company to go to the bucket shops.
We are still a long way away. I kept stumm at the time but I am pretty sure the previous FD walked because he could see that he was unlikely to collect in the short term. What the RNS does not mention is whether FUM has sufficient funds for the trial.