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Smokin- they have said the stem cell business will still be a subsidiary. They haven’t said anything about ‘sorting issues’ when name changes.
If they have, great, but please don’t spread speculation and opinion as fact!

Ihavenoclue - the name change itself won’t do anything. It’s the news that accompanies it that will have the impact.
And the name change does not mean they have sorted out the stem cell business issues.

It doesn't matter that the fund is out - it is all public knowledge and the sp has reflected that news. The +ve of this was NO dilutionary sp drop and sp held firm when all new shares sold into market. Which suggests to me something is afoot behind the scenes...
After looking back through RNSs and Quinlan's statements, I believe we will see:
- Change of name at General Meeting to Iconic Labs
- Significant Director shareholdings/ Institutional Investment announced (which may explain the large fund sells)
- News on the stem cell business disposal/ debt restructure
- And if we are lucky, more contracts

My biggest concern is the stem cell business OPEX cash burn. It needs clarification ASAP. Otherwise they will enter into more Financing Agreements...

July will be very, very interesting!!!!

DYOR as always.

I have said it before, the fund being out makes little difference. To get the sp moving we need tangible news that either decreases liabilities, increases revenue/ profit, or large committed investment. Ergo, for the big rise:
- debt restructuring complete / stem cell business disposal
- new contracts
- director / II stock purchase

Although, I am intrigued as to how the sp didn’t collapse yesterday with the 475m sells against 75m buys. And WHO bought those big share dumps.
Which suggests something is going on - and is positive.

DYOR as always.

I think those trades can only mean that the fund is out - surely!? 450m+ shares sold in four tranches...

Seems like more shares than I was expecting? I thought they had circa 220m to offload...?

Well, let’s see where this goes today.

RdR - I think you are agreeing with me, mostly.
The volume on these low volume days, I think, is generated by MMs and not fund selling, or very little fund sells.

Just out of interest why do you believe the sp could be 1.5p this time next week?

RdR - the 200m shares were converted on Wednesday this week. So in my opinion there is no way the fund is anywhere near out.
Also, not every sell that goes through is the fund selling their shares.
My view is the fund will sell into sp rises (as LB suggests).

Lastly, the LONG-TERM target has got to be over 1p but I don't think we will see this any time soon. In my opinion, it will take 4-8 weeks for the fund to sell their 200m+ (but retaining 5%), and even then, only contract news + disposal/ stabilisation of stem cell business will push this sp over 1p.

I hope I'm wrong and we get RNS galore, but personally, this is, and always has been, a longer term prospect... You need to hold, buy on the dips, and review every quarter.

It's surely a positive sign that we have seen a rise here today.
Let's see how we end on Friday, but I am far more optimistic now than after reading the RNSs earlier this week.

Can anyone tell me the current spread?

Oh come on...
Why is everybody so impatient!?
Look at this week’s RNSs - they have announced massive dilution of 16.6% (200m shares) plus potentially more dilution when the fund calculates how much more it can convert.

And where is the sp - holding nicely at a 4% ish drop... that is remarkable considering the news.
I can only see this as positive. For now. Let’s see what happens when the new shares start trading tomorrow...

Jay_P - the 200m shares will be issued on 19 June so we can expect some big sells thereafter.
As far as I remember there is another £100m of conversions (from the £1.6m available).

After this, there will be no more financing agreements, only traditional funding, which is good.

So... the outcome, a circa 16.6% decrease in sp due to dilution - so the sp should finish today (or maybe by Wednesday) at 0.285 / 0.290.

Hahaha. Between the 10 or so ‘regulars’ on this board, we probably hold about 20% of the company!!

Jarv - MMs for large, liquid, stable companies would almost certainly not need to hold shares. They will make money from the volume/ spread.
BUT for small cap companies they will need to own shares to create liquidity and therefore the market. That is why the spread on small caps can be so large as the risk sits more with the MMs and they need to move the Ask and Bid to appease supply/ demand - ergo, they must have their own inventory of the stock...

It seems you have your opinion and won't be changing it. So be it.
But this logic is why the sp MAY not '... rocket to 1p..." when the Fund is out.

They will almost certainly have to convert more bonds. They have zero revenue until June from Iconic and only £50k from stem cell business, and I doubt that single contract will cover operational costs, salaries, o/h etc...
The stem cell business was operating at a loss of over £2.8m per year (in 2017).

Albeit there have been Board changes, but the underlying business costs are probably similar now as in 2017.
They need cash. So there will likely be more dilution.

BUT as long as there is the floor, which DS said will increase with future Financing Agreements, we should be okay... The sp tends to hold up with these CLNs.

Jarv - Market Makers must hold shares in the companies they broker to provide a liquid market.
It is how they are able to benefit from this service, they take the risk of holding shares + use the spread to drive their profits.

https://www.investopedia.com/terms/m/marketmaker.asp

Jarv - I don’t think I agree with your base assumptions:
- Is there a high enough demand for these shares?
- surely market makers hold a good % of shares that would keep the market buoyant regardless of the fund selling?
- there has not been a significant rise, though there has been a rise, on previous occasions when Fund sold out

Anyway. I want to believe you’re right as I want to make money here... but still think the big rise will come from successful restructure.

HotShot69 - but that logic would suggest every stock needs a fund selling to enable a fluid market. This is nonsense. MMs don't just buy shares from funds! They create a market by setting a spread and taking associated risk/reward.

And the demand/supply dynamic works regardless of this, again, a fund holding 10% means there are still 90% (minus Director holdings) in free float. The fewer shares there are in public float means an amplified demand/supply impact.

Beamer21 - but there will be supply and demand regardless of who holds the shares, surely? I understand that supply and demand will affect the Ask and Bid that MMs set. But why does it matter if a fund holds 10% or not??
Usually a fund holding a large % of a stock is seen as a good thing, it shows confidence in the company.

I agree with CarlThat, and have asked before, why EHGOS dump their shares at low profit margins if they believed the sp would increase... The only thing I can think of is they want to convert more shares and make more money. But that brings dilution and risk...

A question for everybody:

Why does it make any difference EHGOS selling/ offloading their shares or holding? How does this make the sp rise? I don't understand the logic here.

Just re-read the RNS, although positive on the face of it, there is one statement that has probably contributed to the negativity:

"...I know that time and costs of dealing with the significant (and sometimes hidden) liability issues has been trying but we are nearly there, and with the support of our investors, can clearly look forward to an exciting future for the Company..."

What does this mean:
- Significant liability issues
- Hidden liability issues
- With support of investors

Does this mean they underestimated the liabilities?? Are there additional costs identified for stem cell business restructure?? Will there be another Financing Agreement and conversions/ dilution??

I still say the game changer RNS will be the restructuring and disposal of the stem cell business as it is a massive loss leader...

The week started at 0.34p.
It also had a bond conversion and dilution of nearly 10% midweek.
We have had no significant news (other than conversion).
The FTSE has had a bad week.

Yet we are currently at 0.38p, up by circa 10%... surely that deserves a pint tonight!?