Member Info for Okehurst1

Agree Kevin but they are misrepresenting the facts saying they are focusing on Home Use U.K.

They didn’t pass PD so unless legislation changes it won’t happen

Omega ( Mologic) failed Porton Down for home use U.K.

Unless the Government changes the rules then Omega will never be able to sell Covid tests in the U.K.

The RNS fails to mention that crucial point

This has to be the route for the BoD
Get what they can if anything for CD4 Division - nominal sum

If we go back to the latest audited accounts the business then generates £3.5M per EBITA from Food Tolerance -less £1M corporate/ plc costs

It’s then generating £2.5M cash per annum, it has no debt to fund so it’s none cash items

Omega then invests the £2.5M a year -which is 600% more than in the placing document being £400k

Marketing costs are 16% of sales - we know this from latest interims

The BoD lay out targets for the next 36 month with an aim to get to £20M annual revenue, could be £30M but they set out their stall from the current £10M

On £20M revenue they could generate £6M EBITA

They are at £10M annual revenue now, £20M is doable and the business doesn’t require / didn’t require £7M that they targeted

IF the BoD don’t action above then either trade or a financial operator will …. The BoD lose their personal cut off the £1M annual PLC costs and options

There is no other way

Someone asked the question …

‘ do Omega own the IP to Food Tolerance ?’ I have no idea?

In effect Omega have no IP other than possibly FT division

IF they own the IP here then it’s got a value based against £3.5M EBITA

A trade purchaser who can sell product could leverage the sales to £20M and like for like GP ex no corporate costs of note - they avoid the £1M PLC costs - they could generate £7M EBITA

It was pointed out to me on this BB when discussing the above ‘ until the Chinese come at their market ‘

These guys apparently

https://www.burnet.edu.au/projects/271_visitect_cd4

Union

Agree with your reasoning.

I didn’t realise until the other day that Omega don’t own CD4 IP , would they achieve more than £1M on £137k of sales ? Probably only GAD who would buy ? It could just be a nominal sum?

Food Intolerance generated £3.5M EBITA , private owners won’t be spending £1M in Corporate that was in last audited accounts

What value do we place on £3.5M EBITA ? 4 X or 5 X ?
If it’s trade the tax losses will come in handy - they have a £value

Suggest that’s how the sum of the parts could be valued ?

Comes in at your 9p to 12p range but from a different angle

With Omega shares capitalised at 4p I don’t think they can issue shares below this price - Will stand corrected but normally you can’t raise below the paid up share capital ( per share ) within the articles of association

Appreciate it’s a mute point but has relevance if they need to raise emergency £funds at what price ?

I guess their big issue is getting the accounts signed off by the auditors, this is were the £2.5M DHSC dispute hits them even though they say they don’t think they will have to pay it.

They have a small window to resolve / action

TW, good point

Tbh I didn’t realise we didn’t own CD4 IP until it was pointed out today

Scharnhorst / Tradesin

You raised 2 good points.

If we look at the last audited accounts, there is value in this business but it needs to be worked.

Selling Alva was important to reduce losses - put aside the paltry £600k it brought in, it stopped a big chunk of cash burn

Repeat with CD4 and as outlined earlier Omega has a business generating £3.4M EBITA before £1M for BoD/ being a quoted business

Assume Food Tolerance could grow to £20M revenues - from £10M 2020 - then on a like for like basis the business
generates £5M EBITA after BoD / PLC costs

The opportunity is there, but the BoD need to ditch CD4 and focus on Food Tolerance

Having lost money in Omega I am not jumping back in just yet, suggest the catalyst to buy is CD4 disposal, at that point Omega is set up quite well.

It’s far better than the BoD focusing on Convertible Loan Notes, that just destroys shareholder value.

Sell CD4 ?
Who would buy ? Maybe Mologic, it stacks with their MO

Infectious diseases had just £245k of sales in last audited accounts and had whopping losses of £2M, CD4 has to go.

Food intolerance has close to £10M revenue with £4M profit
it produced £3.4M EBITA

Corporate costs were £1M …. that will be NOMAD / Broker /PR / the BoD

So on a cash basis they business can generate £2.4M of free cash - depreciation, losing £3.5M with sale of Alva is all none cash

Summary

Sell CD4 , put the £cash -if they can get something - and place into Food Intolerance, drive the sales, reinvest the £2.4M free cash back into this division

The BoD need to focus on working the current assets not raising funds but the problem is they only have £37k of shares so they are not aligned with shareholders, the problem they have is other operators can see the £numbers above and now know the BoD are weak after yesterdays vote, someone could Bid for the business, Sell CD4 , get rid of them/ the £1M corporate costs and enjoy £3.5M a year profit with serious tax losses to use going forward

The BoD lose their high paying job

I may be wrong but my take.

Resolution 1 was to let the directors issue equivalent 10% of the share capital , so was ordinary business, on the day stuff

Resolution 2 was a special resolution requiring a higher threshold

The worry has to be that with £37k of shares between them this shower enter into a convertible loan note - death spiral

It’s better than the 330M shares had they won.

The fact they lost resolution 2 may make them think to come back to shareholders and offer to them first

Hope the AIM team are breathing down their neck as well

To think Jag has been with the business since 2011, has sold no Covid tests of note, has burnt / lost serious shareholder cash , is the MD of the remaining business, was group Commercial Director , bagged £375,000 last year, owns no shares really , was promoted to CEO without any process and has not once had the decency to introduce himself to the owners of the business … the shareholders

Worth noting Simon / Chairman doesn’t even own 1 share

Quite Remarkable

In any other quoted company he would resign

He had close to no credibility before , zero now , the man has to go, no institutions will even consider to invest with him at the helm, he just didn’t read the room - as normal

Do the decent thing Simon … just go join Colin

After the cost of the Jolly to Dubai, giving away Alva for £600k net, legal costs, possibly a cost to the bucket shops for a failed raise, this BoD has to be one of the worst on AIM

It’s month after month on every level

The BoD were only investing £400k into the business

They have £4M cash already but the market knows this BoD will be back for more £££ they can’t help themselves they are living it large on £200,000 a year plus options - can’t believe Jag got £370,000 salary / option sale last year for selling diddly squat

The Spivs got lucky getting out of this one, shot across the Bow for this dodgy BoD from the owners of the company

Notice in the RNS today the BoD make out how pleased they are with the sale of Alva ?

They forgot to mention that out of the £1M they are paying out £400,000 for ‘ other costs ‘ at Alva , that’s hard cash to pay off the ex CEO and others

Plus they wrote off over £3.5M of assets at Alva - not cash

So net effect …. They achieved £600k from the sale of the companies biggest asset …. Just £200k more they are paying the Bucket shops to get you mugs to buy 5p shares that are worth close to 4p today

You have been mugged off like anyone else who gives this BoD £money

Union
That would be close to a £30M m/cap ! Seriously if you can explain why? How?

Genuinely how’s that going to happen on £8M of annual sales and losing £££ and the BoD only investing £400,000 into the business itself ?

Put aside they still have the £2.5M dispute with DHSC still not settled ? - it’s kind of irrelevant today as bigger problems but it’s still got to be sorted

£30M not going to happen, the Spivs are already close to 20% down , they are going to lose a chunk here.

Everyone does dealing with this BoD - except the BoD who only have £37k of shares

You have to hand it to the BoD though, as Ponzi schemes
go it’s amazing they can get Spivs to lose so much

4.25p Bid

The only people going to make £money is the Omega Bod

3.5p Bid inbound post 100M extra shares

If your right Union it will be some feat by the BoD convincing
£5M of mug Spivs to loss 33% of their investment overnight

Let’s not forget only £400k is being invested in the business the rest is for the BoD salaries

Chris, it’s how Omega BoD acted that has upset shareholders who have lost money.

The BoD ramped the stock & dumped their stock into the ramp, they continued with the pretence until the November interims, they continued the ramp to buy time.

The problem the BoD have is that the ramp / information is all in the public domain.

Redcentric directors provided false information and received 5 years in prison, the AIM team will pass their findings to the FCA who then have to ask the CPS to consider is there a case to answer ?

Suggest the majority of shareholders on this BB think there is.