Member Info for Okehurst1

Jag has been MD at Health /Wellness based in Cambridge
guess it makes sense to make him CEO as well and move the operation to Cambridge ?

It’s now down to how much does it cost Omege to exit Alva or have they managed to sell and TUPE staff - asset sale ?

They could move CD4 to Cambridge and continue the plan to relocate to Ely

The only worry now is have they managed to sell … or not

The 5p a share says not

Kate
As per previous message

Apparently they are awaiting a signature to dispose of Alva

Once signed all will be revealed

Comp
If the rumours are correct, they are awaiting a signature to get rid of the units at Alva , that could happen any time next 24hrs , they were expecting today apparently.

So it’s either ;

They have £2.5M cash , raising £7M, restructuring Alva, buying out the lease / making redundancies / hanging kit back to DHSC … bearing all the cost funded by shareholders hence the placing price of just 5p

Or

They have a buyer for Alva and they are using them £2M in hand and the £7M and focus on Health / Wellness

But why raise £7M IF they sold Alva with EUHUA as a going concern ?

We will soon find out

Either ;

Cash/ fund raise to pay off lease at Alva / shut the lot

Or

They have found someone to buy the going concern

Bear, report didn’t say

Other than we will be cashed up -no quantum

Whatever £10M p/a gets us for health / wellness

Reckon Ely move back on

Ha! Is it Bill gates / Chinese / PE

Soon find out

Share prophets

************* .com

The same reporter says ; Who has called this all the way for what it’s worth

Alva getting sold

Must be moving Hq to Cambridge

Cashed up to focus on Health / Wellness

This had been my preference before EU HUA

Jag understands this division, sales £10M last year
Move CD4 to Cambridge
Give the DHSC their kit back / or new owners of Alva buy

Tbh am happy if this is the case and Alva brings in a few quid

Captain
Any thoughts on what the ‘ corporate action ‘ entails ?

DHSC kit plus contract ?

Marik, agree that’s what they say.

As below;

Any such fundraising would be conditional upon certain other corporate actions currently being explored by the Group and, accordingly, there is no certainty at this time that any such fundraise will proceed’

‘Conditional upon certain corporate actions being explored by the group ‘

To me thats not directors finding ££ for the placing - as conditional

They have a corporate deal lined up, that’s what this is about now, if they sign off they take the £££ - in my opinion.

Marik

The fact the RNS confirmed the £5M/£2M & 5p as per the rumours I think we have concede it’s highly likely - smoke & fire stuff

The interesting issue is what are the ‘conditions ‘of the placing?

It may well be to fund a contract / buy DHSC kit same time ?

TW
Been wondering what ‘ conditional ‘ entailed?

Is it a contract ? Buying out DHSC kit same time ?

Worth a read

No fire wall on this article -,FT today

https://on.ft.com/3JgjsCD

It would be helpful if Jag laid out his vision for the business
including ;

- 66% of our potential capacity is via the DHSC kit, what is going to happen to that machinery? Are they going to give it back if they have no orders ? Ditto can they break the leases on the additional space they took at Alva ?

- Clarify the quantum of ‘substantial cash ‘

- Update on legal advice re £2.5M claim from DHSC

- Do they have contracts for the capacity of their own kit ?
Is it 2.6M per month ? We think it is, ditto what is the gross margin ?

We know CD4 ( HIV ) produced £137k of sales in H1 2021
Ditto they had an order for £800k for 2022

Health / Wellness, forecast / gross margin for 2022
are we back to 2019 gross of 67% or somewhere between the last reported margin on 30% plus and what is their forecast for sales this year , is it £10M ?

Just can’t see the m/cap moving up until they address Alva / cash
CD4 / health & wellness becomes a side issue IF they can get Alva securing contracts, without contracts
CD4 / Health & Wellness become critical

As a LTH I would welcome an offer for Omega shares but until we become informed of our trading position i just can’t see a £275M buy out - would be brilliant but realistically ?

Personal view … we linger around current m/cap until Omega update us on contracts & trading, too many of us have been burnt to chase up this share, sit on hands and wait, the ball is in Omega BoD’s court.

Substantial ?

Wad,

Guess the question is, can we sell 2.6M a month and at what price ? If we can’t then sell Alva as a Going Concern ?
to someone who can ?

Before EU HUA my thought process was dispose of Alva and use the funds to grow Health / Wellness, however after last weeks good news then we have to give the BoD the opportunity to secure some contracts.

Without a substantial government contract - any Government- we can’t justify keeping 60M capacity idle

I think TW does contribute to the debate and posts helpful links

I may not agree with all their posts but that’s fine, ideally we want to use this BB to see challenges to our own investment thesis

Ditto Marik with his bullish / positive posts

As long as it’s not personal it’s a good debate from both posters and each of their views can be tested/ challenged by this BB

Few thoughts

BoD have advised via RNS that Omega have substantial cash and their legal advice is they won’t have to repay the £2.5M and IF they don’t think a DHSC a contract is forthcoming they hand back the DHSC kit and they avoid a £fund raise ? - plausible ?

We know they have capacity of 2M a week @ 1:3 ratio
their kit to DHSC

Without a big sovereign state contract why bother with the 66% capacity sitting idle, ditto it will just create issues with the end of year audit / investor uncertainty

No £2.5M to settle / return kit IF no contract / no fund raise

Work the existing assets , Health & wellness / EU HUA

Say one day they land a big contract, a new variant comes along whatever, they £raise against that ?
They still have 2.6M p/m of LFT a capacity

As such no £raise required

What do we think ?

They also said they have ‘ substantial’ £cash