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I read today's RNS then read the accounts. The amount this deal will bring in is very small compared to the cashburn so the company will still need to raise funds. The milestone payments depend on the drug being licenced which is will take years and there is obviously the risk of failing phase 2 and 3 trials.

Just read the last accounts and was surprised to see how high the cashburn is. The company burn through £27.63 million in six months and said funding will be required in the second quarter of 2020. It should also be noted that Invesco holds 98million shares and has been selling down its position recently.

This is from the accounts:

"Under the current business plan and detailed cash flow forecasts, with ongoing R&D efforts focused on our rare disease products, setrusumab and alvelestat, we expect that our current on-hand cash resources will extend to the end of Q2 2020. Therefore, the Group requires additional external funding within the next 12 months to be able to continue as a going concern. Principally, this funding will be required to complete our current trials, fund our ongoing administrative costs and other general working capital and contractual financing requirements and to commence our pivotal paediatric study and the manufacturing scale up activities for setrusumab as we progress with our development plans for that program."

Yes, shame we're in his filter bin as he may learn something from reading our posts ;-) For example he clearly doesn't understand that when a warrant holder exercises a warrant (unless it is very close to expiry) it will involve selling the equivalent amount of shares into the market. Perhaps he should Google 'time value of warrants'.

Thanks DHC I think it is you that doesn't know how a warrant works. Warrant holders will sell shares into the market before exercising a warrant. This creates selling pressure which acts as a drag on the share price. Yes, the company receives 12.5p for every warrant exercised but this also dilutes existing shareholders.

I think we need to get a lot more than the Tema contract signing to get the price up significantly. The Tema contract is already priced in as everyone expects that to be signed. Hopefully we'll get something from the Saudi Arabia tie up as the Iran deal is now beyond hope.

Assuming we get the news we have been waiting for I think we need to clear the £2.2million in 10p convertible loan notes and £1million in 12.5p warrants before the share price can really move up. This could be a big headwind, like a placing overhang, as any liquidity created by an RNS is likely to be sold into. I think this is also putting off new investors who don't want to pay a premium knowing that there are potentially large sellers in the background.

Very small buy from Director but to me it just indicates there is no news due on sales, contracts etc. as if there was anything material in the pipeline the director would not have been allowed to purchase shares.

I think sentiment for AIM resource stocks is improving and investors are looking for bargains. JAN is extremely undervalued at only a £5m market cap given its assets. It's also fully funded following the transaction with ValOre.

HNY guys, let's hope it's a great one for WSG holders.
Should get Tema signed off soon which should create some more interest in the shares. We need much higher volumes as the conversion price of the £4m loan notes has dropped to 10p from 1 Jan. I'd like to see those converted as soon as possible as I can't see the share price appreciating too much until they and the 12.5p warrants are out the way. Once this overhang is cleared we will hopefully see a re-rate in the share price if we get the positive news from the company.

If you buy now it would be like standing Infront of a bus whilst an institution sells out

We need a run of positive news RNSs in the new year to create high volume so that the 10p convertible loan notes and 12.5p warrants can be cleared. Once those sellers are out WSG will be in a great position to achieve strong share price growth for long-term holders.

BurtonD you are paid to promote HMI so it's a bit worrying that you have to post on personal investor chat boards to try and support the share price. If Miton aren't selling then who is because it is very clear there has been a large seller in the background for a while now. It is very dangerous to buy shares until there is a TR1 RNS to reveal who is selling and how many shares they have left to sell. Fund managers often sell shares close to the end of the year to rebalance the companies held in their fund.

There's hardly any demand to buy shares and it looks like someone with a large position is trying to sell out (Miton?). So the share price is likely to get weaker. News is not likely for a while as it's a quit period for the company's market.

Surprised we didn't hear from Tema party today

I wish PF didn't mention the revenue from Tema. I don't think he needed to do that and it has disappointed the market.

Disappointing reaction so far. Lots to look forward to in 2020 for long term holders.
I think the share price will really motor on contract news and once we get rid of the £4million in 10p convertible loan notes and 12.5p warrants. I think that is what is holding the share price back.

Looking very good for 2020. The balance sheet will also be strengthened as we should be able to get rid of the £4 million convertible loan notes pretty quickly as the conversion price drops from 12.5p to 10p from 1 January.

Hopefully finish 2019 above 20p

I'm very excited about the Saudia Arabia JV. Sound like it could lead to some very big contracts

Excellent update, shows the business is growing very strongly. Tema contract is a formality, Sierra Queen sold for more than expected. Loads of news to look forward to in 2020. The business is going from strength to strength which will be reflected in the share price