The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Don't forget that the placing shareholders had confidence to buy at 2.5p, equivalent of 15% of the company, which at the time was a discount to the SP. Doesn't really matter who they are but they had the opportunity to buy a substantial stake (collectively) in the business. To buy that quantity demonstrates commitment, the richer you are, the most cautious you become with the relative wealth.
Placings are often negative as they are a cash call for a business, but they can also be positive, providing growth capital for a business. HEMO is the latter, they have a clear set of milestones to achieve, need cash to deliver them, and whatever short term volatility the placing has caused, the medium term position is much more positive with a well capitalised balance sheet
Sitting at the airport about to go skiing for a few days... have had a think about this further.
- There has always been a need for additional funding. Ideally IMO post going clinical would have been ideal.
- Perhaps though as part of the FDA submission, they want proof of funds to ensure there is funding available for the trials. Certainly, I would want some degree of comfort if I was to provide permissions.
- 2.5p placing is a 100% premium on low points over the past couple of months, and remember they have been bought, which means others think it is a sensible investment, i.e. no one wants to lose money
- Having a stronger cash balance is good whatever the scenario, whether CBR, CAR-T etc.
- 16% discount to yesterday's SP is actually a relatively low discount, particularly given the meteroic rise over the past few weeks.
- Whilst no-one likes placings, it actually helps us in the medium term, and the new investors MUST have been given comfort that HEMO has prospects, particularly if it turns out to be a single investor.
So in conclusion... chucked another 10k in after my mistimed buy yesterday.
There was always going to be a need for funding, I was assuming (wrongly) that we would be clinical by that point and could raise the funding at 5p+ rather than 2.5p thereby reducing the dilution. The timing is poor in my view.
HEMO back into the 'stick it in the drawer' for 12 months status.
It's a bit of a farce, when quite a few retail PI's have a larger stake than the Chairman, Peter Redmond. Would be a sign of confidence him dipping his hand in his pocket once the anticipated news drops. From a regulatory perspective he would potentially be in a blackout period now if there is significant price sensitive RNS anticipated e.g. third party approval, IND applications etc.
Agreed Micky. Disappointing SP response but another step in the right direction with PQ3 success. It can't sit low forever, best to not look everyday and think about the overall direction of travel which has been up since Xmas.
That's the plan Dhub. Hold for Gold. CAR-T is fantastic and will help those AML sufferers immeasurably but the £££ is in CBR. If that delivers even half the promise, it is groundbreaking and WILL make us millionaires.
Dingo - CGT is only paid on profit, so if you think HEMO SP will go up, buy now and you will keep 80% of gains. Also you can transfer the shares to your ISA at a later date and if less than £20k at the point of transfer (bed&isa) you will be CGT free.
That's correct, there is an obligation to provide a bid and offer price, although they mis-manage this by limiting the number of shares to a ridiculously low number, so thereby meeting their obligation whilst not really offering a viable spread.
Sunny - a tree shake is when the MMs drop the price but don't let you buy i.e. gone NT. It means, shareholders can only sell, reducing the price to collect shares. In an orderly market, there should always be the opportunity to buy and sell whether the SP is rising or falling. It is effectively a false drop, a tree shake, if MMs dont give the opportunity to buy shares.
Intra day or weekly movements are irrelevant unless you are a trader. You either believe in the science or you don't. The near 200% increase over the past couple of weeks is irrelevant, 10% down today is irrelevant.
What is relevant is PQ3. These results are imminent. If successful (PQ1 and PQ2 were), then we can move to IND. This is relevant. On IND approval, we are clinical. This is relevant. Finding patients is relevant. Successful treatment is relevant. If these things happen. The SP will sort itself.