Member Info for Pharmhall

Call me cynical, but this usually happens so that Lanstead has some regurgitated cash to support an impending equity raise equity raise. At 30th June IMM had £0.4m cash, a current tax asset of £0.35m and £591k (value at a share price of 2.3p; so now lower in addition to monthly drawdowns) due from Lanstead. Monthly cash burn averages ca.£150k.

Hmmm....you put a lot of faith in the FT. I find their numbers frequently incorrect. Your fully diluted figure of 812,498,030 includes both warrants and options, not just warrants, so is a little misleading. I think we are all in agreement that the warrant "issue" will no longer be a talking point by the end of this week.

Clintek, I really do not know where you are getting your information from. I cannot see any record of exercise of 72m or 50m warrants. The last RNS to mention them was, as you say on Wednesday 13th August, exercise of 98m and these were Admitted for trading on 14th August, giving a total number of shares in issue of 746,566,460. But being Admitted does not mean that the shareholder sold them.

Having said that, I think we are both in agreement that there are very few to go now and exercise of those will generate more cash for working capital purposes.

I, too have been slightly concerned by the regular news of warrant conversions, so I decided to look at how many there were, and how many are still, outstanding. But this proved more difficult than anticipated, as the terms stated in the last annual report have changed somewhere along the line (e.g. they were all listed at 5p exercise price, but are actually being done at 2p). This all became irrelevant when I looked at some of the most recent statements.

First, the RNS on 29 July stated that, following exercise of 50k warrants, there were no more outstanding "pre-paid" warrants, so they are all out of the way.

Secondly, in the RNS on 6 August, following exercise of 116.0m warrants @2p, "over 60% have now been exercised, raising almost £6.0m for the company". Therefore, simple maths, there are just under 40% still to go with the potential to raise a further £4.0m @2p – i.e. ca.200m warrants outstanding at that point in time.

Finally, the RNS on 13 August stated 98m exercised @2p raising just under £2m. So the answer is currently, ca.100m warrants still to be exercised with the potential to raise a final £2.0m.

I also, saw a recent post that the company only has £50k. This must be incorrect, given the £8m raised from warrant conversions, with the last £2m only last Thursday.

I hope you find this post helpful.

JL...love the reminiscing. The '87 crash occurred in my third week in the City and I was one of only 8 people that made it into the office that Friday (I only had a walk from Tower Bridge, but did need to jump over a fallen tree). Shame I did not know more about options at the time!

RM...yes, I, too got caught by RCFX. I still like the company and what it does. But, oh dear, how not to follow your IPO with bad news. I started off with a relatively small tranche, and, dare I say it, I first doubled up on the profit warning drop. The fund manager at Octopus should be shot. He has lost his clients 65% of their money. This week was an example of how not to sell a reportable stake in an illiquid stock! Anyway, in for a penny, I have doubled up again at 11.65p this week...so keeping my fingers crossed. I tend to find good companies, but get my timing wrong. As long as I am sure that there is nothing seriously wrong with the company , I have used this strategy of reducing my average price successfully with SCE and SRT, now both in massive profit, but it does need patience. I am hoping for same with RCFX....and THG for that matter.

Last year, AAZ released production guidance for the full year on 22ns August ahead of interim results on 26 Sept. I will be interesting to see if it release 2025 production guidance next week. Ramp up from Demirli not expected until 4Q. I would be happy to see a figure above 36,000 GEO for FY.

Announcement of big shareholder based in Houston (RNS 13 Aug), plus share price movement today in good volume, suggests that we might be close to "completion of a feasibility study" expected during 3Q'25.

Thanks JL, I was in early then locked in a good profit. I did not get back in at the next low point (Dec 2020), but must have been shortly thereafter as my in price is 132p. Still hanging in there today. Very happy holder.

I've been searching for two days for reason behind the sp move, other than some chunky volume. Can't find anything. Accrufer has been progressing well in US and at greatly improved pricing and this is expected to continue, but there is a long way to go. The only Pharma buyer would be Viatris, with whom STX has the working relationship, but VTRS would want confirmation of highly successful product before committing funds to gain access to 100% of the margin. I'll keep my eyes and ears open.

JL79...that is a very good observation. Thanks for pointing it out.

My mistake....however, while the sums involved are "relatively" small compared with my core stocks, I really like punting in the micro-cap space where you can make great gains in a short space of time, but you must remain vigilant and be quick on your feet!

JL79....a couple of year's ago I saw you mention Blencowe Resources (BRES.L). If I remember correctly, you were originally speaking about Jangada Mines (JAN), but said that your preference was for BRES. I made a note and intended to follow up with you...but never did. I see that BRES has had quite a pop up recently. Do you still follow/like it?

RM...my understanding is that the US Govt has to put out transparency notices like this. I see similar things in Healthcare contracts. This order has not been issued yet, but it is clear that the intention is to give MSI this new gun order once all the regulatory notices have been completed. It is likely provide a boost to FY2026 numbers, but unlikely to impact 1H'26. Good for sentiment though.

Yes, the details are provided in Clause 21 in the Listing Particulars, and then there was an RNS in March stating that they had all been exercised and the shares were admitted on AIM.

All the outstanding warrants at 0.25p were exercised in March 2025. Strand Hanson and Cavendish each received 558,494 warrants exercisable at 32.5p (placing price) as part of their listing fees. These are still outstanding.

JL...I'm not sure that I understand your argument in last paragraph. If MSI had, say, 100x more shares in issue, its basic EPS would also fall 100x (i.e. to 0.9p instead of 90p), so the P/E would remain exactly the same. Having large numbers of shares in issue is simply unwieldy. That is why we are seeing several penny stock doing share consolidations. Some in the market think that this is just an excuse for the share price to fall back down towards a penny again (indeed, SAR is a good example of that), but does not change the P/E ratios at all. It will be interesting to see how Capita (CPI) performs having done a 1-for-150 consolidation earlier in the summer. At the end of the day, performance is linked to companies hitting targets and market expectations.

RM...thankyou so much for your insight from AGM, much appreciated. The release and your comments reinforce my view that MSI is a sound investment, albeit we have to be patient. I did trade out my pension holding at 1100p a year ago and bought back in (as previously communicated here) earlier this year to 900p, but my substantial ISA holding is simply that... a long-term holding.

On valuation, earlier this year the UK government invested in its main drone supplier, an un-listed Portuguese manufacturer that is profitable but having to make capital investment to increase capacity, valuing the company in excess of €1bn, on 2024 reported ales of €200m, so ca.5x sales. Putting MSI on the same valuation metric would value the defence business alone at £412m, or double the current market cap. Hence I'm not selling.

Hi JL, the WOW was the surprise that MSI actually issued a statement. Normally it does not say anything and we have to rely on the interim and final results announcements. I think it was forced into the statement because the EOS relationship was reported in EOS's quarterly statement last week, making it public and causing a number of questions to be raised.

Sorry RM, I was hoping to meet you at the AGM. Unfortunately when you care for elderly parents, your schedules can change at a moment's notice, and that is what happened to me this morning.

Unusually, MSI has released an AGM statement today. On the defence side, it has signed a deal with important Australian defence contractor, EOS. The other three businesses are performing well...better than for some time. Also, it has received a revised offer for these three other businesses, which it still considers to undervalue them, so the offer has been declined by the BOD. All augurs very well for the shares.

ID...I assume from your posts for the past two days that you have sold your shares and no longer a shareholder, in which case please stop posting your c**p; if you are (unbelievably) still a shareholder, then sell your shares and go away. As I said yesterday, the history is history. I expect SWG to report a very small PBT when it announces results (that should shut you up), albeit for 15 months. But this would mean profitability in last 9 months to June 2025. Then its onwards and upwards from here.