Tim Watts, CFO at Shield Therapeutics #STX presenting at our Life Sciences Investor Briefing Watch Now
Jeepers. That placing is nice work if you can get it - if the deal doesn't complete you aren't risking anything; if a deal completes and the shares tank you've got an IOU and you get your money back within 3 months; if a deal completes and goes well (or goes sideways) you can convert to shares at a 25% discount to the deal price.
From my reading of it, Resolution 5 is to issue shares, but only to existing shareholders first. It's resolution 6 I object to. If I'm right that allows the existing board to dilute existing shareholders by almost 80%, virtually wipe us out, by issuing shares to anyone they choose at any price above 0.25p each. I don't see any justification for it. If they need cash to pay the bills they should sell some investments. If they want to do an RTO they need to come back to us for approval anyway. It's an awful resolution and I don't see a reason to vote for that one either.
The RNS for the AGM is out... obviously despite saying the notice itself is on the website, it isn't as yet. Classic PIRI...
I see it's on 15 October. Presumably we will be approving the accounts for the year to 31 October 2017, which means we're doing so with just two weeks of the current financial year left.
How much longer do directors with negligible shareholdings get left to draw pensions dressed up as salaries before we see a credible RTO proposal?
Bought 68,500 this morning but it took 10 trades!
There’s a fair chance this is another EVRH - I bought pre suspension and with hindsight should have piled in on day one taking shares at a small premium to the Placing price from people whose trading model is buying placings and selling out for modest profits repeatedly. Hopefully this will similarly go up tenfold as people spot the potential and we see decent news flow.
Yes PIRI in practice is a cash shell trading at NAV. Hopefully they'll do a decent RTO soon. I agree that long term a tiny investing company doesn't make a lot of sense. A good RTO could see PIRI fly but it's not the most sensible route to getting exposure to Guyana!
Mcap £900k at the mid price. Assets I suspect around £1.1m but the point is it’s an attractive shell. Trouble is, it has been for six years. Not sure how much longer investor patience will hold - hopefully the delayed AGM is because they’re working on something exciting and not asleep at the wheel.
Fourprinces I don't think that's quite right, but hopefully not too far off. They bought 3.125m originally but sold some to fund running costs. The last annual accounts had a value on ECO of £424k at 31 October 2017 when the share price was 22, half the price after this morning's rise in ECO. Suggests a value of £850k on what's left of the original holding. However there's also 1m additional shares bought in March 2018 for £176k by exercising warrants, which I think are now worth £440k. So a max of £1.29m but looking at the interims, the entire investment portfolio was £800k at 30 April 2018. So I suspect the true number is more like £1m now. And frankly we aren't going to get rich with a £1m investment fund and the headwind of the costs of being a plc. Time to sell ECO and get on with a decent RTO.
One of the things I’ve always liked about PIRI is that its status as an investing company means it doesn’t have the time constraints that a company classed as a cash shell does.
However, as PLMO follows KIN in announcing an acquisition within the 6-12 month timescale, I’m left musing on whether I’ve got it wrong and the time adds a bit of useful pressure.
Our illustrious chairman announced RTO plans some six years ago now. Not only has he not got round to doing a deal, he hasn’t got round to buying any shares. Given he’s now in his mid 70s this is starting to look like a pension isn’t it?
Let’s hope the continued lack of news re this year’s AGM is because there’s an exciting tech deal in the offing, and not because the board’s fallen asleep.
I surely can’t be the only shareholder to be getting frustrated here.
From what we can see today this looks great, be good to see the detail in the months ahead. A modest profit on my remaining holding. I nearly bought in the week when the price dipped below .6 but bottled it. Well done all who had more faith than me!
Can the board of PIRI please get a move on!
I think the other half of that quote is be fearful when others are buying! Hopefully it’ll go well.
Calm down Willec there’s nothing unexpected here yet and whilst I don’t share your view, if I held it I wouldn’t be changing it now. KIN went right to the end of the suspension period and should be great and had similarly low assets. You’ve got six months left, I’m sure NB can pull off a deal in that timeframe.
Given our low asset level I'd suggest that if the RTO fails after the due diligence is done, the company is probably bust. This is the risk of a shell with assets lower than the fees required to get an RTO away. Especially when they can't issue shares below 1p without a capital reconstruction, which involves further cost. This is why I sold most of my holding.
But the reasons for optimism are still there - NB has a good track record, he's backed this with his own cash, there's everything to play for. On balance I think there are better shells out there (I'm hoping for great things from KIN later this month and PIRI in due course) but I'm happy to retain a modest holding here and see what happens.
Jeepers. Isn’t that about CAD 1m off our asset value? Before we start worrying about recoverability of the loan!
Optimist you’ve got the best handle on GUN imo - do you have a sense of where our asset value is at the moment?
“Obviously”? Have you got ANY successful examples of a sub £1m cash shell raising £6m and becoming an investment company? Isn’t it more likely the suspension period starts and they attempt an RTO in that time?
I guess it’s possible that the update won’t have an immediate suspension but yes you’re probably right.
And yes I believe the rule states it needs to be completed in 6 months - in practice there seems to be a little latitude eg KIN announced just before the 6 month deadline and trading is restarting a couple of weeks after the deadline.
Yes given we get suspended on Monday morning I think an update Friday is possible. I'm guessing we're heading into suspension, the interesting question is how far a deal has progressed.
Incidentally having been roundly pilloried on here earlier in the year for being supportive of the original plan to raise more cash than we've ended up raising, I feel justified in pointing out that the KIN reverse, which looks like it could be terrific, cost £850k. Way more than PLMO has.
Well done both of you! Feels like this could head north significantly from 6p despite the risks - if it works the current valuation looks way too low, be interesting to see how the market prices it while it's unproven. I'm in at around the suspension price so I'm happy. Just got to hope PIRI can find something decent now...