Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
AIM companies are required to follow a recognised corporate governance code and disclose how they comply with it on their website54. They also need to appoint a nominated adviser (nomad) who acts as a regulator and a guide for the company.
If an AIM company runs out of cash and wants to go private, it would need to follow the rules of the Takeover Code, which applies to all public companies in the UK. The Takeover Code aims to protect the interests of shareholders and ensure fair and equal treatment of all parties involved in a takeover bid.
According to the Takeover Code, a company cannot be taken private without the approval of at least 75% of the shareholders who vote on the offer. The offer must also be fair and reasonable, and the directors must act in the best interests of the company and the shareholders.
If the shareholders reject the offer or the company fails to secure a deal with a partner, it may have to resort to other options, such as issuing new shares, selling assets, or seeking debt financing. However, these options may also have drawbacks, such as diluting the existing shareholders, reducing the value of the company, or increasing the risk of default.
Lets have facts rather than speculation.
1. Interim results of Nov 8th stated that they now take the data and continue development with partners for functional delivery of their cargos. i.e. prove their specific use case. But yes, that has almost been 3 months now.
2. The further plausible downside relates to not getting the (£1m - 320k = 680k) in from Fosun that was due in Q1CY24 but they do expect it to come in.
3. Why would the plan to be to run out of cash? The directors have a legal duty to shareholders. They will need to at least attempt to raise more or find load/other funding.
But yes, I understand it is concerning and quite late in they day. However, Edison report clearly states they expect to have to raise £5m and then will get a deal in Q2. I guess Iain is trying to get a deal before that stage, but has said "if we have to go to shareholders then we have to go with a very compelling story".
Hi PB,
I would tend to agree with you that Reneuron is vastly undervalued, obviously the cash situation is playing part in the SP valuation right now. It is the hope that we get to a deal of some sort with a good upfront payment which eliminates the need for a cash call at these depressed prices - but that is the risk right now. Take the fear of a cash call away and I would agree that it is ridiculously undervalued as hRPC looks a sure-as-you-can-be bet from the data we have so far provided nothing adverse happens. Exosomes are not really 'partnered' as such yet, they are in some proof of concept tests (obviously pre-clinical) - but yes if just one of those comes to a deal of some sort (further R&D) then it validates the platform for delivery. CTX has taken a back seat, and they did mention they did not have partners for that now. It would be helpful if the company could clarify what happens when it reports and there is still no partner.