The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Seeing this company do so well on the share price confounds me. I hope their accounting will stand up to this mcap and justify the PE. I run a tracking company myself and we had an almost identical pre-tax profit from our £800,000 sales revenue as opposed to the £9.2m from TrakM8. I admit our GP is higher than most which we're proud of, but with our forecast £1.5m revenue next FY, we'll still expect £675,000 pre-tax. I know you'll point to acquisitions, but in all honesty this looks very rich to me. I'm watching with interest though; if these guys can justify a £25M mcap, then we need to think about listing!
News today. I'm really happy to have participated in FTSR and the potential for it. To think these acquisitions will make it the 4th biggest MCN in North America and the largest outside is very exciting. Especially when you look at the $950m and $750m acquisitions of the top two MCN's by Time Warner and Disney recently... H1 viewing figures are 48% up, and Chad Hurely, founder of YouTube has put £2M of his own in here. This is already trading well below value, and when the market reacts it should shoot right up. Longer term it will be an acquisition target itself. A very promising company indeed and I predict this board is going to become a lot busier! I'm going to hold this as long as I can!
Just tipped on TipTV (Zak Mir) and Malcy. Should bring you some interest.
It's good progress has been made, but possibly slightly lower field bopd for three wells than I would have hoped for. Mainly because of 14-22.
Is past as of Friday the money is clear to flow in, and I'm pretty sure that's exactly what it'll do. No reason hold back now. Over to you Adam, make us all better off please! It'd be great if there was an early doors deal to be announced as the poster below said, but my gut feel is all will go quiet for a while until we get a big contract land, NHS testing finalises / CE testing etc.
Will hopefully put a bit of wind in the sails here, in reality I'm expecting everything to be what we'd hoped with two or more wells coming online and continued decent output coming from our first well. Still a great buy price to had here, this will get a lot more attention as revenues climb, I hope early adopters benefit significantly over those coming in on the news flow later down the line!
You simply have to be a healthcare professional....!!! :p
Premaitha is the first company to have this in Europe, but despite developing test, my understand is that there is no proprietary IPR on it. However they will be first to market and will sell it for around £200 to the 600 odd UK labs initially capable of processing it, who will in turn sell it on for and £350 at the top end. I believe but don't quote me on it, that the test costs around £100 to produce. So it's slightly cheaper than the current £400 test that also involves sending abroad. Obviously there is sufficient margin in there for Uk labs to reduce costs if they want. The real test to compare it with right now though is the amniocentesis itself which is the only other local alternative to the Premaitha test which costs a minimum of £800. As you rightly say there is a basic screening test right now of ultrasound and hormonal analysis. This will not replace the hormonal analysis, but I do see it in time and with economy of scale being the one and only early stage pre-natal blood test. Why screen to see what yours odds of an issue are when you can just screen for genetic markers with almost complete accuracy. The hormone markers are known to be nothing more than very general indicators anyway and are often wrong in that they highlight cases for concern when there is none, and miss the many pregnancies that go on to have children with birth defects not previously known. That is not to say that the current 700,000 born with Downs for example are as a result of tests going wrong, there are of course parents who decide to not have the test as it would make no difference to their personal decision anyway, this is not an ethical question; just changing the quality and invasive ness of what's already available. With the current normal screening, a 1 in 20,000 chance or greater is considered acceptable risk for Downs for example. 1 in 1,000 is very high risk. This puts into perspective both our kids having 1 in 16 results which was off the scale and unheard of, almost a given they had Downs. And yet neither did after the awful amniocentesis. The initial screening was wildly inaccurate, and the awful invasive test not needed. I know we are here to make a return, but I note a couple of posters have personal experience of this, and it was an agonising decisions to have the procedure for us, and it felt awful watching the consultant put that needle into your wife's abdomen where your unborn baby was, praying it will be still. Sounds a bit melodramatic, but this will be fantastic. European market alone is huge and much more opportunity worldwide, no reason why the US can't come further down the line.
- Current cost of amniocentesis is £800 at least depending on NHS Trust - Competitive product is £400, but involves sending abroad to China to US labs. And specialist service. - Premaitha Health product costs £200 to UK labs which they hope to market to around 600 who will add margin and sell for no more than £350 top end. Has cost savings as well as patient benefits. Good stuff, note that Rupert Lywood and Charles Roberts are both personal shareholders and significant stakeholders through Zoragen Biotechnologies LLP, Animatrix Capital LLP and Loxbridge Research LLP (47.6% between those three companies and personal holdings). Basically they are pretty much all the sticky money in this venture. There is 55% do shares not in public hands and taking these investors into account that's 62.6% in total that will be in this for the long haul. Bearing in mind also people like myself partaking in fundraising that is sticky money, you can understand why it's being spoken on 10% of shares being traded here. No wonder they anticipate such a large growth in mcap along with a bright future for the products indeed.
My brokers are quite picky about what AIM shares they invest in, and they said this was one of the strongest boards they had come across and it they got no-where near their requested allocation. Adam Reynolds has described the reverse take-over as one of the best deals he has ever done. I did a fair few notes on the product a couple of weeks back, I'll dig them out for people fresh in today trying to find out more about the stock.
Yes, definitely a fair point to say now this has been tipped! When I wrote it, it was 0.13 on the Ask and made more sense.
itsaduter, I wasn't telling people not to take their OO! As in the title of the post! Just that the purchase of VIY in advance of the EGM tomorrow was risky. Past the EGM, it's all clear. However, the market has spoken today and I'm sure it will all be fine. The EGM is normally a formality, but I'm cautious about these things. Post reverse t/o this share is super stuff and I'm pleased to be involved in something that's not just a good commercial proposition, but a great product for our wives, daughters and friends in the future (just for starters).
For all looking at this now, this is a great share, but for goodness sake don't buy VIY!!!! If for some reason it falls through at the EGM tomorrow (highly unlikely, but you never know) then you'll be buying into a shell with no more than a couple of £M value... Wait until it's all passed, consolidated and then if it's staying around here buy in then!!! £20M value comes from around £10M Premaitha, £7.5M or so of placing and directors buy ins that will occur, listing value of around £500k and £1M or so cash from the VIY shell. This is where their expectation comes from. But hold your horses until next week!
I have to stress this is theoretical to avoid a legal l;ether dropping through my door, but doesn't this look very much like yet another case of placings being forward sold prior to admission?? If this actually was the reason, it would be thoroughly damaging to the company and the whole fund raising process, why oh why is this not investigated? Sadly it does look from the outside to be the case in this and a lot of AIM placings right now. However, I feel this is a compelling investment case for those looking to come in because: 1. I actually really believe in the product and its prospects 2. There are a lot of people running at a loss, which whilst it's not good for them are unlikely to be selling at a loss here. These facts do make it compelling and it's in long term holders interest to see this go as I hope it will to bring the value up and give them the option to proceed with holding or not. However they feel now, I can't help but feel theta by the time the share has climbed in excess of 20p they will be feeling more confident that the board and product will deliver and keep their investment. We need to take this past the shorter term hurdles first and foremost.
For those a little late to the party, please find information about what's happening with Vialogy (soon to be Premaitha Health) and its reverse takeover. This is directly taken from the LSE issue notice. It also put's paid to the previous company activities discussed by others posters. Description of business: The Company is proposing to acquire the entire issued share capital of Premaitha Health Limited (Premaitha), which constitutes a reverse takeover under AIM Rule 14 and which, if approved by shareholders, will have the effect of changing the status of the Company from an investing company to an operating company. The so enlarged group's operations would thereafter constitute exclusively those of Premaitha. Premaitha is a molecular diagnostic company based in the UK that has developed the IONA® test, an in vitro diagnostic non-invasive pre-natal screening test for fetal chromosomal abnormalities such as Down's syndrome. The IONA® test is based on the analysis of circulating fetal DNA in the maternal bloodstream, an approach that has been used since 2011 by several pre-natal screening companies, principally in the USA. The directors and proposed directors believe that the IONA® test will be the first regulated CE marked in vitro diagnostic non-invasive pre-natal screening product to market. The IONA® test is a pre-natal screening test which will be offered to pregnant women to determine the risk that their fetus is affected with Down's Syndrome or other serious genetic diseases. The IONA® test is based on analysis of circulating fetal DNA: an approach that has both a higher detection rate and a lower false positive rate than existing screening tests. This means that expectant mothers can make better informed choices about their pregnancy without risk to them or their fetus. The Company has entered into conditional acquisition agreements to acquire the entire issued share capital of Premaitha for £10.5 million to be satisfied by the issue of new ordinary shares in the Company.
Nice link, thanks Rustem. Part of me hopes that NIPT can be extended and brought forward from the current decisions making point for Amniocentesis and become part of the initial screening process. For example selling test kits directly into the hospitals own labs at the same cost they are selling into private external labs as one possible route to reducing costs. Private medical care often has less extensive resources than the NHS (contrary to what many people think), they tend to focus on high volume operations with long waiting lists, and the consultants use external labs for test results. By initially getting a stronghold it the external labs feeding both advanced screening for the NHS and the vast private industry as a stage one would in my simple world lead to the in-house hospital labs as stage 2. Stage 3 brings more chromosomal tests into play and I see no reason for why a much broader test can't come into play at a later point providing better value for the return (even with an increased cost). The figures given to me when I took part in the placing was a £4M revenue stream expectation from this initial NIPT test in the UK alone. You can see where there expectations of a £20M initial valuation come from with this alone and they have further plans to extend it and Europe offers more scope to grow of course. Much of Europe has a primarily private or cost based health service compared to here.
Great academic post giving us a more detailed understanding of the background, use and challenges on the NIPT. Noted that you feel there's an increased cost in this over the amniocentesis which is contrary to my understanding, and this would certainly take away what seems to me to be an obvious enabler. My understanding is that and amniocentesis costs at least £800 taking into account the room, consultant and test of the amniotic fluid, would appreciate you correcting me on this with the correct figure. To be lower cost than the NIPT, it would have to come in under £350. Thanks very much
Why am I not surprised you're here Spikey ;) I'm too thinly spread to take the nice 30% coming here in short shrift, but I recommended a couple of family members into it so I have a vested interest in seeing it come good!
good spot on the exercise price and one that needs raising for clarification - preferably in writing for the record. I will do this at my first opportunity on Friday is no-one else has by then.
Indeed, still at a 25% premium now though and value will get built back in after the momentary drop we often see now in AIM around placings.