Member Info for Porky9

Should extend the cash runway by 1 to 2 weeks before the next raise but positive step in the right direction

What was the net loss for the year? I’m guessing as H1 was a loss of £1.4 and sales were slightly higher to the YE the total loss must be in the region of £ 2.6m and they have £1.2m of cash left.

Looks like they need to pull their finger out and get some signed paid for orders in. No freebies, plain old fashioned raising invoices for services required.

LOL

You three are like a tag team of rampers...

Look, based on the results they are out of cash in circa 8 weeks. So either one of two things has to happen:-

a) They get a decent paid chunk of cash in from a client to avoid a discounted placing

b) They have no option but to raise at discount to keep operations going through to said deal

The CEO clearly wants to avoid a discounted placing at low prices and that's a positive, they need a stronger SP and i suspect that was what the very rampy RNS was about including non relevant references to mega deals elsewhere plus a couple of holders from the last raise averaging down a bit to also bolster the SP but fact remains one of the above two events has to happen.

For me i will buy on proof of delivery not on what might be, the revenue in the first half was lower than my local subway sandwich bar and that was concerning IMO especially in view of the high cash burn. Why was so much business being lost if the technology is as strong as they indicate.

Anyhow, we will know soon enough but stock remains for traders and gamblers until we see that proof - good luck

Well based on the results statement they will be out of cash circa 20th June by the look of it so something has to give here.

There has to be discussions going on

Also not clear on exactly how much CAB was remaining at 31/12/23.

It’s important to know what the cash runway position looks like, how long have we got?

You are correct with your assumption at £550k pcm burn rate.

Having read the statement twice I still can’t see what the CAB figure is at 31/12/23, have I missed it somewhere?

Trying to establish the remaining cash runway

@Gordonbennett

Fair play to your constant ramping,

FY 25 starts 1/7 so unless there is a serious signed order paid for upfront they will have no option to raise. Lets see how it turns out.

Rampers looking for any news they can jump on, why not.

Hopefully will result in a more meaningful order but with getting on for £2m cash burn per month they will need a lot of £150k orders to fill that.

Contract over 6 months yet represents about 3 days of costs, still hopefully go on to something bigger.

@Mozax

Company has about 8 weeks of cash runway left

I will get excited when they actually confirm a deal that brings cash in before they run out.

Otherwise it’s yet again another SH call for cash

Jam levels high - actual delivery low

Pump news prior to placing - good luck

Mention of others deals in market is not relevant imo. It’s designed to try and excite with potential jam

News they need to put out is we have received x cash in the bank for a signed contract, not what might be.

How can you resist a P & D

Got to love it :)

Well not all business is good business, this could be the issue maybe?

If you are taking on development work which will ultimately benefit this "leading global provider" why are they doing it for a token fee? it totally devalues the skills and services of their team. Time and resource that could go into a paying client.

I think that a lot of these small bios are so into the sciences that they just lack any kind of commercial acumen, they will do everything for free as long as shareholders will keep adding the cash to maintain them. This is not a direct criticism of FAB its all over the sector frankly.

@Kheldar

No, unfortunately it remains totally uninvestable until the BOD clear out happens. Until the cash draining dead wood is removed you are kind of stuck with this nonsense.

I still have hope Adrian can make it happen although really disappointed that the requisition was removed as we could be rid of both Kevin and Martin end of this month as a start, now we are stuck with them both, but i live in hope.

Total madness to do the same things and expect a different outcome. Changes need to happen.

You got to love ramping traders, all part of the fun....

Just an 18% increase in the market cap to cover the spread then you look to make a profit...

LMOL

Maybe it was @Iceman adding £10k

@OB

Hope you and family are well, health is wealth as you always say.

Sure, IF Adrian gets it right for H2 he has a chance and it then becomes a recovery play, although i am concerned that the requisition was removed enabling Kevin and Martin to stay, i believe i speak for many in saying that was a mistake as SH really wanted the opportunity to see the back of those two at the earliest, anyhow not long until end of June.

Pork's

P.S I know you are also a fan of the shiny stuff, even i was surprised at the recent Gold run.... nice one.

@PM2022

It really is like Deja Vu with you, we have the exact same conversation every time. You try and convince that the cash runway is longer than it is, then when they place act shocked that you didn’t see it coming, wake up.

Let me give you the maths in simplistic form.

Skint at end of December 23 except a few quid. Cash burn averaging £200k pcm. They raise £1.8m BEFORE costs in Jan 24. Not sure of the fees but probably 5% but lets ignore that for the illustration.

Question: Do you think costs will go up, stay the same or go down? Answer: most likely IMO to go up as you have 4 more BOD members to feed and settlement costs to pay Suzy off from BOD position and settle any other liabilities.

IF cash burn were the same the runway would extend to September 24 (9 X £200K is month 9 i.e Sept) but with the broker fees and other costs most likely a bit earlier July or August maybe?

A new board all in situ for end of June ready to start H2 1/7 would not want to go into that with only a few weeks cash left nor would they want to leave it right until the wire to raise cash, which would be totally irresponsible, and we need a change from old.

So, my best guess is they use the end of June AGM to propose the business plans going forwards and introduce the new BOD structure for H2 and request headroom shares for a July or August placing, that feels reasonable to me.

My call is 150m shares at 1p to raise £1.5m cash. Some investors think it should be 2p, but the market is tough. Any raise must reflect risk and the new board are rebuilding the business from ground up. To put this into perspective at 1.7p the share price fully diluted would be roughly the same market cap as where we were at the April 21 restructure. That’s why I think 1p is realistic and 2p probably top heavy IMO but let’s see where it comes out, but funds will be required make no mistake.

No doubt you will reply and say but Pork’s THX could pay the £2m over blah blah, they wont, it’s a dead duck and the new BOD need to move on from that now, rid the business of that albatross around their neck and more forwards fresh. A new board, a new direction, priority to value shareholders, a new start is what's needed now desperately.

Good luck to you.

Pork's

@PM2022

With respect you have constantly told us all to buy these shares and also ignored their cash burn situation and over exaggerated the length of their cash runway on more than two occasions costing those that follow you money. You are now doing it yet again because with four board additions they will be burning the cash even quicker at the moment i can tell you. Not to mention its the 9th April today and i though you were giving THX until end of march? or was that march 2025 or march 2035? How is that working out?

Meanwhile, for some reason you are obsessed with my diabolical decision to back 4D, company lied and the stock got delisted, for me it was a write off against capital gain in last tax year. For What its worth i had a similar write off against gains on the penny share Novacyt in the previous year to that, again that company director lied. Lesson here is that a) its often what companies don't say that's more important than what they do say and b) when you invest in penny shares some work out and some don't - its how it is. But not that its any of your business on balance i have a VERY strong portfolio and various business interests and penny shares are only a small section of it.

These days i don't ramp anything, AIM sector is ready to rebound but not just yet IMO. As a hedge i have also built massive exposure to PM, specifically GOLD which lucky for me has been doing well recently. That's not a flex, its just to say you need to always diversity.

As for Valirx, i give you this for free regarding your comment 2show me the money" : IF and its a big IF Adrian, gets his act together, removes the deadwood from the board, refocuses the business back on evaluations, cuts cash burn back to under £1.5m pa, gets a plan to make the labs break even or if not possible sells them on, i will materially back the July/August placing and in doing so become an advocate.

And, if you think i'm wrong about the placing, think again. It will happen because no new board in their right mind is going to want to drive this business forward from H2 without sufficient funds to do so. The question then is IF a return on investment is possible? We need that new board and direction changes to stand a chance IMO until then its more pain and cash burn short term as i see it.

@HD

Don't be so ridiculous.

Do you seriously believe that the BOD has managed the business well and respected its shareholders? Because i don't. The lack of commercial acumen demonstrated by the board and the dire decisions made not to mention the diabolical handling of 201 has led to this shambles of an outcome.

Further they have been paid well, made the decision to award themselves nice bonuses and delivered you next to nothing in return, all at your expense. Spend, raise, spend, raise, consolidate cycles one after the other.

Rather than point the finger in the direction of the boards bad management you use this discussion forum, which i might add is to discuss investments from a SH perspective NOT a company perspective to attack the very people that could invest should this penny play ever become investable.

As at today it remains totally uninvestable IMO and the BOD are 100% culpable for that, nobody else.

Pork's

PS. For the record i have NEVER requested removal of any post. I advocate free speech and frankly you can post and say anything you like about myself i really count care less, it doesn't bother me but i will comment where i think your stock analysis is wrong.

@MAJWandCo

IMO you have called this 100% spot on.

Likely being pre sold into to support the placing, we see it so so often these days and you are absolutely right, many have no idea how tough capital raising is in these markets and the harsh really facing many of these companies. The hefty days of having millions in cash just chucked at you at high valuations and BODS sucking the cash out at ridiculous pay levels whilst delivering zero revenues are long gone.

My call here would be 200m shares at 2p to raise £4m to give them a 12 month window to turn things around or merge with a bigger more liquid entity.