Member Info for Porky9

The OLD board got into a habit of raise spend, raise spend. IF you look back at the amount of money raised and spent over the years it is breath taking. The shares were just mounting up.

For example, In March 15 the BOD raised £1.6m cash by way of issuing 800m shares at 2p. The amount of shares got so high that in the April of that year they did a 125 for 1 consolidation.

Move things on 7 years with the new BOD and frankly not much has changed, they are now continuing the trend of issuing yet more and more shares. Should the resolution for an extra 30m on standby get passed shortly, we could be back up to 130m in issue at the drop of a hat. Then what another consolidation event?

What is interesting is although Suzy was not CEO back then, she was Director of the subsidiary group, so she effectively worked for the business during that time when Satu was the CEO and all these raises were going on. So she was used to working in a company constantly raising money.

Meanwhile, Martin Lampshire was NED back then and still is and was also backing and voting for constant raises and dilution.

I'm hoping History is not repeating itself and Suzy can turn things around BUT i fear that a constant raise cycle has become too easy, shareholders have been taken for granted yet returning for more and more funds and those advising her have continued experience of doing so and are keeping the focus on doing same. Securing one raise and then seeking authority for more in advance, left on the back burner ready for the next one

Satu and George were cleared from the business, it was the right call. I now think its time for Martin Lampshire, NED to be replaced. Is he adding any value or just an overhead? and i am also starting to question Kevin Cox's value?

If i could wave a magic wand i would offload both Martin and Kevin, demote Suzy to head of sciences, appoint Adam as CEO and look for two new industry NEDs that want to help drive this forwards.

I don't know about anyone else but it feels like something needs to give here, the current set up is clearly not working.

Really interested in what they will be saying shortly to explain

Good Look All

@Iceman888
A positive interview should help although shareholders are done with talking the talk she now needs to walk the walk. Past all of that.
Cash is valued at 1.5X

The other issue you have is that a big bulk of 10p / 11p placers will cash out on any small spikes and the recent placement buyers can still keep the warrants. So many will think they can sell out and still get a return in the future should the SP turn good.

I bet a lot in this current placing will be thinking the price will lift as it has done before and they will get out on a 10 or 15% gain. I'm not as convinced this time, new investors are wising up to this little racket and the loyal long term holders keep averaging down and are getting sick and tired of being shafted.

If the resolution gets past for authority to issue another 30m shares it will put investors off knowing what's coming.

Lets see what happens

Support line here at 10.5p being tested
Next Support lines at 7.5p/ 5p/ 3.5p
https://twitter.com/Porky9Here/status/1617706006821376001

Time for the BOD to act. By the time the Full Results are published end of April IMO they need to either have secured some form of payments in from THX or confirmed what they are doing about it PLUS i think now is the time to see some BOD buys to give Share Holder confidence.

Failure to deliver either of the above could well see us testing the lower levels again of the range. Good luck all.

For those that have not read the report yet, the CENKOS broker report issued on Thursday can be found here:-
https://www.cenkos.com/research-portal/

It deals the exact position and the CURRENT forward business plan.

It costs nothing to register at Cenkos security and well worth your time if you hold shares here or are considering investing.

Good Luck

100% Agree with your post @Iceman888 i have voted no to Resolution 4.

@baserite
You are however choosing to ignore a few facts.

BEFORE the last two raises Suzy was absolutely adamant there would be NO further raises. She was absolutely CLEAR on this. She then agreed the THX deal without any money down or collection of the $10k monthly support fees agreed despite Knowing full well that the business cash flow runway would run out by the end of the June. I consider this bordering on reckless.

She later claimed the $10k support fees were nothing like that BUT that was what was documented by CENKOS and investors use that information to make decisions. The business needed the cash. In that 12 mths they were to also receive the £1.3m in milestone THX payments once THX got funded.

This position continued until end of June whilst she remained “confident and unconcerned” that the THX deal money would still land so still no raise required yet we then find that the shares they previously had agreement for were issued and a meeting called with shareholders to discuss and agree another block for future use and the plans! Had the THX money come in the share issue would not have been required OR had they considered that THX would not get funded the raise could have done in the Feb at 30p not at a fire sale level.

Next, the plan came forward to create a new tCRO. This was also new to shareholders, we had been investing into a innovative biotech working to support early stage cancer cure solutions yet we were now moving into the lab support industry and the proposal was to BUY a lab outright with clients that would add instant revenue. That would be an asset.

They then tell us they will rent a lab and find own clients but can at least do own science work and they will issue yet more shares to support that and further bolster working capital because still no cash will be coming in. They then tell us the plan is to acquire up to 4 more then tell us they want a mandate (resolution 4) for yet more shares on standby if they need them later.

Shareholders are right to have these concerns. The business plan now does not reflect anything like the original one. THX have been given as much time as they like to fund meanwhile it appears that Valirx have zero focus on revenue creation. The risk profile has changed IMO.

Not having skin in the game is also a factor here IMO. The BOD is in at zero risk. They are paid by shareholders, know they can get more equity capital and that’s probably why Suzy is still “confident and unconcerned”. Even Stella the new NED is paid and busy promoting other interests. The BOD need to show some leadership and share in our pain or success.

I look forward to the next presentation but I don’t want to see back patting on yet another good raise, I want to see some serous focus on the forward plans, take SH concerns seriously and for THX feet held to the fire to deliver or focus on a new partner.

There is a limit to how far you can push shareholders frankly.

@Iceman888
- you forgot to also add
Why did they need a PR form appointed? wasted money
What are they paying Martin Lampshire to do?
Why they are not calling it a day on the THX exclusive They need to grow a pair and look for a new partner or charge THX to maintain exclusivity - VAL are not a charity
Agreed about both Kevin and having two brokers

Have a great weekend

@Iceman888
You can make all the assumptions you like about me but you are far off the mark. I just don't comment on all the stocks i hold now. Keeps trolls away.
You Ignore my post because it doesn't fit with your pro agenda here.
Likewise @Buda can take the p@ss about my contact but they are the CEO of a VERY successful lab business that's been established over 10 years.

Choose to ignore all you like and plant your head in the sand, IF you read the CENKOS report they clearly state the estimated costs for the initial lab and they further confirm that ZERO revenue is forecast for the lab during 2023.

The points I'm trying to make here are:-

1. Prove the model works first. Make one lab profitable before you look to buy more

2.They will have to work to win new contracts and that will require sales and marketing not budgeted for. Its totally naive to assume business will just fall on you.

3.. If resolution 4 is voted Yes, they can drop a further 30m shares on you at ANY point. I think they should be made to put plans to shareholders FIRST. They have enough cash currently if THX had paid for 201 when they should have both of the last two raises would have been avoided and the SP would be materially higher - FACT.

4. Non of the directors including Stella and her network are buying shares for whatever reason - no skin in the game and this needs to change.

5. The handling of THX has been a joke, the fact they cant raise capital over a year later is a joke, the deal in the first place was a joke and frankly even if it eventually comes over the line they gain bugger all capital from it because they practically gave 201 away in the first place.

6. oh and the CENKOS gifted shares was also a joke but that's something else.

Say what you like but lessons need to be learned and repeats of past errors avoided - you can live in la la land if you like but the BOD need to address this as its preventing serious funds buying in which is also holding the SP back.

Good luck to you but you are deluded if you are ignoring all of the above points in your evaluation of the risk profile

Pork's

After the results for 22 are out April 23? IF the THX deal is NOT sorted by then I think the SP will materially fall knowing that a further discounted placing will be on its way.

Suzy was right to do this small raise now on the authority they currently have from shareholders and push for a new resolution at the AGM for capacity to issue more shares because if she didn't it would be at a materially discounted level. When i say she was right, i mean from the perspective of protecting the business and not leaving until the eleventh hour like before rather than what is best for shareholders.

Where this has all gone wrong:-

IMO it started when they gave their prime asset 201 away to a skint start up that cant raise cash. Making it exclusive and then when timelines missed rather than pull the exclusive issued and start looking for an alternative partner they extend exclusivity on an indefinite basis.

Further because they have no focus on revenue (cash raises are too easy)they don't even collect the monthly support fees from them. The deal with THX is not that great to start with frankly so having signed it off this cheap to still be waiting over a year later for cash and having to stiff own shareholders for more cash to keep the lights on its ridiculous.

We will see how this unfolds going forward, those adding at 11p i think will flip on any spikes if they get chance especially if THX comes across the line. Otherwise its further dilution all the way imo.

One factor that could change fortunes is if they can win decent sized new lab contracts that pay or they can monetise 301 or kings quickly but i don't see that in 2023 i think its far too soon, looking at late 24/25 earliest imo.

Short term this rests now on 201 being done to extend the cash runway otherwise they have no way of gaining decent revenue other than to squeeze shareholders for more via equity.

Finally, one other scenario that could turn this around, get Kevin out and the NED Martin Lampshire (does he add any value?) replace with Adam. Demote Suzy to head sciences. Bring in another NED that will invest, dump THX or make them pay monthly to retain exclusivity and show some commercial acumen and support Adam. Get Stella to put her hand in her pocket and buy shares - that's my call anyhow.

Good Luck

If I were you I would read the broker note from CENKOS issued recently it doesn’t make great reading unfortunately IMO:-
https://www.cenkos.com/research-portal/#/portal/cenkos-securities

The company has ZERO focus on revenue it only knows how to spend hence why it wants resolution 4 passed by shareholders now to give it an open mandate to issue another 30m of shares at anytime it wants to for further cash. IF resolution 4 gets agreed expect further dilution fairly soon.

As it stands as expected their cash burn increased by 210k last year. With this raise they will have enough cash runway to circa April 2024. This is a positive.

The business plan has changed yet again, they not only want to set one lab up to do own and third party work (no lab revenues forecast for 2023) they want to acquire others. This will be costly and further raises will be required for that so expect more dilution. They have identified 4 targets yet no experience of running one lab profitably let alone 4.

To set up lab 1 they forecast 400k for equipment and other one off costs and 200k of running costs to the end of this year for rent and a lab manager and assistant.

There is nothing in the CENKOS report detailed for sales and marketing so not sure how they will tender for contracts. They forecast no revenue this year BUT it will save some money bringing current outsourced work inhouse. Lab running costs going forward will be 300k.

CENKOS state the lab will likely be in Medicity Nottingham and they will have lots of business contacts nearby. I think its totally naive to think lab contracts will just land on them - they will need to win contracts in a competitive space and that will require good sales and marketing investment imo.

Should the THX deal land Q1 before end of March 23 this would give them a further £1.3m in 2023 year resulting in extending the cash runway through to end of 2024 but this has a high risk of continued delays.

IMO the risk profile has gone up materially. My price target is now 5p by June. Traders will flip profits on any SP spikes and i don't see any catalyst to create meaningful revenue incomes before the end of this year other than via further share issues - its that simple.

Good Luck

It Is currently looking like 6p open however, we don’t know what other funds especially recovery funds are going to buy in and also before the collapse the shorting book which added to the companies demise was absolutely horrendous, it was one of the most shorted stocks on the market.

I am not sure how short positions stand when stocks are suspended but clearly if the shorts are still active they will need closing as such if this listed at 6p it will rally fairly quickly with shorts closing. Wouldn’t surprise me if this one opens and settles close to where it it got suspended around 16p - interesting to see

To relist, the business must have enough working capital for one year as such as I had totally written this one off I will just leave in the bottom draw.

@snootysnipes
Nobody is closer than the CEO to a business.
So if I think my business is going to do amazing this year, on the brink of securing major value deals which are sure to rocket my companies value and share price soon, come the open season when I can buy shares, I’m going to be filling my boots wouldn’t you agree?
That reply is one of a good cautious scientist not a driver. That being said, she has a window to make a difference, they have a enough cash, she can turn this around.

As for Stella, as an NED settled in now I have to be honest, I thought she and her network would be buying in here confident of the future. I am surprised that hasn’t happened yet.

And as for Kevin, got nothing to say really, like some others here I’m starting to question his value other than being a veteran at raising money.

Lets see what they have to say, Meeting should prove interesting that’s for sure…More details will unfold, just hoping its No to resolution 4 so they are made to think further raises are not a certain bet and we are not to be taken for granted.

Any more funds required after this i want to know what for and why in advance of it happening and a vote on it. Not pre agreed issue followed by a vote on another lot lined up in advance for the next time....

Good luck all

Mine is:-

1. Grasp the nettle with THX. Agree a firm deadline to complete and stick to it. IF they cant deliver, they loose the exclusivity and VAL can look for an alternative partner to take 201 forward. IF they want to continue with exclusivity they pay for it monthly until their funding is secured. It is NOT up to VAL shareholders to bankroll a US start up.

2. IF the lab plan is the direction, set up the first lab and get it into profit before spending more on a second. Prove the model works, even if its just six months.

3. Its time now for Directors to have some skin in the game, if you genuinely believe in the future of this business and delivering a SH return lets see Kevin, Suzy and Stella buying some stock and i'm not talking token amounts or no risk share options, i'm talking dig deep.

Anyhow, I actually think its game over now for whispers over the garden hedge, they might need a few more shekels soon for the likes of Nick to dump a block at a price and buy back cheaper in the raise. Traders buying at 11 and expecting to flip a quick profit at 12-13p, market can see what's going on now, time for this is limited. Investors want to see that a business can be viable and is not a lifestyle business . Time for Suzy to focus 100% on revenue generation rather than how to spend more cash.

Pork's

OK have now read the resolutions.

It’s a NO from me to 4. IF Shareholders vote again to facilitate allowance of yet further share issues without notice we are risk of endorsing this constant repeat, raise, spend, rinse shareholders cycle. They have sufficient capital now and need to start proving they can monetise the assets.

Regarding the Lab program. A role out of lab acquisitions would be VERY costly to shareholders. IMO, they need to build one lab and make it viable. It is totally naive to assume you can keep buying labs up under an acquisition program and they will all make you money – some wont.

I appreciate that Adam has buckets of experience in this direction but I just don’t see it as a silver bullet. Loads of labs are currently closing due to the fall off in covid testing and they take time to establish, secure clients and contracts just like any other business.

Natalie, a contact I have who is Director of Biograd in Liverpool built that business over a long period, its over 10 years old now and profitable, it did an absolute storm during Covid using some of their labs for covid testing but its back to normal now and they diversify into teaching, support University of Liverpool and cell banking for NHS trusts etc. But despite profitability it has about a £2m working capital requirement with creditors in order to trade.

Now I’m not suggesting it would be identical for Valirx but what I am saying is that just one lab with lab staff, sales and marketing, clients paying and any public sector or larger brand clients will pay on terms would result in a sizable working capital requirement. IMO they need to prove the lab model first before they rush to roll out more.

If Resolution 4 passes we are making it too easy for them to fall back and rely on constant shareholder funding, I would like to see them create revenues from one part of this business first. I am expecting the results in a few weeks time to show a bigger cash burn as it is and that’s without funding a start up lab.

Good Luck all

Pork's

Expected
Broker Fees Reasonable on a £1.3m raise - 327,273 at 11p = £ 32,723
2.5% fair enough

Normally i keep up with these things but where has she said multiple labs and where did that text extract come from to say a program of lab acquisitions? Thanks

@Junaizz786
They needed support of 50% of shareholders which is what the vote was about and i would say they will secure that. I would be VERY surprised if they didn't.

They then have a meeting and will then confirm to the market the position. It is looking like the stock will relist shortly but face massive dilution with the new shares being introduced. So it might relist at 6p - 8p but could be a lot worse. We will soon know.

We don't know yet what deals can then be done to sell some of the assets off. They claim there was a lot of interest but due to the complexities of the business shares being suspended it was too complicated to deal???

Personally, i had totally written this off anyhow. If it does relist probably worth just sitting on the stock 6 months. IF there are buyers interested in the pipeline assets, deals will get done and the SP improve significantly from where it relists -one things for sure, as the new investors are owning a massive chunk of this business at 6p they will be expecting a return. IF the assets were worth nothing it wouldn't get relisted. That's how i see it anyhow.

Time will tell

@Iceman888
We previously knew that the cash runway was strong enough to the end of this year. This further small raise should on paper extend that runway by a further six months but of course we cant know until results to end of Dec 22 are out in March what the cash burn was like and we don’t know yet what the additional cost will be for the lab or additional staffing plus sales and marketing overheads will be to secure new business for that lab. Many unknowns.

On a positive, I do think it was the right call to do the raise now. As a betting man, I’m expecting cash burn to be higher due to the staffing additions and the new project commitments. How they handle costs going forward will be vital. Had they left the raise until after results it would have been heavily discounted raise IMO probably at 6p or 7p so she has learnt from past mistakes. It was good call.

I do wish however they had more commercial acumen about them. At this point they really need to be saying to THX look, if you need us to maintain the exclusivity you either now need to complete by X timeline or pay us fees of Y per month until you do complete plus clear what you already owe us.

Its not right that shareholders should be paying for the THX delays. Its vital that VAL can prove that they can actually monetise the legacy assets, 201 is IMO their crown jewels it was backed by Cancer UK, it’s a brilliant asset but its an absolute travesty that this opportunity is being wasted in the hands of a start up that wont pay its bills or sort its financial position.

Time for VAL to prove they can bring revenues in and not just exist from constant equity raise and spend. However, there is shareholder money being made here trading on the margins 10.5p to 13p as long as you don’t get to greedy but it will be down to VAL now to prove they can deliver something more for the loyal long termers.

Good luck to you.

Pork’s

Small trades could be influenced imo
But it's chunky money, family office, small funds buying on the back of a board that delivers that move the SP.
Currently the funds are not buying here nor are the Directors.
I am not buying at this SP and I wont act as advocate to contacts to buy either.
The SP is still 25% higher than the placing and nothing has changed on 201.
The board are not delivering what they say they will. The decisions made regarding the handling of 201 is still having a negative impact.
I stand by the fact that i believe THX should be given a final timeline to deliver OR lose exclusivity of 201 to enable VAL to discuss this asset with other parties.

Until then this remains a traders stock.

@Metom
Porky did not go nuts as you put it.
I simply posted two comments. One was why i believed that 201 would take longer and why i believed that exclusivity should be removed from THX.
The second was a reply to ask why you asked LSE to remove the post and the entire thread was removed.
I fail to see the point of this board if only the ramping club can post.
Pork's

@Iceman888
You betting on an April spud?
I'm betting on a mid June Spud at best.

David hasn't been out and reviewed the potential rigs yet, then they need testing, inspection, contracts drawn up, taking down, repacking, shipping, rebuilding in location but i like your optimism hope you are right.

Pork's