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From investor110 on advfn yesterday -

Technical analysis, espec Elliott Wave theory, suggests we are just about to break, to the upside, out of a contracting triangle that started in March at 2.59p and has now gone through a narrowing ABCDE pattern. Typically ABCDE triangles are a corrective 4th wave preceding a impulse 5th wave. Were in an overall bullish cycle, the first impulse wave, having started in Nov 2018. All the news today bodes for the beginning of that 5th impulse wave up. Wave theory experience suggest the top of a 5th impulse wave up should not be lower that the top of the 3rd impulse wave which ended at 2.59. I.e. 2.5 - 3p is a reasonable target price for next overall move up.

There are other ways to raise money for growth rather than dilution. Given we are significantly increasing lab space I’d imagine we’ll be okay for several months. Remember the BoD are aligned given their massive holdings so I’m sure will explore other ways of funding growth. We don’t want to be turning work away.

These RNSs are massive in terms of a new, disruptive offering and with 2 big clients on board it’s proof of concept and highlights massive potential. As stated it can take up to 10 years and $2 billion with 95% failure to develop new drug treatments. Now we can take years off that. Less development cost, but more importantly, drug companies get their product to the market faster, which means their revenue increases faster and their P/E increases adding multiple billions to the value of their current market cap as stated in the video. Gerry talks about acquisition to satisfy demand as growing organically won’t satisfy demand which is why SKIN has to get on the radar of healthcare investment institutions, who know will know the value of what is going on.

Yes some can say if SKIN posts £1m in revenue it’s still valued at a decent multiple but this is a disruptive co with AI leading the way and we need to look forward and this has massive potential and is seemingly a watershed moment. The RNSs are linked and there’s no doubt all the major players will want access to the AI platform, no-one wants their rivals being a step ahead (fear of missing out!).

Even with 2 massive companies using it (various teams on 3 different continents) as stated by someone the due diligence has been done so one would think the initial say £100,000 should increae quite quickly with more products being tested as well as new products being developed and then tested.

Exciting times!

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Ref Metro Bank #MTRO RNS key line - "The transaction will include an option for Metro Bank PLC to substitute the Issuer upon the occurrence of a Newco Scheme," Tells us there is an active bidder behind the scenes.

People should have a little patience. I believe the foundations have been laid with the recruitments to develop sales and AI, the increase in lab space and the new facility for in Cork which is in close proximity to major targets. We’ve also attended expos here and in the US and there’ll be no doubt many leads to follow up but remember they take time as DD needs to be conducted and contracts negotiated and with new clients go through the procurement dept too. It all takes time but I’d expect Q4 to be the busiest and to generate some great revenues.
If one of the multiple £1m+ contracts was won before YE it would be something else. Once we get one in it could and should lead to more and with that, more money coming in, confirmation the pipeline is getting better and better the market cap should be heading towards £50m which is when fund managers will take an interest and hopefully analysts will start to follow and write reports which will further improve exposure and get SKIN on more radars.
BIDS released shocking H1 revenues but the market cap and improved sentiment can be justified by what’s to come and the same applies to SKIN. The foundations have been laid and I’m sure we’ll start to see the fruits of labour (although we’ve started seeing some already it’s the top of a forming iceberg, surely) this quarter, next year and beyond. The Rinocloud acquisition was questioned or the £3m but that’s surely the future and will surely look great value in the coming months. I wish I had spears cash to buy any dips but am sitting on a large number anyway and will leave them tucked away for a good while as value is being created I’ve no doubt.

A lot of money spent over the years and yes it’s a massive area to explore but it’s a huge amount of money to produce as far as we know no 1P, 2P or 3P reserves and sod all revenue. I think PWC, Zaza and SN have a lot to answer for and if goes tits up we should club together and find out what recourse there is. Of that £300m they’ve probably spunked a fair % on lawyers over the years. Clowns and possibly fraudulent ones.

Kickmuck been about or did he disappear when we delisted as no need to keep holders holding and or newbies buying?

Unless there is an acquisition I can’t see any need for a raise for at the very least 18 months. In H1 19 we lost some £370K before exceptional items so items that won’t reoccur in H2. If we included Rinocloud’s revenue for all of H1 and the revenue booked (recurring) its best to break even.

Yes H2 will have 6 months of the new facility rent the additional salaries but it will also have 6 months of AI, the recurring revenues, the lab space online and generating income and a big pipeline. Given they have over £1m in the bank, warrant cash and receivables paid they could have another 3 halves losing £370k and still have cash left. My bet is sales will increase (AI was profitable and generating cash and should only grow) and with no exceptional items H2 could well be profitable or break even so no cash burnt.

Remember SKIN is the only co that can produce real life skin (fungi etc) and is able to clone and test that skin for 14 days which opens massive opportunities and with Zika mentioned our platform seems perfect so hopefully one of those 7 figure pitches drops before YE which would be a game changer.

GB also mentioned as a result of the Microbiome expo they will have many lab visits from major players doing their DD.

I’ve again looked at the RNS and video and am excited.

So no need to focus on the loss with exceptional items as they won’t reoccur. There are massive opportunities for SKIN. My favourite bit of the RNS -

By the end of June, a mere six weeks after the acquisition, Labskin AI, which had just come out of Beta, had 80% gross margins and was profitable, contributing to the reduction of overhead of the enlarged Group at the end of the period. LabskinAI is now central to the move into clinical trial and medical device sectors and bids have been made for multiple low to middle digit, seven-figure contracts, either as lead partner or as a joint collaboration partner, with expectation of outcomes before the end of this year.

What do you meant HSBC closing out? I held my shares with them too so are they considered dead (to carry forward as a loss for CGT).

Cairn has a duty of care to the LSE not shareholders. SN, Zaza and PWC are liable for this fiasco. The CLNs moving from rolled over interest to cash payment must have been kept from the NOMAD and (hence resignation when court docs published) market which is very material. PWC should’ve been all over the new agreement/contract and the change in the terms should’ve been in the notes (also subject to an RNS) so perhaps PWC didn’t bother checking the new docs. Poor as hell. They’re meant to be one of the best auditors and it’s their responsibility to check such things.

More importantly how many products each client has that needs testing so could be continued demand for tests. Also think of how many other cos we could work with and new products, especially CBD coming to market.

From ADVFN-
Given this is Gerry’s first AGM here and a year anniversary I think this morning’s RNS is to illustrate what a turnaround has taken place is a year. Unprecedented demand, more revenue per client, cash in the bank, more lab space, AI sorted and generating revenues from 2 top 10 cosmetic cos and more testing likely to come after initial products, 2 CBD clients won with 8 under negotiation. Exciting times for holders and worrying for those short.
35m shares sold since June while a Enhance dissolves, time to move north with no overhang.

This morning’s update is great and reinforces the massive strides taken in a year, a genuine turnaround!
8 CBD contracts under negotiation, 4 blue chip clients added, 2 CBD wins and unprecedented demand.
Looking good and what progress in a year. Onwards and upwards.
Good to know there is no overhang and we had some selling from June to now from Enhance while the dissolution took place so now Skin has no overhang left. Finally free to move higher.

Given they work with 3 of the top 10 global cosmetic cos and have just secured 2 of them surely the third will follow shortly. I’d expect they’re in discussions and there should be many more to follow. Each co will have numerous products that need testing and this can grow very quickly with fewer growing pains than the physical labs. The new digital facility is on the door step to most of the major EU and US pharma cos, easy to pop in for a coffee. Massive potential. GB on twitter -And the first Dominos to fall are Top 10 global corporations as references for smaller companies selling more than £1bn. Why would you not want to at least have the same access to AI as the large corporates?A reply to another tweet-Thanks for the endorsement Ted and indeed the endorsement of global cosmetics companies helps get past any DD requirements of smaller (under $5bn turnover) type companies ?DD is due diligence if anyone is unsure. If it’s good enough for the major players it’s good enough for smaller ones basically. Make sense to me.

From yesterday’s blog we see that SKIN is working with 3 of the top 10 companies and announced this morning that 2 have signed up so I’d expect they’re talking to the third and many more. These deals will hopefully close relatively quickly.

AI ensures the cost of digitalisation is significantly outweighed by efficiency gains. Labskin AI’s 3D Human Skin technology already exists, and has been tried, tested and operational over 12 years of development by:
Testing extremes from emulsion oils for Eczema to skin absorption of the Ebola virus;
Producing enough artificial human skin for 38,000 experiments;
Providing support to more than 400 research institutes;
Demonstrating Labskin results with 30 top research institutions;
Contributing to more than 30 scientific publications;
Supplying 58 skincare client companies, 3 of which are in the Global Top 10;
Data analysis and automation processes to compare datasets from multiple skin related treatments, therapies, drugs, nutritional pre and pro-biotic supplement databases against skin disease databases;
Scientific test protocols to a control range of existing skincare products:
Cosmeceuticals;
Nutraceuticals that include hemp-derived CBD and Omega 3 oils

A great RNS. Proof of concept with 2 clients on board for specific ingredients/product so once they’ve tested them they’ll surely move onto more so more revenues. Also, plenty of existing clients to target so this is a great start but the tip of the iceberg.

A nice steady rise over several weeks and months would be great.

In case anyone missed some weekend tweets. Some may construe them as rampy but most will think they’re simply highlighting the opportunity SKIN has.
Labskin had been around for 11 years, had 30+ scientific papers published from 30+ top research institutes out of 404 research groups, produced enough #SKIN for more than 30,000 experiments that supported 108 #lifescience #startups.
We have supplied 58 #skincare companies, 3 of which are in the Top 10 #BlueChip category. Moving from Products, to Products+Services for customers into a new era of a subscription eco-system relationship of product co-development with our clients.
Growth in H1 is only with 5 out of 3865 potential clients. 2 Top 10 Blue chip clients are in beta system already. In this new era, would you like to be the last skincare company to have access to #LabsinAI as a subscription service for just £10k per month?

A reply -
Wow, so converting just 1% of potential clients will generate nearly £9m and all of that hitting the bottom line. Massive potential and one would think these cos will be keen to sign up and do so quickly given EU regs. Exciting times indeed!

Bear in mind, These #SKIN revenues are with #LabskinAI still only in Beta testing with a small number of clients. Moving to #clinicaltrials we haven't begun to explain how our AI is reducing drug discovery and treatment for #SKIN related diseases from years to months

Valuing a co isn’t done just on multiples of turnover a number of factors are included. Look at the value of BIDS, WAND against their low turnover and other disruptive/tech cos are the same. SKIN is about potential which is why it’s valued £20m market cap and govern the growth will continue into H2 and beyond it will go higher still. The digital side can grow even more quickly and without additional costs so great margins.

They also have cash on the balance sheet which can and is being used to accelerate growth organically. Physical lab space to be online soon and full digitisation in H2. Exciting times.

Very best wishes mate, I wish you a speedy recovery and hope to see you fighting fit and hopefully with FRR the same. More importantly get well.

I can sell 500,000 at 2.08 but can’t get a quote to buy 50,000!

Yep hats off to the CEO. I was saying a raise highly unlikely given we’ve only just had one and we’re growing revenue-wise at a similar rate as last year. Money being spent effectively on infrastructure to meet demand. All sounds positive to me.
My notes again from the interview -
300% increase in 2018 from continuing operations and this trend is continuing into 2019.
Rinocloud generated nearly £200k in Q1 19 and this is accelerating.
Running to catch up with demand, EU regs a driver with companies kind of panicking and keen to get accredited.
GB said 2017-2018 was good and 2018-2019 so far is great and will get even better with the increase in capacity.
Cash raised being used for growth/satisfy demand in terms of appointments and the new facility in Cork. 24 of the largest pharma cos are within a mile of the new facility so they’re In the thick of it which should allow for plenty of meetings.
They need to catch up on orders in terms of the increase physical lab space that should be online in Sept (in York) but the AI/digital side is well-placed to grow from Cork now.
CBD will take off and there is a lot of money being invested in this space so lots of money for testing that’s required so lots of opportunities here. Already has case studies with STOER and now DAYE.
There talking to various potential partners and will branch out from cosmetics to the drug trial space. The could JV, or some other form of collaboration, talks ongoing in CRO space.
Lots of upside and potential.