Negligence?15 Aug 2024 10:46
Seems to me that, on achieving this ‘key milestone’ of gaining NICE approval, the company has done as little as possible in terms of shouting about it from the roof tops. Indeed no PR at all, not a single interview either in print or video, and cursory X posts that are somewhat short on content. The efforts to suppress the share price by mms in spite of more than two weeks now of sometimes double the amount of buys to sells suggests all the GDR players are in on something. I think this will be bought out fairly cheaply and then be taken private, with PH, Wallbrook, Addleshaw etc all taking their cut of profits or being handed a stake in the future entity that becomes GDR.
No other explanation. Actually, there is one, and that’s that GDR simply have no sales lined up other than the recently announced package for hospitals in Greater Manchester & they know they have nothing to say and thus will just stay silent until the next placing is needed. They’ve got enough cash even with an increased monthly cash burn going into 2025 of £600k per month - £600k per month for a company now earning about £250k in sales per year - to last until early next year before PH start to take it down to much lower levels. In March 2025 the highest share price in the previous 12 months will be something like 6.5p and they can do another placing at 1.5p rinsing pis, and then sell the company for about 6.5p per share.
Sounds bad and would be pretty awful for lths but…that would present one more opportunity for pis to throw the kitchen sink in at 1.5p again and take away a very decent profit if sold at 6p per share. That would be a mcap of about £35m which I think many would now be sorely tempted to accept given the precarious position GDR is in regarding sales. The business world sees GDR as ‘troubled’ and it’s not hard to see why going on the current paucity of comms coming from the company, supposedly celebrating such a key milestone. Just my rambling thoughts as I enjoy a morning coffee or two.