Ominous silence from CEO10 Oct 2023 10:12
Nothing from the new CEO after 4 weeks other than his introductory statement.
I think if there was anything positive he could say right now he'd be shouting it from the rooftops.
I'm nervous that RF could turn aggressive in order to make a return on their investment. They cannot possibly be happy with the way things have gone these last 6 months. At every single turn the market and circumstances have gone against GDR and other than looking forward to a CONDITIONAL recommendation for CYP2C19 there is absolutely no positive news expected.
I'd fully expected this to be on the rise by now but clearly the market - and mostly retail investors - has realised its mistake in thinking the NICE evaluation for AIHL would be the beginning of a progressive period of sales and income generation. The pathway to get to that scenario we all now know is some way down the line. 3 years to be exact of data collection.
So can GDR survive in its current form with a monthly spend of £400k and earning between £50k and £100k per annum, tax credits worth about £1m, DEVOTE grant funding of about £100k per year for the next two years? Without help from the market ie another significant raise and without any further drawdowns from RF no, obviously it can't. So what is going to happen. Just my view but I suspect the new CEO is currently working hard to reduce the company's activities, staff levels and overall budgets to the absolute minimum. I have a feeling the next announcement will be on redundancies but hopefully also that RF have agreed to continue with their drawdowns of £300k knowing the money is not disappearing down a big black hole (and contributing to Budd's huge salary and annual bonus) and that they will eventually see a great return on their money. That there is going to be more dilution is almost a certainty imv and I expect RF to take much more of the company in return for keeping it alive.
The only other option is a pharm swoops in and buys it outright and pays off the money RF is owed but in that scenario things have now got so bad I don't think current holders would see much of a return on their investment above the current value of 9p per share. It's galling to realise after several years of being invested (at varying levels) that the management have botched things up quite so badly.
8p has to be on the cards this week and a further drop to 6 or 7p is easily imaginable if the silence continues. No one will get out of this over 50p now.
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