The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
They had £7m cash end of June and £4m end of October, that is £1m cash burn per month. Pro-rata for the month of November another £1m leaves £3m cash. We have been waiting patiently for the last year on contracts but to no avail. £1m a month is some burn or have I got my sums wrong?
They had probably pencilled in repayment in equity and further accessing the remaining £5m loan and Riverfort said no, plus the delays in financial closures; hence the raise to plug the gap pending the financial closures. Long term I believe this will come good if we can overcome the next 6-18 months. Who knows, a take over offer may come in from a major player.
On the positive side the directors have been buying, even back in April at 1p. DP now holds over 60 million shares that is £300k worth at todays price. If we can achieve financial close on a few projects sentiment will change quickly. If cash is drying up more placings will be needed, I suggest keep averaging down and wait for the upturn.
I seen from previous RNS deferment of interest payment due on 30th June.
Has this been agreed? Assume no other payment then due till 2023.
Anyone know what the cash/working capital situation is like, scraping the barrel or safe enough for another year?
What a difference a day or 2 makes; nothing and back to square 1!
See Randox made £275m profit this year.
Article on GLP/Abingdon on the order-order.com website.
Short term pain for long term gain. Wressel bringing in cash. If Serenity is a success and Ireland comes on board £15m market cap will be a distant memory. This will be back over 3p within a month.
My concern is they put out trading updates last January, April and August about every quarter. None have been issued since and it's February, only launch of few products, the RI and withdrawal of a test. What revenue has been generated? What is the cash burn position? Update on money owed by DHSC? The interims due in March will be interesting reading. The huge investment in the manufacturing facility, could have had ODXs for £1m. Only positive is the directors have invested big time so must have faith in future prospects. GLA
More buys than sells is only positive, all covid stocks have taken the same trajectory; GDR, ODX, ABDX; almost identical graphs over the past few months.
At least MC is low, should bounce back hard. Thought I was grabbing a bargain at 28p. Phew, didn't expect this. If it hits 10p or lower I will pump in big time, for now its wait and see.
In NI Hendersons operate the spar, euro spare & vivo outlets, turnover £900m with over £30m profit. They have been upgrading stores over the past year and planning more. Two local spars beside us must be making a fortune since upgrades, extra staff employed. I joked they're no longer convenience stores due to the Qs from increased footfall. If the Morrison Daily brand can deliver increased footfall with similar profits this SP is a joke at 7p.
So if it's insolvency a real mess will occur. These things can go on for years and by the time all is paid out retaining staff, insolvency fees etc what will be left in the pot? Very little to go around if anything.
Option 1: Vote for 95% dilution
Option 2: Vote NO for 95% dilution
Option 3: Vote NO and put the ball back in FCA court; Negotiate a fair deal for agreement by shareholders or insolvency and claimants get much less.