Member Info for Saxondale

Just been scanning last years annual report ( that covered 2022 )

To protect the continuity of the

Group’s operations, sufficient liquidity and capital has to

be maintained. The Group aims to have funds to finance

its operations for the foreseeable future. The Group can

influence the amount of capital by adapting its cost basis

considering available financing. Management monitors

liquidity on the basis of the amount of funds. These are

reported to the Board of Directors on a monthly basis.

The Company’s Board of Directors approves

the operational plans and budget and monitors the

implementation of these plans and the financial status of

the Group on a monthly basis.

On 28 February 2022, Faron entered into agreement with

IPF Fund II SCA (IPF), which contained

• a Euro term loan facility (Tranche A) of up to 10

million euro,

• a Euro term loan facility (Tranche B) of up to 5

million euro,

• the possibility of Faron to request up to an additional

15 million euro facility (Tranche C), subject to IPFs

approval process and certain conditions to be met,

• Faron to issue warrants to IPF as part of the loan

agreement, based on the amount drawn in the

above facilities

The first tranche (Tranche A) of EUR 10 million was

drawn down upon signing the agreements. Faron pays a

cash interest on drawn amounts of the above facilities plus

a pay-in-kind interest (PIK) for drawn amounts in Tranche

A. In addition, Faron has paid a structuring fee of the

committed facility on the utilization date of the respective

facility. Tranche A has been measured at amortised cost

using the effective interest method. The carrying amount

of the Tranche A was EUR 9,557 thousand.

The interest on Tranche A facility amounted to EUR

1,225 thousand. The loan facility is subject to financial

covenants. The covenants measure the Group’s gearing

ratio and cash runway. Given that some of the inputs to

the valuation technique rely on unobservable market data,

loan fair values are classified in Level 3.

Liabilities designated at fair value through profit or loss

primarily represent warrants which entitle IPF to subscribe

for new ordinary shares in the Company. The subscription

price per share is the lower of EUR 1,85 or the subscription

price per share in any subsequent share offering

undertaken by the Company. The warrants were issued as

part of the loan agreement for no consideration paid and

have been treated as a separate financial instrument. On

initial recognition of the agreement, the fair value of the

loan facility was reduced by the structuring fee and other

fees that are integral part of the loan and by the implicit

costs of the warrants. On subsequent reporting dates the

changes in fair value of warrants have been accounted

separately through profit and loss. The warrants are

classified as level 2 instruments and their fair value is

determined using techniques whose inputs are based on

observable market data

Glad I stayed off here a few days . After doubling my holding in the 70's the other day , I was quite chuffed with myself for afew hours( cue small montage of Wylie coyote disappearing into canyon).

Anyway - average is in the 80's , and I've no money left to add here , so unless by some miracle another AIM stock actually turns blue soon , I'll watch from a distance , comfy in the knowledge that I again nearly timed the bottom lol .

having 4 million was the issue as we were supposed to have 6 in the bank at all times to satisfy the nervous nellies at ipf .

how we went into the red by nearly 2 million is still the ( 2 million euro) question , knowing that by letting that happen it would trigger pandemonium .

the acceleration of bexmab was costly - burning more than they originally planned - but they were getting the patients recruited and fast . top sites probably don't come cheap , but what i don't get is that they would see this coming , and worst case , just do another 5-7 mil placing with usual suspects - and we gain another 3-4 months of breathing space .

that's what i can't work out . what else was going on - that mean't they weren't looking at a placing ?

two other less obvious scenarios - one that luch touched on also -

1.) that they did this on purpose in some kind of proactive self defence . we don't know the details of the ipf agreement - but we do know that its been renegotiated once - and ipf got some very cheap options out of it . pure speculation , but perhaps faron saw this as a ' call my bluff' moment - allowing them to straighten things out on their own terms , albeit a bit of a nuclear option in the short term . this is a family company - very honest - but also very protective , and fiercely proud of what they have achieved , and who has helped them get to where they are .

2.) that during heightened negotiations - promises were made - and then broken - leaving faron high and dry . that's it - simple **** up . they can't say much else as they are doing what they can . if ipf don't play ball , then they'll just have to wait for the agm . the march13th day should answer the basics . i would then say its most probable that having gone this far into the abyss - faron might as well do one big final raise - say £15-20m , we all take it on the chin - and push bexmab through to completion . we are so close now .

knowing whats coming with bexmab - if that can get us to the point of finally commercialising bex , and then obtaining a partner for long term development - it will be worth it .

Add DEST to that list - it was like open season yesterday !

Mind you we are up 6% on the Nas today - nothing too much to celebrate , but feels like maybe they are getting ready to blow the tanks and get this submarine off the seabed .

New date for AGM in April now Fri April 5th ( instead of March22nd)

I'm no expert , but I assume they need to pass something at AGM to enable a rights issue ( should it be required - it was only an option they wanted to enable should they need it )

Handy for me anyway - as we'll be into the new tax year and I can set some more in my Isa should that occur .

A good month away - so who knows what may happen in between .

So we will have an update and briefing followed by Q&A on the 14th March , followed by the AGM just over a week later on the 22nd .

Glad they will have a briefing from Markku too , along with analyst Q&A , and James O Brien will be there too .

Whether we will ever get to know the full story of how this situation unfolded or not , who knows ?

But either way , its reassuring that we will get some answers , along with how they have best planned to get Bex to market , and bring value back to the company and shareholders .

The only tip I can give you , and its hard to follow when you think you are gonna miss out , but top up in two or three amounts , giving a few days between buys . I actually followed my own advice this time and got two buys in the 120s . Will it drop lower - who knows . It seems to have settled , and I'm not expecting much more news now until something is resolved . Any clinical update coming out now would seem somewhat inappropriate ( but who knows ) . Anyway , Good luck Santhi . At least we haven't had an influx of trolls and doom mongers here . It is what it is - and we await news .

Hardly a major sale ( less than 1% of his holding - 0.93% of 13,410,336 )

He's been a rock right through thick and thin .

Despite the last few weeks shenanigans , we mustn't lose sight of where we are actually at with Bex .

Once this financial hiccup is sorted - the company can furnish us with the latest Bexmab update , which everyone must assume is going to be a cracker .

When this train leaves the station , it'll be pretty academic whether you got in at 70p or 90p , unless you are just looking for a day trade . I've got my long term pot sorted , but did have some more today , just to play with . Doesn't bother me if it fluctuates lower , grab a few when you can , then wait for the whistle .

Well I just doubled my holding here . I did have an average of £1.14 , so its a bit better now . Thanks to whoever pulls the strings behind the curtain .

As a side note - look at Avacta - massive potential . Last science day SP was at £1.50 ish . Yesterday 77p . Nothing has changed - they are still making progress -no financial issues - but they are under short attacks , and full on campaign to lower SP . They do have a very large number of PI holders , and for some reason there is the ability in the shady corners of the market to create these situations . But loyal holders will maybe try and trade a bit themselves , buy the dips and wait for the return to form , as they know the company will be worth at lot more than 77p . Likewise here . Good luck . We've had it easy compared to some shares . I wish them well . Poor old shareholders certainly getting a kicking all over the market at the moment .

Hi Santhi . Yes I'm here ( just been on a 3 day walking holiday) . Plenty of time to chew things over in my mind , but to be honest with what we've been given , it's hard to come to any firm conclusion .

Faron a have up until now been perfectly capable of raising small to medium amounts to get them to the next milestones .

Placings often over subscribed . Loyal shareholders , and they have been a shining example of how to conduct yourself . Multiple grants , and recently high profile tie up with LLS opening doors to the premier cancer treatment centres in the US .

The IPF relationship , although welcome at the time - has caused problems . The cash buffer requirement has been a constant factor in raising funds , and the previous re- negotiation , came after a period where the SP dipped into the 180's - and IPF came out of that with a much better hand . I don't think we have ever been given the full details of the IPF agreement - so we don't know about any small print . But compared to say a normal loan - IPF seem to have a lock over Faron with some severe penalties , and some other share price related conditions .

So - how did we get here ?

The accounting error reason initially seemed the most obvious - but I just can't see that as the case . Maybe it is and we are stuck in a pickle while Markku tries to get the company back on its feet ( a month to sort it won't be a complete disaster - but it will be massive egg on face moment) but I really don't see it . It's like running out of petrol on the way to church on your wedding day . They can't be that careless.

So that leaves us with IPF pulling some kind of stunt ( either alone or in step with someone else ) . For reasons to benefit either them ( some kind of extra cheap warrants/ options) that was in the contract ? Who knows . But also - surely it wouldn't do their reputation much good if future partners with them see how they are prepared to wreck a company for their own gain .

So the third option is that a deal was being finalised - funding was expected - but for some reason didn't arrive - and this situation occurred . IPF were handed this situation - and had full right to renegotiate their hand again - thank you very much . The SP tank will probably help them - so no rush in sorting it out while share not suspended .

Markku will not panic . There 'WILL' be options he can take . What they are doing now I suspect is working through waht will be best for the company ( and shareholders to a lower degree , and remember they are large holders themselves) in the longer term . They have by whatever reason - now got a chance to make themselves a bit less vulnerable .

So - for now - I am over the worrying stage . Out of our hands - all we can do is buy/sell /hold . I have read enough about the company to be confident in their abilities - and have belief in Bex .

I apologise if people have over invested here and are distraught - due to my ramping/ ultra positive nature .

I personally doubt I have that much effect , but I don't think I have ever spun a mistruth on here - just posted my thoughts , and presented facts - albeit with the Sax vibe attached .

Anyway - good luck all in what you do . I'm here anyway .

Big Pharma certainly don't need to see a completed P3 double blind placebo trial before they acquire a company .

In fact , most deals are done in pre clinical or early /mid stage phase .

And currently , those with a completed Phase 2 are commanding the best price tags .

What Faron have is very attractive . That is a fact - not a dream .

https://www.evaluate.com/vantage/articles/insights/ma/following-ma-money-phase-and-therapy-area

Last trade that went through at 164.75 was mine - and it was a buy

exactly - someone has pulled a fast one here .

ipf requirements have been pinned on the cfo's desk for 2 years now .

most shareholders would not have minded a further placing to get bexmab p2 finished .

timo is balls deep , and markku etc are also heavily invested .

yes dilution needs to be kept to minimum - but the havoc caused today outweighed any placing side effects .

i think they may have been ambushed with this - caught off guard somehow - who knows .

the solution to todays problem is simple - but the problem was created to cause this 'default' news - like faron were going bust or something . the company haven't made a penny yet - they are always bust - thats how small biotechs operate .

the fact that this has happened just as our breakthrough therapy is in the final stages of getting approval ( 1 year away is miscroseconds in the pharma business ) - and potential suitors are in intensive talks - is no coincidence .

lets see what markku comes back with .

sisu is in their blood - they've had worse chucked at them .

hold tight . i'm ****ed off , but i hope others here can see that this is a hurdle that can be overcome .

I just don't understand how this could have not been avoided ?

We've lost about £65 million quid off the Mcap today , because they were £1.5m short in the kitty .

I think they have been royally tucked up here .

Good news is that they will get it sorted .

Bad news is we have to endure this sort of caper .

Ok , it may all end well , but when they ( and I don't necessarily mean Faron) pull these kind of stunts , it just reeks of corruption .

As I understand Faron are meant to have 6m euros on hand and a 3 month runway to meet the IPF requirements .

So they have 4.3m on hand .

Surely this could be rectified pretty quickly .

I was expecting a placing within weeks anyway .

Someone has either dropped a huge b*llock here , or they are being targeted / played .

Markuu isn't daft , and Timo would be on hand in a an instant if needed .

This has been orchestrated , and I don't think Markku is to blame ( unless I'm proved wrong)

Yes someone is either looking to make a killing or force their hand into a terribly low priced funding package

No doubt weak hands will cause some havoc on the Nas - but I don't think Timo or big investors will let Faron get stuck in some kind of funding catch 22 for long .

I expect a placing will arrive shortly with the usual suspects taking part .

Faron won't be rushed or have their hand forced - but they have been caught short here somehow .

IPF have been bad news - they screwed the price down sub £2 for the last renegotiation , and have been a pain ever since .

Two reasons perhaps .

1.) A deal with a Big Pharma was being finalized - to the point at which IPF criteria would be met . However it crept past deadline or was stalled on purpose to create this mess .

2.)Someone in accounts needs firing .

Looks like Nasdaq may be coming back on line -

Looks like IPF have stuck a spanner in the works again - no doubt in order to renegotiate the deal to their advantage .

But how did our CFO not see this coming ?

Sound a bit underhand to me .

Surely a quick £5m placing could have been rustled up ( and no doubt now will be at a lower price )

AIM still trading - but NASDAQ still suspended ?

Great . Nicely orchestrated .