Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Here ends a rather painful lesson in how not to acquire and run fledging companies with no history set up to address a one off crisis. Good that ekf are looking to clean house, bad that shareholders take the hit - although it’s not clear yet what the true cost of this will be - we will hear more next week. SB
Perhaps you are right on the FDA announcement andypa - I am getting to the point where all my trust has evaporated in a number of investment including renx - it is possible we will never know. On your point on FDA approval not being important - historically I did not see this as a barrier to growth. However, until such a time that the company can actually show it is selling tests in volume to others rather than Sinai clinical trials, I am more inclined to see FDA endorsement as an important milestone which will address any remaining barriers from potential clients. Medicare local coverage determination was forecast for the first half of this year - another very important bit of the jigsaw - and appears to be separate from FDA given individual claims are already being processed in NY. ATB SB
At least we now know why the placing was at such a heavy discount - this has not just happened overnight. Makes you wonder what's on the cards for the H1 results.....SB
If the company does not secure any revenue this year - and as it stands that is the case given we have no agreed commercial reimbursement for any of our products - then at the current rate of spend the company will run of money by Dec 2023. A material issue which auditors will note in the full year accounts. imo the next update needs to cover where we are with securing pricing agreement; what cost efficiencies can be introduced to mitigate cash burn; how the company intends to distribute its products (direct sales or via agents) once pricing has been agreed; together with a general strategy on how the company wishes to develop - stand alone or partnership. Clearly stand alone in the current market funding market has become very difficult hence the perception the business will struggle. SB
I bought here for the SIPP dividend income but did not expect this to go near the covid 2020 levels. Quite baffling given the reasonably solid portfolio which benefits from high utilities and inflation pricing. Largest discount in sector by some distance for a share now yielding almost 8% at current price. I would say crazy but nothing surprising in current market. SB
If as anticipated the H1 results come out end of next week - Renx will know how it has performed in Q3 as well an announcing Q2 within H1. One of the issues which has continually been avoided is why we have such a large sales force when the vast majority of test sales are to Sinai. No point in talking about super majority state wide insurance coverage, VA, Medicare (only case by case for now) if no one is willing to commit to sales. Part of fund raise was sales related incl currently advertised roles in New York. Need to evidence overhead reductions - we were told $12m cuts moving into this calendar year - so costs should be below $10m per quarter. $1.4m Q2 would be 40% growth - c. 1700 billable tests V 1200 in Q1. As predicted in the absence of any other update - price now below the heavily discounted placing. SB
This all started with ekf which itself is now a basket case - although it has a chance. Renalytix, Trellus, Verci, Ekf - Harwood and Mills are the common denominator is these health sector disasters. Sadly quite a few of us believed the growth stories and invested in each - to significant loss. Difficult to see vrci surviving the next 6 months. SB
The basic issue here is the one that effects similar early stage biotech stock - investors gamble that the products under development are so appealing to the clinical market that they will not be allowed to fail. Unfortunately this is all too often not the case - and in the current market the risk appetite has virtually disappeared. Yes VRCI had cash of $15.7m at 30.06.22 - but spent $5m in H1 2022 (salaries, R+D, licences, fees). Based on that spend rate of c.$800k/month - we will have about $8m cash (plus some other non cash assets) at the end of this month. We appear to only have one current route to securing revenue - tutivia - and as it stands we have no insurance reimbursement - from what I can see we have the codes - but are yet to make applications to secure cost and coverage determination under Medicare - and do we expect these major milestones to be submitted and approved before the company runs out of cash end of this year? This all presents a major problem - does the company continue as a stand alone entity and hope to secure additional funding from Harwood, Sinai etc; be taken private to conduct this behind closed doors; or look to partner/sell its IP. SB
Sadly unhooked I think the outcome you describe has more and more weight as each week goes by. Patents and laboratory certifications simply do not pay the bills. To think funds were raised at 35p one year ago; including ÂŁ2.5m from ekf which is now worth c.ÂŁ500K. The further irony is that shareholders from last June are still waiting on their ekf distributed shares here - there has to be significant risk those shares never materialise - or even if they do at what value - unless there is a substantial change in operational performance. We are running out of time. As usual, it is PI's who have the most to lose here - and who are likely exiting. SB
On the basis of todays announcement I opted to reinvest the March 2023 cash dividend back into GCP shares. I am hopeful we will continue to see ongoing improvement in the NAV - with the next update expected in late April. SB
As we have seen elsewhere unhooked - the health diagnostics market is on the high risk register for now - with little or negligible value attributed to innovative products with no current commercial payback. As far as I can see we still have no agreed pricing reimbursement for the two lead products, and no feedback on how the soft launch of Tutivia is going. We are likely burning just under $1m a month - giving us to the end of this year to show we have a future as a commercial operation with current cash. Add in the SVB debacle and potential impact on wider sector fund raising going forward and implications for existing shareholders - and I can understand why investors are choosing to exit. I'm holding for now. SB
It’s difficult to call the bottom here Hawker - possibly the placing price even with its substantial discount appears at risk. What we would give for a hint on Q2 revenue….SB
Blimey Hawker - good effort - at least someone is providing a bit of price support! One way or another we are due to hear from RENX in next three weeks.....SB
“ Renalytix plc (the “Company”) is aware of media reports indicating the closure of Silicon Valley Bank (“SVB”). The Company does not hold any cash at SVB and it does not have any banking relationship with SVB.“ SEC filing March 10 2023
Phew…..SB
That’s the very question I’ve been looking into today unhooked. I’m probably not in the category you describe - and so far I have found no link to SVB / but the reality is iRenx has c.$30m+ cash and it is unclear which bank is holding. Renx works with Citi bank in US - but as a primarily UK based corporate I am hoping deposits are UK based. One thing is for sure / those with an exposure will be issuing RNS updates first thing Monday - SEC filings started in US on Friday - and there are some big hits - Roku $500m. Another worry we could do without. SB
As bad as this I’m hoping that’s all it is donmac - and not a leak ahead of bad news next week. SB
Good to hear some optimism here - terrible week for Renx on both sides of the Atlantic bearing in mind we are due some blockbuster news - market turmoil or otherwise - and the fact remains we are heading in the completely wrong direction. A familiar pattern for me recently……. Nuts. SB
UK and US shares in constant decline now - slipping below non discounted pre placing price - and worst case could be heading to the placing price itself with the lack of tangible updates as investors weigh up the risks here. SB
Apologies jatw - looks like you were spot on! I did say this was a month for the jitters - still waiting on the milestone rich RNS schedule…..expect we will see a small move down in the morning to follow Nasdaq, unless……SB
I think it’s just a bit of price drift after a pretty decent run over the last couple of months - up over 100% - and we have slipped 10% from recent high of £1.50. Seems March is world kidney month - you would think if an FDA announcement was going to be made - this would be the month to do it…..SB