Member Info for Silverblade

Harwood/Mills sold 80k shares at 8p then bought 500K shares at 9p following day as part of fundraise - nothing to see there - other than their take up of the first placing shares was lower than historic investments - they have been reducing exposure over time. Perhaps they have no fund which specialises in venture capital schemes as it appears this was used heavily by Oberon in the placing. In total some 174m new shares are being issued in two tranches (taking all shares issued post GM late October to 333m); and so far we know Unicorn have picked up 19m; Sinai 13m (in lieu of debt - and now holding 37m); Jefferson River Capital 11m (now holding 20m) - so there are a lot more declarations to come on holdings. Interesting to see if Polar, Rothschild, Pentwater, GGH, Lombard picked up more. SB

Its a tender offer at 80p - but only for a limited amount of shares. You will have to declare how many of your inherited shares you wish to tender, and you will be able to sell a % based on the uptake. Worst case you will be able to sell 6.2% of your shares at 80p (26.25m shares being bought) - best case more if others choose not to sell (unlikely imo given the offer price v current share price but you never know). SB

We knew the fundraise was coming - and at 9p its a painful dilution. But its done and as part of the process it looks there has been a lot of corporate financial clean up work done - messy but you have to think it was essential to secure support for the fundraise. Running costs slashed across the business. It does seem poor to say the least it came to this point before reality bit - but its now about moving forward. Interesting Julian Baines is making a reappearance - he was a key figure at EKF as Renx was spun off; and was dragged back into EKF as it had its own disaster management plan rewritten post covid issues. Baines remains exec chairman at ekf for now; as well as non exec at Trellus (where I see Mike Salter has popped up following the ekf fiasco he was involved in). My point - Baines and Christopher Mills remain key figures in the kidney diagnostics market through their involvement in ekf spin offs - and whether we like it or not are likely key to future success. SB

Does seem a bit strange that a share which is stated to return 7.5p per share (5.75p capital return and 1.75p dividend) by end of year is struggling at these levels - that's nearly a 10% return in next 3 months at current price. Although the capital return may be delivered through a tender offer based on recent similar activity at sister company GABI who have been distributing cash as part of a managed wind down - would take out c.5.4% of shares if they go for NAV redemption. SB

Final year results are a bit late - but the reality is there is corporate activity going on behind the scenes - which must include new sources of funding or company goes private. By delaying results the company will also know 100% the volume of tests which have been sold in the first quarter of its new fiscal year (July - Sept 2024) and includes two full months under Medicare coverage in the areas covered under the National Government Services LCD announcement. The handling of the 'formal sales' process was typically guarded and its no surprise we are where we are - all confidence has evaporated and failure to show increase in revenue as part of the Nasdaq required business plan in a few weeks could be ominous - although the opposite could apply if the sales team can show market traction. SB

Interims pretty much as expected. Not a fan of the NAV discount being addressed by ongoing meddling by mazars tinkering with discount rates which reduces NAV (NAV was £1.57 two years ago and has dipped below £1.50). That said - most here are probably driven by income opportunity and in that relation all looks good - 20 years of 2.5% minimum increased dividends in the bank; share buyback increased from £40m to £60m with a clear indication that future divestments are close to being announced; and limited follow on investment activity continues in assets which are generating higher returns v buybacks. 6.7% 2025 yield based on current prices is pretty decent. SB

Just read that again - doh! I would of course prefer an increase in NAV but based on previous company comments I think we can expect a minor reduction in NAV. SB

I’m just hoping there is a minor dip in NAV and they can provide a bit more on potential larger value divestments - or at least look at revaluations based on increased asset values not discounted cash flows increases which drive down NAV. SB

Whilst the cash balance remains the same for the last two quarters ($4.7m) - we need to remember the business raised $13.5m in two fundraises - with the money likely flowing into the business in March and April. So in that period the company is still burning cash. What will be critical is the continued reduction in opex (targeting $23m pa, c.$6m per quarter - they hit $6.5m in Q3 2024); and obviously increase in revenue to continue the quarter by quarter reduction in net loss. Looking at the numbers in more detail there may be a glimmer of hope that the Q4 net loss has decreased again (sub £7m) implying test sales are increasing/opex is continuing to decrease. The current trading quarter will be all important - we have a sales force, all the approvals we need, and pricing. Forecasting the company has enough cash until calendar Q4 implies things are improving based on the math. All imo. SB

The next financial update is likely to be the full year 2024 results which is due late sept. Those numbers will include the Q4 trading period (April - June 2024) which can surely only improve on the prior period sales of c.800 tests (82% billable) and revenue of $500k. The company is now in its 2025 financial year - and as you note Jatw at the time of the results in Sept they will pretty much have Q1 2025 numbers at hand. Whether they decide to disclose current trading will be very interesting - if they are making traction I would expect them to update accordingly. As for the 'formal sales process' - 5 months+ with no update - unusual imo - but it is Renalytix. Other updates - where are with Nasdaq ADS listing - its never been clear as to the timetable for hearing back from the panel outcome and one might wonder where the transparency is on quite an important subject. Renx are currently recruiting for both a clinical lab scientist and Director of lab services for their NY lab - can't read too much into this other than hoping this is linked to an expansion of lab testing facilities based on an increasing test volume.....SB

Good to see INPP expanding its buyback programme - its not huge in the overall value of the business but makes sense at the current NAV discount. Will be interesting to see if any large scale divestments are announced as part of Interim results - I still believe there is significant value in INPP holdings which are valued in discounted cash flow terms as opposed to market asset value. That aside - difficult to see what else the company can do reduce its discount - they have a £40m buyback, increasing dividend, no debt, limited investment programme and raising cash divesting in assets valued at or above NAV. With no debt to repay - future divestments could see a return of capital to shareholders. I have taken the opportunity to make some more purchases at this price - by 2030/31 the fully covered dividend will hit 10pps based on current estimates. SB

I agree the business appears undervalued - but its not alone in that regard. VRCI is still in its infancy - and has only launched one of its three core products. The issue of revenues is an interesting one - because the company is not actually generating any revenue from its tests - all income is down to its licencing arrangements with Thermo. Although tests have been carried out at various transplant centres - we don't know how many are being made - and there appears to be no way to recognise the sales revenue until an LCD is secured - potentially later this year. At that point retrospective test sales can be backdated through Medicare - presumably at the agreed test rate of $2650 - and on all future test sales. Reimbursement via approved US insurance plans is key to any sales revenue generating future for VRCI - although licencing deals and IP value appear to be a good route to short term revenue and possibly longer term. Unless someone decides to take the business out - but with funding until 2026 it would have to be at a decent premium to make it attractive for major shareholders (and Sarah). IMO......SB

Splodge - annual report is always useful in regards to remuneration, options etc. And the only thing I have in common with Sarah B is the initials!! SB

Sarah B has 5.7m share options, exercise price 20p anytime up to 2030 or usual change of control measures. So she’s not going to be taking any action until we see a significant improvement in share price - but it does create significant incentive. Her $500k salary package will just have to suffice in the meantime :-) SB

The 1.3m trades appear to be delayed notification trades from yesterday - and more than likely they were buys? Hopefully this is the start of a recovery here - lots to look forward to. SB

18m shares and climbing traded already. That's a huge volume - interesting to see who is buying/selling - only major II's have that volume of shares to trade. Possible exit for nervous investors based on spike above recent placing. SB

Share price struggling to hold onto 80p - breached a few times now which triggers selling. Sister company GABI being would up - and ironically showing its portfolio was pretty healthy and sold assets achieving NAV or better. Good sign that Gravis know what they are doing and should prove beneficial here once tide fully turns. SB

Https://uk.finance.yahoo.com/news/renalytix-submits-hearing-request-nasdaq-223000561.html

If we were looking for red flags they are here in abundance - senior management changes; ongoing unsustainable losses; evidence the current finance team have a recent history in delisting; nasdaq compliance issues; adviser changes; shareholders with a track record of taking company's private; a CEO who appears mute to the elephant in the room; a sales process which is verging on bizarre in its timescales and communication; II selling (Penwater - another 400K today); various resale agreements and at the market offerings which are confusing as their purpose. Unusual doesn't even cut it. Against that - yes there are positives - the insurance, reimbursement, regulatory narrative rolled out by JM - i've not seen anything like this for some time but accept similar confusion reigns elsewhere. Where does that leave us - a lot will come down to Sinai, Harwood, Jefferson etc having confidence in JM to deliver both in terms of his strategic plan to rescue the nasdaq listing (or perhaps they don't actually care - as noted previously there are options and some orgs don't mind unlisted investments) and to generate sales - because is everything else not now in place which could be blamed for a lack of progress? If not - surely there are major decisions to be made on current leadership and a sale to the highest bidder - if they have not been tuned away which can only be down to price - and who has the final say in such discussions? What's the IP worth. £1m? £10m? £100m? Who knows. I know that's not a great deal of help but I'm still holding FWIW. SB

The more you dig, the deeper you get. Renx's finance led non-exec Catherine Coste also serves on the board of directors of Minerva Surgical - which delisted (voluntarily) from Nasdaq in Dec 2023. Guess who was the Chief Financial officer at the time. None other than Renx's recently appointed Interim CFO Joel Jung. It's called 'going dark' in industry speak. No wonder there's a rush to exit ADRs. SB