Member Info for Size82

Doc. D, what's the likelihood RM acted in good faith? I might be bias, but when looking at this objectively I suspect the delisting suits him.

There was also a lack of disclosure in the run up to the raise. Probably on purpose. Look at the date of the raise.

This whole affair is shady to say the least.

Good post Doc.D at 9.46.

At the EGM. It was reported RM mentioned his responsibility was to progress the drug as CEO, but he has an equal responsibility to look after his shareholders and he is complicit in totally screwing c.a. 71% of shareholders with the dilution and delisting.

Thanks for your notes Jint.

What a scam. By the end of phase two TFG will have received 1.8 billion shares and diluted other shareholders to below 8%.

If you thought you breakeven was x going into the delisting - the reality is that it will have doubled again by the end of the trial!!

You might be correct that this is a right off, however it is worth pointing out. TFG will charge fees to their LPs (clients) on the equity they invested in their fund. The delisting of Synairgen is a pe style deal. The equity raise was designed to push dilution to the maximum in order to get TFG out of a hole, part 1. They've gone from 28.6% ownership to over 75%.

They still need to get out a hole, part 2 - a successful ph2 trial. Jury's out on that as Doc.D has pointed out their isn't firm evidence that SNG001 will work at such a late stage. It's a bit of a roll the dice and hope. That's probably why this is a right off. GLA

Nice posts Doc.Daneeka. I've enjoyed your posting over the years. Best of luck in the future.

Correct Gampy

Ouch. Happy days for TFG

Maybe the £6m max amount was oversubscribed

Thanks, doesn't look like there's been a leak yet..

Shouldn't there have been an announcement this a.m.?

Bob, I'm pretty sure they'd have to have disclosed the start of a ph2 trial as a public company.

Gampy, re. Open offer. Non TFG shares are treated the same irrespective of whether they're retail investors or institutions. Non TFG shareholder can (over) subscribe cumulatively up to £6m. If that happens TFG will invest £13.0m

Mani, the £2.9m target is the amount raised if all existing non TFG shareholders (71.4%) take up their 2 pence offer. You might be right that it will take a big existing shareholder to over subscribe, but aren't some of those high net worth individuals who know RM? I'm not sure it needs to be a fund (institutional investor).

Don't disagree on TFG's intentions though - they've set this up to their total advantage. Completely unequitable. They get to shrink their average by c a 90%.

Re. TFG hoovering up shares. If this delists why would any one sell? Realise huge losses or just wait a few years to get a chunk of money when TFG sell Synairgen. I would have thought most investors would just wait. Will hold my hand up though if it plays out as you suggest.

I agree Mani. TFG have gone for the jugular enabling them to drastically lower their average while having total control. No buyout bunfight required. They've clearly designed the whole thing - fair play to them in some respects. RM is their useful idiot for want of a better description.

I think an issue which is even bigger than delisting is the unequitable number of shares TFG have the right to buy versus the open offer, thus allowing them to shrink their average to about 8 to 9 pence (from c.a. £1).

By contrast any other existing share holder has the right to buy 1 new share for every 0.678 shares they currently hold. Put another way if you have an average of £1 you can get ypu average down to 42 pence (prior to over subscribing).

That's just a bad deal and no sense of remorse from RM in his latest interview.

It would have been way more equitable to have gone to the market first to raise the cash without TFG. The level of dilution is brutal. It's worse than I anticipated back in the summer.

Gampy, not sure but the fact the sp hasn't collapsed to below the placing price could be a positive sign. Be interested to hear others opinions.

The only p!$$ing Fruits was a Ph 3 trial up the wall!

Sorry Fruits, no hindsight. I disclosed I sold back in August due concerns over dilution when it was disclosed SNG needed to raise funds for a ph2 trial.

Until then we had always been advised by RM that we had the funds for a ph2.

GLA

Fruits, this type of raise / situation was so obvious from September's announcement. I just don't see how anyone who follows this company closely thought there could be any other outcome. It was just so obvious massive dilution was on its way.

I disclosed at the time I sold out (at a big loss), but better than seeing my remaing stake half again. At the appropriate time I will buy back in if this stays a public company as i think the trial is likely to be successful. It's a sh*t situation for long term investors though, but better than insolvency.

GLA x

Hi Amers, this level of dilution and a raise at 2 gbx was entirely expected.