Hope SP goes up before March 2023 - GDR have a history of offering Instituitional Investors big disc11 Oct 2022 19:51
Past behaviour can sometimes (but not always) give an indication of the future. Below is a summary of GDRs fundraising history over the last 6 years:
- 23 June 2016: at 80p per share which was an 11% discount on the mid-market price from 22 June 2016 (next placing was 29 months later as the company made money from the disposal of part of the business and received grants from the American Military)
- 16 November 2018: at 23p per share, which was the mid-market price from 15 November 2018 (No % share price discount applied). The next placing was around 18 months later.
- 5 May 2020: at 80p per share which was a 60% discount on the mid-market closing price from 4 May 2020. The next placing was around 16 months later.
- 10 September 2021: at 25p per share which was was a 40.1% discount on the closing price from 9 September 2021
- NEXT FUND RAISE: We had cash reserves of 6 million at the end of March 2022, with no debt, so funded for about 15 months (around June, 2023, assuming a £400,000 a month cash burn)
My issue is, given the lack of sales and failure to commercialise any of the products in the last 2 years, the board has had to give significant discounts, in order to make placings attractive to new institutional investors (i.e., 60% discount in 2020, and 40.1% discount in 2021). It is imperative that we get some positive news on sales soon. A 60% discount on a placing of a 12p share would be a disaster.
I remain hopeful, but also sceptical because of failed promises regarding sales and commercialisation, from the board of GDR in the past. Lets hope AHIL and POC sales materialise very soon.
Sincere good luck to all long term holders.
Stephen11.
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