GreenRoc Accelerates their World Class Project to Production as Early as 2028. Watch the full video here.
Well obviously. They'll just sell on the shares as soon is practically possible without making a loss. It shouldn't be too difficult for them to make a small profit if they time the sales well.
Yes, tkevin, you must be right. They ended up being the underwriter of last resort as it were.
They may have to come up with a different plan when it comes to next year's fundraise. lol. People will not subscribe just because share price is still 20% higher than offer price at that point. On the other hand, they may have the got the business on firmer footing by then.
Very well played by Peel Hunt!
Don't really know to be honest Bighammer. The draft guidance is saying they prefer lab tests for the stroke application but if POC has to be used then GDR is preferred. How this will translate into sales for GDR seems difficult to say.
In other words, what I saying is I think potential for BIG rise if funds are raised (though it might take some weeks or a couple of months to get the best out of it as people who hold shares at 1.5p average sell for quick profit)
Muminr,
Maybe a chance for me to get back in if they raise the funds. Obviously they saying they need at least a year before they breakeven. Personally would be looking for short-to medium-term gains if they get funds raised. This would take away going concern worries. However, would still be careful about holding on deep into next year as very common in these situations for company to say they still haven't broke even and in fact need to do another raise.
As I remember in one round of fund raising they did a couple of years ago about £4.5m was raised from an II placing and just £400k was raised through an open offer open to retail shareholders. So I don't think it definite that they reached the target this time, bearing in mind they now trying to get most of the money from shareholders and retail! But I'll be pleased if they pulled it off.
The £6m is what they saying they need to get them to break even based on forecasts. If IIs were seriously convinced about the forecasts then they would have probably stumped up all the money themselves. On the other hand, funding environment still not great for companies like GDR....
My hunch is the shareholder offer will be fully subscribed. Question mark for me is the REX platform offer, whether they'll get full take up for that.
Hardman report:
From recent Hardman report:
Genedrive
As the old saying goes: “if it is difficult to understand, it is almost certainly detrimental
to shareholders”. Never has this been more true than in the case of Genedrive (and
more recently, Sareum). Although I accept that the board was probably in a difficult
position with a shareholder list of mostly retail investors, but desperate for cash, the
loan facility announced in March 2023 with Riverfort Global Opportunities PCC Ltd
(Riverfort) is extremely complex. After more than 35 years as an analyst, I consider
myself reasonably financially literate. However, I can honestly say that I have read
this agreement at least 10 times and I still do not fully understand it!
In summary, Riverfort made £5m available to the company. £2m was drawn down
immediately with the remaining £3m available for £0.3m monthly drawdown subject
to certain conditions being fulfilled. The loan capital is being repaid through the
issuance of new shares to Riverfort priced on a specific calculation (reference price)
and can be sold in the market, based on a series of conditions related to daily
volumes traded. On each drawdown, Riverfort also receives warrants equal to 40%
of the drawdown at the recalculated reference price, exercisable at 140% of this
reference price. The following table shows what has happened to date.
In my opinion, this deal is very bad for shareholders. To date, the issue of shares to
repay the loan capital represents dilution of 32.3%. The main reason for this is that
Riverfort is not a long-term shareholder, as evidenced by the fact that it sold down
its holding of 6.5m shares received in April to only 2.95m (-55%) by July. Even
though it has received more shares, its holding is not disclosed as being >3.0%
declarable threshold. Therefore, it is continually selling shares, which, in turn, causes
the share price to fall, making the next drawdown even more expensive.
Based on the current share price, Genedrive will need to issue an estimated18.25m
more shares and a further 8.0m warrants, which would provide the potential to raise
another £0.85m. dilution of 56% and in the
event that all the warrants are exercised, this would increase to 78%, but potentially
raise a further ca.£2.8m. However, given that most of the warrants are out of the
money, there is a high probability that the warrants will not be exercised.
Amazingly, Sareum announced a similar deal with the same investor in November.
On the evidence of GDR, guess where the share price is going!
With the price at this sort of level, you would think all the parts of the offer should get the buy in they need, including the REX component, as it theoretically means folks can make quick arbitrage profit on placing even if they don't want to invest long term.
They definitely stand a chance of doing it if they can raise the £6m. On the other hand, will always be significant chance of another raise, especially is £6m isn't really a lot of money, so little margin for error in the forecast. At the same time, if they hit some milestones, they might not so much difficulty raising more money from IIs anyway.
I keep checking the REDX website everyday. Major slate of news due within next 6 weeks, so it's not going to be this dull for long:
https://www.redxpharma.com/news-events/
https://www.redxpharma.com/investor-centre/
True Slacker, but why bother repeating the same tiresome post over and over again. There's lots of basket case companies on AIM anyway. To me the very fact that the REX platform exists is further proof that AIM is in trouble. It obviously difficult for firms like these to raise all the capital they need from IIs in the traditional way as before, through underwritten placings.
I wouldn't worry about going private. Most of the biotech type companies that had plans to delist were well funded for next year but we're looking to use delisting as a stepping stone to a Nasdaq listing at a higher valuation IMO. GDR has very short term funding issues (and long term ones). Also doubt GDR will meet the requirements to list on Nasdaq for a while yet (if it ever does)
If there is still some kind of fund raise coming can only think it's been held up by them waiting for RF to sell their shares. But surely RF have by now managed to sell all of that last £600k from the drawdown on 2nd January.
This probably the lowest their cash has ever been - currently only about £500-600k....
There is a possibility that there will be no drawdown now and no fundraise and with only just over a month of funding left........