focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Something should be announced on the funding side this month if they're true to their words (even the written ones):
The Board is planning for an equity or debt raise in early 2024 to support the growth and development plans of the business and allow the Group to continue to operate as a going concern. The Group does expect to receive an R&D tax credit of c£0.8m in Q1 of 2024 which, if received, would extend the cash runway (absent any further funding received) towards the end of Q1 2024 and provide a longer window for our planned financing activities.
If they haven't had the tax credit they only have about £600k in the bank left. Interesting if they don't announce a drawdown or a placement this month as that could actually mean receivership is not far off.
Jimi never lies does he. lol
If they can't get IIs to back them through a traditional placing, the trouble is the RF drawdowns are far from assured. RF has a particular business model. It's a lender not an investor. They need to agree the drawdowns as the share price is below 16p. GDR even highlighted this in the last results RNS.
This post from someone on the RENX board just now is also very apt for GDR:
"This might be a revelatory moment for you, but a company having no cash and being close to bankruptcy is an international philosophy, whether UK, USA or Timbuktu, it has the same end result - Zero, or a placing at a incredibly high discount."
Previous granting of options:
https://www.lse.co.uk/rns/GDR/directorpdmr-shareholding-ke8pg9k2tvpvylz.html
I'd definitely invest now if the funding was already sorted. I think safer to put money in post-fundraise.
They have granted options before. It will be an ominous sign if there's no drawdown next week. RF have to agree the drawdowns with the share price at this level.
And since 3 months have passed, that £1.2m is all gone. Just the £600k drawdown is left now in the kitty, or if they've been lucky to receive the £800k tax credit, £1.4m is in their account.
The £1.2m included the first £300k drawdown (cash burn is £400k per month, or £100k per week):
The Group's current cash runway is limited; unaudited cash as at 23 November 2023 was £1m and further funding will be required in early 2024 in order to continue as a going concern. The further payment of £0.3m pursuant to the Investor Placing Agreement announced on 29 November 2023 is due to be received shortly.
Correction, either 600k or 1.4m
The last drawdown (from the death spiral finance) was for £600k, not £900k, and they stated they expect a tax credit refund of £800k (but they didn't know exactly when it would be received.) So they either got 600k in the kitty or 1.5m right now. They may well do another drawdown tomorrow though, or early next week.
Lol, he doesn't work for NHS England though does he. He's a CEO/salesman for a tiny "startup"
Hilarious and surprising if he actually said that. At what point was that in the video (number of minutes in?)
The bit about specialist commissioning he says its definitely happening. And then a few seconds later says and I'll be doing everything possible i.e talking to people etc. Also quite funny. Reminded me of the state agent trying to sell my house.
That isn't the timeline that can be expected as far as I can see. Three years of data gathering with NICE (for some reason they will only consider the data from the actual study (studies)) versus about a year to get specialist commissioning with NHS England.
Lol, I really believe GDR are about to announce another drawdown.....
Why did this share fall so much since last summer?
I appreciate Joe for pointing out obvious risk factors here, especially as this isn't a sector where I have much nous. But personally still tempted to put some money in at the short term trading bottom here as big interest means this could easily start to rally on no news. Is the current floor 1.8p?
It's obvious to most of us that good long trading opportunity at the moment when it hits 2p, or even as low as 1.8p. But does have me a bit concerned when people talk about the potential feasibility or not of getting it out of the ground. BIG investment will be needed in all likelihood.
It's a good article. Interesting a big proportion of the article is talking about CYP2C19. It doesn't talk about timescales though.