Whats happened is the bod took out a loan, broke the covenants and the lender has called in an administrator to retgain their cash. All pretty normal but it seems as if things were misrepresented by the company - who knows?
Diagnostic, this will not fizzle to nothing imv. The minimum I shall do is make a formal complaint to the FCA and they must investigate which means some people in DDDD will likely feel some discomfort.Hopefully more will happen and some recompense will materialise from action elsewhere - we shall see.
Diagnostic, a shag [ shareholder action group] can achieve the following; Pooling of ideas and views as to what has actually happened, especially who did what and importantly why. A crystallisation of views around the point of whether there have been illegal actions or inactions by the main players involved Ideas and hopefully agreement on the way forward Pooling of resources , especially effort and potentially finance A lobby group or group of agrieved parties who can share a legal action Importantly a feeling that we are doing something positive.
Stiggsy I am in a 4D Pharma Shareholder Action Group. It seems to have a large number of people and a collective large loss and seems to be galvanising thoughts on what to do next. Hopefully the above helps.
Sang, you seem to have been watching the company closely and offering caution to investors . Do you think that DP has misled the market wrt the financial position , as appears to be the case, and if so where is the evidence in your view.
Tig, Good email and thanks for posting the response. As it happens I complained to FCA a few years back and was unhappy with their response - because they had not investigated thoroughly and so I complained to the Complaints commissioner who investigated the matter and agreed with me . The FCA was instructed to investigate the matter again , which they did . Ultimately they found in my favour and admitted they had messed up. The whole process took about 15 months but I felt vindicated in the end. Good luck.
But the final paras can be read as positives; The model is at a possible inflexion point with a potential headwind from bigger brands going D2C or as a beneficiary of fragmenting demand empowering premium multi-brand models such as JD," CS analyst Simon Irwin said, reiterating his 'outperform' rating and 200p price target.
“So an extended period before a new CEO lays out a new strategy is unwelcome, but we see few signs of execution slipping in the meantime.
RE: Administration can lead to a better place than a 16p exit yesterday04 Jul 2022 07:25
One option surely is for the administrator to offer the company for sale as a whole or in lots based around individual drugs , see what comes back after say 3 weeks and choose the best combination that gives OF their cash and a future of some sort for all the projects. Investors will be at the back of their thoughts imv.
Oofy , I tend to agree about the FCA but I will still lodge a formal complaint. In addition all investors have a claim imv against the Bod for failure to disclose in a timely manner . Specifically what is missing from the 1April RNS in the section on going concern are the words ‘ April fool’ the company is not a going concern because we have already breached the covenants and OF want their cash back !.