RE: Roll on February20 Jan 2023 09:39
Feb 21, 2023 will be a "trigger point" for my Synairgen investment as things stand.
The London Stock Exchange Synairgen page quotes the following:
52 week range: 10 / 209.80. YTD return: - 5.19%. 1 year return: -93.76%
On Feb 21 the 52 week range will become 10 / 35. It is likely that the YTD return and the 1 year return might also depreciate unless there is an incoming positive development by then?
The company has set up a stall over the last eleven months. All the data at Synairgen's disposal has been analysed and published. Moreover, the potentially huge benefits of our broad spectrum, host directed, product has been presented at US conferences, and in a round table discussion with well respected participants, last month. LinkedIn, twitter, and Synairgen's website have placed this information at the disposal of any interested parties.
Unfortunately, there is currently no incoming income stream. Consequently, the progress made has been funded from the remainder of the cash raised from investors for trials. The high-level staff hired in anticipation of Sprinter success are costly. The job advertisement, which we discussed recently gives us an idea of the scale of that cost. I am unconvinced that these executives are able to justify these salaries, through no fault of their own, I should add?
Synairgen's future aspirations are well known to investors. Little has changed on that front, and there has been a reassuring consistency in the message given to investors. At this stage, Richard Marsden has thanked investors for our resilience, which is entirely correct. All investors, who have remained with their investment, and even added to it, have shown a high degree of belief in the future of SNG001. The information at our disposal, and the potential of the product from the statistics quoted on Synairgen's website and elsewhere justifies that belief.
The final questions at the forefront of my thinking are:
Will the company be successful in negotiating a suitable trial opportunity? In this, I agree with investors on this forum, whose subject knowledge exceeds my own, that a platform trial such as 'Strive' would be opportune given our circumstances. A Joint Venture is less likely in my view. Why would a large entity want to participate in a JV, when they have the means of buying the company? This leads to my next point.
What is TFG's strategy as regards their 28%+ stake? Undoubtedly, having made a poor choice in their original investment, as in the case of all all over-invested LTHs, they will seek to make a profit. In order to achieve this, they presumably would need to shepherd Synairgen through a successful trial, or else partner with major pharmaceutical company in arranging to buy the company at a suitable price? This is mere guesswork on my part. Perhaps they have another strategy in mind?
As I see it, Synairgen has another month to arrange a deal to fix the share price before a "trigger point" is reached?
GLA.
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