Sensible opinion27 Feb 2023 12:06
DTwig you replied to the wynbore thread, but your post deserves its own thread, hope you don't mind:
Some absolute garbage on here this morning, sadly, distracting from the fantastic content of last week's SD.
It's difficult to ignore, I agree but unless you are planning to sell your shares imminently it is almost irrelevant if the SP sits at £1.45 or £2.45. There are only three important questions that SH's should be asking themselves this morning:
1. Does it work? we now know the unequivocal answer to this question. Unfortunately most of the posters this morning are too thick and lazy to have read/listened to anything from the SD.
2. Does the science have commercial value? - Myles M and RAH have gone to great length to provide rationale to this question, I have yet to read a single sentence from any aquatic mammal that can provide a sensible contradiction to their assessments.
3. Do Avacta have the cash to progress to commercialisation? - Regardless of your perspective, this is the one question that cannot be answered.
What we do know however: (all in RNS's)
A) - AVCT received 'a minimum' of £45 million in November from the convertible bond offering of which they needed £24 million to buy Launch
B) They also received an extra £7 million in October from the 95p raise
C) They were sat on £17 million cash at end June 2022
D) They lost £9 million first 6 months of 2022
If we assume that the losses are all cash (which may not be the case) and you don't count any 'new' revenues from Launch this would infer that they are burning £1.5 million per month against a cash pile of circa £40 million, or just over 2 years of cash runway.
Can they progress the pipeline to commercialisation within this time frame? That is the only question that matters and after reading and listening to the contents of the SD (I have), there is no doubt in my mind that this will happen well in advance of any shortage of working cap
Ignore the noise, ignore the SP, read the RNS,s and SD material