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It takes a special kind of person to go down with the sinking ship... Clear as day, this is going down. The fundraising is not enough to stop the rot in my honest opinion. Fast forward 12 months and then suddenly you're in the same terrible cash position as before. Loss making companies with less than 12 months cash burn are basically forced by auditors to raise money. With high interest rates, the market for funding hope-hype, speculative loss makers isn;t going to suddenly improve. Worst of all is the death spiral bond that's in play - absolutely dreadful for equity holders. All AVACTA is now is a punters stock. Total garbage. Even the prophet pied piper McPumpy has moved on
Clearly the Board don’t agree - putting a combined lousy £65 grand (!!!!!!!!) in to the placing. Hardly a sign of confidence. This is now purely a traders stock for a few months. I predict it will hit 40p at some point in March. Then back to 50p. Of course most will ignore this (again!)
I was originally thinking of just buying at the placing price but I now think this undershoots. The 2022 low is 40 pence. No doubt it will test that at some point soon. 40p to 50p - that's the trade. This is now in the hands of Traders, dreamers
WOW 65 whole thousand pounds - the Board really believe in the project. Unfortunately, this is following in the same footsteps as 4D Pharma. The BOND financing is really worrysome now. I think this goes to 45p tomorrow at some point.
SHOCKER. It's so bad, its even putting me off my post placing trading idea....
So the RNS evidences that the current cash figure of £18m was total nonsense. It's more like £12 (i.e. a few months).
The bond terms look very worrying to me. They will keep getting converted at 10% WVAP discounted until fully repaid....
How is the company ever going to get rid of the death spiral bonds without a huge further discounted dilution.
I predict this will fall below 50p tomorrow.
SHOCKER but clearly signposted for the non-morons
Avacta is a clear buy. The share price action demonstrates that a big commercial deal is about to be announced. Also, the cash position is very healthy and the company doesn’t need any further immediate funding. Its balance sheet is strong and has a clear path to huge profits.
I am looking to buy in for a trade at the right price. I also like the company and its aims but I look at stocks dispassionately. I’m also surprised that people can’t see the basic facts of what is happening here. I find it intriguing- hence a little flurry of posting
I think if the share price falls over 20% on no news the Nomad requires the company to announce whether it knows any reason for the fall. Could be triggered today? Either way, the company needs to clarify where the cash is coming from… this is poor form to let the market speculate a placing is coming… unfortunately, all too common for loss making cash burners on AIM
Apologies to current shareholders but a clear path is to wait for the funding announcement, wait for McPumpy to rile up his merry band and then buy in for the inevitable hype drive. If there is a Hail Mary deal, then you miss out but the likelihood based on current share price action is there isn’t… AIM is unfortunately terrible for leaks…