RE: Today's RNS reality27 May 2024 11:39
Strangy, if we can keep this civil:
My views here only occasionally reflects my trading perspective. At times I see the possibility of a "quick" trade suggesting a profit. (Which I tend to highlight).
Mostly my views are simply an opinion of why AVCT with all the promise and data thus far released can be where it is. It is the disconnect that for want of a better word, intrigues me.
If Ice is correct then everything else becomes academic. It is happy ever ever after for shareholders.
However, there is genuine cause for pause. Don't get hung up on the "lft",. but it is the only thing AVCT have done that went from nothing ,all through trials, tests, data, TT, etc to produce a commercial product and it took longer than we expected and ultimately failed. Thats ok, but why? Was the BoD "honest" with Share holders? How could we have been so sure based on what was said and released throughout develand yet commercially failed?
The question I have (and others) posed is: is this now different?
There are similarities I think that are not FUD but fact.
I think it is fair to say to get to this stage has taken longer than we (shareholders), expected, based on what the BoD forecast, None of us foresaw that the longer the trial progressed the lower the SP would go, as that is very counter intuitive. Many here who believe the science is irrifutible, don't, imo, give enough weight to the business model and what is always a race for trial developments within the budget the company has.
This has resulted in a SP nearly 20% below the recent last SP placing.
I don't know how the DX side fits into the business. I don't know quite when it will be cash positive: I don't what it's current value is on the market ? I do know that AVCT don't have the cash to make up any shortfall if the sale did not match the debt. Also I think they would not use that money to pay off the bond anyway, because cash is already very tight.
I think the last raise was not so much a "disaster", (it was for share holders), but it reflected to me, what the current valuation the market has on AVCT. It looks to me, as though they raised the maximum they could and that was only to get them through the next 12 months or so, and in that time I presume they believe the future data will at last "prove" that this is a commercially viable platform.
I do think its entirely possible for 3 different scenarios to play out:
1: they get bought out at a price anywhere between 80-150p
2: they are allowed to go into administration and they get then get bought out at even less with nothing to shareholders.
3: The data is good enough for a higher SP and another raise to get them through to the Efficacy stage.
I think either 1 or 3 is most likely but 2 is a certainly possible.
To assume at this stage that CC will be "better " than AS is wishful thinking as we have nothing to go on yet and don't know what the reasons for his leaving were. So how can we form an opinion. All