||EPS - Basic
||Market Cap (m)
Real-Time news about Arthro Kinetics (London Stock Exchange): 0 recent articles
|katylied: So... What is it all about?... My take on the state of play...
At present AKI has 50m authorised shares of 20p nominal value. There are ~28m shares (fully paid) in issue. The current MktCap at today's mid of 14p, is therefore ~£4m. The company is still loss-making. There is ~£1.9m cash on the balance-sheet, but also a similar amount of debt.
The EGM called for 22/03/2007 is to authorise a capital-reorganisation and refinance package for the the company. Without this, the company will likely cease trading. So for existing shareholders, the clear threat is... dilute or die.
So... subject to that EGM, AKI will be reorganised to have 200m (4:1) authorised new shares of 5p nomial value. The 27,600,481 old (20p) shares already in issue will be re-nominalised (1:1) at 5p (the additional new 15p shares are simply a device to achieve that end. They will always be worthless and can be ignored).
There will be a subscription of ~44m new (5p) shares at 10p/share and a placing of 16m new (5p) shares at 10p/share. This will raise ~£6m gross and increase the total shares in issue to ~88m. There will also be warrants for future issue of an additional ~30m shares at 20p/share and options for a further ~10% of the enlarged share issue, at prices from 15p to 50p. At today's 14p mid-price, the post EGM MktCap would be ~£12m with net balance-sheet cash of ~£6m...
The new funds will cover a further 12 months, but beyond that company trading will have to improve substantially. The size of future losses will be key. If the cash just burns away, then a ~£12m MktCap looks much too high. In that event, the share-price could halve, rather sooner than it might double...|
|katylied: jonwig - call it deramping if you wish. The figures published are almost 3 months old. I don't know the 'cash' position at the present time, but it is clear that they are chewing it up PDQ. Also to the point is the timing. The next results will be the finals. I think I am correct in saying, that there have never previously been any audited accounts? The auditor will not sign off the 2006 accounts as a going-concern, unless it can be demonstrated that there is (or will be) sufficient operating funds for the new financial year. I cannot see that being achieved, without a cash-call. I have also concluded that is why the share-price fell out of the sky recently. The 150K was merely the trigger.
However, I won't post again, so no more deramping from me. It is
coming off my watch-list. The finances need to be resolved and
further announcements of 'distribution agreements'...
well... we have been here before haven't we?|
|jonwig: Yes, adgd2 - cost of sales shouldn't look like that!
Not remarked on was this (underlined bits) from the AFX report on the 22 August RNS:
LONDON (AFX) - Orthopaedics group Arthro Kinetics PLC moved to reassure the
market and said it is unaware of any fundamental reason for the plunge in its
share price, which more than halved yesterday after a shareholder sold 150,000
shares at a significant discount to the market price.
A seller sold the shares at 30 pence each, 75 pct below the stock's opening
price. The move caused the share price to drop from 111.5 to 55 pence Monday.
The German-based company, which makes a range of biologic implants for
joints and the spine, floated on AIM at the beginning of March, selling shares
at 120 pence each.
The group's house broker Nomura Code Securities said this morning that in
its view nothing has changed the fundamental prospects of the company since the
IPO, and that the scale of yesterday's move was more reflective of the
illiquidity of the stock.
The shares sold represented a 0.5 pct stake.
Nomura Code expects Arthro to break even next year.
"Operationally the company seems to be progressing to plan," it wrote.
At 12.40 pm shares in the company were trading 1.5 pence lower at 53.5,
giving a market value of 15 mln stg.
I'd expect a broker note with some projections after these numbers, and would hope that this rather high cashburn is start-up and training costs rather than what to expect as an ongoing feature.
Break even next year??|
|jonwig: The FDA 510(k) documentation:
Share price sagging again - I won't add before the results on the 25th.|
|katylied: Interesting situation jonwig. I note mktcap is still ~£17m and there are alot regulatory hurdles to get over (into 2008) before the company's potential can be realised. Only wonder is, how they got a placing away at £1.2/share in the firstplace? Still, diretors seem keen and apart from the fact my old dad has got very dodgy knees, I know jack-sh*t about this business. The admission placing was for only 18% of shares. So the rest must include a fair chunk (in % terms) of venture-capital. The collapse in the share-price, suggests the MMs believe those VCs are looking for an exit. Near term that could prove to be quite a drag on the share-price...|
|britishbear: Amusing how the whole ramping team got bored and moved on leaving s flat line share price.
Stew did a reasonable job although he kept the conversation going longer than necessary to create a "debate".
Fun reading at least|
|nissi beach: small buys are moving the share price up now|
|mark p: gamesinvestor has just updated.
"15/08/02 & 13/09/02 loan capitalisation and share consolidation
Akaei, whose MD, Rod Cobain, resigned on the 12th August announced that it has initiated a capital restructuring to make the share price more marketable and allow the issue of new shares (the current share price is below the nominal share price and Companies are not allowed to issue new shares below its nominal price). Akaei intends to achieve this with a 100 for 1 share consolidation share consolidation and a subsequent subdivision of that share into a new ordinary share of 1p and a deferred share of 49p. The net effect is to theoretically raise the Company's share price 100 fold whilst allowing the Company to issue further new ordinary shares. Presumably, the deferred shares would be unlisted and have no voting rights and value or, less likely, would be bought back by the Company.
At the same time, Akaei revealed that an inter-company loan from parent company On-Line would be capitalised with the issue of 1.3m new shares. As a result of this debt to equity conversion, On-Line will end up with 85.8% and existing shareholders heavily diluted.
It is unclear what the strategic direction of Akaei now is and we will be ceasing coverage until this is clarified. "|
|therealrookie: hello does anyone have any comments to make about this company.
How about you Jc any comment of the total collapse of your share price.|
|johndee: Thanks. So it could be some considerable time before we see anything like the original share price again.|
Arthro Kinetics share price data is direct from the London Stock Exchange