Fastnet Equity Share Discussion Threads

[sea7] 31/3/2016 13:48

episalvan..



3.1.3. Episalvan - birch bark extract - EMEA/H/C/003938

Birken AG; treatment of partial thickness wounds
Scope: Opinion
Action: For adoption

New active substance (Article 8(3) of Directive No 2001/83/EC)

List of Outstanding Issues adopted on 24.09.2015. List of Questions adopted on 26.02.2015.

The Committee confirmed that all issues previously identified in this application had been addressed. Furthermore, the CHMP considered that birch bark extract is a new active substance, as claimed by the applicant.

The Committee adopted a positive opinion recommending the granting of a marketing authorisation by consensus together with the CHMP assessment report and translation timetable.

The Icelandic and Norwegian Members were in agreement with the CHMP recommendation.

The legal status was agreed as medicinal product subject to medical prescription.

The summary of opinion was circulated for information.

[buffythebuffoon] 31/3/2016 13:38

There were 345,369,071 shares at 2.85p giving a Mcap of £9,843,018

There will be 208,339,632 shares on admission (fully diluted number 236687257 including warrants) at 24p giving a Mcap of £50,001,511

The Mcap will therefore be 5 times bigger and we'll have 1/8 the number of shares.

Of course, we'll have a company that earns money, and some more cash; although that, and maybe more, will be spent quite quickly.

You either back the team, the assets and their prospects, or you don't.

Maybe there will be some froth in the share price at some stage, and this will give an early outer. Maybe we'll multi bag within a couple of years. Maybe world domination awaits and JP can go private....

Buffy

[sea7] 31/3/2016 12:51

Definitely right there pap, it won't be another AST.

[papillon] 31/3/2016 12:42

The FAST chart is very bullish. I'm expecting a 4p close before the consolidation.

This is not going to be another AST, but I've a strong suspicion that those who have bought AST yesterday at over 7p and still hold are going to get their fingers badly burnt. There is no guarantee that CAD will make an offer and there is no guarantee that it will be over 3p if they do make an offer. AST is a classic bulletin board pump and dump.

Going back to FAST there was never any chance that the placing would have been done at more than 3p per share. Those who thought differently are living in cloud cuckoo land.

[sea7] 31/3/2016 12:01

That depends rossannan, whether the market thinks that the valuation ascribed to the deal is ok or not. We can see that there should be around £19m in cash, after the placing, which is the c.£9m pre suspension balance and the £10m raised in the coming placing at 24p. This is, on a fully diluted basis, post 19th april, around 8p per share. They have stated that the £10m will be used in trials, there will also be the usual overheads to pay.

c. £19m in cash and £29.6m for amryt is nearly the £50m cap specified in the rns's today.

Buying in at 3p or less before 19th april gives you the same start as those in the placing or better.

Is £29.6m a good price or not, will they burn through £10m on trials and need more, does the existing product pay for itself and some, or are they going to be back to the market for more cash at sub 24p placings.

These are some of the questions I still haven't answered for myself yet, or at least risk assessed. Still on the sidelines at this time.

This will start out its new incarnation, as amryt on 19th april at 24p, which is 3p in old money and go from there.

[themadstork] 31/3/2016 11:59

The reason it's dropped back is retail broker clients selling as they think they can get shares at 3p in the placing + warrants. We shall see if their optimism is justified.

[bigwavedave] 31/3/2016 11:54

I thought it'd get to 4p today.
Maybe not today but still confident it will hike back up in due course.

[barnes4] 31/3/2016 11:32

Red today imo

[kfp] 31/3/2016 11:21

I'm happy that Harry Stratford is involved ,he's no fool and made Shire shareholders a lot of money.

[bigwavedave] 31/3/2016 11:03

Similar bit of news...

[buffythebuffoon] 31/3/2016 10:30

I suppose some will say that Friel has just used FASTs money to help fund the liability of one of his other companies that has to make imminent milestone payments.

I take the view that it's each man for himself. He's in it for himself, as am I.

As for JP, I don't think any of us know what goes on in his head; and it's probably better for us that we don't; we should leave that to the professionals. Having said that, I am looking forward to his posts when we hit £5:00.

Buffy

[crapcrap] 31/3/2016 10:18

well i bought at 3.16 looks like a sell. i'm happy with that premium

[buffythebuffoon] 31/3/2016 10:10

1m share buy went through at 08:49.

The non director free float won't be that massive, so if they hold on tight you may see some interesting action.

There was always going to be dilution, and there was always going to be a consolidation. Whether we were going to be given the opportunity to take part in the placing was the question. Let's not forget that those of us who held throughout have legacy shares in the O&G assets.

The focus should be on how advanced the assets are. We now have a balance of in production, late stage, and earlier stage drugs. If Amryt (There is also an Amrit Pharma which is a separate company) just had early stage drugs I would have sold this morning. Anyone who remembers the Beatles is too old to hold an early stage drug company if they want to see the money in their lifetime.

Buffy

[swerves1] 31/3/2016 09:48

Was expecting better today!

[bigwavedave] 31/3/2016 09:45

advfn won't allow me to post the link (to pro active investors) so I will copy it here.

Fastnet Equity PLC unveils transformational drugs deal
07:11 31 Mar 2016

Amryt Pharmaceuticals will join the London market in a deal that values it at £29.6mln. A share placing, meanwhile, will bring in £10mln to be used to develop the company’s lead treatment for a rare skin disorder.
A drug company with big aspirations and, importantly, a product already out on the market, looks set to make its AIM debut by reversing into listed investment firm Fastnet Equity PLC (LON:FAST).



Amryt Pharmaceuticals will join the London market in a deal that values it at £29.6mln.

A share placing, meanwhile, will bring in £10mln that will be used to develop the company’s lead treatment for a rare skin disorder.

In a complicated series of transactions Amryt, as well as listing, is acquiring two firms with drugs and drug candidates that will form the bedrock of this speciality pharma business.

Chaired by Harry Stratford, founder of FTSE 100 giant Shire Plc (LON:SHP), who set also set up ProStrakan, Amryt has the management expertise and boardroom experience of a much larger company.

The team will be led by Joseph Wiley, who has more than 20 years’ experience in healthcare investment, while Michele Bellandi, who helped run Shire’s European arm, will be chief commercial officer.

Former top-rated City healthcare analyst, James Culverwell, and Ray Stafford, previously the marketing chief of Forest Labs, are among the non-executive directors.

Amryt is aiming to carve a niche in the area of orphan drugs that tackle-hard-to-treat illnesses with globally small patient groups, but significant revenue-generating potential.

Orphan designation often means the product can be fast-tracked to market – usually at a fraction of the cost of developing medication destined for the mass market.

And as they are niche areas where there are no current treatments, firms are often allowed to charge more for a breakthrough new product.

The market gloablly is estimated to be worth US$176bn with around 19% of all prescriptions for these rare ailments.

As mentioned earlier, the reverse into Fastnet will coincide with Amryt’s acquisition of two fledgling drug developers – SomPharmaceuticals and Birken.

The latter, a German firm, has a product that is already approved in Europe called Episalvan, which is currently used to accelerate the healing of partial thickness wounds in adults.

Clinical trials indicate it has the potential to help patients with orphan condition epidermolysis bullosa (EB).

This is a rare and distressing genetic disorder affecting young children which makes the skin very fragile.

Episalvan has been awarded orphan drug designation (ODD) in the US and EU for EB and the market for this indication alone is estimated to be US$1.5bn.

The cash raised from the share placing will fund a phase III clinical trial in EB sufferers.

SomPharmaceuticals, meanwhile, brings with it far earlier stage orphan candidates for acromegaly - a disorder that leads to the production of too much growth hormone - and Cushing’s disease, a pituitary gland problem.

CEO-elect Wiley said: “Today’s announcement is an important step towards realising the company’s vision of building a speciality pharmaceutical company focused on best in class treatments for orphan diseases.

“We are focused on building a portfolio of differentiated medicines, in therapeutic areas where there is large unmet medical need and which offer significant commercial potential.”

[sea7] 31/3/2016 09:34

I wouldn't be so sure karlm,

stock could easily run up on the 19th above 24p and then drift lower over the following days and weeks. Wouldn't be the first aim stock I've seen do that.

[sea7] 31/3/2016 09:32

since the suspension was lifted this morning, the trend has been down, despite the initial run to 3.9p on the offer.

We are at 3.23p to buy now, which is the lowest all morning. Looking promising for 3p at this rate.

[billyrayvalentine] 31/3/2016 09:22

...that's around 13% premium, but taking into account involvement of Mr Harry Stratford it's worth paying such "fee" in my opinion ;-)

[goodbloke1] 31/3/2016 09:18

Sea.I doubt you will get these for 3p mate !

[karlm] 31/3/2016 09:18

There's not a cat in hells chance you'll be able to buy these aynwhere near 24p when it is relisted as AMYT.

[sea7] 31/3/2016 09:12

There will be an 8 for 1 consolidation, with the placing price at 24p. Buying over 3p today means a loss to start with, after the consolidation. I will be waiting for the price to get down to three pence, or I will wait until after the whole process is completed and look to buy in, if and when the price goes below the 24p price, which is possible.

Buy £2k today at 3.4p you get 58,823 shares - consolidate 8 for 1, you are left with 7,352 shares. Say the stock starts at 24p placing price on 19th april, your stock would be worth 7,352 x 24p = £1,764.28.

Buy £2k at 3p, you get 66,666 shares, consolidate 8 for 1 you get 8,333 shares x 24p = £1999.92.

No point buying at over 3p, prior to consolidation.