Allergy Therapeutics Share Discussion Threads

[1kckeith] 07/4/2023 14:11

This is not good news in my opinion.
The only decision to take is whether or not to participate in the Open Offer.
There are 3 components:
1. A Loan Facility of £40.75m at 18% interest rate
2. An Equity Financing (including an Open Offer) to raise the same amount issuing equity at 1p per share and repay the Loan Facility
3. A Mandatory Offer by SkyGem at 1p

Negative points:
• The dilution is incredible. I was expecting a financing at the suspension price, and that would have been bad. Unfortunately the execs’ incompetence left the company in a very weak negotiating position.
• Total reliance on the Consortium (SkyGen and Southern Fox). The Loan Facility places all the assets of the company as security to the Consortium; the NatWest facility is definitively cancelled ‘to facilitate the new funding’ (per the document “Trading and Business Update” issued yesterday - why do they always hide information on this critical component of the company’s funding?)
• The risk of annihilation if (paradoxically) G306 is successful before the loan is repaid. As this would be a preferrable outcome for the Consortium, and as the delaying factor for the equity financing appears to be FDI clearance for the Consortium itself, I wonder if this deal is not set up to fail. Who will be pushing for the equity finance to complete before G306 read-out? Our super-competent board?
• The Consortium is getting a better deal than the rest of us - £10m of the £40.75m proceeds goes to repaying their loan, advanced only a month ago. This means the net proceeds to the company are only £30m or so. Or put another way, the company is repaying a £10m loan with equity – about 1bn (a billion!) shares that recently were trading at 30p+.
• This financing is still only sufficient finance to see Allergy Therapeutics through “into H2 2023” – which means more funding requirements, maybe as soon as 2 months from now… What will the Consortium force down our throats then?
• The high cost of participation in the Open Offer sufficient to remain undiluted
• The ‘small minority’ risk of staying in at the mercy of the Consortium which might own over 90% of the company.
• Current management, who got us into this mess by incompetent inattention, remains in place. Don't be surprised if their LTIPs are all adjusted to 'retain the talent' by resetting the prices. As I predicted, the wrong people are caused to suffer here.

Positive points:
• The Open Offer allows us to ‘participate’ and avoid dilution
• The upside from 1p should be considerable. A market cap of £140m (suggested by the G306 Contingency Payment terms) on G306 success would mean a share price of near 3p. News on peanut and some good trading should take it higher. But the risks are massive too.
• The listing on AIM remains and trading should be possible soon (?)

[richtea2517] 07/4/2023 13:39

I am gonna take a few for a laugh. It can hardly get worse.

[amishp67] 07/4/2023 09:22

The problem is that to make any actual profit now and to bring your average opening price completely down is to take advantage of that open offer at 1p. They advised we do this or our shares are significantly diluted (stating the obvious).Do you think many will put more money into this if they are always in need of cash? Will the share price ever climb back to over 20p (even if the grass pollen and peanut trials are are a success)Or do we go buy at 1p and try get out at 6 or 7p (if it ever gets there).Or do we just have to leave it how it is and write this one off the books?I have no idea how to play this with this shambles of news!

[jimmyloser] 07/4/2023 07:56

You can bet that they have exhausted all avenues and had the best advice. What is a minor ray of hope to me, is that major shareholders are backing the two potential blockbusters and appear to believe that upstream potential is too valuable to just let go now. impo

Our new board members will be all over this like a rash from here on in, one suspects.

[amishp67] 07/4/2023 07:40

Is there still another opportunity for them to get another source of funding without diluting the shares by 3.8 billion..?? unbelievable!

[jimmyloser] 07/4/2023 07:06

There is no choice other than to vote for this. impo

APPALLING!

.

[wizzkid211] 06/4/2023 21:18

3.85 billion shares!!!!!!!!!!!!!!!!!!!!!!!!!! wtf

[wizzkid211] 06/4/2023 21:14

The Equity Financing is comprised of (i) a direct subscription by each of ZQ Capital and Southern Fox for, in aggregate, 3,385,510,000 New Shares (subject to adjustment) (the "Subscription Shares") at the Issue Price (the "Subscription") and (ii) an open offer, pursuant to which qualifying shareholders (which will exclude the three largest shareholders ZQ Capital, Southern and Abbott Laboratories, and any shareholders in a restricted jurisdiction) will be offered the opportunity to subscribe for up to 689,490,000 New Shares (subject to adjustment) (the "Open Offer Shares") at the Issue Price pursuant only to their pro rata entitlements at the Record Date (the "Open Offer")

we have no choice but vote for the offer!
day light robbery!

[jpuff] 06/4/2023 18:33

I shall be voting against the resolution personally

[jpuff] 06/4/2023 17:37

Turkeys voting for Christmas then

[jpuff] 06/4/2023 17:36

If the Resolutions are not passed at the General Meeting and the Company is unable to secure an alternative funding solution to repay the amounts due under the Facility, the Company may be subject to, inter alia, possible insolvency and loss of ownership of its assets, over which security has been granted pursuant to the Facility. Should the Equity Financing not proceed, it is unlikely that the Company will be able to pay the G306 Contingent Payment should it crystallise. Accordingly, the Board strongly recommends that shareholders vote in favour of the Resolutions at the General Meeting.

[jpuff] 06/4/2023 17:33

So the BOD will get their bonuses for crashing the share price from 40p to 1p thus wiping holders out! Cosmic, thanks for nothing!

[wizzkid211] 06/4/2023 16:25

does not look good for us folks!

[wizzkid211] 06/4/2023 16:23

Further to the announcement by Allergy Therapeutics on 6 April 2023, Skygem announces that it has entered into an equity commitment agreement (the "Equity Commitment Agreement"), pursuant to which Skygem and Southern Fox Investments Limited ("Southern Fox") (another shareholder of Allergy Therapeutics) have each agreed to conditionally subscribe for new ordinary shares of 0.1 pence each in the capital of the Company ("Allergy Therapeutics Shares") (the "New Shares") at an issue price of 1 pence per New Share (the "Issue Price") to raise gross proceeds of GBP40.75 million (the "Equity Financing").

The Equity Financing will be comprised of a conditional subscription for New Shares by each of Skygem and Southern Fox, and an open offer expected to be made to all Qualifying Shareholders (which will exclude Allergy Therapeutics' three largest shareholders Skygem, Southern Fox and Abbott Laboratories, as well as any shareholders in a restricted jurisdiction), and which will be underwritten by Skygem by way of a conditional subscription for any New Shares not taken up by Qualifying Shareholders under the open offer (the "Open Offer").

[wizzkid211] 06/4/2023 16:14

Allergy Therapeutics (LSE:AGY)
Intraday Stock Chart

Thursday 6 April 2023

Click Here for more Allergy Therapeutics Charts.
TIDMAGY

RNS Number : 6719V

Allergy Therapeutics PLC

06 April 2023

FOR IMMEDIATE RELEASE.

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

[jpuff] 30/3/2023 18:12

It'll drag on six months at which point delisting from the market will happen is my prediction.

[jimmyloser] 30/3/2023 16:02

Pax vobiscum.

[roywally1] 30/3/2023 15:41

having lost money on the mining company on teeside . then neil woodford . now this i think its time for me to give up after this debacle. only one winner not us

[stablehound] 30/3/2023 14:16

I see that the Company Secretary is the latest of the team to walk the plank, so now they are missing a shareholder representative from the largest shareholder, a permanent CFO and have a brand new company secretary.

How it can take over 3 months extra to resolve their funding issues is a mystery. The words of update say nothing new at all. How can it go on like this?

[jimmyloser] 29/3/2023 16:22

I agree once early results on trials known perhaps

[wizzkid211] 29/3/2023 16:10

ripe for a take over...

[jimmyloser] 29/3/2023 13:30

jpuff
What makes you say that, are you able to elucidate?

Thanks.

[jpuff] 29/3/2023 07:48

They are obviously in big trouble