Allergy Therapeutics Share Discussion Threads

[farmergeorge] 01/8/2023 15:44

timebo003, that makes sense, thanks. I've been out of the loop, but has the option to buy at 1p been offered to investors?

[timbo003] 01/8/2023 15:34

Thanks for your unique insight KmcK, I have sent you a PM via the ADVFN messaging service.

>>>>farmergeorge, I susspect many investors see the current shares as an option (but not an obligation) to increase their stake by 6 fold at the price of 1p/share, so if they buy now at say 4.5p, they can then buy 6 times as many shares at 1p some time later this year (hopefully!), so even if the share price falls back to say 2p/share after the fund raise, they will still be in the money overall assuming they had taken up the offer in full.

[farmergeorge] 01/8/2023 14:03

What is the rationale underlying AGT's consistent price increase? Thanks.

[1kckeith] 01/8/2023 13:18

Yes, thanks Timbo, for attending and sharing the feedback.

Unsurprising that Mr Llobet couldn't be bothered to attend in person. I understand this is how he likes to manage our company - remotely from Spain - and it is an important contributory factor to the inability to engage an outside CFO. Although it is quite right that he should not expect any 'performance' related pay, can anyone seriously claim that he brought value to the company to justify his 'basic' £388k over the last 12 months? Watch out for his LTIPs being revalued to match the new low share price he brought about, if ever the Equity Financing and Open Offer do go ahead.

On your excellent question re stock-building prior to the shut-down, the answer to it is somewhat at odds with how this, the cause of so much, has been presented by the company to date. The 4 October announcement was headed 'Allergy Therapeutics proactively initiates a short-term pause in UK manufacturing to optimise quality systems and accelerate capacity improvements' and went on 'The partial pause in production follows an internal review of current operating processes and is part of the Group's previously communicated ongoing programme to improve the robustness of its quality systems and build capacity across its manufacturing facilities.' This all sounds very discretionary (and therefore either profoundly stupid - timing an 'ongoing programme' for the peak pre-seasonal manufacturing period - or a deliberate act of self-sabotage). I cannot see the MHRA referred to anywhere in the 6 April statement and indeed the directors have explicitly said the shutdown was not regulator-driven. Something's amiss, and if the announcements have been misleading it is not just the board but also the NOMAD and corporate lawyer who need to consider their positions.

As to the second of your questions, of course the Equity Financing at 1p is immutable - this hyper-dilutive funding is how the insider consortium is getting the company for a song. Abbott and other shareholders who do not take the Open Offer are diluted 7:1 and over a quarter (£10m plus interest accruing at over 8% for the February loan, £xm plus interest at 18% on the Facility from April) of the 'new money' raised at 1p is in fact used to repay the insiders' own loans. It is the economics of this that sets alarms ringing.

The answer you were given on the FDI applications is very troubling. If the FDI clearances are not secured, the Equity Financing cannot go ahead. If it does not the company is insolvent and under the terms of the Facility Agreement AGY is essentially handed to the insider consortium for no further consideration.
Furthermore, if the FDI applications are still open (and therefore the Equity Financing has not occurred) when positive G306 results are announced, again under the terms of the Facility Agreement the company incurs obligations that will equally result in insolvency and the creditors - the insiders Southern Fox and SkyGem - get our company without paying us. The question is: who is in charge of delivering the FDI clearances? Hopefully not the insiders themselves, nor our proven highly competent executives.

On the value, at 3p (where it is as I write) the company is capitalised at some £20m. After the recapitalisation, when the number of shares in issue will grow by over 4bn to be 4.75bn, the market cap at 3p will be approximately £140m - equivalent to 22p prior to this fiasco. As the shares were trading in the range 20-30p I suppose this is a supported valuation and a price in the range 3-4p after everything settles is to be expected. Of course the same team remaining in charge after this display of rank incompetence might well impact on the company's reputation and perceived value.

[jimmyloser] 01/8/2023 11:29

Thanks Timbo for taking the time to post.

[timbo003] 31/7/2023 20:58

AGM Report

Today's AGM was held at the offices of the company’s solicitors, Cooley (UK) which is located at 22 Bishopgate EC2N 4BQ, it took quite a while to gain access due to various security measures, so if you ever visit anyone in that that building make sure you let them know ahead of your arrival. When I arrived I commented to Peter Jensen (PJ) that I had received no information from AJ Bell (where I hold most of my AGY shares) about the meeting and I was only aware of the meeting through holding a small number of shares as certificates which meant I got a notification through snail mail. PJ then introduced me to the company secretary (Karley Cheeseman) who said she would look into the matter, but judging by the low attendance at the meeting (I was the only retail shareholder present) I suspect I was not the only retail shareholder who had not been informed about the meeting.

There were three directors present all non-execs: Peter Jensen, Mary Tavener and Anthony Parker (Southern Fox). Apparently Manuel Llobet (CEO) and Simon Shen (ZQ Capital) joined by video link, but I couldn’t see them and they didn’t appear to participate in the proceedings

There were only two resolutions put to shareholders on this occasion, the first was to approve the accounts and the second was to approve the remuneration report. Having just perused the section on director’s remuneration I had a question regarding the performance related portion of the director’s remuneration. For the year in question the CEO was paid approximately £664k, which comprised £388k basic and £276k performance related, so I questioned whether there should have been a performance related payment for any of the executive directors given the appalling share price performance last year. PJ responded by saying that financial year 2022 ended in June 2022 and the factory shut down occurred after the end of the financial year 2022, however for the subsequent year the performance related payment for the CEO would be zero. That seemed like a satisfactory response to me, so I voted to approve resolution 1 and 2.

PJ then closed the formal meeting and allocated me about 15 minutes to ask questions about the business. Given the time constraint I had questions on just two topics, 1) the background to the shutdown last year and the apparent lack of forward planning and contingency plans 2) the forthcoming open offer to shareholders.

Shutdown: I questioned why they hadn’t stockpiled product before the shutdown or put in place other contingency plans. PJ responded by saying that everything they could say on the matter was laid out in the RNS statements dated 6th April 2022, they were not able to expand on that. It was not through choice they shut down when they did, but it was necessary to do so due to regulatory (MHRA) concerns.

Fund raise: I commented that now the share price had risen considerably above the proposed 1p open offer price, and then asked whether they would consider modifying the offer to raise the same amount of money but by issuing (for example) half the number of shares at 2p/share. This would be of particular benefit to shareholders who were not able to participate in the forthcoming raise for whatever reason. PJ turned to the Lawyer (Simon from Cooley UK) to answer that one.

Apparently it is not possible as legal documents have now been signed by the company and proposed funders regarding the proposals for a raise at 1p/share. PJ then took the opportunity to state that he intended to take up the offer in full with his 300K shares, I responded by saying that I intended to do likewise but with a smaller shareholding and allocation. I then asked for confirmation that there would be no funds raised from new outside investors (i.e. no accompanying placing which may attract short term flippers), PJ confirmed there would be no accompanying placing. I also asked whether ordinary shareholders would be able to apply for additional excess shares in addition to their basic allocation, the answer was no, all shares not taken up in the open offer would be purchased by ZQ Capital who are underwriting the offer.


After the meeting had come to an end, Simon (the lawyer) filled in a couple more gaps on the funding: The open offer cannot/will not take place until they have foreign direct investment (FDI) clearance from four Jurisdictions (interestingly the UK is not one of the four). In theory this should be easy (especially considering the nature of AGY’s business), but in practice it is more prolonged and complicated than anticipated. The company will issue RNS statements on this should there be any significant developments on this which could affect timings.

[jimmyloser] 31/7/2023 14:02

Thank you Tim our, I am certain that you will have a sizeable audience.

[timbo003] 31/7/2023 13:52

I went along to the AGM today, I was the only retail shareholder in attendance so I got to ask all the questions 🙂, I will aim to write up a few notes this evening and share them here

[amishp67] 31/7/2023 11:02

The next Gamestop

[jimmyloser] 31/7/2023 10:27

If only we could become a meme stock ?

[amishp67] 31/7/2023 10:09

Yes definitely come back to life from the dead lol

[jimmyloser] 31/7/2023 09:51

Lazarus syndrome!

[timbo003] 14/7/2023 16:49

Today I received a snail mail from the company (for my certificated shares) stating that the Allergy Therapeutics General meeting to approve the accounts will be on July 31 starting at 12 noon at the offices of Cooley (UK) EC2N 4BQ, there were no details of the resolutions that will be put to the meeting except to say that I will need to log onto my account at the shares registrar to vote. I haven't received any such notification through my AJ Bell SIPP where I hold most of my AGY shares

[jimmyloser] 14/7/2023 11:41

coin
Are you able to elaborate?
Thanks

Jl

[coinbase] 14/7/2023 11:35

Panmure are really pushing this.

[coinbase] 13/7/2023 11:19

I must admit, I never saw this coming.

[jimmyloser] 11/7/2023 09:53

BeccaI try to please and it makes me happy to hear it amused you.Have a good day.Jl

[jimmyloser] 11/7/2023 08:42

An interesting article on front of BBC news website on takeovers by Chinese firms etcimpo

[farmergeorge] 10/7/2023 17:56

Pity we don't have enough votes to push him overboard. Ultimately karma will prevail.

[genises] 10/7/2023 17:27

CEO should be the other one to go.
Under his leadership he has taken the company to where it is now.
Fuked the Pi to the stage of decimation to some who had very large holdings.
Shame on you for still working for the company.
Collect your P45 and let new blood in.

[jimmyloser] 10/7/2023 16:22

Another step towards normality. Yes, I am aware the storm is yet to be felt. But hey ho, credit where it is due.

[farmergeorge] 05/7/2023 16:48

Well, there are two views. It will go up or it will go down. Assuming an an even split, 50% of investors will have a pleasant surprise. So, I'm saying it will go down and the opposite will happen.

[amishp67] 05/7/2023 16:17

You never know...usually the opposite happens to what you expect is going to happen lol

[tomboyb] 05/7/2023 15:57

Well Jimmy -

I hope it works out for you -

I have a few lower down but missed the bottom -