Aortech Share Discussion Threads

[nextlink] 16/6/2018 11:07

Up to date thread and looking forward to Monday.

[turbotrader2] 16/6/2018 10:59

Could happen quickly on any kind of event

[k1ngkonggb] 16/6/2018 10:33

Nice one Bones....onwards and upwards

[tees maar khan] 16/6/2018 10:15

This will need to breach the 60p level and close above it, for any real big sustainable move up to happen.

Sub £1 is a good place to accumulate IMO.

TMK

[turbotrader2] 16/6/2018 09:43

Great stuff Bones

[spawny100] 16/6/2018 00:19

Good intro bones. Good job!

[bones] 16/6/2018 00:12

Reference The Stig's post 4701 suggesting a new thread with up to date opening post, I have created a new thread header here:



Feel free to continue the discussion over there, where the header is relevant to the future strategy for AOR.

Feel free also to suggest changes to the content of the header. This was an initial stab at one!

[bones] 15/6/2018 23:49

VIDEO INTERVIEW WITH BILL BROWN OF AORTECH INTERNATIONAL 28th MAY 2020


!YOUTUBEVIDEO:OwOfLot5zQ4:

PRINTED INTERVIEW WITH BILL BROWN OF AORTECH INTERNATIONAL 3rd JUNE 2020




"...Take-out values have been US$300-500mln“, he points out. “What we’ve got is substantially more disruptive.“

"It is a massive opportunity, which if we get it right, will be fantastic for our shareholders. But if we don’t get it right, we still have a valuable exciting business..."

TRADING UPDATE 13th MAY 2020


Heart Valve Development Update


In January, AorTech announced that it had committed investment in a novel method of manufacturing polymeric heart valves. In early April, the Company also announced good progress had been made with the tooling for this project. We are now delighted to announce that the manufacture of valves has been undertaken and early prototype valves are currently available for evaluation. The outcome of these manufacturing trials has far exceeded our initial expectations and the feasibility of the novel manufacturing concept has now been proven.

The valve design and manufacturing method are both major improvements and the Board believes that the combination has produced one of the largest step changes in heart valve technology over the last 20 years.

All of the limitations imposed by historic methods of dip casting valve leaflets, and the quality issues related to those designs and manufacturing methods, have been eliminated. AorTech has already engaged with its IP advisers to initiate the steps required to protect this valuable new Intellectual Property.

Graft Development Update


The team at RUA Medical has been working closely with members of the AorTech Board and progress has been made on the Elast-Eon (TM) coated large bore grafts.

Further enhancements have been made to the Polyester fibre, the textile construction refined, and an automated coating process developed. These developments will allow the external graft surface to be coated with Elast-Eon (TM) polymer whilst retaining the mechanical performance, handling and suturing characteristics required by surgeons.

As well as these encouraging developments, the RUA team has also developed a method of being able to manufacture a one-piece Elast-Eon (TM) polymer coated Aortic Root graft.

Overall, graft developments are swiftly approaching the design freeze phase and animal trials are still anticipated to be undertaken during the second half of the year.

ACQUISITION of RUA MEDICAL DEVICES LTD for £2.45M 1st APRIL 2020


Purchase consideration satisfied by:

1. GBP 525,000 in cash on completion;
2. GBP 425,000 in cash, deferred for up to 2 years;
3. GBP 1,500,000 in new issued shares in Aortech @ 100p per share.

As a result of the new issue, David Richmond will become a 9.47% shareholder in Aortech and will be appointed CEO of the enlarged group.

As soon as practical, the name of the company will be changed to RUA Life Sciences plc.

INTRODUCTION


AorTech International plc holds patents, know-how and trade secrets relating to a family of bio-compatible materials. A large range of polymers has been developed within the Elast-Eon(TM) family with different mechanical properties, such as hardness and elasticity.

With several million implants and seven years of successful clinical use, AorTech polymers are being developed and used in cardiology and urological applications, including pacing leads, cardiac cannulae, stents and neuro stimulation devices. Devices manufactured from AorTech polymers have numerous US FDA PMA approvals, 510ks, CE Marks, Australian TGA and Japanese Ministry of Health approvals.

COMPANY WEBSITE:

BACKGROUND


After several years of under-performance, containing more than its fair share of failed strategies and legal disputes with customers, partners and an ex-CEO (settled amicably in December 2017 for an undisclosed sum paid to AOR), Aortech is finally clear for take off!

A new strategy for the company, incorporating the benefits of its long held, valuable IP assets, has finally been revealed (in May 2018); new investors have been rounded up to join the patient ones and top personnel have been recruited. Fresh money is in the bank ready to exploit the new frontiers in cardiovascular medical devices and cosmetic implants.

SOME STATS


Market capitalisation (June 18) = GBP 6 MILLION

Cash in bank (June 18) = GBP 3 MILLION

Invested in current proven technology to date = GBP 60 MILLION (including GBP 30 MILLION in heart valve R&D)

Partnered with Vascular Flow Technologies for their Spiral Laminar Flow (TM) blood flow technology - see . VFT appear (from reading their accounts) to have invested GBP20M into this over several years, so AorTech is leveraging this R&D for a fraction of the cost.

STRATEGY


Aortech is now seeking to maximise value from its IP portfolio by developing certain products while maintaining what the directors believe to be a low cost/risk business model. As part of this strategy, the company is entering into a development and manufacturing agreement with RUA Medical - click here - a medical textiles manufacturer, and a development contract with Vascular Flow Technologies - click here - a medical device development company. If successfully developed and approved by the relevant regulatory authorities, the company proposes to employ a lean sales and marketing strategy for its products, a distribution model to provide access to hospital markets and OEM sales of devices to other medical device companies.

Initial product pipeline is to be:

1. Cardiovascular and soft tissue patches
2. Large bore grafts
3. Synthetic heart valve

Three new non-executive directors have been recruited, two of whom are from the highest echelons of the cardiovascular world!

John Ely (NED - Heart Valve Expert)

Geoffrey Berg (NED - Cardiovascular Expert)

See this RNS and Offer document for all the details about these products and new directors:





RESEARCH NOTE 19th FEBRUARY 2020 = 676p VALUATION


For full 17 page analysis of this research note by Andy Smith, a veteran of 3i plc, published by Equity Development, click on following link:



Excerpt (bold and underlining emphasis is mine):

”In addition to the discounting and time aspects that reduce the value of the transactions more towards the stage of those businesses in AorTech, we have also applied a risk- adjustment to both transactions. This is to reflect the uncertainty of the transaction occurring and also some product-specific risk. That is why the risk adjustment is higher for the heart valve than the graft and patches since the heart valve is a more complicated medical device requiring more testing and a more stringent regulatory review (hence also, the greater time to exit).

The existence of a similar, earlier-generation of polymeric heart valve from Foldax at the clinical implantation stage, may even suggest that this risk-adjustment is too high.

Conclusion

When we combine the implied sales multiple valuation of AorTech Royalty, the intrinsic risk-adjusted valuations of AorTech Vascular and AorTech Heart Valve to AorTech’s cash at the end of September 2019, we determine a valuation for the whole business of £99.2m or 676 pence per share.

USEFUL EXTRACT FROM STOCKDALE BROKER NOTE OF 12th JUNE 2018 WITH 400p TARGET PRICE




AORTECH IN THE PRESS


Essential introduction here (Scottish Herald 7th July 2018):



Video Interview with John McKenna, AOR director (CTSNet.org 6th December 2018):



Interactive Investor website - Five AIM growth shares for your 2019 ISA (ii.co.uk 1st March 2019)



"Scottish Business Insider" magazine 31st March 2020:



INTRO VIDEO ABOUT AORTECH'S HEART VALVE


Aortech acquired the original IP from CSIRO in the early 2000's - click this link Now AOR is finally funded to complete stage one of the quest to commercialise the holy grail that is the synthetic heart valve. This video is the basic introduction to the technology (note the reference to Aortech in it).

!YOUTUBEVIDEO:qfzXvuh2xxc:

THE DISRUPTIVENESS OF POLYMER HEART VALVES


To gain an idea of how AOR is standing on the cusp of a disruptive change to a huge industry, please refer to the following posts by Landy90 who has some knowledge of the cardiovascular industry:

2383, 2385, 2390, 2394, 2398, 2399

As always, BB posts are opinion only, so always do your own research!

DIRECTOR EMI OPTIONS VEST WHEN SHARE PRICE REACHES 300p


On page 46 of the Open Offer document (May 2018), the following is found:

“As regards options to be granted to any Director, such options will vest as to 20 per cent. after the expiry of 3 years from the date of grant, 30 per cent. on the receipt by the Company of a CE Mark for any of its products and 50 per cent. on the closing middle market quotation of the Ordinary Shares, as derived from AIM Appendix to the Daily Official List of the London Stock Exchange, being at least GBP 3.00, being 10 times the Issue Price, for 10 consecutive days on which trading takes place on AIM.“

NOTE: To avoid cluttering up this header with older information, the earlier RNS updates from June 2018 to January 2020 have been transferred in full to post number 7.



SIGNIFICANT SHAREHOLDERS ( > 3% ) AS AT 1st APRIL 2020


19.48% Walker Crips Stockbrokers (3,153,452)
9.47% Mr David Richmond (1,533,334)
5.41% Mr Clive Titcomb (875,000)
4.84% A J Bell Securities (782,838)
4.11% Mr JD Abell (665,308)
3.96% Mr Gordon Wright (641,645)
3.89% Hargreaves Lansdown Asset Management (630,367)
3.59% Charles Stanley (580,672)
3.34% Share Centre Investment Management (540,404)
3.13% Mr Bill Brown (506,649)
3.09% Halifax Share Dealing (499,882)

64.31% Sub Total
35.69% Shareholders < 3%
100.00% Total

No longer on list = Miton Asset Management (862,071 shares all sold by Sep 19, I am reliably informed)

[bones] 15/6/2018 20:26

Why was he? We are expecting a few RNS's given that over 50% of the shares were issued to new investors last week.Some people!

[blueball] 15/6/2018 20:14

Guess the poster over on LSE was right.

[bones] 15/6/2018 18:47

I see what you are saying now TT, you mean the old broker firm of Walker Cripps Weddle Beck. I was a bit slow there, I see it on the RNS now :)

Wonder if they were acting for a single party.

[turbotrader2] 15/6/2018 18:45

With you! But I know Walker crips only have the elite

[bones] 15/6/2018 18:39

TT, Interesting in the fact that's it's 60 years old, maybe with old money behind it. More than that I need to find out if possible. Maybe I should have said "mysterious".

[turbotrader2] 15/6/2018 18:24

In what respect interesting?

[bones] 15/6/2018 18:03

BW Nominees is an interesting one. That company is 60 years old but presumably the beneficial holders are well hidden behind the nominee directors.I will try to find out a bit more.

[bones] 15/6/2018 18:01

Brucie, please spare us the crowd that infest the TERN thread! (I do not hold those). Maybe when AOR has 10 bagged from here can a few show up, but not before :)

[football] 15/6/2018 17:47

130 FREE oneplus coins yes 130 coins here NOW!!!!















new one added today

[brucie5] 15/6/2018 17:13

Thanks. Good weekend. I think this could be another exciting ride, which combined with TERN's current shenanigans may make for a helter-skeltering, and possibly even sweltering June.

[turbotrader2] 15/6/2018 17:05

WB are Walker crips not to be mistaken for cheese and onion lol

[brucie5] 15/6/2018 16:39

Who on earth are WB Nominees?

Sounds like a holding company for a high net worth?

Good to see you here Someuwin. I've just tripled my stake on that RNS. Aggressive, and sticky holders are what we need to get this off the ground, and we already had MITON, are nobody's fools. I think there's a serious price anomaly here for all that potential.

[someuwin] 15/6/2018 16:03

Wow indeed.

[turbotrader2] 15/6/2018 16:00

So we have a 13% holder now too

Wow

[turbotrader2] 15/6/2018 13:03

Going to move imho

[turbotrader2] 15/6/2018 13:01

Very odd bid