Arix Bioscience Share Discussion Threads

[makinbuks] 01/11/2023 12:43

My guess is he'll say hold. Shifting under RTW should narrow the discount to the invested assets and make better use of the cash.

[skyship] 01/11/2023 10:44

I wonder what ST (IC) will make of this. Likely to say something later today...

[stagvalley] 01/11/2023 10:32

I will vote against as I do t think the largest shareholder should have a much better cash exit deal. Just not right

[mr hangman] 01/11/2023 08:53

I Would of liked a return of cash (80p+) then run the rest over the next 18 months

[frazboy] 01/11/2023 08:46

Looks like RTW typically trade on a 15% NAV discount? Need to weight the historic discounts 60:40 and then I guess you have a likely new discount to NAV. Fair comment?It does look iffy. The main shareholder gets cash and and an exit (and willingly votes it through) and everyone else gets more of the same.

[weatherman] 01/11/2023 08:29

So Acacia negotiated a cash transaction for its own holding, and the rest of us are expected to take shares in RTW Bio, which is also valued less than NAV, and down 5% today.

[djderry] 01/11/2023 08:29

Underwhelming.The offer is at a healthy discount to NAV,and the acquirer is getting 78p a share and then issuing new shares.Would prefer cash offer,thank you.

[ntv] 01/11/2023 08:26

I don't like it and it looks like the market doesn't like it either
But i only have approx 10k so not going to make much difference if i vote against it

[hpcg] 01/11/2023 08:08

I think it discount matches, so it closes a chunk of the ARIX discount. The combined fund is much less concentrated than ARIX is.

[value hound] 09/10/2023 17:33

Evil Knievil on Master Investor FWIW:

--

As readers know I am addicted to asset situations, particularly tangible assets. One that popped up last week was Arix Bioscience (ARIX), now 120p to buy. There is an astonishing 90p a share in cash with the rest made up of listed and unlisted investments worth, seemingly, 90p+ a share. Further, the directors have declared that they will do something about this absurd state of affairs. I would take them at their word and squirrel a few away.

[ohisay] 28/9/2023 03:46

£17mn net gains on portfolio
First half pre-tax profit of £12.5mn
Closing net asset value of £239mn (185p)
Net cash of £101mn (78p)
CEO departs and strategic review to conclude soon

Arix Bioscience (ARIX:117p), a global venture capital company that holds a diversified portfolio of unlisted and listed investments in early-stage biotechnology businesses, is nearing the end of a strategic review that could lead to a tax-efficient wind-down of the company. The departure of chief executive Robert Lyne on results day would certainly indicate that a cash return to shareholders is the most likely end game rather than the company continuing in its current format.

It’s an easy sell to shareholders given that Arix holds cash of £101mn (78p) and around half of the £68mn (52.5p) listed portfolio is invested in two Nasdaq-listed clinical-stage companies: Aura Biosciences (US: AURA), a company developing a novel class of virus-like drug conjugate (VDC) therapies for multiple oncology indications, including ocular and urologic cancers; and Disc Medicine (US:IRON), a company dedicated to the discovery and development of novel therapeutic candidates for debilitating haematological diseases based on pathways of red blood cell biology.

[ohisay] 28/9/2023 02:54

The review, which is expected to conclude “soon”, is understood to have followed pressure from Starboard Value, a US activist investor.

Acacia Research, the Nasdaq-listed investment company, is Arix’s largest shareholder with a 25.5 per cent stake, having acquired its holding after the disposal of a portfolio of biotech stocks held by Woodford when the stockpicker’s investment firm went into meltdown in 2019.

Starboard Value, which increased its control over Acacia in October last year, is understood to be seeking to maximise its returns amid the large discount.

There is understood to have been frustration at Arix over a lack of interest from investors and state backing in the UK, particularly at a time when the government and regulators are seeking to support listings and life sciences.

[pavey ark] 27/9/2023 16:17

Simon Thompson (IC) a big and rather detailed write-up.

He is suggesting (strongly) a return of cash.

[sphere25] 27/9/2023 14:47

Unsure if someone has slipped a little whisper of something out today, but there is anomalous buying coming in here with a few 1 million blocks showing up. It might of course just be a case of seeing value on the results today.

Clearly the short term here will be influenced by the strategic review, but watching in for a possible quick trade here if this buying continues. There is another possible kicker with a Simon Thompson write up, but it is a different market now, with the influence of many well known tipsters being far less pronounced or almost non-existent.

Looks worth a watch to see if the buying continues and it can get through the large sellers currently sat preventing the offer of 117p being taken out. It looks like 120p-125p could be further strong resistance if it does push on.

Volume currently at 3.62m so let's see if there are any more big prints to follow.

Curiously there are two buy orders from the BATS and CHIX exchanges sat at 116.5p ahead of the market maker at 116p. I wasn't aware that was now a part of the market maker only shares. Clearly fallen behind with the lack of market time of late!

All imo
DYOR

[makinbuks] 27/9/2023 09:41

Yes, whether he was pushed or he jumped having lost a strategic argument, a realisation would appear more likely now

[hpcg] 27/9/2023 07:57

Classic value situation here really. Assume the both the listed and unlisted portfolios take a 50% haircut and its worth 143p. Even if it took a year to close out that and all the returns were made at the very end its still a 15% return.

[lennonsalive] 27/9/2023 07:44

CEO going, like a captain leaving his ship and does sound like winding up.

[hpcg] 27/9/2023 07:34

Not fired, but it does suggest a winding up is on the cards IMO. The company is doing well, but it isn't deploying its cash, so it may as well cease being an entity.

[mammyoko] 27/9/2023 07:30

CEO fired. Perhaps they mean business with the strategic review? I don't expect anything to come out of it but I may be surprised. I guess there's little risk here as excluding cash, the discount to NAV is 70%

[nakedmolerat] 14/9/2023 10:50

Two months since they announced the review and nothing further forward with updates. Board still draw a salary and no movement in share price.

[arthur_lame_stocks] 13/9/2023 17:52

I would be happy if they returned much of the cash barring any they need for follow on investments in only the most promising companies, and then waited for better markets before deciding what to do with the rest of the portfolio.

[ohisay] 13/9/2023 10:30

We are due the Unaudited monthly NAV this week .
I'm half expecting the Strategic Revue results at the same time ...it is 2 months now since they announced it after all.