Iq-ai Share Discussion Threads

[howdlep] 11/12/2024 14:17

IB newsletter - Updates & Accolades

[howdlep] 11/12/2024 07:45

MM's seemed keen to increase the offer yesterday on very low volume. Today may be the day when we begin the next leg up. Hopefully, on much higher volume.
We will know soon enough.

[howdlep] 29/11/2024 09:13

With partner/s discussions well under way, I thought it might be interesting to look at the benefits of direct funding v equity stake:-

Funding an FDA Phase 2 trial can be approached through direct funding or by taking a stake in the sponsoring company. Here's how each approach works and their respective advantages and disadvantages:

1. Direct Funding of the Trial

This method involves a third party (e.g., an investor, pharmaceutical company, or institution) providing funds specifically for the trial, without acquiring equity in the sponsoring company.

Mechanisms:

Grants or Donations:

The third party provides money explicitly for the trial as a grant or donation. This is common with non-profit organizations or government funding bodies, such as the National Institutes of Health (NIH) or patient advocacy groups.

Clinical Trial Agreements (CTAs):

A contract is established where the third party agrees to fund the trial in return for access to data, intellectual property (IP), or a share of future revenues if the treatment is commercialized.

Venture Philanthropy:

A philanthropic organization funds the trial but may expect a financial return (e.g., a share of royalties) if the therapy succeeds.

Advantages:

Non-dilutive Financing: The sponsoring company retains full control of its equity.

Faster Execution: Direct funding agreements can be faster to negotiate than equity investments.

Aligned Focus: Funds are restricted to trial-related activities, ensuring resources are used as intended.

Disadvantages:

Limited Upside for Funders: Funders may not benefit from the broader growth of the sponsoring company.

Stringent Conditions: Funders might impose detailed conditions, such as milestone-based payments or data-sharing requirements.

Short-Term Commitment: Direct funding may only cover the specific trial, requiring the sponsor to seek additional funds for subsequent phases.

2. Taking a Stake in the Sponsoring Company

This approach involves a third party acquiring equity in the company sponsoring the trial, providing funding that the company can allocate toward the trial or other operational needs.

Mechanisms:

Equity Investment:

The third party purchases shares in the sponsoring company, often at a discounted price, as part of a funding round.

Convertible Debt:

The third party lends money, which converts into equity at a future date or milestone (e.g., trial success).

Licensing or Partnership:

In addition to acquiring a stake, the third party may secure exclusive rights to commercialize the treatment if it succeeds.

Advantages:

Broader Financial Support: Equity funding can cover not just the trial but other operational or developmental needs.

Incentive Alignment: Funders gain upside potential if the sponsoring company succeeds overall.

Strategic Partnerships: The third party may bring additional resources, such as expertise or connections, that benefit the sponsor.

Disadvantages:

Dilution: Existing shareholders lose equity, reducing their ownership percentage.

Complexity: Negotiating equity stakes, especially with valuation and control issues, can be time-consuming.

Loss of Control: Significant equity sales might give the third party influence over company decisions.

Key Considerations for Sponsors:

Risk Tolerance:
Direct funding minimizes dilution but could impose strict conditions. Equity sales share risk with the funder but reduce control.

Time Horizon:

Direct funding is better for short-term, trial-specific needs. Equity stakes can support longer-term company growth.

Strategic Goals:

If the goal is to establish a long-term partnership (e.g., commercialization assistance), equity investment might be more suitable.

Example Scenarios:

Direct Funding:

A patient advocacy group provides $2 million to fund a Phase 2 trial, with the agreement that the group will receive access to anonymized trial data and a small percentage of future royalties.

Equity Stake:

A pharmaceutical company invests $5 million in the sponsor, acquiring a 20% stake and securing the right of first refusal for Phase 3 trials and eventual commercialization.

Conclusion:

The choice between direct funding and taking an equity stake depends on the sponsor's strategic priorities, the third party's goals, and the nature of the trial. A hybrid approach, such as partial funding combined with equity investment, might also be possible to balance the benefits and risks of both options.

[chesty1] 26/11/2024 09:30

Fingers crossed matey!

[chesty1] 22/11/2024 15:20

You still in Festy!

[clocktower] 22/11/2024 12:30

So how much monery do you want to raise this time ydderF?

[bad gateway] 21/11/2024 21:30

Thanks ydder, quite an impressive interview. Had almost given up on these but watching that they seem to have a bright future ahead of them.
Will continue to hold.

[clocktower] 20/11/2024 07:23

Are we going to see a series of RNS and then the raise?

All fluff beware…..

[leadersoffice] 19/11/2024 17:21

Much more of todays movement

[clocktower] 19/11/2024 14:10

At this time it seems this is better for Braveheart than AUTG.

[clocktower] 19/11/2024 11:37

Beefing up the BOD.

[clocktower] 07/11/2024 20:28

TB doesn’t have to be bothered about anything the Labour government do as regards taxes, due to where his interests are located.

I noticed today that he has added to his personal holdings in Braveheat at 3.5p I think I read, please correct me if I’m mistaken.

[ivyhedge] 06/11/2024 09:51

I wonder if TB was just guessing where the Labour party taxes were going and banked things before it got worse. They may not have been able to get out at the top but I suspect they still got out at a profit on thier original stake.
I am still building my stake in Braveheart as I am happy to hold for the long term and it spreads the risk across several companies and not just this one. But having said that I dont see a problem with this share. I think you have a good chance to double your stake or better at this price.

[clocktower] 05/11/2024 08:43

Time to be more positive Festario.

When I started the thread in Oct 21 the shares were trading at 5.5/6p.

It was always one for the very long haul and it was clear that it was over priced at that time, as we all know TB's funding method.

Nice growth in sales but if it ever gets anywhere, I guess it will take many years and maybe TB or myself for that matter will not be around.

However, the roller coaster is worth a ride at this level impo.

Good Luck.

[festario] 24/10/2024 15:17

That's it, sub 1p to sell OR buy. Once any share plummets below it's notional value, (1p) they rarely, if EVER, go above it ever again. Well done Trev, another abject failure for investors.

[festario] 16/10/2024 07:30

Sub 1p, today or tomorrow? Such a shame, but not a surprise when Trev Brown is involved.

[festario] 15/10/2024 11:49

It's going to go Sub 1p, and from there, to oblivion over the months I'm afraid.

[festario] 11/10/2024 16:13

Or he's just dumped a dog stock onto BRH, so he can raise a massive amount of cash at sub 1p on IQAI, Whatever he's up to, it will for his benefit not ours.

[howdlep] 11/10/2024 10:00

which of course means TB has cash to buy shares in IQAI on the open market or a future placing without going over the 30% and triggering a buyout. Clever

[howdlep] 11/10/2024 09:33

OK so BRH have bought all the IQAI and FAB shares.

N.B. TB/FAB already held 25.15% of #BRH. So they both pocket money from the sale of their IQAI shares but hold a combined 25.15% of the enlarged #BRH

[dave4545] 11/10/2024 09:15

BRH have bought them.

I thought TB was part of Braveheart, TB is CEO so a bit confusing

[dave4545] 11/10/2024 09:14

See BRH rns

[howdlep] 11/10/2024 08:53

No chance the 'concert party' (TB & FAB) are selling out.

My money is on an offshore transfer ahead of the really good news closer to Christmas.

Further RNS' to follow I suspect.