Lifeline Sci Share Discussion Threads

[trier1] 27/9/2016 13:19

Pleased to say that Hargreave Lansdown are letting me vote on this.

[battlebus2] 26/9/2016 18:54

You can ask your nominee broker to vote for you,the like of HL will do it for you but some may charge

[trier1] 26/9/2016 15:06

As far as I can see as a nominee holder I am unable to vote (not that I expect it matters much) is that correct?

[somerset lad] 26/9/2016 09:19

I take the downbeat outlook statement with a pinch of salt: it may be at the more cautious end of the range given the bid.

[glasshalfull] 26/9/2016 08:50

Morning SJ,

Agree. Somerset lad posed a number of valid questions/musings a few posts back.

Exchange Rate currently 1.30 which would equate to a £3.14 takeout.
Disappointed like many others here as was looking forward to the launch of the LifePort Liver Transporter System & perhaps a NASDAQ listing down the line.

Regards,
GHF

[sailing john] 26/9/2016 08:14

1H just confirms offer far too low!!!
Not given up hope, a few hurdles still to jump!
GL - SJ

[somerset lad] 15/9/2016 15:22

From pp. 36 and 37 of the Shareholder Circular:

"In addition to an increase in Mr. Kravitz’s base salary from $390,000 to $440,000 (which is Mr. Kravitz’s first salary increase in five years), such agreement provides for the potential to earn bonuses of up to $700,000 upon achievement of certain milestones and eligibility for annual “stretch”; bonuses. Further, upon consummation of the transactions contemplated by the Merger Agreement, Mr. Kravitz will receive a deal bonus of $1,433,000... Mr. Kravitz will also be receiving an equity incentive through the issuance of additional limited partnership interests in Holdco allowing him to participate in 7% or more of the profits and appreciation of Holdco."

I too would like to benefit from the growth I expect and will therefore be voting against the proposal to delist, as I believe it is in the better interests of shareholders for LSIC to remain independent and list on Nasdaq.

[battlebus2] 05/9/2016 15:08

At todays 133 exchange rate we get £3.06

[battlebus2] 05/9/2016 14:18

Bit more positive action today with offer now at 303 for 1k...Another bid is still a possibility even if small.

[battlebus2] 02/9/2016 12:46

They did say they were previously in talks with potential buyers so i presume that's the plural of the meaning buyers, I wonder what the other interested parties make of this?

[battlebus2] 02/9/2016 11:58

We live in hope. IC2 for goodness sake stop selling everything :). If i can buy at 280 I'll take a few more with an easy 10% upside.

[sharesurfer22] 02/9/2016 11:30

They are getting this company at an absolute steal. I would have much preferred no takeover at all unless it was a massive premium. There are so few companies that have a real niche in a growing market (with potential for selling into new markets). All this and trading at an undemanding valuation. I would happily have held for years and years. I had high hopes this could be a 10 bagger.

If there was no takeover, the price could have risen another 15% today. The management team at LSIC should be shot for selling this gem of a company for a song. What is the likelihood of a counter bid from someone else? Or is this a done deal?

[trier1] 02/9/2016 11:28

5% in 3 months (max) is 21.5%pa. I'd be v happy with that sort of return albeit with exchange rate risk

[interceptor2] 02/9/2016 11:20

I have now sold all of my holdings, first batch went at 300p at the open, then I had to wait for the price to come back and sold in two further transactions at 285p and 290p. So on average I was down just 6% from the offer price, I would rather reinvest the cash elsewhere with a the probability that I can make over 5% before December in another opportunity. Overall LSIC was a good investment from December last year, just a shame it didn't end a little better.

[somerset lad] 02/9/2016 11:04

It would be tricky for another bidder to come in unless the irrevocables are soft.

And if the bankers have done their job, it should have been offered already to all potential buyers.

On balance, I prefer battlebus2's idea of a Nasdaq listing to crystallise the value and will therefore be voting my half a percent against the proposal to delist.

[sailing john] 02/9/2016 10:47

Re TS both Revenue and PBT significantly ahead of my forecasts at $18m and $2m
With a significant 2H weighting for the past two years my model now forecasts $8m PBT for 2016
With zero tax a PE of less than 10!
Add to that geographical growth of Kidney Transporter sales
And whole new market (at least as big?) for new Liver Transporter - imminent
And potential for other organ preservation
And patent protection

And you have a company worth a lot more than $88m (inc options)
Hence I think AN Other bidder might emerge (perhaps that is the strategy - flush them out?)

[battlebus2] 02/9/2016 10:08

There isn't one, a Nasdaq listing would have been a better option than this. Spot on Somerset Lad.

[trier1] 02/9/2016 09:23

There is still value in the tax losses as the business sis going to be run as a stand alone subsidiary of the potential bidder.

When the full offer document comes out I will be very interested in Panmure Gordon's opinion on the offer price.

I can see no operational reason for this takeover

[somerset lad] 02/9/2016 09:19

A few idle questions:

- Why is LSI selling? They thought the business was terribly undervalued at around £2 / $3 (at £1 = $1.50), yet they're selling out for a $1 premium.
- How did they get a fairness opinion when the broker reports suggested a much higher valuation?
- Did they shop the business effectively in the US, where there was value in the accumulated tax losses?
- Are the 40% irrevocables hard or soft? Of course, if the bankers have shopped the business around properly there won't be other bidders.
- Was a higher offer available without the CEO remaining in post?
- What would the share price have been if there had been no strategic review, and we'd simply had improving trading for kidney and ongoing progress with liver? 260p?

[eezymunny] 02/9/2016 08:56

Indeed, mod, my greedy hope was for 350-400p given strong market position, IP etc, but it's still been a good'un (so far!).

Currency risk here now and the deal may fall through, but always a chance of a counter bid I suppose. I've always felt if no t/o happened I might hold them for a few years anyway.

[trier1] 02/9/2016 08:49

What I'd prefer is no takeover at all.

The company stated they were at an "inflection point" net cash is around 10% of the offer price the rolling PE (ignoring all the tax benefits that they have due to prior losses - which is presumably why it is being run as a separate organisation) is around 10. The new product is likely to be launched in the next 6-12 months.

There is no need at all from an operational viewpoint for any takeover.

[modform] 02/9/2016 08:45

EM, I recall you bought LSIC in the eezymoney pf, in the hope of a better deal, I trust you haven't sold any yet. To sell at 260, it's just crazy

[eezymunny] 02/9/2016 08:37

Always makes me laugh when peeps so upset about a t/o price. I mean you tout the company about, and see who is willing to pay most. It is what it is. We'd all prefer a higher price but we're all greedy mugs for thinking we'd get one, no?

I note that LSIC products are already on the Genext website. FWIW!

[wjccghcc] 02/9/2016 08:33

Well I bought some more at 274p. Even if the $ falls to 1.40, (unlikely) that's worth 292p so seems a bit churlish not to buy more.