Medgenics(Regs) Share Discussion Threads

[sicilian_kan] 25/8/2010 16:37

A nice day's trading at MEDG with a tick up for MEDU too.

[jammytass] 25/8/2010 15:03

if there is good news in the wind this could be a muti bagger !!!!

[sicilian_kan] 25/8/2010 14:56

It could easily go up more. There have also been 8 trades on PLUS today totalling around £15k, but all between 9.30 and 10am.

[jammytass] 25/8/2010 14:53

up 6% on 2 small trades> this could go sky high at ant time

[sicilian_kan] 25/8/2010 14:42

jt, I hope it is, for my own sake :-) and for others.

[sicilian_kan] 25/8/2010 14:40

jt, re your second post:

Yes, the upside is very big. If the very positive trial results continue and if there are no challenges to the IP (there have been none yet), then this share will not be where it is now in 12-18 months.

I also think the takeout possibility in the next 12 months is high. Anyone wanting to buy this tech outright will have to do it before a permanent licensing deal is signed and before the tech gets partnered off to different companies for different areas.

In particular, there is already the time deadline for a takeover of the whole project, due to the hemophilia deal with the major international market leader pharma. The original deal was signed in October 2009 for a 1 year period of exclusivity. There is also the option for that company to extend the hemophilia exclusivity through an additional period to negotiate terms. Anyone wanting to buy the whole company (bar that pharma) will have to get in before any hemophilia deal is signed, to ensure that the deal is not signed.

[jammytass] 25/8/2010 14:35

thanks > looks like a good investment

[sicilian_kan] 25/8/2010 14:32

Re your first post:

jammytass, in my view yes, which is why I sold all my MEDU shares at 20p (after the RHPS promo) and bought 2.5x the number of MEDG at 8p. This after buying MEDU at 4.3p, so I have done very well on the shares.

MEDG shares can be converted to MEDU after 12 months too, they are of the same nominal value, and I am quite happy waiting either for (a) their revaluation or (b) the company being bought out when MEDU and MEDG shareholders will get the same price for their shares.

Oddly, MEDG used to be the more expensive share earlier this year. I think the reason for MEDU being more expensive now was that RHPS tipped MEDU and not MEDG. You will also see the company announcement earlier this year, flagging up the issue / differences, if any.

[jammytass] 25/8/2010 14:31

sicilian_kan am i missing someting with this cmy, the upside looks big, ,medg shareprice well under megu, good chance of a takeover, or have i got it wrong ?

[jammytass] 25/8/2010 14:27

yip fair points > still cant get my head round medu> medg share prices

medg looks to be well under par?

[sicilian_kan] 25/8/2010 14:24

As you will see from the thread jammytass, there aren't many small PI holders in this stock, so I guess that's why the market is as it is. I can see your point, but if you fill or kill online, you will pay your standard online trading charge.

[jammytass] 25/8/2010 14:23

thanks sicillian> you would think if the cmpy want pi investors they would make sure there where normal dealing in place tel dealings costs shed loads more then online and it might just put pi off the cmpy ie your £750 buy tel would cost aprox £34.00 not cheep

[sicilian_kan] 25/8/2010 14:19

Tick back up.

[sicilian_kan] 25/8/2010 14:14

I just did a dummy buy for £750. It was phone only. I did a dummy buy for £200 and could buy on line. I don't know the normal position as my recent trades here (3 or so months ago) have been large ones.

The fact is that the best way to buy these shares has always been a fill or kill and that can be done for any amount online. Just choose your price and it will go through to the dealer for consideration.

[jammytass] 25/8/2010 14:08

can u trade in medg shares online as barclays are tel only deal in this stock?

[sicilian_kan] 25/8/2010 10:58

And a tick down.

[sicilian_kan] 25/8/2010 10:49

I don't know about MEDU. It is volatile and can do anything. But MEDG at 8.75p when the debenture will be convertible at 13p is clearly undervalued. Why buy into the debenture for 13p shares (warrants too I guess is a reason and to fund the company) when you can buy in without the 1 yr lock in (should you not convert) for 8.75p at MEDG? To me, there will be further tick ups here.

[andrbea] 25/8/2010 10:42

do you expect medu to move today or medg to play catch up, and then rise together?

[sicilian_kan] 25/8/2010 10:33

And another tick up.

[sicilian_kan] 25/8/2010 10:33

From the recent half-yearly report:

One biopump patient has now had his treatment work for 21 months without weekly injections.

There are now additional discussions with companies interested in both new and existing Biopump protein applications, following the hemophilia deal. "During the first half of 2010, Medgenics saw significant new interest in its Biopump platform technology from a range of large corporations, stemming not only from our continued strong results in our Phase I/II clinical trial of EPODURE Biopump for anaemia, but also from our first commercial agreement with a major pharmaceutical company to develop a haemophilia Biopump producing clotting Factor VIII".

H1 Net loss reduced to $0.55 million from $2.23 million, due mainly to hemophilia deal.

Cash and equivalents at 30 June 2010 were $1.36 million compared to $0.05 million before.

Nomura Code has issued the first report on Medgenics by a leading recognised healthcare analyst. Does anyone have this by the way??

Most of our current burn rate covered by non-dilutive commercial or government sources, and the addition of $2.3m raised thus far in 2010.

The company is "pleased with the progress that we have made on the Factor VIII
project with our first corporate partner, and we remain confident that the Company is well-placed to deliver increased shareholder value in the medium term".

"The Company continues to draw interest from several large pharmaceutical, dialysis and medical device companies with which it hopes to form strategic alliances that will allow the Company to develop a range of Biopumps producing proteins for various clinical applications".

"Throughout the trial to date, no adverse effects have been observed other than minor localised bruising typically associated with skin biopsies and implantation of the Biopumps. Patients have responded positively to this form of treatment, and have requested to re-enroll at higher dosages".

"Other potential partners have shown interest in the possibility of applying the Biopump technology to other clinical indications, including diabetes, obesity and niche drugs. Further updates on these discussions will be given in due course".

"The results of the Phase I/II EPODURE trial have continued to surpass expectations. Medgenics has been able to demonstrate the potential of its platform technology through the specific application of EPODURE for the treatment of renal anaemia. Our discussions with several major pharmaceutical companies are progressing well as the results of the EPODURE trial further strengthen the scientific basis for our concluding that the Biopump will offer a safe, long lasting alternative for the treatment of chronic protein
deficiencies".

[sicilian_kan] 25/8/2010 10:13

And there is the first tick up following the news. 13p+ target with the debenture being raised to be convertible at that price, expected to close in the first half of September.

[sicilian_kan] 24/8/2010 07:49

Half yearly report was out last week too. Good reading. Will post more re it later.

[sicilian_kan] 24/8/2010 07:47

Another interesting matter:




You will see that Medgenics is presenting at 3.15pm at the Rodman and Renshaw Conference on 14 September 2010 and the presentation will be webcast (you may need to be registered to get the second link working).

[sicilian_kan] 24/8/2010 07:42

Top news below. The $1-3m fundraising will be done at 13p conversion rate, just 4% interest and will be non-dilutive if repaid! And what a great result to do it at the higher MEDU price. They could easily have done it at the MEDG price.

Now, what will happen to MEDG! No investor in Medgenics will invest in something with a 13p conversion rate and a one year term if collecting the interest when they can buy at 8p and convert in one year to the higher MEDU. It wouldn't surprise me at all to see the MEDG price rise to 13p in the coming days.

Note, the Company expects the fundraising to close during the first two weeks of September (that is an ambitious and confident approach - suggests they are already nearly / there) and will make a further announcement upon such closing.

Oh yes, and why have the automatic conversion rate of 16p for a US listing?? Are they planning one? Sounds like it is being hinted at. A US listing for this stock would be great. NASDAQ etc. know how to properly value bios and the m/cap should soar on such an event.

Medgenics, Inc.

("Medgenics" or the "Company")

Proposed New Convertible Debenture Issue

Misgav, Israel and London, UK - 24 August 2010 - Medgenics (AIM: MEDG and MEDU), the company that has developed a novel technology for the manufacture and delivery of therapeutic proteins continuously in patients using their own tissue, is seeking to raise additional funds to finance further advances with its Phase I/II clinical trial for its product EPODURE (for the treatment of anaemia) and to initiate steps towards the launch of a Phase I/II trial for its product INFRADURE (for the treatment of hepatitis-C), through the sale of $1-3 million of new convertible debentures.

The new convertible debentures will be unsecured obligations of the Company, will accrue interest at 4% per annum and will mature and become repayable 12 months from the date of issuance. Holders of such debentures may convert them anytime into shares of common stock, $0.0001 par value per share ("Common Stock"), at a conversion price of 13p. The debentures will automatically convert upon an underwritten public offering of Common Stock raising at least $6 million and resulting in the Common Stock being listed on a U.S. national securities exchange or automated quotation system (a "US Listing"), at a conversion price equal to the lesser of 13p and 75% of the public offering price of the Common Stock in such underwritten public offering. Purchasers of these new convertible debentures will receive warrants to purchase a number of shares of Common Stock equal to 75% of the number of shares of Common Stock into which the debentures convert. Such warrants will be immediately exercisable, have a 5 year term and have an exercise price of 16p. If a further issuance of securities is made by the Company at a lower price, both the conversion price of the debentures and the exercise price of the warrants will be subject to downward adjustment to such lower issue price and, if such issuance takes place prior to a US Listing occurring, the number of warrants held by each warrantholder will be increased to maintain the aggregate exercise price of his original warrants. Any Common Stock issued upon conversion of the debentures and exercise of the warrants will be deemed restricted stock under U.S. securities laws and cannot be sold or transferred unless subsequently registered under such laws or an exemption from the registration requirements is available.

No application will be made for the debentures or the warrants to be admitted to trading on the AIM market of the London Stock Exchange or any other stock exchange.

This new series of convertible debentures will be offered and sold in a private placement transaction only (i) in the USA to "accredited investors" as such term is defined in Regulation D promulgated under the United States Securities Act of 1933, as amended, who have already been contacted by the Company and (ii) in the UK to investment professionals and other persons to whom such an offer may lawfully be made under the Financial Services and Markets Act 2000 and associated regulations. The Company expects the fundraising to close during the first two weeks of September and will make a further announcement upon such closing. This announcement is being made for regulatory purposes and no offer or sale of securities is being made by, or should be construed as a result of, this announcement.