Mereo Biopharma Share Discussion Threads

[marben100] 20/11/2006 12:03

I've never seen the term "delayed consideration" (or even "deferred consideration") in a cashflow statement.

I must admit, details of the acquisition completion are a bit murky: the AR states total consideration satisfied by £182K of cash and "The final consideration is subject to agreement with the vendor of a set of completion accounts". I guess we'll have to wait for the '07 AR to see how it works out (assuming negotiations are complete by then).

I don't see how an RNS can state that "The blocklisting is in relation to the possible future exercise of the Company's options under the Company's Employee EMI Share Option Scheme" and then use that blocklisting to issue shares for a different purpose.

[daza70] 20/11/2006 11:54

picked up some more; 5000 @ 115.5

[pingi] 20/11/2006 11:38

The money is delayed consideration not "Repayments of borrowings".

[pingi] 20/11/2006 11:36

Not in the cashflow statement it wouldn't.

[marben100] 20/11/2006 11:34

"Where is the '$4.5m payable on 31st July 2006.' in the interims?"

Probably within the £2.98m of "Repayments of borrowings". The oustanding amount would be classed as a debt.

[oniabsta] 20/11/2006 11:12

There are now 2 on the bid and 1 on the offer, looking better

[pingi] 20/11/2006 11:04

Re. Moda...
Total consideration for the acquisition will be $5.5m in cash, to be satisfied from the Company's existing resources, of which $1.0m was paid on completion and the balance of $4.5m payable on 31st July 2006.

Where is the '$4.5m payable on 31st July 2006.' in the interims?

Cashflow statement shows:
Acquisition of subsidiary (292)

Which I assume is Homebody acquisition.

I am wondering if MPH is tring to renegotiate the deal to issue shares?

[daverw] 20/11/2006 11:01

Jason,
I agree with everything you have said above.
Friday evenings news, could if the powers to be wanted,
could have been handled so differently. One is left to assume
that contents of the RNS are accurate and that the timing was
delibrate to create the sell off we have seen today.The company have had adequate time this am to correct any mis-apprehensions.
Momentos, Obviously a wiser man than me on these matters, who votes for the new shares?
Sorry to sound down, it's probably because that's how I feel, holder who thought we were on our way.
regards

[remynapoleon] 20/11/2006 10:55

I am still convinced this has something to do with the aforementioned acquisition. The money/equity has to come from somewhere and rights issues are seldom popular.

Day traders may be suffering but investors will have forgotten about this in a week.

All will be revealed "in the very near future" or "imminently".

remynapoleon

[wbjunior] 20/11/2006 10:53

Wow what interest the RNS has created, there's "no such thing as bad news" If the company issue 7 million options at 125p the company's coffers fill by around 8.75 million pounds and the eps is dilluted by the extra 7 million shares in issue. If the funds are put to good use and it would have to be a earnings enhancing acquisition "great" but to just raise case makes no sense having just had a consolidation of 5 : 1 to supposedly stop volitility. We shall see.....................wbj

PS Must agree poor timing and content to RNS

[jason8466] 20/11/2006 10:36

Moment I understand the reactions to this morning and the volatility in the markets and the posts.

I appreciate post 2000 et al and i have always thought highly of your factually analytical posts.

To highlight MPH ineptitude re -:PR is me sounding off, if others take that as a sign to sell so be it,but I would hope for shareholders to be made of more substantial stuff.

There is a bigger game afoot here. Now is the time for conspiracy theories and guesswork akin to waiting for the next set of figures.

I have averaged down from 36p old money to now be in profit (always topping up) I like to think M Morris is a fighter for the company he created.

Global reach, new aquisitions on board , new and extended contracts, out with the old in with the new (YSL).

But sometimes, just sometimes i would like MPH to stop playing games with the mickey makers and get them and the PI's on board.

Qs who gains from a lower share price at the moment?

[momentos] 20/11/2006 10:30

More good news for Ungaro:

[momentos] 20/11/2006 10:21

5.5p now.

All gone quiet!

[cosnova] 20/11/2006 10:11

Just in case everyone has forgot! this company has gone on record to say they are close to an acquistion, can't help thinking that Fridays RNS is connected
keep holding DYOR

[oniabsta] 20/11/2006 10:04

Well i've used this to my advantage at least (i hope)I sold my meagre holding of 4k @ 119.12p and just bought them back for 115.1p thereby reducing average cost.

[0o0] 20/11/2006 09:55

I agree with Momentos, putting some money back on the table.

Issuing the RNS after market close was probably a good Idea as it gave people chance to think it through. I see no evidence of large sells, which may well have occured if the market was open.

[daza70] 20/11/2006 09:50

evos up on the bid - interseting!

[taffychaff] 20/11/2006 09:48

lets face it guys and girls...at this level of price share options aint gonna be worth anything anyway

[momentos] 20/11/2006 09:45

Just trying to put the shorters off their game PP!

[premierpompey2] 20/11/2006 09:42

PS It appears the market only has a schoolboy understanding of this as well, down 6.5p at the last count.

[premierpompey2] 20/11/2006 09:40

momentos
Thanks for the advice. Never realised I was in the presence of one so great.

[momentos] 20/11/2006 09:37

jason my apologies too for sharpness. Agree RNS amateurish and the concern at timing and lack of immediate clarification.

All I am trying to point out is that it is not a big problem even if it is true.

Its a bit like if three of us owned a company worth 32m. A fourth person comes along and says I'll give the company 8.5m cash if you give me a quarter share. We all say OK.

The immediate situation is the company is worth 32m + the 8.5m cash so there is no dilution. If the company has a high ROCE (return on capital employed) it can immediately help to provide more profit to all of us through reduced finance costs, more acquisition funds etc etc.

[jason8466] 20/11/2006 09:32

Momentos ,
that was a school boy comment driven by panic. My position is one of frustration at the P.R of M.P.H. I do not expect that i KNOW the full picture. Whatever has happened here will come out in the fullness of time, yet issueing RNS's at such an awkward time seems very schoolboyish.

As for trading, I shall hold.