Optibiotix Health Share Discussion Threads

[pglancy] 06/4/2017 18:49

How can 400k cost on the balance sheet hurt opti?

[pglancy] 06/4/2017 18:44

MM can i ask you why you think an investment of 660,000 and now worth 8millions is such a bad deal for share holders? If some of investors are right skinbio was not even in the original business plan so does it not make sense to sell it off for a humongous profit just 12 months later.

[michaelmouse] 06/4/2017 18:22

Ask yourselves these common sense questions.:-

If the skin division is a dead cert then why has it been hived off in an IPO? What have Opti shareholders gained? Certainly not a 1 for 1 share distribution as was widely anticipated. The answer is simple, it needed £4.1m.

The thing is this though. Since SBTX is so wonderful then why didn't they just keep it in the parent company and raise the cash within Opti? Again the answer is simple, they didn't want on obvious dilutive fund raise within the parent. However, it's a fund raise by any other name.

For a long time, shareholders have kept insisting that Opti doesn't need any cash raisings. Well it's just had one. £4.1m. Opti now owns 33% less SBTX than it did before.

By hiving off SBTX what SOH and others are hoping is that they can pull off the same trick that they did with OPTI. In other words, convince gullible PIs that a non-revenue generating story stock is somehow worth multi-millions.

It looks ok so far in the sense that it improves Opti's assets on the balance sheet whilst the share price is doing well. However those assets can't be sold for two years because of lock in agreements.

If the share price of SBTX turns against them and/or things don't go well then the trick they've tried to pull will all go sour.

You'll have to pray that the bull market stays largely in tact for another two years. SOH's idea of de-risking is ok if a bull market continues, but in a bear market non-revenue generating companies that are burning cash are always the worst hit. This would be a double whammy for Opti since not only does it take a nasty hit , but it's 42% holding in SBTX starts to seriously damage it's balance sheet as it's share price begins it's slide.

Aimho of course.

Alternative opinions accepted.

[elrico] 06/4/2017 17:36

An alternative viewpoint as long as its not by elrico. OK, so you're a paranoid communist!

[lodger] 06/4/2017 17:06

No worries Dogwalker

[michaelmouse] 06/4/2017 16:59

BTW it's not a thread devoted to running down a single company. It's a thread that allows an alternative viewpoint to the ramping multi-handled posters on the other thread.

It's called democracy and free speech. If you don't like it then don't read it. That's your prerogative.

[siennadelekat21] 06/4/2017 16:57

No... But you obviously do... or you wouldn't carry on with this farce Micky! : )

[dogwalker] 06/4/2017 16:47

lodger - my apologies to you then re 21932 !

[michaelmouse] 06/4/2017 16:40

ODR - Do you think I can influence the outcome of this company or it's share price?

[onedayrodders] 06/4/2017 16:38

sheeesshh .. is this really a thread devoted to running down a single company

dear oh dear

[michaelmouse] 06/4/2017 16:37

I don't know ODR, but one of his names is elrico and he follows me about like a smell in the pants. No idea what he writes anymore. He's on filter. Sometimes likes to call himself michaelamouse. Now that's sane isn't it?

[onedayrodders] 06/4/2017 16:30

who is this sad clown MM ?

[elrico] 06/4/2017 16:26

If Carlsberg came up with stupid quotes.....
"Savvy investors understand the balance sheet risk with the lock-in agreement."

No Michaelmouse, Savvy investors don't buy frauds.

[marnewton] 06/4/2017 16:19

That said, I think when TW said "in specie" (meaning: real, precise, or actual form specified) he meant shares.

I just can't think of any examples where this has been done before; warrants, yes; shares, not to my knowledge.

Unless someone knows different?

M

[marnewton] 06/4/2017 16:14

diamond,

When I said (in post 21638):

'But now I'm wondering, will the "in specie divi" quoted by TW be actual shares in SBTX or some other instrument?'

The 'some other instrument' I was thinking was warrants.

M

[elrico] 06/4/2017 16:09

Good question Diamond. There are a chunk of warrants available. Are these for performance related or other business? No idea myself. Is it possible we get x in share and as well as warrants? lol. It just adds to the list of outstanding questions. I wish we knew, if only to stop my left leg shaking with excitement :)

Owen - be careful, you're one of a very small minority that has as yet not been accused of being elrico. The penalty...filtered, apparently, but only when asking awkward questions :)

[elrico] 06/4/2017 16:02

As usual - Good post risky. Where I disagree with you (he says while ducking my head under the table) is OPTI as a whole listing on NASDAQ. I got the impression it would be SweetBiotix. I did not speak to SOH about this because I wasn't there and haven't probed him on this either. I agree the appetite is greater across the pond simply because they're a much bigger and richer investment community. SkinBiotix not being in the original business plan and the return on an opportunistic maneuver was something I pointed out in the article yesterday. It was truly an inspired business decision which needed Cathy O'Neil to be on board because there other suItors sniffing around the IP. The £400k is worth in excess of £8m already.

Owen - I'll be around for a while to remind you I told you so :)

[diamond fibre] 06/4/2017 16:02

Does any one think we might be offered warrants?

[owenmo] 06/4/2017 15:49

Hey there's even the possibility that I monitor this bb more than what's-his-face - the guy who wouldn't touch OPTI with a barge-pole. Thankfully I have a distraction or two to keep me sane. But Elrico, I'd let him off lest contagion would set in.

[owenmo] 06/4/2017 15:22

Elrico, I've decided to bite the bullet to-day; hardly a king's ransom's worth (80,000 SBTX shares spread over 2 accounts - the latest 25,000 a few minutes ago).
Why hang about for the possibility of a 1p or 2p fall - counterbalanced by a more problematic "jump now?" conundrum in the event the 2p went on the share price rather than off it. The King's Ransom, of course, is down the line! Was late in the day coming to OPTI even if my first tranche clocked-in at 42p. Would be nice to add to SBTX having a solid foundation in a 14p base cost - in turn significantly discounting future buys in averaging - presupposing there's an OPTI mirror-image in prospect! Somewhere it came to our attention that Cath eats and sleeps skinbiotics. How does she think I feel?

[michaelmouse] 06/4/2017 15:12

Savvy investors understand the balance sheet risk with the lock-in agreement.

That's partly the reason why Opti is being sold off even as SBTX is more than 50% ahead of it's IPO price.

Aimho of course.

[riskybusiness1] 06/4/2017 15:09

Spinning out skin was only done because opti did not have the resources to propel its growth quickly. Why? Because opti bought skin ip purely as an additional opportunistic bonus which now shows how switched on the boss is. This ip was bought with the funds needed and raised for the original opti plan (without skin). As we know this has been turned in to a listed company within a year making opti a significant material profit in the process.....the other divisions are fully funded therefore will not be anything like the skin demerger. If these were listed they would only be once profit making or merged with another entity in order to propel growth. From what people have said from investor show it sounds like soh has plans to list the whole of opti on Nasdaq. I get this impression because someone on here said soh said 'this would value us at £300m' instead of £70m. Risk assessment in the us is completely different to the uk markets especially aim so you can guarantee valuation would significantly increase, especially in this space which is a hot topic out there.To say only the directors benefit how wrong can you be. In case you haven't realised soh is the largest shareholder of opti clearly he will act in his interest which will be of interest to us. Don't be so simple The more skin grows the more value in shares opti holds. The market will soon realise this once skin gets ahead of itself. To analyse this in the first week is stupid. Stop looking at the day today and look to the future.

[michaelmouse] 06/4/2017 15:08

Ask yourselves these common sense questions.:-

If the skin division is a dead cert then why has it been hived off in an IPO? What have Opti shareholders gained? Certainly not a 1 for 1 share distribution as was widely anticipated. The answer is simple, it needed £4.1m.

The thing is this though. Since SBTX is so wonderful then why didn't they just keep it in the parent company and raise the cash within Opti? Again the answer is simple, they didn't want on obvious dilutive fund raise within the parent. However, it's a fund raise by any other name.

For a long time, shareholders have kept insisting that Opti doesn't need any cash raisings. Well it's just had one. £4.1m. Opti now owns 33% less SBTX than it did before.

By hiving off SBTX what SOH and others are hoping is that they can pull off the same trick that they did with OPTI. In other words, convince gullible PIs that a non-revenue generating story stock is somehow worth multi-millions.

It looks ok so far in the sense that it improves Opti's assets on the balance sheet whilst the share price is doing well. However those assets can't be sold for two years because of lock in agreements.

If the share price of SBTX turns against them and/or things don't go well then the trick they've tried to pull will all go sour.

You'll have to pray that the bull market stays largely in tact for another two years. SOH's idea of de-risking is ok if a bull market continues, but in a bear market non-revenue generating companies that are burning cash are always the worst hit. This would be a double whammy for Opti since not only does it take a nasty hit , but it's 42% holding in SBTX starts to seriously damage it's balance sheet as it's share price begins it's slide.

Aimho of course.

[lodger] 06/4/2017 15:05

Dogwalker - I've been a holder and adder for 2 years, hardly fly-by-night.