Optibiotix Health Share Discussion Threads

[nimrod22] 30/5/2018 08:29

with the markets in a general falling mode, I'm not sure if this placing is correctly timed, or is it get it out there with the other bad news position?

[zebbo] 30/5/2018 08:20

Good call to raise funds now. More than happy with the reasons given and makes perfect sense to strike while the iron is hot

The opportunity is now and the opportunity is BIG

[hamcutlet] 30/5/2018 08:18

love him or hate him,TW's take on today's developments:

- After the results last week the knockers said that Optibiotix (LSE:OPTI) would place as it was running out of cash. They were half right but half very wrong. So before they gloat.
One bear – Mr Cynical Bear of ShareProphets – insisted that cash – £1.25 million at November 30 would be down to £500,000 by now hence the need to place. He spoke from ignorance. Cash at the weekend was £900,000. The cashburn in HI has tumbled as revenues have started to kick in. By the end of H2 Optibiotix will be generating cash.
So why place? Simple. A number of new opportunities have come up outside the core area but ujsing the core technology. Optibiotix can either wait until next year to fund them through internally geenerated cashflows or it can press the green button now.
Mainly this is the development of the Company’s cholesterol and blood pressure reducing strain LPLDL® as a pharmaceutical product. Under existing plans OptiBiotix’s products have been developed for the ingredient and supplements market. Following on from the deal with Akums (as announced on 16 May 2018) the Company has received partner interest to license LPLDL® as a pharmaceutical product in the USA and a number of other international markets. Whilst partners will fund regulatory submissions and clinical studies, there is a requirement for OptiBiotix to invest in developing process controls and quality procedures to comply with pharmaceutical production of LPLDL®. This on its own will cost well over £500,00.
But do the maths work? Last week we asked Steve O’ Hara about the value of the Akums deal and he said:
This is for multiple products with the countries largest manufacturer in one of the worlds largest market with market growth in the category at 30% per year. They are also looking at selling developing LP-LDL as a Biotherapeutic (drug) in India so the potential upside is high. They will market these drugs to their existing clients such as Novartis, P&G, Sanofi and Sandoz. This should in time if things go well worth £1-2m for the food supplement and 5X that for the pharma product (which of course will take longer to develop).

And that is with just one partner.
Once before O’Hara did a small placing for a non ongoing business venture. That was Skinbiotherapeutics and he has turned that placing money into a ten bagger for we shareholders. So we back his record without question.
We were not offered shares in this placing which is a pity as we would have taken them. Instead the shares are with a very small number of HNWIs who will not flip but are in for the long term. The existing non pharma contracts signed will in due course see Optibiotix generating profits of £5-£9 million. Phrama can – as the Akums deal suggests – add to that in a massive way. At 65p-70p ( that spread will narrow today) the market cap at offer is sub £60 million.
That is why our stance remains STRONG BUY at up to 80p with a target to sell over well over 100p.

[philby1] 30/5/2018 08:17

I think TW was correct, OPTI didn't HAVE to place, they just saw the benefits of exploiting the opportunities that presented themselves more quickly. I've just added.

[rafboy] 30/5/2018 08:08

Parsnip1, now that would make things very interesting. A US listing coupled with Pharma would see a big uplift in the share price

[parsons4] 30/5/2018 08:06

I am happy with the placing. The company is still valued at not far short of £50m and it is a very minimal dilution. An opportunity to buy some cheaper shares. The pharma industry is huge and OPTI's products seem to be at the top of the tree in this new area. GLA time to top up !!!

[monkeywench1] 30/5/2018 07:56

Funny how Elrampo scarpered just before a placing was announced.

[parsnip1] 30/5/2018 07:52

There was a scurry of broker activity from two weeks ago. The company has said it may raise money if a significant opportunity came along. Seed came along. Taking on the US market for pharma too is the holy grail. This should come with a US listing. You can then hold on to your hats...

[f3rdinand] 30/5/2018 07:51

This placing, more than anything, confirms that early revenues aren't great imo! The plan initially would have been to fund things like this through profits, hence SOH stating they would only raise for an acquisition!Hey ho, long term looks even more exciting now with the Pharos possibilities!

[trotterstrading] 30/5/2018 07:50

The placing is unwelcome, no doubt about that, but all placings are not equal. SoH was always careful to caveat no raise with 'unless he could demonstrate value creation, like SBTX example'

[septimus quaid] 30/5/2018 07:49

If OPTI called in the receivers, I am sure there are some on this BB who would see it in a "positive light".

[michaelmouse] 30/5/2018 07:49

scotty 1 - "No matter what spin you try to put on it or how minimal the placing was it's a placing more or less everyone thought/said wouldn't occur."

Thank goodness. There is still hope for humanity after all. One honest post amongst a sea of absolute shyte.

A company valued at over 50 million quid with minimal revenue generation is also the truth. OPTI unlikely to be profitable any time soon. After all how can you believe a word that is written or said?

Massively overvalued.

Aimho of course.

[imnotlong] 30/5/2018 07:45

Positive - they have cash

Negatives

- placed at a discount despite being over subscribed
- no named institutions - no surprise there
- stated no placing required unless for acquisition - big loss of integrity there
- no directors partaking
- revenues would appear to be some time away

[primal123] 30/5/2018 07:43

Rathean - if the trading occurs, it gives us LTH more time to build better positions!

[scotty1] 30/5/2018 07:41

No matter what spin you try to put on it or how minimal the placing was it's a placing more or less everyone thought/said wouldn't occur.

[rathean] 30/5/2018 07:40

A lot of us called it, if anything I'm disappointed they didn't raise more because the costs associated with pharma development are substantial.This is a game changer though, but once again until they publish more than jam tomorrow and optimistic statements the perpetual trading range will continue imo.

[parob] 30/5/2018 07:38

I get the impression we won't be waiting too long until a Pharma partner in the USA is announced. Skin deal with UOM came the following month after the Feb 2016 placing. SOH comment in RNS at the time:"The funds will be used to further accelerate our development programmes to capitalise on the growing number of opportunities arising in the rapidly evolving microbiome space and build shareholder value."Look where SBTX is now.

[woodaldo] 30/5/2018 07:33

That's a quite positive placing, minimal dilution, and not to keep the lights on but to take advantage of it's position in the microbiome market to accelerate it's range into production.

[monkeywench1] 30/5/2018 07:33

Rampers wrong. TW wrong. Always trust your own research/judgement

[rafboy] 30/5/2018 07:32

The pharma route in the US will bring with it significant revenue. A bit of pain for longer term gain is how I see it. Just think how many people take statins. Even 10% of that market would be huge.

[dire cons] 30/5/2018 07:31

Impressive!

[michaelmouse] 30/5/2018 07:30

All credibility has been lost for the idiots involved pumping this. In fact, would you trust SOH anymore since according to the clowns he kept stating that NO PLACING WOULD BE REQUIRED?

All in all a bunch of liars.

Read this post I made and in fact the whole thread:-



"1) I resent "the being a bit dishonest" bit very strongly regarding cash. It's an opinion based on their interim results. They had £1.6m left end of May 2017. Assuming a £85,000pcm cash burn that leaves approx. £750,000 left at the end of March. If they are doing better than this then great, but let's see if this matter is addressed in the 2017 finals shall we. Note SOH's caveat, "no plans for a placing to cover the delivery of our existing plans". It's a great get out clause if they need to raise cash e.g. we've decided to increase marketing spend, we've decided to acquire company xxx, we've decided to significantly increase headcount etc."

Who's being dishonest? LOL.

You're only saving grace is that they raised 1.5 million quid at 62p, so not too much of a discount.

The bad news is that all credibility is lost and I'd pretty much guarantee that profitability won't be achieved this year or next if ever.

As usual I've been correct all along, and I wouldn't touch this company with a bargepole at it's current and ridiculous valuation of #50m+.

LOL AND GOOD RIDDANCE.

Poor old Eric the multi-handled fantasist liar.

Aimho as ever.

[parob] 30/5/2018 07:24

The worry of a placing may have held some investors back from buying in. That worry no longer exists and any dip in share price will be seen as an opportunity. The microbiome opportunity is NOW and the funds are being used to accelerate developments. The discount is minimal. I'm not disappointed.