Optibiotix Health Share Discussion Threads

[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.

[branboyd1] 06/4/2017 15:03

How many more times can shareholders 'top up' before they start making any money?

[dogwalker] 06/4/2017 15:00

Well done lodger. Good luck. And by extension to all the rest of us for that matter.
'Not expecting a substantial rise for a few days' puts you in the 'fly-by-night' bracket,though, I'm afraid. 'For a few years', on the other hand, would mark you out as a believer here, and an 'understander of the complex issues involved'.

[joyjoy13] 06/4/2017 14:54

I'm happy if our new low benchmark is 80 for OPTI.
Will be great to see an end to lower ranges after the stagnation, been an eventful year and more to come.
But I'm here long term and looking forward to the meeting in April, I'm sure that will bring more shareholders on board, just MHO.
Hopefully it will shed some light on these dividends and/or rewarded comments...
Would be nice to get a freebie but, at the end of the day, if ( I will say WHEN, ) we achieve the long term potential of OPTI then we'll be achieving growth on our original investment, which is hard to find these days on the casino called FT 100, FT 350, AIM or even the NASDAQ I've been in over the years.
But this share has huge potential and I'm not selling a penny.
Please DYOR any newbies, these are just my thoughts.

I'm getting dizzy looking at the SBTX comments on other LSE board...
So, hope you dont mind, anyone want to share what price they got in yesterday?
I'm 13.50. So I probably need 14 to break through fees etc and into profit...

Good luck all, on both shares

[dogwalker] 06/4/2017 14:48

Hello scotty , you're right of course. The emphasis in my last line is on the word 'only'.

[elrico] 06/4/2017 14:32

Michaelmouse gets himself in another fine mess.

Uhm - The mathes question again. OPTI as a group ran on air...ok, c100k pm, (c3 years funding - assuming slimbiome brings in jack :) SkinBiotix was also in that group; So how much would you guesstimate SBTX cash requirements would be? It has 4.1m. Oh, sorry, I'm filtered :) Good job for you then eh, wouldn't want to put an awkward question to you. I bet you didn't realise it is essentially a virtual company working from UoM with little in the way of overheads and its directors and CEO as staff.

[lodger] 06/4/2017 14:25

Well I topped up with some OPTIs this morning, not expecting a substantial rise for a few days though, right now it's towards the lower end of the upwards channel.

[scotty1] 06/4/2017 14:23

Dog i thought we were all in it for money,cannot see much point in investing otherwise.

[michaelmouse] 06/4/2017 14:23

marnewton (on the other thread) -

"While I understand the rationale for the SBTX spin-out, there being third parties involved (CO'N and University of Manchester), I still don't see the need to demerge the other product lines which are all in house, IP-wise (aren't they?).

Separate divisions, yes; new entities, no...there seems no need to me.

The shareholder value argument doesn't wash.

Or perhaps I should stick to charts!¬)

M"

You're correct there was no need to demerge any of the divisions. As I've said many times before, it's just an attempt to raise funds without diluting the parent company. Trying to pull the wool over shareholders eyes.

Ultimately, all divisions will need dilutive fund raisings along the way and some or all may fail. SBTX raised £4.1m in the IPO. I can guarantee that this won't last long enough to see them through to break-even. Even their most optimistic time for commercialisation is two years away, so revenues and profits will be, let's say, 5 years away at best.

Aimho of course.

[dogwalker] 06/4/2017 14:16

Yes. No, I agree too. In the decade or two ahead I think we will begin to see true value emerge in this area of non-stop exciting discovery. With OPTI being way out in front in terms of being the first one at it. The share price should exceed 99p in due course. I would just say though that it's definitely one for the believer & not so much your fly-by-nights who are only in it for the money.

[luminoso] 06/4/2017 14:05

Elrico. Get it now and totally agree.

[elrico] 06/4/2017 13:35

luminoso - In a way, yes, I was suggesting a cash divi would reduce OPTI's holding SBTX, ONLY IF OPTI had to sell them to pay a cash divi. The alternative would be to raise new funds via a placing to pay a cash divi IF OPTI chose to keep the 42% on the balance sheet. But this seems illogical to me. That is why I am pretty certain a share distribution of SBTX to OPTI holders would be the quickest, cheapest option and would of course set a positive precedent for future spin-offs.

[luminoso] 06/4/2017 13:10

Thanks, elrico. Its probably me reading it wrongly, but I thought you were saying that giving cash would reduce OPTI's holding in Skin more than giving shares. My bad.

[john henry] 06/4/2017 12:58

Would appear peeps still selling OPTI to buy SBTX