Shield Therapeutics Share Discussion Threads

[kop202] 28/9/2023 12:08

A bit harsh...... mystic Meg comments

[devonlad] 28/9/2023 12:00

Tripletop, totally agree with all of those points btw. My biggest gripe is with directors of listed companies. It seems that if you are a director of a plc in this country, you can get away with anything short of murder. Have loved the Paul Whitehouse documentary about the state of our rivers, the directors of the big water companies are gettng paid millions and are constantly breaking the law, but they don't care because there is no effective regulation. Directors can now literally do whatever they want and it is killing the market because government institutions like the FCA and the environment agency are completely ineffecitve, partly because they have been starved of cash. Rant over.

[base7] 28/9/2023 11:58

For what its worth I have sent an official complaint regarding suspected insider dealing to both the FCA & London Stock Exchange

[tripletop1] 28/9/2023 11:54

Devonlad28 Sep '23 - 11:12 - 12545 of 12546
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fair post - (trying) to see it from both sides, to summarise and be as pragmatic as i possibly can, most investor's are upset with the following:

1 - the positive momentum that was building being lost
2 - the insider trading yesterday which led to the 20% fall ahead of the news
3 - the fundraise only 2 months after they reaffirmed there wasn't a need for cash until at the very earliest midway through 2024.
4 - the offer price of 8p for what amounts to a relatively small equity raise being so discounted from reaching almost 12.75p only 2 sessions ago
5 - the very expensive cost of the Loan facility
6 - the constant dilution (additional shares and warrants)
7 - the constant need for more cash and the cash burn that follows
8 - the constant whoring off of the highly prized (and only asset) IP to anyone that will lend them a shilling
9 - the value destruction to long term holders continuing unchecked


fair to say a fair bit of reputational damage has been done by the management with today

can that be balanced off against the aggressive desire to go for growth now? that's down to every holder's appetite for risk i guess and the expectation on whether they will deliver the aggressive growth the market will be looking for straight from from Q1 24.

i personally think they'll come good and deliver, but at what cost is the bigger question - fair to say, we can all forget about the dreams of hitting 100p and retiring!

GLA

[husbod] 28/9/2023 11:51

Done a little top up sub 8p but must admit I'm not so confident as I was 48 hours ago.

[purchaseatthetop] 28/9/2023 11:50

fair enough reviewworld. But the nature of this company is that it will go from having no cash to spewing it out in ever greater amounts. Even if it starts in 2026. That has value.

[reviewwworld] 28/9/2023 11:48

Feel like a lot of you missing the point because you've fallen in love with the company.This was a wow/unique product with new FDA approval and due to be a multi bagger.This was a "this is it" major US launch and finally revs were due to explode.This was a "phew" they've avoid bankruptcy although in the process directly given up half the golden goose in a JV and indirectly given up the rest in a loan commitment.This was a "yes! Finally!" prescriptions are finally on the up, all that pain is now out the way, financing secured, time to get paid.Now... just look at the cold hard facts... on blue sky there is zero net profit until 2026 at the earliest. For those with sanity/not some of the delusional rampers on here, this is no longer a good investment. This is a punt with not only a low probability of payoff but not an even smaller payoff even if it does work out. Most likely AOP grab the whole company for 8p (or less) before too long.

[parob] 28/9/2023 11:27

Must remember to sell out completely once PATT arrives and says he's been buying.Have had my secure message from HL but tbh I might as well buy on the market now under 8p and save the 0.5% commission.I remember the negatively at the last placing at 6p and it went on to double.No worries at all about financing now. Hopefully will just be a blip on the chart in years to come.Let's see how quickly these placing shares get churned.

[devonlad] 28/9/2023 11:12

Standing up to be shot down but this is crazy. This is not a big dilution at all. It is to accelerate the growth and they now have set in stone revenue targets that they have to hit. The extra cash is designed to allow them to exceed those targets and grow faster. If this was in the USA, the stock would have gone up 25% because they love companies that aspire to grow faster and more aggressively. This is aim, this is London, difficult to raise funds and you have to discount. Everything is wrong with this market from top to bottom which is why it is shrinking! If they hit the targets they now have to hit, this will be miles away, probably delisting from London and going to the states at the same time as well.

[eringael] 28/9/2023 10:53

Agreed Devonlad those in the know are trying to fill their greedy little bellies at the minute hammering price as low as they can and then let it go again

[purchaseatthetop] 28/9/2023 10:47

almost down to Greg Mads 9/8/22 7.2p options exercise price!

[devonlad] 28/9/2023 10:37

Financial covenants apply with minimum revenue targets and minimum liquidity of no less than the greater of i) trailing one quarter of cash burn or ii) US$2.5m. Warrants over 8,910,540 new Ordinary Shares will be issued to SWK with an expiration date of six years after closing and a strike price of 11.1p per Ordinary Share. The table below details the minimum revenue covenants:


Trailing Four Fiscal Quarters Minimum Group
(i.e., 12 months) Ended Revenue
Q3'23 US$8.5m
--------------

Q4'23 US$14.5m
--------------
Q1'24 US$22.5m
--------------
Q2'24 US$31.5m
--------------
Q3'24 US$38.9m
--------------
Q4'24 and each fiscal quarter US$45.7m
thereafter
--------------

It's in black and white now, STX have to hit these targets. For such a small percentage raise, the reaction is quite simply an over reaction. I think there is a lot of smoke and mirrors going on here to be fair but retail punters are, as always, at the bottom of the pile.

[qipincha] 28/9/2023 10:25

agree, revenue for 2023 likely in the region of £20m, so not a naive thought to break-even by the end of 2024

[arab3] 28/9/2023 10:24

How many shares have you got wrong now patt , the list is growing ?

[purchaseatthetop] 28/9/2023 10:17

There seems to be a lot of horror today and some suggestion that the cash positive end 2024 was not real so they raised more money. Not the case.

"New $20 million Term Loan and equity financing to accelerate growth and expand working capital, fortifying plans to reach cash flow break-even by end of 2024"

The cash positive month on month remains forecast for end 2024 but what they are saying is that faster growth costs money and they have raised it. Who knows what the markets would look like in six months time if they had to raise then. The swing from cash burn to cash generation will be very rapid as the snowball of revenue gets bigger faster. Just like a real snowball. You roll it and roll it and it gets larger slowly then suddenly its mass grows really fast.

Yes, back to 8p. Hey ho. Doesn't change what it will look like in 2025 when the cash starts flowing in fast. Still many years of protection after that.

[photon] 28/9/2023 10:16

There is a certain BB poster who has turned up a number of times posting positively about certain smallcaps shortly before discounted placings are announced. It is almost as if they were being employed to help clear out books at higher prices. Surely only someone with a proven absence of moral code would do such a thing.

[dr biotech] 28/9/2023 10:16

Whilst its horrible having the carpet pulled and sold from under you, I'm not sure quite who you can point the finger at. For STX to raise money they need to see if there is an appetite for it - so they will have to ask their major shareholders and broker etc. The possibility of leaks outside the company is huge. Clearly forward selling has happened - an assuming this had insider information is probably illegal.

However, regardless of yesterdays fall the share price would still be where it is today. Just means it would have fallen more today. 8p fundraise almost inevitably will lead to an 8p share price.

Not a holder - have been watching but never quite believing in this one.

[cyberbub] 28/9/2023 10:13

We may be wasting our time, but it only takes literally 2 mins and can't do any harm.

[qipincha] 28/9/2023 10:10

i feel you are wasting your time.
and if you do have action from them, it will not help the share price

[arab3] 28/9/2023 10:04

Has anyone previously had any joy from reporting MA to the FCA ?

[2theduke] 28/9/2023 09:54

Just FYI, reported to fca on their form with some data.
Trading be as it may, for the sake of the market the day before action needs to be investigated.

[best1467] 28/9/2023 09:52

What is absolutely crystal another BOD that can’t be trusted .Will be out after several years at the next opportunity.

[goforgold1] 28/9/2023 09:46

Some got burnt bad here or lost a quarter of their profit in about 2 hours wow