Valirx Share Discussion Threads

[wulber] 18/6/2023 21:14

I remember that clearly when the company had toxic dents under the previous management. Who came and turned around the ship, cutting costs, defunct IP (101 etc), brought in new BOD? We now have 201,301,501,BC291,CLX Barcelona, 5 new evaluations (we were told a handful), tCRO income generating lab, science team, relocated out of London to save costs, fired the old Nomad and other loose baggage, bought Imagen to enhance the lab and more attractive to new clients, cashflow until 2024, deal with THX etc etc.All in 3 years - who was the catalyst? Suzy!

[sean cadman] 18/6/2023 12:46

Here is a post from 3 years ago!!!"SH group over on LSE is trying to save our company any shareholder on here who has not pledged their shares I would ask that you do. They are building a head of steam and may be our only hope of salvaging something from this mess we are in thanks to the BOD"

[porky9] 17/6/2023 21:03

@Wulber
Fair point, Adam might not want it, not sure how much actual cash he had at risk or his average, his position might not be too bad, equally he could just ride it out. Will know in due time.

I don't share your views on forward vision, They just spent 170k on the recent deal and 65k on bonus awards and another staff member so that’s another 2 months cash burn gone. My view is, get the AGM out the way, see who remains, shore up the cash position with £2m raised via 20m+ 20m at 5p in July that’s IF they can get investor support, they might struggle in this climate could go lower, main thing is they get the working capital in.

Then make new appointments, 201 won’t get funded and they will ultimately need to confirm same and look for new partner, lab will get some small wins but if the lab can secure north of £500k revenue during 2024 I would be very impressed - it’s going to take a few years before the lab can generate £2.5m revenue from zero, not to mention as they start winning lab contracts they may need to increase staffing further. No guarantees, Imogen had 34 science staff on its book at its high and was still burning £1.2m - this will take time

Frankly I would like to see a return to full focus on drug solutions - with the right appointments the outlook could be materially better. Short term this is going to be a choppy ride for shareholders IMO

[wulber] 17/6/2023 20:26

P9, you miss the point... yes we know the process for Adam to be instated but the point is does he want it? I would say no as he has a very successful business and probably happy to just be primary shareholder and SH communicator to the board. To join VAL undermines his right to sell or buy any shares when he wants as an insider.So my prediction is that sentiment will soon change and, the board will remain intact, 201 will be finalised but 18 months later than expected, the lab will soon be receiving substantial revenues and the need for a Placing next year diminishes.

[porky9] 17/6/2023 19:46

@Wulber
IF Adam wants to join the board he just needs to notify them of his intention. 28 days they have to respond.

A resolution issued and IT WILL secure SH support so its as good as a done deal if he wants it BUT he has other interests.

Also, the guy would be taking on all the existing decisions made. Many need to be undone, like the 201 situation. some cant be undone like warrant deals etc so not great thing.

IF at the AGM the result is the board have been dumped then as an alternative if he doesn't or cant join full time he could propose an interim deal just to support short term to help recruit people to the board top drive this forward

That would also work.

Eitherway something has to give...

[wulber] 17/6/2023 15:24

Is he interested, does he have the time?

[jasonpugh] 16/6/2023 23:20

A first class post porky
👍.

[porky9] 16/6/2023 22:53

IF Adam wanted to be a NED to support the board the process is simple. He just needs to instruct the board that he has sufficient support to request a resolution be voted on and passed for he to become an NED.

I understand there has to be a 28 day period for the board to respond. At that point a resolution is issued to be voted on and if he secures enough votes (which he will) he is elected.

This is why initially I thought, Adam will wait until the AGM see what the forward plans are, giving them every opportunity, decide then to make a move, sort his paperwork out, request a resolution, 28 days later end of July / start of August, gets voted in and joins the company late August early sept.

Be real interesting to see if he is interested or not??? Million dollar question

[jasonpugh] 16/6/2023 20:07

The way that the valirx board have behaved and continue to behave shows conclusively that shareholder sentiment is not a priority.
They absolutely dont want professor adam Hargreaves on the board because they would be very much accountable and inside discussions would be uncomfortable for them with adam present and panu and Kevin cox would feel uncomfortable in their ikea chairs.
My question is. Can shareholders press for adam to be on the board and force a resolution to the effect? Of course, adam would have to want to join the board obviously. But im thinking a position for adam where his other commitments are not compromised. DYOR 👍

[jasonpugh] 16/6/2023 13:50

@porky. My favourite word. Rapid 💋

Really read the rns. Adam likes it. But what does he know. Hes only a professor 🫣

[porky9] 16/6/2023 13:45

@JasonPugh
There is no doubt that both the partnership with PYC and the deal with Imagen will strengthen the labs offering. I don't doubt that one bit. The entire business plan proposed by VAL is based around a tCRO business and they wated buy and build to strengthen the lab offering and create more USPs.

Also i suspect that they should be able to pull some ex clients of Imagen over, this is all positive i agree.

However, and here is the issue. They need a heck of a lot of lab business, circa £2.5m and growing just to break even and have never invoiced a thing in 15 years hence, going from a blank piece of paper. When imagen was at its peak it was still burning £1.2m of cash, it accrued £5.2m of losses before it called in the administrators and was employing 16 staff to service that business. Inalpha is a start up a fraction of that size.

What I'm saying is, yes the labs strength is building for sure but it will need a lot more investment and will need a lot more time to do it. To win £1m of lab business let alone £2.5m will take some doing, that's a lot of sales and marketing. Natalie over at Biograd in Liverpool has a number of labs across the UK and its taken them the best part of 14 years to get to those sort of levels.

I'm not saying it can't be done, I'm saying its naive to think this will happen over night and this is why more so they need Adam on board, he has significant lab building experience being directly involved in the sector and they would benefit from that - as i keep saying, you don't know what you don't know. With Adam they could avoid other costly mistakes they are not yet aware of rather than Shareholders funding them whilst VAL learn and find out.

Good luck

[jasonpugh] 16/6/2023 12:53

Something really stands out in the rns on valirx getting imagen assets for a magnitude of 40 times intrinsic value.
In the rns it says “an extensive biobank of patient derived cells”
Now watch the video from yesterday when the imagen guy talked about these. Then the part where they say they are going back to the potential clients they initially spoke to(when they didn’t have these patient derived cells to renegotiate “”
Im pretty confident in this being highly cash generating and substantially quicker since getting this stuff from imagen. Whats more. Adam Hargreaves was very impressed with this. DYOR
And to add to this notice what Kevin cox says on the rns on imagen assets. “We believe this approach will significantly enhance value in valirx and we expect integration of these assets into our business will be rapid and increase our revenue earning potential in the near term”. Three words stand out. Rapid. Near term.

[porky9] 16/6/2023 11:04

@Jasonpugh
As you would expect I don’t agree:
1. 201 deal with THX a dead duck, maybe it’s Kevin being fed this USA BS but over two years to get funding and they would need the best part of £25m to get trials started. New drugs are coming to the market competing for that money. If THX couldn’t raise cash in the boom, how will that happen in a funding drought?
BUT benefit of the doubt, let’s see the evidence?

2.I don’t doubt they will get some lab business but they need a heck of a lot to make up £2.5m. Some should come from the business in administration. But that company was only doing about 400k and was burning 1.2m to do it, they also had 34 staff at their peak, The lab side will get built but it will take more time and more cash to do it

3. cLX001 is IMO the ONLY investable aspect here, I agree however, it’s pre clinical and years off and a partner to fund early stage trials is required. Do we have the skills on the board to do that? If they do find a backer (hopefully) it will Likely be milestone led deal - in which cash a number of years down the line before val see any cash. That period will need funding but I agree, I like cLX001

4. I think ultimately Adam will need to join the board but that’s his choice he has other business interests, if he can’t it would be good if he could at least help with new appointments but the current board need to be receptive to that.

5. Yes connections, but as we have seen even if they get a referral a 12 mth evaluation and 100k cost to VAL so cash required to fund that. There are numerous Uni biotech projects across the U.K. that need support before we even need to look at Spain. But yes, positive connections are good.

6. PYC - yes, I think VAL should acquire frankly and merge it cut costs and add the revue to labs.

In all, I believe the business will grow and push forward, I just think it will require more placing cash along the way, There is not really any event that will bring cash in short term as I see it other than the labs and that’s going to take sales and marketing cash to do it.

Also you can’t value lab contracts at the same ratio as a drug on trials and this business has shifted from a developing biotech to a start up lab business IMO,we need board changes to bring it back in line

[qnq] 16/6/2023 10:57

whats your story? are u short or are you a market maker!
what you dont understand is that this kind of talk ur doing doesnt work in the US. well, soon we'll end up the Jurassic park of finance and you wont have any more companies to bully.
Go and check every single US company, this is how companies function from Tesla to Nvidea... companies issue shares... duh!
but in UK the horror of a company issues shares because of few bastxxxcrd that hopefully will all be caught by the FCA.

[porky9] 16/6/2023 10:29

@qnq
I fail to understand what you are not getting here.
The BOD just simply issue more shares, get the cash in, spend it, do the same again over and over then consolidate. They have issued not one but THREE 125:1 consolidations. I would go as far as to say that VAL are possibly one of the best on the AIM at raising funds.

There is 40m headroom shares in the resolutions and the cheeky sods even added another 10m for more share options - brilliant. That’s a potential of up to 50% dilution.
If SH are going to put up with that they need to ensure this next raise is the last one for a while - the only way that can happen is with a board change IMO otherwise they will keep doing the same.

Be interesting how the AGM goes. 5p placing might be a tough call at this rate. I still think it could go to a 3.5p back to April 21 share price levels. Will know soon enough.

[jasonpugh] 16/6/2023 10:25

Positives and potential drivers.
1. 201 seems nailed on. Watch and listen to the last video. Kevins comments in particular. He wouldn’t hang him self out on a limb with his confident statement of Theoremrx getting the funds if it wasn’t true.
2. Lab guys going back to customers with new proposals since obtaining lab equipment at 40 times cheaper price. Substantial number of clients I believe and more clients from the company who they got the equipment off.
3. CLX001. Await news on this. Suzy beeming at this. The science is outstanding. Watch Martin ulmschneider of Cytolytix on video. Crazy potential.
4. Get adam Hargreaves on board in some capacity. Hes super talented and really well connected in pharma. And in my view someone you can trust.
5. Barcelona university connections. This has been missed by the market. Quite remarkable connections. Read rns.
6. Physomics agreement. Read rns.

Negatives.
1. Stella panu. Non buying and very arrogant. Needs replacing as non confidence
2. Cenkos payments. For what!
3. Todays rns. Do you think that every evaluation would be a success? Part of process. Besides CLX001 in my view has blockbuster potential. Read the science
4. The two finance guys need to go. Consistent in share price decline. DYOR 👍

[qnq] 16/6/2023 08:55

curious to know whats francos story! we cant have a market maker on the blog, illegal.
Val is worth a lot more than what it is and some crooks trying their best to destory it, they are talented in UK because the fxxxx FCA are snoozing... but as Odey was exposed and we have one less market manipulator, I am sure rest will eventually get caught.