Venture Life Share Discussion Threads

[farnesbarnes] 04/12/2020 12:43

I still smell a rat

[qs99] 30/11/2020 13:18

Thanks for posts. V interesting

Would like to see one of the deals closing soon as surely they know the fund raiser is in the bag? DYOR

[rivaldo] 30/11/2020 12:44

I agree, on both counts. Probably a good thing.

VLG's move also leaves them with funds for additonal cap.ex - or even a further small acquisition if one comes along.

[shanklin] 30/11/2020 11:22

rivaldo

That seems quite a conservative note from Cenkos.

My guess is that the two smaller acquisitions could have been funded from internal resources and debt but that the large axcuisition tipped them over the edge of needing a placing... ...and they decided to announced before the imminent pre-exemption rights cutoff.

[rivaldo] 30/11/2020 11:18

There are some interesting points in Cenkos' long update note from a few days ago:

- they've calculated a pro forma forecast for the coming year ssuming the three mooted acquisitions complete reasonably quickly. This produces 6.75p EPS and £11.4m EBITDA, up 62% on the prior forecast
- imo that would justify a share price somewhere between 130p-150p
- VLG can almost double the manufacturing capacity in Italy from current capacity of 55m units to 100m units for only £7m total investment, with an initial £3m allowing 75m units production
- Pharmasource grew 40% in H1'20, and that was before synergies which should deliver further growth in 2021

[qs99] 30/11/2020 10:32

1 share traded, don't some people think that heralds an RNS?

DYOR

[qs99] 30/11/2020 10:18

Nice old start to the week

[whatja] 26/11/2020 17:47

They should ride the wave and allocate extra shares in the open offer.

[qs99] 26/11/2020 13:30

Indeed Riv

£1 being paid now, won't need much more to see it back through a quid....DYOR

Glad I took up all my (small) rights in the open offer and asked for more if available but I doubt they will be.....

[rivaldo] 26/11/2020 12:34

Nice bounce. Just a return of common sense imo :o))

[qs99] 26/11/2020 12:04

Maybe one of those M&A deals will be able to close sooner due to successful fund raising? Just a thought to explain the bounce? DYOR

[qs99] 26/11/2020 11:04

Thar she blows

[qs99] 26/11/2020 10:59

A buy gone through at 97p, yet ADVFN are showing 96 on the offer?

[qs99] 26/11/2020 10:32

Hopefully re-trace now starting in earnest

[qs99] 26/11/2020 09:06

Think FB it is worth reading the RNS again and some of the posts above

SP IMO was always likely to trend back towards the placing price of 90p, but this was nearer 20p earlier this year ffs!

Management IMO are delivering, the deal pipeline needs to be delivered, but the moment it is, trading update in NY hopefully positive and mouthwash / COVID update mean there is plenty of newsflow to push this higher and possibly allow earnings upgrades....

DYOR, but this IMO will start trending back above £1.....cheers QS99

[whatja] 25/11/2020 22:17

FB looks like your percentages or timeline is wrong.....SP has been above 80 since August.

There has been a series of positive updates this year. They have got a big fund raise away ata decent price....yes it was unexpected, probably triggered by the change to preemption rights and concern about CGT rises for the BOD, but only v recent investors have suffered any real losses. The new institutional investors will not want a price collapse.

The deals seem reasonable and feasible. They will be well funded.

What is not to like?
My worry list would be

can they get paid by their big Chinese distributor?
Will they overpay for the acquisitions?
Can they innovate to improve what they buy?

We will see how the working capital is with the FY results
They have set out the price they expect to pay so we should know if they overpay
They have some innovation in their products.

[seroserio] 25/11/2020 21:16

Thought as much, many thanks.

[farnesbarnes] 25/11/2020 21:15

I'm not sure why, but something about VLG suddenly doesn't feel quite right to me. I can't put my finger on it. Within the last month, there's been a 20% fall in 4 days, followed by a near 50% rise the next 4 days, followed by this equity raise and director selling. I hope I'm wrong but something seems fishy.

[ironstorm] 25/11/2020 19:08

AJBell have also credited the entitlements. I have also applied for me allocation and gone for a maximum excess allocation.

I doubt I will get many of the excess.

[valhamos] 25/11/2020 16:47

seroserio - I have sent you a private message.

[seroserio] 25/11/2020 16:38

Was that a private link TLST?

[whatja] 25/11/2020 14:08

HL has credited subscription entitlements to accounts. I intend to take up my entitlement.....and will consider applying for more.
This is a big vote of confidence by institutions.(and yes they are not perfect judges) but the outlook looks promising.

[qs99] 25/11/2020 13:05

agreed and nice ST update as well. Let's get this placing away, get the £s in and start announcing those deals into the fold....that should help VLG motor to new highs IMO....

DYOR and am taking up all my (small gggrrr management!) allocation and asked for some overs if possible....DYOR

[whatja] 24/11/2020 15:59

Mgmt taking advantage of current low CGT rates...but still keeping personally important stakes in the company.

If they achieve their ambitions, then VLG will be making 15m pa and be worth 150-200m which is a good uplift from here.

[speedsgh] 23/11/2020 16:49

Yes, brief Simon Thompson update today following the fundraising announcement last week. Reiterates BUY recommendation and also recommends taking up Open Offer entitlements...



"... The fact that the £34m placing proceeds have been conditionally placed at 90p with institutional and other investors highlights significant backing for the scaling up of Venture’s acquisition strategy. It’s also likely to lead to material upgrades in due course given the accompanying boost to operating profits and margins."