Vernalis Share Discussion Threads

[compoundinge] 16/7/2018 10:14

Does anyone know what the KPI/incentive is for Evercore to get Vernalis shareholders the best deal? Or is it just a fixed fee to finish sale regardless of what the price is?

[meijiman] 13/7/2018 11:37

I agree with you there-but there are divergent views which makes a market. As no one can nail down a valuation, which after all is what a buyer is willing to pay-then its a matter of waiting. But I believe the investment bank will be able to get traction here from more than one party.

[compoundinge] 13/7/2018 10:20

Bones why don't u think the outstanding pipeline is worth anything? The market is saying opposite with Corvus and Verona valuations, both lead molecules are licensed from Vernalis along with other molecules.

[greedfear] 12/7/2018 11:51

Obviously you’re not a golfer.

[bones698] 12/7/2018 11:41

I'll have the last laugh when it happens and the mugs run off with their tail between their legs . When it was first announced the share price went to 3p for a reason and only some idiot tankers and mug buyers getting sucked in have moved it above where it should be . Still MMS will happily drip the share price lower and lock your losses in for you all

[greedfear] 12/7/2018 11:33

Better listen to bones’ concerns. Next step might be a share offering so Vernalis can pay more to anyone willing to take over the company. I can see that happening. Lol.

[bones698] 12/7/2018 10:10

Timbo not sure what figures you are using to get to good value here . The only thing of value is the cash pile which is getting lower by the day given that vernalis is a heavily loss making business . For that reason I see little value in any of the assets or drug pipeline and can only see any potential acquirer paying around that figure at best given they will be inheriting a business losing money fast .

In fact any potential offer may well be below the cash value as winding up loss making divisions will be costly in itself with redundancies and other costs . I'll stick to my 3p target for now . Anyone buying at these levels might be in for a nasty shock .

They will be naturally losing about 1.5m per month then there are other considerations as I mentioned plus cost of sale process etc . Current cash position circa 23m imo and mkt 33m says there is downside here and the longer it takes the worse it will get imo .

My biggest concern is those likely to be looking at this will be looking to stop the losses which means shutting down and job losses to many divisions if not all and then paying redundancy to employees would make a big dent in the cash pile even more meaning they would take that into account when making an offer and why I suspect an offer may not even come or if it does could be well below the cash position

[timbo003] 11/7/2018 12:41

>>Bones.

The shares look very good value with or without taking the tax loses into account. For valuing the company on a sum of the parts basis, I would disregard them. However, they may add to the attraction for any potential (profitable) acquirer

[bones698] 11/7/2018 11:45

Timbo expecting 3p a share just for the losses is stupid . Companies have a vast array of other shares they could but if they elwanted to use the tax breaks on losses . The fact is those are worthless so forget that for a start . Simple fact is this will be worth around the cash value that's left and little more as everything else is loss making pretty much . By the time they have sold the company the cash position will be far less than last announced so expect to get maybe 3 to 5p once this gets sorted . Anyone paying over that expecting a return is going to get burnt .
Once the bod have paid themselves hefty bonuses as they leave the company the cash position will be hit Aswell as the time taken and running costs which are ridiculous and always have been for a loss making company .

Anyone pinning their hopes on the tax losses bringing value clearly hasn't been around very long and doesn't know these are worthless . If they are so valuable then every company that goes bump with huge losses would get snapped up just for those . Get real

[meijiman] 04/7/2018 20:51

Provided the tax losses can be carried forward then these will be available. Therefore valuable and would be part of the calculation of any bidder.

[bountyhunter] 04/7/2018 18:46

any liabilities, debts or redundancy payoffs to consider?

[compoundinge] 04/7/2018 17:59

Interesting calculations Timbo. How does this potential tax credit work for the acquirer? How do they realise this benefit? is it used to offset future tax payments?

[timbo003] 04/7/2018 11:33

>>> nobby

Indeed, it seems like buying £1 coins for 50p or thereabouts

[nobbygnome] 04/7/2018 10:53

>> timbo

So if you take into account the cash as well the market is essentially currently giving a minus figure valuation to all the programs within VER. As you have highlighted some of these do have value so the current market cap has to be ridiculous. The price could double today and the valuation would not be challenging IMHO.

Nobby

[meijiman] 04/7/2018 10:40

On my rather unscientific workings I cannot get less than 10p per share here. Yes it has been a disaster but the institutions will not let the company fritter away the remaining cash. There is valuable IP here. Tax angle is also interesting.

[timbo003] 04/7/2018 10:32

I've just done a quick calculation on the potential value of the accumulated tax losses.

It looks like this could be worth around 3p/share to an acquirer

[chrisdgb] 04/7/2018 09:24

Let us hope the big investors are keeping the pressure on the board for a reasonable outcome.......

[greedfear] 03/7/2018 16:52

I know the history. I know the risk. I do expect to make a very nice return on this. If not, so be it. People scared of risks: don't go for it and listen to the "bashers". You'll sleep better.

I'm expecting 10p+ per share. VER's management has got some large shareholders looking over their shoulders. It's not all about quality of management now. II's wanting this over and done with and get at least something back.

Just my two cents. DYOR.

[bountyhunter] 03/7/2018 15:29

unfortunately I have to agree with the last two posts as the BoD's record here does speak for itself and I for one wouldn't expect them to even make a great job at selling off the company when they have indeed failed spectacularly at everything else losing millions in investors cash including mine in the process; fortunately I have a diverse pf including very few like ver

[bones698] 02/7/2018 17:11

See plenty of fools will lose here buying at anything I we 4p is a huge risk as the cash like will be less than that values the company and I don't see any value in any of its remaining products that anyone would pay for . If your buying at these levels expect to get burnt badly.
Chart looking like a fall back to 5p on the cards head and shoulders formation after sucking in a load of clueless mugs who know nothing about the company trying to make a quick buck. City traders are far to clever for the average moron and enjoy taking money off them with such games .

Don't come moaning when you lose out . You were warned

[greedfear] 02/7/2018 16:38

It's obvious someone is making sure the share price will not take off. A good sign.

[compoundinge] 02/7/2018 15:21

When are they obliged to inform investors on "formal bid offers" according to the takeover rules?

[jayj4u] 30/6/2018 09:12

It will be an interesting next week. I don't think they will wait until the end of September to announce the results of takeover. Im expecting this to conclude next month or latest August. This could get hostile if someone really wants this company. Keep this in mind if you are holding this stock!

Managment cant really decide who will takeover the company. Its the highest bidder.... this is a public company and even if they turn down all the offers. What stops these companies making a direct offer to the shareholders? Just look at Sky!

[greedfear] 29/6/2018 10:21

Tasty buy 500k @ 7.3751 (exceeding offer price @7.28).
Nice action.