Ann: Imugene Limited shareholders approve Linguet, page-7

re: Ann: Imugene Limited shareholders approve... Samson & other longs

True it’s a tough market for small caps, but it was a very mixed message when you consider the world wide agreement and the latest equity arrangement.

Potentially via the LOI we have $5m coming in at end of September and then the subsequent $25m in tranches over the next 5 years based on GPs. Sounds ok, but very thin on detail at this stage.

Still it’s only a LOI and it will need to come to fruition and we’ll have to trust in the interim as we’re still on a promise. In due course we will find out more about Triple A Holdings. (Yes the Australian article today dropped another hint). However, after all this time there’s still no big pharma.

As for the finance/equity deal with Lind it has a lot of potential downside. They’ve arranged for $5.6m in funding with $400k already advanced, presumably to get them through to the end of September.

A minimum of $75k worth of shares for 24 months equals a $1.8m drawdown. If we need more like the remaining maximum $5.2m then on average Lind might be entitled to $216k worth of shares for 24 months (based on $5.2m/24 months).

Say the SP averages 2 cents for the next 24 months. Based on the minimum calc that’s $75k/2 cents per share = 3.75m shares per month. Based on the maximum calc that’s $216k/.02 cents per share = 10.8m shares per month. (Note Lind get their shares at 90% of 3 day vwap, so they’ll do slightly better than what I outlined).

So over the next 2 years based on 2 cents per share and the amount drawn each month Lind could be issued with between 90m to 259m shares. The higher end would represent approx. 25% of our current issued shares.

Nothing is mentioned about the Lind shares being held in escrow and/or whether any trading restrictions apply to them. Nothing is mentioned about the actual floor price for the duration of the agreement other than Lind will always get their shares at a 10% discount to 3 day vwap.

My take we deserve to know more about the Lind deal.

Also don’t forget prior to the Lind arrangement there was something like 160m unlisted options that can be exercised over the next 3 years. Now following the Lind deal and Friday night’s little CR I think there is just over 200m unlisted options.

So if $5m is coming via LOI and the subsequent $25m in anniversary payments plus approx. 200m unlisted options then why do we need the Lind facility if the Triple A deal is so good?

Until the deal is sealed I tend to agree with those who are disappointed as what we got last week was further delays & dilution before any deal. As we all know being long in this market is very testing. I also find it very difficult to ignore the share price as really that’s the best tool us little guys have to gauge what is going on. Rolf is right that there isn’t much support currently as we continue to wait.

Maybe I’m being harsh and have missed the company might be future proofed to an extent, but one week on and I’m still feeling just as ambivalent as I was last week when this was announced.

Personally the article in The Australian today didn’t do much for me.