Hi all
Na Sayers look away ... this post is not meant for you.
My caveat is that this is not a recommendation or a call to buy - it is simply my view and my view only.
So .... why do I like Suda???
Well yesterday’s announcement is a beautiful example - a partnership that in itself could be a company maker. But I had already formulated this post before this announcement, so the release is simply an affirmation to me that I am on the right path.
To fully understand what I mean I need to take you back to the Wednesday morning when Suda asked for a trading halt pending an announcement about a capital raising - I was incensed .... we were close to the Bunny trials being completed, a new Zopli deal was not far away and we were raising money whist the share price was at these levels, I mean why not wait and do it when the share price was higher?
I rang Steve and was told we were strengthening our balance sheet, but that didn't add up to me, if we needed to do that so as to be in a solid position to negotiate why would we only raise 1.5 million, it made no sense to me .... until ....... thanks to Hot Copper I learnt who had underwritten the CR. RM Capital!!!
Why is this so important?
RM Capital did a previous raising for Suda some time back when the share price was 8 or 9 times greater than today, shortly after which the share price began to fall and those who had participated began to lose their capital. So far so good, but what's the big deal, well it would be reasonable to assume that this time round RM Capital would have been a bit gun shy of EMS/Suda after so long and would have performed some serious due diligence in order to again recommend this stock.
But there is more - One of the owners of RM Capital is a fellow called James Richardson who is an absolute bonzer chap and as straight as an arrow. Following the first CR and when it became obvious EMS, as it was then, was a serious concern he called on someone he knew well and had the credentials to take a look at EMS and give some clarity as to what was going on at the Company, and provide some recommendations as to what could be done to improve the situation. The name that person he had turned to was Michael Stewart, who as you may recall came in as a consultant for three months before joining the Board and then removing Doug Sims.
So, RM Capital and Mike have a connection and the very fact the two are working together tells me there is far more happening behind the scenes than we realise, and yesterday’s announcement is living proof of that.
Make no mistake Mike brought EMS back from the brink of administration with his own money and that of a band of loyal supporters.
In essence, I place my trust in the management, I am positive that there is far more going on than they tell us and so I look for signs from those in the know. Keeping that in mind, it was very encouraging to find out that two of the related parties that are putting serious money into the "New" Convertible Notes that will require shareholder approval, are Mikes Stewart’s two sons Justin and Ryan who are joining their dad who has committed 100k.
The reason the Nay Sayers need not read this post is that one must believe in management and they have publicly stated they don’t. Who here had any idea we would be looking at a cancer drug, who here has the first real idea of what Pfizer really thinks of our new platform, how many other companies are we talking to, how much work have we really achieved in our small Lab under Dr Carol Worth and how commercial is this work.
We have a lot happening that none of us know about, except for those who have the ability to see this privileged information such as RM Capital, who require it to be able to recommend Suda to their clients.
These are the reasons I am still in Suda, yes deals have been slow, and yes one could argue the Novadel technology may not have been as commercial as we first thought, but we have moved on from there and we continue to change as we morph into something very special.
The market has failed to react to the announcement which is neither here nor there for me, it is not the market that will do deals with us or pay us money, the market is purely a reactive tool and if Suda do enough then it will react at some point – then all the Nay Sayers will say “Well they took their time, maybe if they had kept us all informed etc,etc,etc)
There you have it – why I am still in.
Clyde
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