Thought it would be a good idea to summarise Factor Therapeutics...

Thought it would be a good idea to summarise Factor Therapeutics Limited potential and value proposition. In my opinion this Company is way undervalued, cash back, in right sector and credible Board members to find a cracking asset which would be multibag potential.

Background:⦁ On 14 November 2018, Factor announced its Phase 2 trial had "failed to meet all endpoints" with the analysis demonstrating "no clinically meaningful or statistically significant difference in measures of wound healing, compared with placebo". Factor stated that further activity would be limited to maintaining its existing intellectual property portfolio.

⦁ On 31 January 2019, Factor released its Appendix 4C quarterly report for the December 2018 quarter, which disclosed (among other things): a) It held cash reserves at the end of the quarter of $2.598 million. b) Projected spending for the next quarter was $2.057 million, with the majority comprising contractual commitments with respect to the Phase 2 trial. c) Its "future cash position may also be impacted by receipt of a payment in April/May 2019 of approximately $1.2 million under the federal government's Research and Development (R&D) Tax Incentive Scheme".

⦁ Pura Vida is a substantial holder of Factor. On 1 February 2019, Pura Vida and another shareholder (Freshero Pty Ltd) gave a s249D notice to Factor requesting a general meeting be held to consider resolutions removing three of the four current directors from the board and appointing two new directors nominated by the requisitioning shareholders.

⦁ On 5 February 2019, Factor announced it had completed a placement of 208,500,000 shares, representing 19.99% of the enlarged share capital of the company, at a price of $0.002 per share to existing and new sophisticated investors to raise $417,000 (Placement).2 Taylor Collison acted as lead manager to the placement. Factor stated in the announcement that it was:
"…in the process of assessing new heathcare and biotechnology opportunities following the scaling down of its previous research and development activities at the end of 2018. The funds raised through this Placement will ensure the Company is in a position of strength throughout this process, with the increased working capital and runway to source, investigate, negotiate and execute a potential transaction."

⦁ Shareholder didn't approve 5 resolutions of 249D 'Removal of 3 Directors and appointment of 2 Directors ' at the AGM held on 27 March 2019.

⦁ Another 249D was received on 25 June 2019 from Richsham Nominees Pty Ltd, DC & PC Holdings Pty Ltd , Alitime Nominees Pty Ltd and Mrs Pamela Christine Neesham to remove 3 Company directors and appoint 2 new directors. This 249D notice was later withdrawn on 9 July 2019.

Corporate Snapshot
Shares on Issue: 1,043 million

Market Cap: $3.13 million
Current Share Price: 0.003
52 weeks high: 0.005
52 weeks low: 0.001
Top 20 (as of 21 Jan 2020): 47.23%
Board and MGT share holding: 20.4 million
No qouted share options
Unqouted share options: 8.25 million with various exercise prices

Financial Position:
Cash in bank (31/3/20): $2.96 million
'subsequent to the end of the quarter, it has now received $0.65 million in R&D tax rebate'
Based on the above statement, Company current cash balance should be $3.5 million in the bank

March 2020 quarter cash burn: Approx. $112k
December 2019 qurter cash burn: Approx. $95K
September 2019 quarter cash burn: Approx. $225K
Company accumulated losses as of 31 December are $81.5 million
No Debt
Trade payable were $245K with a net assets of $2.88 million as of 31 December 2019

Current Directors:
Chairman: Dr Cherrell Hirst
Non-Executive Director: Christian Behrenbruch PhD
Non-Executive Director: John Michailidis
Non-Executive Director: Dr David Brookes

Non-Executive Chairman: Dr Cherrell Hirst
Appointed Non-Executive Director 30 June 2009; appointed Chair 7 April 2015
Cherrell Hirst AO has had a distinguished clinical career in the detection and diagnosis of breastcancer; and significant experience as a director of commercial, government and not-for-profitorganisations. She is a Director of the Gold Coast Hospital and Health Service and Bolton ClarkeLtd (prev RSL Care RDNS Limited) and the John Villiers Trust Pty Ltd. Dr Hirst is also theChairman of the Advisory Board of Institute of Molecular Biosciences at the University ofQueensland. During the previous three years, Dr Hirst has served as Non-Executive Director,ImpediMed Limited (ASX:IPD) (August 2005 to November 2017) and Medibank Private Limited(ASX:MPL) (December 2009 to August 2017)

Non-Executive Director: Christian Behrenbruch
Appointed Executive Director 12 October 2015; Non-Executive Director effective 1 June 2017
Christian Behrenbruch has over 15 years of C-level leadership experience in the medtech,biotechnology and healthcare IT space, and has significant experience as a director ofcommercial and non-profit organisations. His former CEO/Director-level appointments includeMirada Solutions (now Siemens Plc), Fibron Technologies and ImaginAb, Inc. He is a formerdirector of Momentum Biosciences LLC, Siemens Molecular Imaging Ltd, Radius Health Ltd (nowAdaptix), Cell Therapies P/L (Peter MacCallum Cancer Centre) and the Oncidium Foundation.He is currently the Managing Director and CEO of Telix Pharmaceuticals Limited (ASX:TLX),Chairman of Monash Engineering and IT Foundation Board and is a Professorial Fellow atMonash University.

Non-Executive Director: John Michailidis
Appointed Non-Executive Director 14 February 2017
Mr. Michailidis is currently the Managing Director for TEVA Australia/NZ and brings almost 30years of commercial pharmaceutical experience to Factor, most recently as Managing Directorfor TEVA, Australia and New Zealand. His career has ranged from global franchise and regional executive leadership roles with F. Hoffman – La Roche (Roche) to CEO experience with growth stage biopharmaceutical companies, such as AviPep and Orphan Australia (acquired by Sigma).Mr. Michailidis holds a BSc in Genetics from LaTrobe University, and executive businessqualifications from Harvard Business School and INSEAD.

Non-Executive Director: Dr David Brookes
Appointed Non-Executive Director 10 April 2019
Dr Brookes has extensive experience in the health and biotechnology industries and is currentlya Non-Executive director of Anatara Ltd (ASX:ANR). He has previously been a director of severalother ASX listed biotechnology companies, most recently as the Chairman of genomics solutionscompany, RHS Ltd, which was acquired by PerkinElmer Inc (NYSE: PKI $9B biotech company) inJune 2018. In addition to his directorships in listed biotechnology companies, Dr Brookes iscurrently Non-Executive Chairman of a private health services company, the Better MedicalGroup, and maintains roles as a clinician and a biotechnology industry consultant. Dr Brookes isa Fellow of the Australian College of Rural and Remote Medicine and a Fellow of the AustralianInstitute of Company Directors.

Good to see Directors are very serious to bring a potential acquisition and have attended 19 meetings in last calendar year.


Directors Renumeration
'As part of the Company’s focus on preserving its capital, the Directors resolved to not takepayment of any fees following the results of the Phase 2 clinical trial. Directors forfeited all feesfor the period 1 December 2018 to 31 May 2019. From 1 June 2019 director fees re-commencedat approximately 50% previous rate.'

Recent Updates
'On 31 December 2019 the Company entered into an agreement with JEM Pharmaceuticals Pty Ltd, which is a consulting company of Non-Executive Director, Mr John Michailidis. The consulting agreement is for services associated with the scientific and commercial diligence review processes for asset/s under consideration by the Company for potential acquisition or licence.'

Good to see Company have engaged the right person to perform the due diligence. Below is the screenshot of from the article (https://*********.com.au/impression-healthcare-recruits-big-pharma-executive-cannabinoid-drug-discovery/)


Announcement dated: 16 March 2020

Announcement dated: 15 April 2020


Good luck to all.