AllI think my point is -A. They have already burnt through $34...

All

I think my point is -

A. They have already burnt through $34 million.
B. They have already discounted their income flows in order to prop-up cash flows.
C. Aside from the U$3 million payment due in early 2023 (now brought forward via discounting), there are no known future cashflows.
D. They are quite inefficient and still relying on R&D Tax incentives as a major proportion of income.
E. There are a few red (governance) flags that warrant further explanation.

Regarding the red flags: the Paddington Street Finance thing worries me a bit. PSF is located at the same address as RGS, and is owned by The Sherman Group. Turn to page 56 of the Annual Report and you will see that the 4th biggest shareholder is Kirman 2 P/L, which is owned by Brian Sherman and also - you guessed it - located at 2 Paddington Street, Paddington (Sherman is a well-know philanthropist who lives in nearly Centenial Park, and his support for bio R&D may stem from his current personal situation). Yet the CEO was openly bullish about securing this "financing" (which is simply cashflow discounting wrapped up to look like independent finance, in my humble opinion). I think there was additional duties of disclosure warranted with this financing, hence my comments.

And what's with the Sangui Bio investment? For a company bleeding cash, surely any investment in other biotechs warrants more commentary in the Annual Report (is it acretive, etc.). The investment was at $2.50 per share (x 700k). What is the current value? (considering that this accounts for 42% of the Net Asset Value, it certainly deserved far more attention).

Yes, I get the "binary thing". Put aside the fancy words, and this is a punt. But that still doesn't explain the recent rally off the back of nothing, and still doesn't explain the sizeable margin to NAV. And yes, I do hold these things (as a "punt") but am struggling to understand the PSF transaction which seems to have no disclosures attached to it.

Anyone else out there have any ideas?

Thanks in advance.

Kit.