By Elric Langton | 5 April 2024
Mike, Alex and Elric have a financial interest in SkinBioTherapeutics.
To suggest that investors in SkinBioTherapeutics have navigated turbulent waters in recent months would scarcely capture the full extent of our collective ordeal. Indeed, COVID-19-2.0 presented significant challenges to our collective sanity. Today's announcement, however, brings a semblance of relief, signalling a potential resolution to the ongoing saga surrounding convertible bonds (CBs).
I must candidly acknowledge the repercussions of the CBs, which have diluted and rendered the acquisition of Dermatonics financially burdensome or at least have the appearance of such for the moment. The conversion price, determined by the VWAP formula minus 10%, cannot be portrayed as advantageous due to its inherent design, which seems tailored to benefit entities like Macquarie and CLG, the former holding all the cards, are thankful, all but done, be at at the expense of investors. This realisation underscores my previous naivety regarding perhaps overly concerned investor priorities, given the Company had ยฃ3.3 million of working capital.