SkinBioTherapeutics PLC
SBTX Board seeking alternative financing options for inorganic acquisition strategy aided by recent positive updates
By Elric Langton | 28 February 2024
Mike, Alex and I have a financial interest in SkinBioTherapeutics.
Before diving into the latest from SkinBioTherapeutics, it’s worth untangling the knot of sentiments expressed by some, including the irate Mr Angry, which I find somewhat perplexing. The consternation caused by the convertible bond financing has not spared investors, my family and I included. The current bone of contention for me is the somewhat sly critique, particularly of Stuart Ashman, the company’s CEO. Despite the shared concerns I’ve personally voiced to him, Ashman stands out from the typical CEO crowd I’ve encountered for his readiness to admit missteps. He’s shown an admirable willingness to engage with investors’ unease, taking calls and listening to concerns, including mine. Regrettably, some refuse to acknowledge that Ashman has stepped up, recognising the impracticality of further convertible bond (CB) drawdowns, something the share price movements signalled. While some board members of other public limited companies might have unquestioningly forged ahead, SkinBioTherapeutics’ pursuit of alternative financing routes, moving away from reliance on the Macquarie Bank Limited Facility, marks a prudent shift in strategy. Sadly, the issuance of CBs is a preferred vehicle for the providers, and they do not care for investors.
I spent some time highlighting several Companies that have adopted the CB financing route, many of which are FTSE100 constituents. However, their stock is far more liquid. Even so, I examined the critical data, including last Friday's date and share price response. The picture was clear; everyone became a self-fulfilling prophecy of doom. I sent this fact-finding mission on to Ashman. I am not saying I am responsible for his decisive action, but act he has.