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Optibiotix - warrant news a flat end to the year. We really do expect fireworks in Q1 2017

By HotStockRockets | Monday 26 December 2016


Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


We cannot hide our disappointment that we go into Christmas with shares in Optibiotix (OPTI) trading at just 61-63p. They really should be far higher and we do expect an exciting re-rate in Q1 2017. We had expected it earlier but were wrong. We won't be this time!

Late last week we learned that the company plans to extend the life of certain warrants. There are not that many outstanding but we should say that FIML ( owned by Tom Winnifrith's family) has warrants it was expecting to have to exercise at a cost of £10,000 to get shares at 8p each by January 28 2017. FIML like other warrant holders will, it seems get an extension to 2022. We do not expect to wait six more years but it is always good to have extra wriggle room. So thanks!

Actually there are not that many warrants outstanding although Adam Reynolds has a few. What will drive this company's shares forward is more commercial deals.

Investors have not appreciated how big the recently announced deal on Slimbiome with Tata could be. Perhaps that is because Tata has not yet been named by the company just by us. We expect the company to confirm within two months and there to be other deals announced with big names which will leave Optibiotix generating very material revenues and indeed profits by the end of 2017.

That is why the shares are still a buy at up to 80p and will be well over 100p to sell before 2017 is too advanced.

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