Is the £1.75 million fund raise announced by ED flop Futura Medical (FUM) on 3 September already …er….flopping? The placing price was 0.2p the shares now trade at 0.18p-0.2p so flipping is no longer possible. And 92% of the money is not actually in yet. Will spiv clients of the scholars and gentlemen at broker Turner Pope welch?
Raising £1.6 million at just 0.2p for Futura Medical (FUM) will be good news for the scholars and gentlemen at brokers Turner Pope. 5% commission and oodles of warrants on top. Lovely Jubbly. Coke &hookers all round. But…
Oh dear Oh dear. Futura Medical (FUM) can waffle on about the joys of its ED product Eroxon or its product to stimulate the ladies, WSD4000, but folks are just not buying it. Half calendar year numbers are out today and although Futura hides just how bad its cash position is, its Nomad, the fragrant Emma Earl at Panmure, has forced it to fess that it will be out of moolah by early October.
Haleon walked from a US distribution deal and Futura Medical (FUM) the company whose ED product Eroxon has been such a flop with customers, admits that it will now run out of cash by October. So how much does it need to keep going? The company’s broker, the scholars and gentlemen round at Turner Pope admits the awful truth.
The fundamental problem that Futura Medical (FUM) has always had is that its ED product Eroxxon does not seem to impress users at all and thus repeat orders are minimal and with high marketing costs to win new custom it has always been doomed. Calendar 20025 results out today are window dressed but appalling. The warnings about when the Fat Lady could be calling are explicit. This has a zero written all over it, as Lucian and I have been warning for years.
No doubt crazy Meg at Bloomberg will be condemning my crude language and double entendres and saying that it damages AIM and my own credibility while also blaming myself and Lucian (and the global shorting conspiracy) for shares in Futura Medical (FUM) crashing from 52p to 1.3p in just 29 months. It is all down to our beastly and hurty words and nothing to do with the fact that the financials have been atrocious as there are so few repeat purchases of the company’s ED product.
We bears have maintained all along that the problem that Futura Medical (FUM) is that customers do not think that its main product Eroxon, a supposed treatment for ED, is very good. Customer reviews are dire, repeat orders weak and that was always going to sink the ship. Today comes yet another warning.
Who knows what the Orange man will say or do next? I do not claim to know but it is clear that the tariff war is causing both businesses and consumers to defer or change purchasing patterns. A number of companies with exposure to the US have already withdrawn earnings guidance. For Futura Medical (FUM), producer of Eroxon, an ED product that does not seem to work very well, the US is a key market.
It was in August 2023 with shares in Futura Medical (FUM) at 52p to buy that Lucian Miers volunteered to do some on the ground research into Eroxon, its “treatment” for Erectile Dysfunction. It is not as if Lucian, like many grandfathers of his age, needs to use Eroxon, he checked out how it was selling in Boots and the catastrophic online reviews and concluded that if customers do not think a product works they will not reorder and the business is screwed. Today the shares are 18.5p after a massive lack of profits warning.
At 38p, Futura Medical (FUM),producer of the ED treatment Eroxon is capitalisedat£108million but paid for researcher trinity delta says in a aid for note that on the basis of its NPV model it is worth £392 million or 130p per share. Really? Can I have some of what analyst fragrant Lala Gregorek is smoking? The note really is from La la land.
With interim results due next Tuesday Futura Medical (FUM) had no need whatsoever to flag up that plans for a US launch of its Eroxon pills, which so many customers say do not give them a stiffy, are bang on track. This is part of an organized pump as the company clearly needs to place.
It was last August when Lucian Miers did some detailed on the ground research into Futura Medical (FUM) the company whose Eroxon treatment for erectile Dysfunction. No sniggering at the back about “Grandpa’s” personal needs please. The fundamental problem is that consumers seem to think that the product sucks. That is always a red flag and Lucian has been short since the low fifties. Today the shares are 36.45p following alarming annual results.
Before they celebrate too much the gerbils should realise that even though the shares are up by 34% today at 37.1p the bard of the Boleyn is still way ahead on is short bet. But perhaps the trading statement marks a turning point for this producer of Eroxon, a treatment for Erectile Dysfunction which most customers appear to think is useless.
