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MyHealthChecked raises £3.4 million at 1.75p – what next? 3p? 5p?

By Tom Winnifrith for HotStockRockets | Monday 1 February 2021


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.


Last year, we discovered on Friday that MyHealthChecked (MHC) lost £2.5 million on sales of £50,000. Yes that is dreadful but this company is now about the future of its Covid and other DNA tests and thus it has raised £3.4 million at 1.75p. It was not completely out of cash so, after costs, it probably has c£3.5 million in the bank.


We are told that this was massively oversubscribed which tells you that the sounding out process by the broker was bungled and that it should have priced it at 2p. But the broker does not care for it gets its 5% whatever the price so it has £170,000 to spend on coke and hookers. That is a great reward for lazy broking.


The cash will be used to launch the Company’s current products into the retail sector and develop a pipeline of new products, alongside a smartphone app in order to capture data. MyHealthChecked is looking to increase its headcount to support these commercial activities, more than doubling its team by December 2022 and increasing the required marketing investment to accelerate commercial growth.


The good news is that there are NO spiv flippers in the placing with most shares going to VCTs and others who – for tax reasons – will hold. II Mercia GP and directors Adam Reynolds, Penny McCormick, Lyn Rees and Maddy Kennedy are ponying up £346,500 in aggregate in the Subscription for 19,800,000 new Ordinary Shares.  And Mercia’s EIS fund will put in another £500,000. It should be said that Mercia is doing all bar £46,500 of that and that the board’s contribution is not exactly gobsmacking.


But the company now has sound finances and folks should not now worry about that. Moreover, its shareholder list is now really pretty tight and sensible so if there is any retail demand the shares really could motor. I sense more news on the Covid test and its applications in the test to fly scheme will come very soon indeed and that could trigger that excitement as could news of additional DNA test launches.


A few days ago I reminded you all of my explicit average down advice here at 0.8p and noted that I had drunk my own medicine heavily in this regard. As then my view is that when this share hits 3p as it will again very soon (the shares are now 2p mid) you should consider a top slice. But please do not sell all as, in the current climate, the shares could go much higher. Very sensible people are talking about 5p within months, if not sooner. At the very least, HOLD TIGHT


This article first appeared on HotStockRockets – for a new hot share tip from the HotStockRockets team, which in 2020 served up almost 3 winners for every losing banked tip, OUT JUST BEFORE THE WEEKEND for just £5.50 click HERE

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