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Indeed, just pointing out to GenOz that the placing overhang he refers to was mainly made up of II's.
Where the price goes next depends on what the trial continues to yield or not.
Sorry gje, I misread your post.
(I thought it was pI's not having the panic attack.)
In any event, I guess it is academic, the SP will be what it is and given the PI's are the biggest collective share holder, what they do is probably the most important factor in determining the SP?
Gje306
In my experience what usually happens regarding a placing is :-
1 'Rumours' first start to circulate and then escalate - usually associated with 'shorters in the know' so to speak. The SP then starts to weaken as shorters take preliminary positions.
2 Deafening silence from the company rumoured to be making the placing only add to SP weakness.
3 The book-building broker approaches potential buyers of shares with something like - 'can I put you down for 500,000 shares at 50p?' The SP is now, say, 120p so its a no brainer to say 'yes'. Broker confirms the allocation.
4 Buyer can now forward sell - or 'flip' - the shares at current price knowing they can later buy them back at 50p from the allocation. Money for old rope.
5 Meanwhile uniformed PIs try and explain daily downward spiral of SP with things like 'CEO is is purdah doing a deal so cannot comment' or ' MMs are flushing out weak shareholders'.
6 Placing is announced.
How far this happened with Avacta in the last placing will probably never be known as those who appear to have been in the know are not likely to admit what they knew and when they knew it.
No idea about who has been selling down from 185p, not sure what that has to do with funds who have bought in at 50p.
Worth remembering sujood is never wrong.
"they are not like pi's and highly unlikely to have a panic attack and start selling their shares if it dips below 50p."
Ok, then who has been selling the SP down from 185p over the last 18 months?
Snoz, there is no death spiral overhang here. Even considering some of the slightly low life fundies that participated in the fundraise, they are not like pi's and highly unlikely to have a panic attack and start selling their shares if it dips below 50p.
I disagree GeneralOz, I don’t feel as though there is a dark cloud over this company. The manner of the raise may have temporarily dented sentiment but the cash they now have strengthens their negotiating position. Short term pain unfortunately for LTH’s, but hopefully mid-long term gain.
The death spiral overhang and difficulties raising capital is like a dark cloud over this company,so are you,go away.
The CEO carefully crafted his words. What has actually happened, is the company has actively tried to do some deals. Unfortunately nobody was interested and the deals that they were able to do were offered at such a low price it wouldn’t have been worthwhile.
The death spiral overhang and difficulties raising capital is like a dark cloud over this company.
I’m guessing, LDA, that AS will address some questions re the placing etc at the prelims. Better to answer some of them now rather than have them “stored” up for a stormy AGM. Can he, for example, give us some detail on who the high quality institutional investors/large European healthcare specialist are?
When is this 40 day blackout over? Since the CEO has brought it up on camera I am now expecting him to release some important news or at least ast some discussion?
Otherwise ise he is on record using it as an excuse
We now know what Avacta has
Remember AS categorically said they are now in a position whereby they can get offers etc, however they don't want to sell too much nor at a low price. So wait for the deals that's being done. I mean that could be done. Sorry typo.