RE: Bounced off the lows ….1 Feb 2023 10:55
BB, Normally, most shares I would say your right, usually a placing is there to provide funding for the next period and is nothing more than a big warning sign that there is probably weeks ahead of no news. Afterall, why would a CEO take the hit of a placing when he can wait and either sign a licencing deal or raise after significant news that gives a big bounce?
Genuinely I dont believe this is the case here, I am confident that IND is on track which is a huge inflection point in the next week or so. So why take the placing?
As many have confirmed, it was OFFERED to Vlad, the brokers approached Hemo and offered cash, after years of SP being 1.5p he accepted and almost doubled cash on hand. Irrespective of any other reasons this is prudent enough.
The Grant - $4m of free money is hard to refuse, and like it or not it had to be matched at some point, now it is Hemogenyx are likely to be successful.
Market mechanics - The number of people who swore blind there would be a placing long before the company ever agreed to it was crazy. People were selling it down, saying it was coming, scaring people off and hurting the SP, so actually doing a placing removes that uncertainty and FUD.
But as HFH posted, it sounds like this money has a purpose, Vlad did NOT need it but taking the money allows him to take advantage of an opportunity that has arose. If he is correct then we will find out soon enough and it will become clear where the cash is going.
Honestly though, I dont understand those who think its worth taking the risk of missing an RNS in the hope of a fractional discount on buying. There are tonnes of volatile stocks all much better opportunities for trading. Hemo is sitting at a pathetically low mCap whilst practically clinical so the risk of missing a huge re-rate here is much bigger than anywhere else. Thinking its better to wait in the hope of a dip (Which would be NT to buy anyway) is really illogical to me and just presses home that most still actually dont realise the potential, such is life!