Parpaing24 Sep 2014 04:52
Perhaps you are slightly missing the point: apart from raising funds in a timely manner, XBIO desperately need liquidity, in other words some consistent, day-to-day trading volume over a three-month period while still on OTC.
This is a requirement in order for the shares to uplist to NASDAQ and it's the only hold up to our elevation to that market. If you listen to yesterday's CC, you will hear that clearly stated.
I think the way the Board propose to achieve that liquidity, as well as to provide working capital in the short term, is to issue shares, either through placing or rights issue, that will become part of the free float and not simply be more shares that are bought and locked away. Any placing to the Russians would not, in my opinion, achieve that.
On the contrary, I think the target for such a placing to achieve said liquidity has to be US investors who are willing and able to trade XBIO shares on OTC. At the moment, almost all the free float is locked away, either voluntarily or because of regulatory paperwork, with UK investors. Once any new shares enter the market, and with favourable clinical data concurrent, we should see a vast improvement not only in volume but in share price, from present, dismal levels.
As you know, raising funds has historically not been a problem for Xenetic; indeed they have often found investors willing to pay a premium to the depressed share price.