RE: All long term holders16 Feb 2019 08:43
In my opinion, given they need to raise very near term, to me that means they know a new trial will be required. Just my opinion but if it was a cheap easy fix, I don’t see the need to even mention “raise” in this weeks RNS.
Whilst I think the drug will come through, let’s nkt forget it was been turned down twice (?) before, so it’s clearly a difficult drug to gain FDA approval with
I also bought Friday at 14p and got spiked, but then I did hold only 1500 shares last week but now hold over 10,000 bringing my average down. Peanuts to some here, but a lot to me.
My thought is there is no point selling, as clearly the share price now feels rather stable around the 10-12p mark, so imo there can only be upside. The issue I have is the nature of the raise and the associated dilution given where the price currently sits and funds will be needed Q2 ie April onward (not far off).
If this does turn out to be an easy ish fix, or certainly not as bad as the market seems to thing, we could have a very quick re rate to around 25-30p, so again, good upside. New trial, we probably won’t be much lower than where we are now after the dust settles.
It just means STH have to change tact to LTH as to not realize a loss here.
Not many companies get through phase 1 - 3 trials in bio, but as with the likes of Farn, 1,2 are crucial and looking at the data (including phase 3) there is certainly considerable possibility that this is a drug that can go to market. You just have to be patient now and stick them in the bottom draw
(I actually bought at 40p initially so still very much down!)