RE: Thanks MarcoBerlin25 Nov 2024 19:16
It is worth reposting Marcos’ post:
Hg-ct-1
I would like to briefly share my thoughts on this. This is not the first company I have invested in that aims to treat AML. My last company spent approximately $400 million on all studies from Phase 1 to the end of Phase 3. After phase 1 which showed successful data, big investors like BlackRock etc came in very quickly. Large institutional investors ultimately paid hundreds of millions of dollars in exchange for shares. But they only do this if their financial existence is secured. For this purpose, for example, there must be additional shares in the background that could be issued to finance the future! Currently, the limit for issuing shares has almost been reached and they could only be brought onto the market for a small amount of money. The decision to swap shares 400:1 ultimately has no impact on existing shareholders, as the share capital remains intact. Ultimately, this is just the psychology of what is happening. The bottom line is that you are currently making the decision for phases 2 and 3, where you need a lot of money. The step was foreseeable and does not come as a complete surprise. The timing is of course unfortunate. I can only say one thing to every investor, with AML everything depends on the results. No matter what happens now and whether there will be dilutive share issues. If hg-ct-1 is successful, the potential market value will be in the billions per year! Despite all the understandable anger that the price is going in the wrong direction, it's just a snapshot. At the end there will be a settlement and the starting signal has only just been given!