You say "I cannot help asking myself why GetRichQuick is so critical about this company?. Can you tell me the reason why please ?
Fair enough if you're lost money on this company before, but give it an other chance to do some good deed for humanity in combating HIV."
Allow me to answer your questions:
1. By way of history, the company previously had one of the most, if not the most incompetent management team in Australian corporate history. These clowns decimated shareholder value. While the current management team is a vast improvement, it is too late to undo the harm the previous management team inflicted on Virax
2. The company has virtually no funds in the bank, and accordingly, has long suspended development of three of its four products
3. Its only product currently under development (due to funding constraints) is its HIV vaccine being trialled in South Africa, which is being funded by a consortium of mining companies
4. On account of having no funds in the bank and only having the one product under development, if the South African trial doesn't return a promising result, its game, set and match
5. The company has 190 million shares on issue. This will inevitably balloon to 250-300m if they are to raise the capital needed to take the company to the next stage
In a nutshell, Virax has almost no margin for error (disappointment with the South African trials will be the end of the road), while if the South African trials are positive, upside is extremely limited due to the huge number of shares on issue, not to mention the significant additional shares that will have to be issued to raise necessary capital.
Two other points are worth mentioning:
1. Much has been said of the fact that Virax may derive funds from Transgene. However, both the amount and timing of funds to be received by Transgene is highly uncertain
2. A savvy investor doesn't give companies a chance due to the company doing socially desirable work. If you want to benefit society, by all means, donate to charities, including medical research charities. Just don't confuse charity and philanthropy with investing
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