Share Purchase Plan (SPP)

Greetings all -

The PAA Investor Hub has been updated with a heap of really useful information about the recently announced share purchase plan (SPP) which I would encourage all SH to read:

https://investorhub.pharmaust.com/investment-offer/32

(I received an email from the company linking to it earlier today – keep an eye on your inbox. It has links to a Computershare portal to apply for an allocation which I assume won’t go live until Friday once the offer booklet is available. Also looks like information is being updated in the lead up to going live on Friday).

So, a few observations about the placement and SPP.

First, it’s pretty impressive to see board and management tipping in circa $1 million of their own money. If there was ever an indication that we’re on to something huge…

Secondly, I’m really pleased that ALL eligible SH (those who were on the PAA register as at 7.00pm Melbourne time on Thursday, 20 June 2024) get to participate on the SAME TERMS offered to instos and sophs via the placement. I cannot recall this happening before – it’s a significantly different approach to past raises that looks after existing holders. Plus, there’s no brokerage / transaction costs.

Thirdly, no free oppies being offered as sweeteners. The options issued to Morgans as part payment for managing the raise have an exercise price of 33.25 cents (!!) and are unlisted. I’d say that’s a major vote of confidence.

So, to the dollars…

As we head into the Phase 2/3 STRIKE trial, I see this raise as being absolutely critical. Note that while the company has indicated it is looking to raise $2 million via the SPP, it has also indicated that it may increase the amount to be raised – I suspect that the company will take every dollar that comes its way, particularly as that money is coming from existing SH and the newly issued shares are therefore likely to be tightly held. With a bit of effort, this could even be the final raise we need.

Think about this – if 500 SH topped up to the tune of $20k, that puts $10 million straight into the company coffers. That, with the $10 million from the placement, some grant funds and R&D tax incentives is just about enough to run a trial folks.

I know not everyone will be in a position to participate in the SPP, but right now I’d say every dollar matters. So, check down the back of the couch, in the car ashtray, maybe in an underperforming savings account and grab some 19 cent shares. Because something tells me that price could soon be a thing of Aussie biotech folklore.

“You got PAA shares for HOW MUCH!?!?”

Cheers

Densy