It would seem from the SP activity and lack of response from the investing fraternity with the recent mini update that the CR may struggle.
If that be the case we will then have a period of up to 3 months whilst they endeavour to place the remaining shares.
This will lead to the SP being contained or lower than current levels.....if the CR was taken up in full with an oversubscription, the sp would respond positively in conjunction with some good news.
From my observations at this point the second scenario is unlikely.
It is difficult to get handle on the timing for their product development activities and the likely consequences to the revenue stream.
Basically we just wait for the quarterlies or annual reports to see revenue results.
The company is not marketing orientated in terms of communicating its message to the investor.
It seems they have a good line of contact with the medical fraternity developing their concepts, but in so far as the investor is concerned little effort is made to MARKET the company's progress.
If they do not get the funds from the CR, it will only mean that the timeframe for development will be extended. I was originally of the opinion that somebody would be on the sidelines to take up the shortfall. This will only happen if they are on the cusp of placing new technology with a major customer/s and the potential player is convinced that RHT is about to be substantially rerated. Be interesting to know what if anything is going on behind the scenes with the broker and potential clients that currently hold no stock. It is unknown.
Must say that I have misread the drawn out timelines needed for the technology to be positioned in the market.
I am now of the opinion that there may be an extended period before any ignition on the SP is experienced.
It will depend on what unfolds after the 6th June.
RHT Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
