Tombu and PM, Don't focus on the price too much. You are missing the point that Fosters have placed this to institutions who wanted the stock. MEB didn't need the money, but it will help accelerate their commercialisation, ie it will help them get money coming in the door faster.
Now Fosters are very proactive and you'll note their recent successes such as Reffind, 1Page, Alexium etc.
Fosters probably see another 1-Page story in this. That is, they see a US market opportunity and that this is now early days for MEB. At a Proactive presentation today CEO Kris Knauer was talking about $100m revenue stream in 5 years. Now investors won't wait 5 year to see the $100m revenue, they'll buy it now in anticipation and speculation of those revenue streams and as each commercial deal is signed it will be another positive step to validating that revenue potential.
There is not a lot of stock out there , 98m and escrowed stock is tied up for 3 years.
There is no negative in Fosters deal and ongoing support - the message is Get on board now because this train is well and truly leaving the station.
R
MEB Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
