For the new investors it is asymmetric risk. Meaning the value of upside compared to downside risk is skewed in favour of upside or at worst case fair value.
The value of the company even without a Covid-19 treatment is probably still $3.20 or more. Remember that the Covid-19 is only a new application for MSB of the last couple of months. The share price was around $3.00 even before Covid-19 was heard of. That's because the pipeline for MSB is so valuable. So I think, and it seems the new investors do as well, that the value of the business is solid even without a Covid-19 treatment.
I guess that is why the new investors can join in on the CR with limited or really no risk even if the Covid-19 application fails - which in any case is extremely extremely unlikely.
Ann: MSB Completes Financing For Covid-19 ARDS Manufacturing, page-114
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$1.45 |
Change
0.065(4.69%) |
Mkt cap ! $1.655B | |||
| Open | High | Low | Value | Volume |
| $1.39 | $1.50 | $1.38 | $7.016M | 4.856M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 10425 | $1.44 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.45 | 44243 | 5 |
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