I tend to believe Incannex wants a stable share price at this point, as they do their roadshow.
At some point they will commit to the IPO price, discounted from the 5 day VWAP, and perhaps they have already made that commitment - or perhaps that will happen at the same time as they submit their updated prospectus to the SEC.
Once it gets communicated to potential investors, they are going to want the price they offer to remain discounted but not TOO discounted compared to the market price. It is better if buyers of the IPO offering who are unable to buy as many shares that way as they would like, get the sense that buying IXHL on market upon NASDAQ listing will still be a steal, with plenty of room to run with the initial surge.
One of the implications, if this is sound reasoning, is that we're likely to have very little warning of the listing going live, and no other price sensitive news until then... once they have fixed the price of the IPO offering. I'd expect some manipulation geared to suppressing volatility as well. This may or may not be already in effect.
Thoughts?
IHL Price at posting:
57.0¢ Sentiment: Buy Disclosure: Held
