Ann: Proposed Acquisition of ResApp Health by Pfizer, page-250

Currently unlisted. Proposed listing date: 4 SEPTEMBER 2024 #

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Mcfisty

275 Posts.

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11/04/22

13:14

Post #: 60782937
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Originally posted by mondyinvest: ↑

Too much conspiracy theory at play here.

The simple reason it won’t run over the acquisition price is due to the risk the acquisition goes ahead. If so, anyone buying over 11.5c is losing money.

You see this all over the ASX - a potential acquisition is announced and the SP jumps to near the proposed deal price, but not over it (unless some newbie is buying on-market in a panic). So what you might see as ‘cappers’ or ‘manipulators’ is actually just the market doing its thing. All the people selling today would most likely be recent entrants who can get out for a very tidy profit.

To my mind, accepting the deal now automatically caps the SP for the simple reasons noted above. What holders need now to move the SP is a competing offer at better terms. But be honest: nobody is going to offer $1 up front, you’d expect maybe a 30-50% premium to last close at a maximum. It’s a shame that the SP sank so low before the successful results finally came through, that’s what has created this whole situation.

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The valuations put forward by most holders here are ludicrous based on current progress. If ResApp isn’t cash flow positive any interested larger player can circle like a vulture and get a better deal later. Here’s hoping ResAppDx starts making some money and we can get a good deal.

RAP Price at posting: 11.0¢ Sentiment: Hold Disclosure: Held
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