Thanks @Badvet73, well said. This event sure has brought out the worst in some people.
I don't believe this is a 'bad' deal per se, but the communication of it probably could have been handled better with retail in mind. As to how, I'm not sure. Admittedly I was a little miffed at first until I let the emotions die down and put a little more thought into it. I think Joel's comment sums it up -
“The consortium has a long history of providing expertise and support to emerging healthcare companies focused on changing gears from research and development to drug registration and commercialisation.
The quantum of the capital raising was structured precisely to ensure that our team has a certain long-term budget runway, unhindered by uncertainty in global markets. This will become increasingly important over the next two years as we commence multiple pivotal clinical trials and manufacture of cGMP pharmaceutical products.”
One of the key words being 'uncertainty'. I guess that although I thought they had enough money to do a fair bit of work, unfortunately the uncertainty trumps that thought. It also looks like the runway might be either longer or wider than first thought. Whilst feeling left out sucks balls, I think this is a personal 'me' issue. From a strictly business perspective, shoring up funds now was probably the right thing to do. If the business fails, we all fail. With money in the bank the company has leverage. Even a cure for cancer means nothing if you can't afford to manufacture and market it. I'll take a bird in the hand any day.
If some sort of offer was also made available to retail, we can still only, at best, bring money to the table. The consortium will hopefully bring a whole lot more. Would anyone here be prepared to convert their shares into ADRs for the NDQ? I imagine quite a few people are in the red so selling shares to cover an offer would not have been a choice. The last options at 35c are as of today worth 21c. Because of this I bet a fair few here would be having second thoughts about buying anymore so maybe a retail offer could have blown up in their face and been a disaster. We'll never know. My gut feeling is that there is more to this deal than is being communicated. I imagine that Joel is bound by some level of confidentiality and must choose his words carefully and I do not envy being in that position. One problem with communication is that typically when one party can/will only say a few words at best, the other party will inevitably conjure up conclusions as to what it all means.
"Telling them they are stupid serves no one" - spot on, from both sides of the argument. I think it also often makes people dig their heels in deeper, making their beliefs more rigid at the same time.
Thanks again for everyones input, it is much appreciated. Good luck @Badvet73!
IHL Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
