I despise VWAP discounted retail offers. They are a numbskull invention, where no one wants to buy shares for the hope of buying later at discount - almost a mathematical asymptotic function to the last traded price.
At the big boy insto' dominated end of town, if a company with 1,000,000,000 shares closing $10, which offers 100,000,000 shares at $9, will tend to trade somewhere near the dilution vs new capital price of (1,000M x $10) + (100M x $9) / (1,000M+ 100M) = $9.90.
At the retail end of town, if a company with 1,000,000 shares closing $10, which offers 100,000 shares at $9, will tend to simply trade near $9. Retail dominated investors just won't tend to pay more then the $9 price for some time, particularly if there is an ongoing retail offer - before the MSBer taunts flood in, MSB recently showed similar behaviour.
Throw in a discount VWAP retail SPP, and the share price tends to just keep going down on low volumes. Investors never able to get out of the mindset of a discounted offer opportunity to the last traded price.
Another necessary, but crappy raise by Ross and Co. That a company with this much potential in its science could be trading this low is a crying shame.
Come back Sumitomo....please. You can have it for $0.50 rather than $2.00, with a large funded phase 3 knee osteoarthritis trial thrown in for free.
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