This company is defiantly in turbulent water (It could go up in flames or up in SP, pending the next few TRs/results of the small study currently underway).
Still, I always need clarification on why people consider cap raises bad. The whole point of being listed on an exchange such as ASX is to raise capital (Dilution is an accepted part of the risk we take). Yes, banks don't want to provide a loan due to risk, which is why companies turn to shareholders. If you criticise this company based on past management/financial health of the company, I can see and agree with this.
I have some confidence in management's direction (In particular, finally beginning to rectify the lack of board independence). I want this company to start bringing in more robust positive cash flow. It's all good and well acquiring new assets, but without the capital to run them, I don't see the point unless they have a positive cash flow. My confidence has also increased due to the upcoming regulatory changes vital to Halucenex's progression. My confidence is also increased due to the expansion of the Australian cannabis market and the recent additional access to the US/Canadian market.
Whether this is too little too late, only time will tell, but I will keep my eye on this entity. IMHO, this is risky with many red flags, but not in the coffin yet.
DYOR!!!!
CPH Price at posting:
1.1¢ Sentiment: None Disclosure: Held
