How's the Capital Raise Going to Work?, page-111

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freeburgh

125 Posts.

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16/05/23

11:32

Post #: 67796148
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Originally posted by fourdollars: ↑

The market woke up to CHM's funding concerns in January 2022 and has drawn a straight line from 25c down to 4c since then. Yet the Board and management let it happen anyway.

But rather than another post critical of Hopper, how about we look at a couple of other contributors?

The CEO has known for ages (or at the very least should have) that there would be insufficient trial progress to save the SP and enable a survival-cap-raise yet all she's done is insist on her $4.3m worth of remuneration over the past 12 months alone. There's little to no chance of this cap-raise even being sufficient to cover her remuneration for a year, let alone pay any other staff or progress any trials. The company has been driven straight off the cliff.

And how about the ASX? Allowed CHM to issue a 4C in January which included the impossible-to-use $30m L1 facility. Then allowed CHM to write this in the April 4C:

"The Board is assessing alternative capital sources, including a placement tosophisticated and professional investors and other options with advisors. TheDirectors believe that the Company can raise sufficient capital based on the successof previous capital raises and the continued development of the Company’s projects.

And now that not one "sophisticated or professional investor" (read client of BP who will only offer funds if there is a sufficient discount and close to 100% chance that they can offload those shares for a stag profit) has offered a brass razoo? Anything from the ASX? Nada. No protection of investors, no investigation, not even a "please explain". Regulators apparently.

Even if the world's greatest fantasy could have played out, and CHM was able to raise another $5m from gullible investors, the Board has ensured there will be no chance. Investors will have a week to come up with $5m. As if.

My guess is that they'll tip in the $1m to pay themselves through to end-June. The cap-raise will fail, and the company will be suspended from trading before the end of July.

When the class actions are considered, the Board and management will claim "what else could we do? we love our company and its prospects, look we even put in $1m! it was just those dastardly biotech markets that let us down - it really has nothing to do with us paying ourselves 7 times that amount in the last 12 months alone ..."

Interesting to see whether:
- Hopper will be able to get another cap-raise away anywhere.
- Chow gets to CEO another company.
- the ASX can avoid some legal threats.

Oh, and Diamond Equity research believe CHM is worth 93c per share and maybe also in Santa Claus.

Expand

It won't surprise anyone, but interesting to look at the sp graphs for not only CHM, but also PTX and IMU. Hopper beginning to look disturbingly like a "one trick pony" with his Viralytics outcome.

CHM Price at posting: 4.0¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 2.1¢		Change 0.000(0.00%)		Mkt cap ! $18.39M

Open	High	Low	Value	Volume
2.1¢	2.1¢	2.1¢	$5.446K	259.3K

Buyers (Bids)

No.	Vol.	Price($)
1	2129	2.1¢

Sellers (Offers)

Price($)	Vol.	No.
2.2¢	737340	7

View Market Depth

No.	Vol.	Price($)
1	2129	0.021
2	615100	0.020
3	179999	0.019
8	846237	0.018
4	535750	0.017

Price($)	Vol.	No.
0.022	737340	7
0.023	250000	2
0.024	400000	3
0.025	45000	1
0.026	395000	4

Last trade - 15.04pm 30/07/2024 (20 minute delay)

CHM (ASX) Chart

How's the Capital Raise Going to Work?, page-111

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How's the Capital Raise Going to Work?, page-111

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