News of a capital placement was unexpected in light of the interview given by Nick Woolf on Finance News Network. Woolf was specifically asked about the funding requirements for Phylogica for the rest of the year.
Woolf advised that existing funds plus the income received from the Medimmune deal would "fund the Company through into next year." Further expected deals would "extend our cash life further."
So why raise funds? This is where I believe the news becomes significant in the growth story or internationalization of Phylogica.
Woolf was also pointedly asked about the listing on the Frankfurt Stock Exchange.
The listing in Europe is part of a corporate strategy to raise the companies profile through making a market in the stock on the Frankfurt Stock Exchange. Shareholders would acknowledge that in the words of Woolf, the company is flying "under the radar screen."
Simply put, you cant make a market in a stock without shares. It's time to register on the radar.
PYC Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)