Ann: Botanix $70 Million Institutional Capital Raising, page-64

it's not though, think about the different outcomes.

They wait a few weeks, the price rallies a bit to 40c perhaps (you can't have expected much so soon after the big rally we've already had) and are forced to raise at a significantly larger (15-20%) discount to incentivise punters to contribute (the approval news in this case was the incentive). Discount is the most hated word amongst investors, so that would have done a much better job at halting momentum than this raise (where there was really no discount and investors are more focused on the approval news so don't even think much about the raise)

The second outcome, which is why raising now rather than waiting was ideal, was the uncertainty of the price action. The reason why traders always lose is because predicting price action is impossible, and there was a decent chance of a sell the news event, which would have forced a discounted raise well below 30c (now how would that be for destroying momentum). Most here seem to think that $17m is enough for a $500m moving onto $1 billion company, but it isn't, and instos would have known a raise would be coming which would have encouraged a sell the news event by investors who already have bagged a solid profit (nobody said markets were rational).

Now with this raise done and dusted the company is cashed up, there is no risk of needing to raise after a sell the news event or at a big discount after a smaller than expected appreciation. Investors can look forward to what the approval will bring (ie massive sales) and can put the raise (the cost of growth) behind them.