Ann: Trading Halt, page-169

A few points for consideration

In my view, the decision to raise capital before receiving positive trial results especially at a discount is typically a strategic one.

Management, in consultation with financial advisers like Can-accord, might make this move to balance capital needs, investor demand, and potential future market conditions.

Some possible reasons for this.

Capital Needs vs. Timing - If PER expects favourable trial results, management may foresee a sharp rise in the stock price.

However, they may also need capital before these results to fund operations, research, or other obligations.

Raising capital now potentially ensures they have the necessary liquidity.

Mitigating Dilution - Raising capital at a lower price before a potential stock price surge can actually help manage dilution.

If the stock price increases after positive results, issuing shares later could raise more capital but would dilute existing shareholders more significantly.

Raising funds earlier might involve issuing fewer shares, especially if the price increase is speculative but not certain.

Strategic Discounting - Offering shares at a discount can attract institutional investors who take a long-term view.

These investors are often willing to take the risk, knowing they are purchasing shares below market value with the potential for substantial gains if the trial results are positive.

Risk Management - Lets face it, clinical trials always involve uncertainty.

Even with promising indicators, there’s no guarantee of success.

Management may want to hedge this risk by securing funds now, ensuring financial stability in case the trial results don’t trigger an immediate stock price rise or, in a worst-case scenario, the results are not favourable.

This is just food for thought .... DYOR