To all the readers/thread members who I had previously said there's no way a capital raise is coming - I will humbly chow down on crow pie.
Someone else mentioned it the other day about there needing to be some more cash to get to market with the preface being the juice is worth the squeeze. The all-heralded ATM facility is likely insufficient/not effective enough to generate the required funds to go orbital and so all the yay-sayers (me being a naysayer) were right - there is a cap raise...
Despite the cap raise, it feels like this is not the worst thing for shareholders and the discount to the VWAP isnt too bad?
each share purchased, you get:
1 option with a strike of 55c that triggers on FDA approval of CT:VQ / 28feb2026 - this is big upside. Piggy back option at 75c if you exercise the initial option
the 22.7% discount / 12.5c discount on the SP is arguably less than the value accrued by getting these 2 downstream options, right?
empirically if you took BSM model and inputted both scenarios of the options assuming you strike the first... the value of the pair of options in my rough opinion would be greater than 12.5c or the hit the SP has taken by doing a discounted CR which leads me to believe that the SP may not tank as much as people expect given the option upside.
maybe i shouldve sided with the 'there will be a cap-raise' camp - if i knew it was like this, i'd be all for it!
We have all debated in length/depth about the fantastic opportunity about ct:vq, we're on our way to the finals but need to pay for that last star player to put the cherry on top. I wish my kangas were in this position but i'll live this finals dream through AF and 4DX!
GLTAH & Go Kangas
4DX Price at posting:
47.0¢ Sentiment: Buy Disclosure: Held
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