I must say that this forum was great for me. I bought in at 75c...

I must say that this forum was great for me. I bought in at 75c and sold around 82c. I intended to hold but after a lot more research came to the conclusion that this deal made no sense to me. I could find no logical reason to exclude the 2RT lasers and after that, the iTrack seemed like a hard ask as the procedure seemed longer than the stent. I agree that surgeons make money on the amount they can charge for procedures and time taken to do them. Longer, even with better outcomes, still means less money for the surgeon.

My conclusion was that these two items were excluded because the buyer would not pay up for them. So I then took a long look at how much I was prepared to value these two at and what was the profile of the company and did the future structure look logical. After much personal debate, this deal made no sense unless you looked at Ellex and decided that it was burning cash and would have needed more cash to continue. This would have been dilutionary and thus this opportunistic offer was clever and very well-timed. Instead of a sale for top dollar for a premium business unit it seemed to be a low offer for the income-generating assets. That would have left you with much greater uncertainty and no business help fund development of the two units you retained. I could not justify the very heavy corporate and executive overhead that was left in the company and receives no contribution so becomes a very expensive risky adventure in my opinion. The former Penrice financial manager now CEO did not impress me as someone to take a highly specialised development business into the future. I could not see the real passionate driver a fledgeling business needs.

2RT worried me as its trial had not reached its objective, a do-over was going to cost a lot more money. The outcomes were thus riskier and in the end, may just pop up a similar result. The Hawthorne test came to mind that the more you focused upon the individual the more there was a similar result in the placebo sample.

I would have loved to come to another conclusion but really this looks like a deal that best suits all of the present management and helps those already invested to access some cash which is uncertain as to how much. This became a fully priced opportunity at around current pricing. Thanks to this forum I made a bit and have moved on. Hopefully, some other company comes in with a better bid which I think is very possible but the overall market events are probably not in its favour right now.