Ann: AirXpanders Raises A$45 Million in Private Placement, page-11

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AndyCapp

77 Posts.

27/01/17

11:44

Post #: 22167014
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Originally posted by imback ↑

Good luck, SEAH. This is definitely a second chance for those who missed out prior to FDA approval. I'm well and truly loaded up already.

I'd never thought we'd be at these levels again after FDA. Cannacord did not show any CR over the next few years in their models. Interestingly, they organised the CR. Maybe they have a second 'black' analyst report for their clients and the front one on their website.

Though I expected some kind of small raise, this is well beyond my expectations. If they cared about dilution, they would have raised half now and more later when the SP should be higher on the back of sales. Tells me they don't think take up will be as fast as Oz and/or there are significant more costs in getting this company off the ground than what's being presented. This is a subtle theme I'm picking up from investor communication. Need to add 20-30% on top of any communication to get an accurate picture.

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Had they raised only half what they thought they'd need, hoping to do the rest later then there would presumably be uncertainty about a follow up CR priced in moving forward. Had capital markets been in a worse state it may have been harder to raise later, looks like they have taken the bird in the hand.

Had they waited and used Canaccord then it would have been a rinse and repeat process, ie Canaccord or clients of Canaccord sell down before private placement at discount. While current SH have paid a significant 'Canaccord Tax' by discount/dilution, the CR removes funding risk from the business and buys 18 months of operations (at current cash burn) in which to get things going.

I wouldn't be surprised to see the SP reflate a little in coming weeks to reflect this.

AXP Price at posting: $1.01 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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