Quite generous of Pfizer to offer a loan “to assist ResApp to...

Quite generous of Pfizer to offer a loan “to assist ResApp to fund its short-term working capital needs during the Scheme period”.

Of course, ResApp has given no indication that it needs one.

ResApp’s latest financial details were released three weeks ago in the Quarterly Report, where it showed it began July with $2.3 million in the bank. There’s been no announcement of any abnormal change in financial position since then.

Listing Rule 3.1 requires the immediate disclosure of “any information concerning it that a reasonable person would expect to have a material effect on the price or value of the entity’s securities”.

A reasonable person would consider a situation emerging where there is a possibility of needing to unexpectedly arrange a bridging loan to be material to an entity’s value, and requiring disclosure.

ResApp has made no such disclosure, so assuming RAP is not in breach of Listing Rule 3.1, there must be some other reason for Pfizer’s generosity.

Considering the timing, perhaps Pfizer wished shareholders to recognise to what extent it has their interests at heart.

In any case, just reading through some of the comments on the RAP threads, the announcement does appear to have been effective.