Thank you for sharing your thoughts, good to hear from an ADR shareholder.
I really don’t know enough yet about the ADR product offering to be able to offer much of a view on that here, but reading your comment did bring a couple of thoughts to mind about the recent capital raise:
1. Making a call based on current SP is possible a misleading game (I mean the SP will be misleading, not that you are trying to be). As I write this, ADR is trading at 2.0c, however at the time of the Bidder's Statement I believe it was actually 1.5c - so it’s hard to say whether people have bought into ADR in anticipation of realizing a quick profit, without reading the finer details of the deal, and the various conditions that need to be met. In other words, will the price remain at 2.0c if the deal doesn’t go ahead? Has the enterprise value (i.e. ex-cash) of the business actually increased at all? Just because shareholders are willing to throw cash at a company does not mean it will be successful, and that goes for anyone, Respiri included. Just take a look at Mesoblast over the past 10 years for a high-profile example of that. Over $1 billion in capital raised and still no major commercial product brought to market. Ouch. A huge amount of shareholder value promised but never delivered over that period, in my opinion.
2. Secondly, yes ADR just raised a large amount of cash (well, large verses the Market Cap), but with the SP where it is this came at great dilution. As at 31 December 2020 there were 679,596,011 shares on issue… post this raise, there will be 1,879,596,011 shares on issue (if my maths is correct). In other words, an increase on SOI of 176%! Crikey. Cash in the bank is great, but how a company comes by that cash says a huge amount about any management team’s ability to execute. Before the second tranche of shares/cash hits the account, according to the most recent 4C Adherium had only 1.2 quarters of funding. That sounds like fairly big cash burn to me. If they will continue to need capital raises, the dilution is only going to get worse and worse. If I was an existing shareholder, I would be very unhappy about that.
Whether it is Respiri now or some other company in the future, looking solely at the financials… it appears you are going to need more than just cash to help.
