This is type of raising is nothing uncommon for small (micro even). Companies in the early stages of development have to offer very attractive deals to entice sophisticated and insto investors as generally they are risk-off investors. The big players, major banks etc, that pretty much need no assistance in raising the money will fork out 3% to raise cap so 6% fee is about right considering CPH is a serious fraction of their position. The company is still in development and companies cost shit loads to get off the ground. As for the comment to this will keep a glass ceiling at 50c as a result of the conversion, this would be true ceteris paribus. However given a change in reported fundamentals i.e. sales, rev etc there is no reason for this not to go higher. Example - LCK directors/major shareholders were issued shares at 12c not too long ago, change in fundos and now they are laughing. These small cap deals are always skewed to have outstanding upside for those involved as they don't have much bargaining power.
In any case, up or down, the proof will be in the pudding in the next 18 months as revenues are due to come in everything else at this point is pretty much white noise. if they are well received people may be back in the money, if these fail then it's red screens for many. This is a wait and watch at the moment, I've largely checked out of HC as the chat is flogging a deadhorse. If you're going to be constructively critical please provide new and current info and opinions, if you have no intention to be constructive, continue to correct grammar
CPH Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
