I think you need to take a look at the briader market. Bio tech is on the nose until its not.
The market knows that the majority of the bio tech sector is under valued. But no-one is sure the bottom is in yet. You can see this when fomo. quickly builds and then dies. Happening with kots of good quality companies when solid data is announced.
Because of this, raising money has become particularly hard. Normal sources of cash are gauging, because they can. Its a very thin line know to raise the cash without diluting shareholders excessively.
Here CHM has a market cap of circa $16 million and want to raise $10 million. Going to a normal source for that would normally be call a take over.
The way this raise has been done allows holders to use the market to finance their participation in the raise. Most share holders also have the chance to lock in a capital loss, while not adversely affecting their holding.
This has been a good opportunity for those that have used it.
CHM Price at posting:
3.1¢ Sentiment: Buy Disclosure: Held
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