Ann: Firebrick Raises $1 million via Placement, page-5

Just my thoughts

In theory if it has gone to tight investor hands rather than traders there should be little downward pressure other than the fact that insiders and would only pony up at 15c a 25% discount. It is not real liquid anyway and often these style of issues when they drop teh price are used to allow on market top up by very same investors if they are also active traders. It is a tough market for small biotech and raising but if the holders were all current holders and had no intentions of selling perhaps a escrow for 12 months could have been achievable and IMO justified discount.

It is a small biotech and as much as we can all bitch about the fine detail and near term share price movements in the bigger picture if they are sucessful there should be a return for all sized holders so you need to decide if you have your deep value investor hat on and ignore near term price change or your traders hat on. If you have your investor hat on it is theoretically funded beyond next key decisions and dilution wasn't real bad , you didn't have to contribute so you still have leverage on a good result and you have to ignore the short term probable price weakness. Positive is that if teh people issued stock are holding it then it gives the traders no reason to come and attack FRE and they ahve no cheap shares to play games with.

No real critism I am just passing comment as I know the stresses of a small biotech funding . Good that funding monkey is gone and move forward and make appropriate decisions .
Glad you have a cash runway for 12 months and allows you to continue program and not get a cash crunch or market spculation of such.
Never one to stick the knife in as small biotech has ongoing costs and delays and you don't want to be crippled by a uncertain market coming up so I get it from managment side. It is a balancing act and when you have ability to get some $ in it is hard to resist and quite prudent - I appreciate you have done it quietly and issue costs should be minimal.

Timing for small holders depending on price movement coming up to 30th June may mean some smaller investors with different time horizons choose to sell out if the share price remains low. If the issue was done in the form of a unlisted convertible note at with a August conversion it would have given all holder security to know $ will come in , small cash injection now and balance later.

I understand you have mentioned investors are Dr's however like all members of the community we all come under the same pressures in finances at different times and we never fully know the investment profile of investors and their future needs . I know you would monitor the registry and see any "disloyal" behaviour not in the spirit of the issue but a formal escrow period commits that part of the holding issues to a provision to beyond when a decision is issued. Tough market and investors don't like escrows but considering it was a private closed issue of FRE committed holders who assumably have other shares they could sell it would not be a big burden on them or yourself.

Nothing wrong with the decision - have to take $ when avaliable and glad you have gone early.