Well now we know.
I may attract some flak here but I'm happy with this Announcement. Points 1 - 4 of my 5 point list yesterday are about right:
https://hotcopper.com.au/threads/ann-trading-halt.6952618/page-84?post_id=63643793. Point 5 could end up being right too - though there are many other things IMU could acquire.
So some of us are unhappy about the discount, and/or the oppies, or because we can't get the same deal. I do get that.
The flip side of the coin is:
- IMU now has a fabulous cash position, at $175m, with another $66m rolling in almost certainly - because (in my view) we will easily go past the options exercise price. Also, of course, likely further cash from the remaining tradeable oppies some of us hold.
- The current clinical trials could be funded before this - but IMU would have been running low on cash. Now they can be funded without IMU ending up cash poor and vulnerable
- This protects us from low ball offers - everyone can see we don't need dosh
- Further acquisitions are clearly back on the agenda. PH state that IMU now has "flexibility to add complementary assets should attractive opportunities present"
- No - we don't get to buy shares at 20c - but most of us here had the opportunity to buy at 14c as recently as 12 weeks ago. I got my top up at 14.5 cents and yes - I wish I had bought more.
- This was fast and effective. SPP's always take weeks and weeks, and while they grind along the Share Price usually sinks to the SPP offer level and also just grinds along there - often dipping below the SPP offer as soon as it closes.
- I really don't care if a big player gets a cheaper deal than I get. I mean, come on, the whole ASX is rigged to give big players an advantage. I'm a lot more irritated by HFT than I am by big CR's like this.
For me, today's Announcement is further evidence that IMU is not looking for or wanting a takeover offer. The Board is definitely planning to make IMU a major long term force in Biotechnology/Immunotherapy.
That will disappoint people looking for a quick win and cash out - entirely understandable. If you are in that position, I am NOT criticising your view!!!However for people who are in a situation where we can take a longer term view, I think the future looks better than ever. Personal opinion here - not a prediction - but I think the SP is likely to go back to previous highs as the year progresses, and beyond that IMU looks (to me) to have excellent chances of major commercial revenue from licensing deals on one or more products, whilst further expanding their own product and IP pipeline. Biotech takes time and patience for that kind of success, and not all investors have the luxury to be able to wait, but I do still see the likelihood of significant capital gain in the short term, for those who need that.
Best wishes to all - including those with contrary views!
Cheers
Dave
