Everyone seems to be just thinking about the dilution in isolation without considering the potential upside. I don’t see his response as bad at all, then again I’m not that fragile. It’s par for the course really, I’m sure he’s got a lot of shareholders email him that are solely concerned about their money and little about whats actually been achieved. That’s not to say I enjoyed waking up to a huge red day but I am not in a rush to sell and can weather this storm as I and others have since the 1 cent days.
I can respect and understand why people are annoyed and upset, but it doesn’t seem at all balanced. If you only have gripe over why raise now at the lows vs potentially higher later, then consider the reality that we could be lower in a few months time, markets seems pretty dicey and could get worse. Ultimately, is being diluted 20% a good enough reason to sell and forgo a lot more in the coming years?!
Hypothetically, if IMU asked “will shareholders be happy to get diluted 20% now but we add an extra 40% to the buy-out value/market cap in x amount of time?” Would people be happy about this deal then?
Alternatively, do you think management or Hopper would prefer to dilute their own holding and that of other major shareholders by 20% on the basis that the acquisition wasn’t worth well north of 20% in shareholder value when it comes to fruition?! If people are expecting those returns to be in a few weeks it’s totally understandable for you to be annoyed. At yourself more than anything though as that should hardly fall on management. If you think value from OnCARlytics, which hasn’t even dosed a human yet, is coming around the corner than your expectations need to be adjusted. If you are aware that value from OnCARlytics is a minimum 12 months away, then there’s no real need to upset now other than about the usual ebb and flow of markets.
People holding out for more info about this deal to make sense of it may not get it. But if you understand the IP IMU holds and what they have acquired then no more info is necessary. IMUs IP has potentially doubled in value based on this deal alone in my opinion. Not to mention, I believe this deal has rounded out the CF33 platform in a way that will lead to a deal much sooner than before. Assuming OnCARlytics works, then the entire platform can be bought with no need to only find BP that have CAR-T/CD19 therapies. Plus IMU work at lightning which means they’ll likely get this therapy through faster than other partners we were working with, not to mention most of those were preclinical.
With all the above being said, the sober reality of it is that the share price doesn’t align with our value beliefs and or potential the markets require absolutes especially in times like these and of course there’s still a lot of risk to reduce to get to fair value. The question mark around whether CF33 does seem to be getting smaller and smaller. This acquisition seems to skew the probability to the positive a lot more.
Good to see management putting in some funds finally, would’ve been even better if they rounded it out to a cool mill.
cheers.
IMU Price at posting:
7.9¢ Sentiment: Buy Disclosure: Held
(20min delay)