IHL (ASX) Ann: Incannex Launches Psychedelic Clinics Business

Originally posted by DAngel35: ↑

Assuming I understand what you're actually asking...

It's simply because it's not actually there for the taking? If I was BP my DD might well come to the conclusion that IHL is a bargain today, but I would have also uncovered the fact that there's a BP associated Non-Exec that has clearly identified the very same potential and is personally incentivised to help protect / maximise IHL's value within the next couple years, a management team whom have since raised sufficient capital (from an insto investor who also knows there's value) to further de-risk the portfolio of assets with various trials that are actively progressing, so sure at face value IHL is a bargain, but it's also clear that it's not in reality available at that price because any low ball offer will be quickly rejected by board and management, so upon realisation that they have to pay up, it makes sense to simply wait until the assets are in fact further de-risked such that they can be more certain they're actually paying fair value.

Perhaps it's also about market perception, what would the market think if BP starts bargain hunting a bunch of companies that are on paper in their phase 1/ phase 2a stages, market will immediately conclude that the M&A team have found no future drug there to replace their upcoming patent expiring assets and they've now decided to opt for a shotgun approach. I think when you run a company of that size, there is an inherent bias towards playing it safe rather than taking any risk and not being rewarded for it, or worst getting it wrong and being known for it, legacy is an important thing.

As for APIRx, in hindsight an even better deal given it was fully paid for in scrip, 218m shares in today's terms, I mean just do the math!!!

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I really appreciate the time you put into writing all this. Again you have gone a long way or answering a simple question, it may seem wise, but is it??? I am not sure.

If BP wanted to takeover, why would they give the BOD an offer? They can simply buy on market at it's current price. Then slowly increase the stake to gain central management. Even better, when they make themselves eligible to participate in the next potential cap raise. Who in the right would go and give a beaten up speccies an offer now?

Even on market buying wouldn't push up the price by too much IMO, insert the reasons you listed why they should wait here.

I think you have answered your own questions here, APIRx is worth the investment. So I would say that IHL would be worth for BP

Now the real reason why BP hasn't Action yet? You maybe somewhat right with your long winded post, they are waiting for some asset to come to fruition. However, I am more leaning towards the followings:

1) they have better products up their sleeves
2) they are waiting for IHL to get more bargain
3) they don't think the drugs IHL have is up to standard as they have to resources to simulate and test the potential result.