A bit like I was guessing but with the surprise of low strike on the initial reward option , the short time to make your mind up and stump up the cash.. that makes sense the cash is more useful now no doubt than in a year..
And then the kicker options, the free steak knives! Ha ha! With the high but thoroughly achievable $1 strike.
Remember we have dragged the Nasdaq price down to meet us far more than we moved up to meet it.
In my mind the US market appreciate the monetary and medicinal ( kinda same thing) potential here better than our market does. So I don’t think that dollar mark will be as far away as some people think.
There is big money in the States for good developing alternative drug products and treatments.
We have a market just now though where cash is a little tighter for many, especially Mum and Dad investors post Covid. So some may be skittish to put new money into even great stories with the Russian maniac still bombing Ukraine and interest rates rising.
So a few will be obliged to or choose to sell some stock to get the funds to participate in the reward option and conversion deal. Fair enough not everyone has free funds at any given point.
It always happens that a small proportion of any stocks holders sell a bit to get cash to convert in the money options.. not everyone has a heap of cash in the bank.
So some short term selling which should dry up very quickly...I think that is what we have or might see for a day or two. If people are confused why another negative reaction to another good announcement well I reckon this explains it and this fund gathering by a few will be brief.
All these recent moves from the company have been well thought out, balanced and fairly and cleverly timed and executed.
Well done management.
IHL Price at posting:
65.5¢ Sentiment: Buy Disclosure: Held
