I have been buying up as many as I could get into my Super today which I only do when intending to hold for several years, with companies I believe will be around and making solid revenues for many years beyond that. I think IHL fits that horizon. I doubt it will remain at the C/R level for long once the holder protests subside.
Yep absolutely crap deal for holders, over 10% discount around near 52 week lows stings, generous oppies thrown in doesn't help that, existing retail shareholders shut out feels like betrayal, and if the approach was made in September be interesting to know when in September as the trading over that month was pretty extreme to rise then fall, and then trend down ever since to then drop a 10%+ discount to the SP now (ASX300 movements aside). I can understand the bitterness given the timing and even the necessity for this C/R, but it's done.
The positives though - the dilution is not catastrophic and cash is going to be needed to get to commercialisation which in the case of IHL, is not going to be the long road most bio's have to travel in my opinion. So if not now, I think inevitably in CY2023 they would have had to raise anyway. The reason is I think in 12-18 months they'll be looking seriously at having at least one approved product to take to the market. It's the holy grail of R&D bio's to become a business with revenue streams and you want to be ready to move as soon as you can when you get the opportunity. There's so much to like about the company, these products aren't overly complex to develop, manufacture or clinically trial and there is a reasonably sensible extra injection of cash into the business to sustain right through to commercialisation - something I think that is being overlooked today. Apart from that, I have chronic OSA and I would love to throw the CPAP away as the SOC, and I think I speak for anyone that needs one.
IHL Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
