I always look to the third day after "bad" news to assess the damage, and as many predicted, the SP went straight to the CR price, but it also seems to have found it's bottom there too - which doesn't always happen - sometimes it falls much further. Seems the damage is done and hopefully it can slowly move back to the pre CR levels and beyond over next few weeks.
Just around the questioning of the Options, it's worth noting that the strike is at a 40% premium to the current SP. I've gone long here but if they end up in the money and I think they will, I'm happy for sure, bearing in mind that the strike is the minimum, the SP may well be far higher by then but we'll still be needing capital by then. That cash flowing into the balance sheet if exercised will also (hopefully) shield investors being subject to another CR by then or if there is, then it will probably be to take a product commercial (manufacturing/sales/marketing etc etc).
CR's suck when you don't see them coming, and bio's I buy have had an uncanny tendency recently to issue a market update that they have plenty of cash and then within the week a CR lands. But they were going to need to raise to get through the trials and if its on an approach from an investor that can help you take the product commercial, it's kind of worth the implied premium that this raise was done at in my opinion.
IHL Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
