- FULLY underwritten funding - provides breathing space to run a deal - there will no further raisings needed with this amount of money now provided....once this is done it's a clear run to hero (or zero). - backup info on Phase 2a trials is extremely positive. - large number of pharmas in discussion
Negatives: - 10.8M is not insignificantly dilutive - still not enough certainty with data - and the biggest for me - the now infamous announcement. A better annoucement could have potentially meant a rights issue at a higher price. WHY did the board release such a price damaging announcement? Just lack of judgement? Surely not an intentional spiteful play. It destroyed significant value.
Finally, read section 12.6 f). Underwriter can terminate if ASX200 goes below 4092. It is currently at 20 points above that if you look at aftermarket SPI pricing. It will without a doubt move below that. Have I missed something?
CBZ Price at posting:
19.9¢ Sentiment: LT Buy Disclosure: Held
