Yep, definitely added another scenario to their strategy rather than changed it. I still think they are primarily going after a takeover (i.e. same strategy) as that will unlock capital for them to fund a new startup with a next generation technology.
I’m pretty sure I heard/read that LC loves working in the startup space so, I can’t see her being satisfied if/when IMU turns into a stable, drugs in the market place, revenue focused, dividend distributing company. PH seems to be the same, constantly looking for new technologies that can be rolled into startups.
However, they’re not going to maximise value for themselves if the are solely focused on a takeover. So, they need all the other options on the table.
I think the develop/commercialise independently will only be for Azer-cel as it may receive registrational approval before Vaxinia and onCARlytics have progressed far enough to generate maximum value from a TO.
The downside to all of this is that it may still be some time until a TO occurs. However, as LC stated in the webinar, the Acer-cel acquisition should speed up the timeline. So, I’m resetting my expectations to a few years whilst also hoping it will be much closer to the 12 months indicated by Nick Ede.
Whilst yes, technically the strategy has changed, fundamentally I believe it remains the same and is not worth arguing over let alone losing confidence in management. I, for one, am glad to see they are not tunnel visioned and can pivot and/or enhance when the opportunity arises.
Like a lot of others, I do think the finer details of the SPP included a misstep and 1. should not have included VWAP based on dates in the future which could result in massive dilution if the SP falls to an absurdly low value and 2. not ticking the scale back box in the announcement. It’s hardly going to be a great outcome in terms of dilution if 20,000 shareholder elect to purchase $10,000, especially if the market cap was to drop to $200M and $200M was raised resulting in a 50% dilution from the SPP alone. Sure, an extra $200M in the bank would be great but not at that kind of dilution. I hope they realise the mistakes and can/will make a change before they release the prospectus. Alternatively I hope the big funds recognise the risk and prop the share price above the 8.4 cent mark.
Ultimately, despite the debate around the SPP, my confidence in the company and it’s chances of success continue to grow.
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