re: Ann: Invion announces Rights Issue Entitl...
Pete and Twig - The 2 Rights Issues I have been part of (both small biotechs) were structured in the same way, i.e. the ex-date being at least 1 day after the announcement of the rights issue.
The fact that its 1 for 20, and not 1 for 5 or 1 for 2, like the others I was part of, its got less influence on the SP imo. The option has less value. I was surprised that this dip in the SP didn't occur on the announcement of the $5m institutional placement, which also mentioned the intention for the $2m rights issue. My only issue was that the terms of the rights issue wasn't announcement the other day at the same time as it was originally announced as an intention. I topped up today, but am still slightly down on average, however I didn't buy on 3M collaboration and share placement announcement, because I knew that there would be a high chance of the opportunity to buy before ex date.
My final thought...this rights issue isn't underwritten, so management and the board are confident that there wont be a problem raising the $2m. I doubt the SP will drop much lower. Perhaps some interim results will be announced before the closing date to give much greater value to the 7.5c 'options'
IVX Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
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