Hi
@Fastback6666yes, each of those points is very true. And, IMO there is even more that MSB long-term holders can reasonably take from this news.
First, consider that Dr Rose is
NOT acquiring these shares under the safe-harbour provisions of Cl 3.6(c) of the Mesoblast Share Trading Policy which
exempt from the insider dealing prohibition any:
" ...
conversion of options to shares on exercise of options granted under the Mesoblast Employee Share Option Plan. "
In fact, the Policy specifically adopts the Corporations Law requirements in relation to 'insider trading' and identifies as events attracting the prohibition on dealing things like:
- proposed capital raisings/share issues;
- recruitment or resignation of key personnel (including members of the Board);
- anticipated or actual results from preclinical or clinical trials;
- registration of the Company’s product by a government agency authorising sale of
the Company’s products to commence; &
- significant agreements with other companies.
This indicates to me that he is taking a risk, and so is the board of Mesoblast in accepting the application, and so they would need to be reasonably certain that all other conditions of the Share Trading Policy had been complied with.
Second, Cl. 3.4 of the Policy sets out a mandatory obligation for any employee - much less the CMO - that
:
" 3.4 Appropriate time for trading
The only appropriate time for Mesoblast Personnel to deal in the securities of the Company is when there is no price sensitive information which has not been made public, whether or not the Designated Person is aware of that information. "Effectively, this means - to me - that Dr Rose picked his window with great care & with great attention to the pending & imminent circumstances of Mesoblast Ltd. Everything that the company holds or expects (not plans or intends) to hold i.e. everything that needed to be made public, has been made public.
In Dr Rose' case, that might require IMO that he had to wait until the Entitlement Offer had been notified as being fully accepted, if he had any knowledge about the participation of those institutional investors who did participate. Why? Because their participation would, IMO, be a material thing to be known to the market when communicated to the corporation.
And the implication (from the share issues) that there are no imminent partnership deals to be announced means to me that Mesoblast Ltd
intends to proceed through the end of March without closing deals early. This appears to me as the corporation backing itself to the hilt to be able to obtain such material concession(s) from the FDA in the interim that the securing of 12 month cash flow at a slightly lower value than spot market highs (say 5c max) is worht more to the corporation's future than the $$ now.
Personally, I now think Mesoblast intends to conclude its discussions with whoever its talking to
AFTER 31 March & with a full bank account i.e. not needing any further money itself, so it could pull its own weight on CLBP, and with the FDA having showed its hand to the company on the pivotal matters i.e. the triggers for standard or conceivably AA approval in remestemcel for SR-aGVHD. The adult trial protocol is already funded, so the trigger is the only thing needed to monetise that program.
So, no other news today with Dr Rose' acquisition. But, of course, that could all change, oh...say... tomorrow morning.
Not advice, of course. DYOR.
GLTA(LT)H
(20min delay)