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Ann: Opthea announces establishment of ATM Equity Program, page-7

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03/02/22

12:43

Post #: 59328064
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Originally posted by PigRace: ↑

Reg the ATM:

A targeted deal size of $75 MN / A$105 MN at current share price equals 11,5 MN ADRs / 92 MN ordinary shares to be issued until P3 topline data at very YE2023.

This equals to 25.000 ADRs (the corresponding of 200.000 ordinary shares) to be issued every trading day. Every SINGLE trading day. For the next 23 months.

This compared to an average daily trading volume of 10.000 ADRs on Nasdaq or 600.000 ordinary shares in Sydney.

The thing is, at current share price and even more so when share price are rising, the ATM means less dilution. Smart.

But given the lack of significant newsflow until September 2022 (when hopefully full recruitment is communicated) the mere size of the daily issuance could impede any upward trend for OPT stock. And then, once the share price starts dropping (for whatever reason) the idea of an ATM risks becoming pretty value destroying as the dilution to make the targeted final $75 MN becomes larger and larger.

And I doubt OPT could make it all the way through YE2023 with significantly less additional cash needs than those communicated with the CR. And the market knows so.

@All: Is this a too skeptical view?
@Hotfire: What was your experience on this "volume issue" with the BRN ATM you mentioned?

Expand

BRN has been pumping out regular updates & news flow, which attract new money into the stock.

Whereas OPT is in hibernation

Originally posted by PigRace: ↑

Reg the ATM:

A targeted deal size of $75 MN / A$105 MN at current share price equals 11,5 MN ADRs / 92 MN ordinary shares to be issued until P3 topline data at very YE2023.

This equals to 25.000 ADRs (the corresponding of 200.000 ordinary shares) to be issued every trading day. Every SINGLE trading day. For the next 23 months.

This compared to an average daily trading volume of 10.000 ADRs on Nasdaq or 600.000 ordinary shares in Sydney.

The thing is, at current share price and even more so when share price are rising, the ATM means less dilution. Smart.

But given the lack of significant newsflow until September 2022 (when hopefully full recruitment is communicated) the mere size of the daily issuance could impede any upward trend for OPT stock. And then, once the share price starts dropping (for whatever reason) the idea of an ATM risks becoming pretty value destroying as the dilution to make the targeted final $75 MN becomes larger and larger.

And I doubt OPT could make it all the way through YE2023 with significantly less additional cash needs than those communicated with the CR. And the market knows so.

@All: Is this a too skeptical view?
@Hotfire: What was your experience on this "volume issue" with the BRN ATM you mentioned?

Expand

OPT Price at posting: $1.10 Sentiment: Hold Disclosure: Held
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0 Great analysis

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Last 47.0¢		Change 0.025(5.62%)		Mkt cap ! $578.6M

Open	High	Low	Value	Volume
44.0¢	47.0¢	42.5¢	$1.327M	2.960M

Buyers (Bids)

No.	Vol.	Price($)
1	63945	46.0¢

Sellers (Offers)

Price($)	Vol.	No.
47.0¢	88685	4

View Market Depth

No.	Vol.	Price($)
1	63945	0.460
3	142677	0.455
4	113614	0.450
1	5617	0.445
1	22727	0.440

Price($)	Vol.	No.
0.470	29000	1
0.490	2001	1
0.530	42475	1
0.570	9000	1
0.590	12001	1

Last trade - 16.10pm 02/08/2024 (20 minute delay)

OPT (ASX) Chart

Ann: Opthea announces establishment of ATM Equity Program, page-7

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

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Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

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Ann: Opthea announces establishment of ATM Equity Program, page-7

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Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

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GreenX picks up prospective copper project in Germany

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Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Westgold sets its sights on top five producer status through merger with Karora

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News