I agree Werble, extremely disappointing timing. A capital raise...

I agree Werble, extremely disappointing timing.

A capital raise right in the middle of a pandemic city shutdown, which it seems couldn’t have been more poorly positioned to maximise the number of Mum and Dad shareholders who have lost their jobs, and possibly can’t afford to participate in the offer.
It also reduces the raising (price) potential as much as possible so that the select few, who can participate, will be able to take even more advantage of the shortfall facility, by not timing the raise closer to the “first partnering window at the end of Phase1”.

How many times have they stated the “first partnering window at end of Phase 1” (a clearly defined “sweet spot”) (e.g. INVESTOR PRESENTATION date 30 April 2020). I am a wondering why, as you have quoted in the recent 4C Werble, if you have the capital to get to the “Phase 1 Sweet Spot”, where you may have been able to reduce the dilution by raising capital at a higher price, (closer to the end of Phase 1 (a clearly defined sweet spot), and out of this pandemic lockdown) have they changed their minds, and have an approximately 50% dilution?

Maybe the following quote from the 11 August 2020ASX Announcement “$4 MILLION PLACEMENT AND 1 FOR 4 RIGHTS OFFER FOR UP TO $4.1 MILLION” will hold the answer.

”a Shortfall Facility enabling the Directors the discretion to place any shares not taken up by Eligible Shareholders under the Offer for a period of three months from the close of the Offer at a price no less than the Offer price.”

If I have read this correctly, it would appear the CEO has had a hurried and massive change of heart from when he said this in the 21st July 2020 4C:

“With prudent cash management actions in place and the deferral of the initiation of the strategic growth initiatives which were announced in March, AdAlta is confident that existing cash resources are sufficient to achieve its forecast AD-214 milestones (top line safety results from the healthy volunteer part of the Phase I program and development of the radio-labelled PET imaging agent version of AD-214, currently anticipated by early 2021).“

I’d just like to know why?

Havenots