On first thoughts, I am not impressed by this. I actually bought on market at 40c last week. Just like last time I probably will participate, but just like last time I will have to look to take profit rather than hold the additional shares long term. The problem right now is that there are bargains all over the ASX in businesses much more mature, and frankly, less speculative than Kazia. Money is not flowing into biotechs at the moment in case people haven't noticed.
I can see what might have happened here. Management were hoping to release the latest data at the now postponed conference and get some momentum behind the share price for a capital raise.
What annoys me is that in market downturns like this, when I have been holding firm (and actually buying) stocks like Kazia, somehow the little guys like us still managed to get screwed and have our equity diluted, now through these new "emergency" provisions of the ASX for capital raising. The big guys always clean up. They can't lose.
Why didn't we do a capital raising at 60c? The share price was hovering around 60c for three months (which was when the biotech sector on the ASX was doing well by the way). This is the second capital raising at around 40c. Very frustrating.
