yep, I know Nicolab reasonably well... great example of a better...

yep, I know Nicolab reasonably well... great example of a better run unlisted venture...

I have this conversation a bit with a few different types about the advantages of unlisted entities particularly at this stage of development/commercialisation. the issue centres around the timelines in taking things off the ASX unless its a straight takeover. If it was an MOU and rights issue etc you're looking at 6month or more so a raise would have to be completed first to keep things alive then 75% acceptance has to be reached before things get a bit more serious... maybe 9 months from beginning to end? throw in a raise and you're looking at a year...

It is a vicious cycle of bad raises running into the back end of the next bad raise... I suggested a convertible note with a 2 year expiry at a discount to the next raise rather than a set share price, that ended up as a raise with a discount... more discounting of share price for a raise just erodes the capital base of your existing holding and achieves further dilution and less money each time... it shouldn't be discount AND cheap options as that just tears up value. Close to VWAP plus cheap options keeps the capital base moving forward not constantly backwards.

I love sitting down with a founder and asking them why do they want MY money... why bring on a particular investor? what do they bring to the table other than cash? when founders have a plan as to WHO they want money from then those businesses always outperform. At some point you have to be lees discriminating but at these sort of prices there should be better communication with better funded investors as to what the direction will be and how much to will cost.

dunno...dunno....dunno.....