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6.0¢ resonance health limited

thanks for the link P1geon, it has explained the approach much...

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dingstud

155 Posts.

6

01/05/19

00:34

Post #: 38341259
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Originally posted by P1geon: ↑

I think people dont quite understand how ATM raises work. Its very standard for biotechs in the US.
https://en.wikipedia.org/wiki/At-the-market_offering

Those collateral shares are to facilitate the ATM. They arent free shares and they are utlimately bought back for nil consideration and are used to hedge during the evaluation period.

ATMs have price floors set by the company (RHT) and also maximum number of shares issued (chosen by RHT) who also chooses when the evaluation period is (RHT). This is completely the opposite to con notes.

The reason why ATMs are popular with biotechs is that the volatility allows for raises above VWAP. A few of cash burning resource stocks tried atms which isnt the ideal setup. As with any raise u still need the goods for it to work well, being cash flow positive helps a lot.

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thanks for the link P1geon, it has explained the approach much better, at least for me.

RHT Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
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(20min delay)
Last 6.0¢		Change 0.000(0.00%)		Mkt cap ! $26.81M

Open	High	Low	Value	Volume
6.0¢	6.0¢	6.0¢	$7.267K	121.1K

Buyers (Bids)

No.	Vol.	Price($)
1	68512	5.9¢

Sellers (Offers)

Price($)	Vol.	No.
6.3¢	20455	1

View Market Depth

No.	Vol.	Price($)
1	68512	0.059
2	150000	0.058
1	100000	0.057
3	142999	0.056
1	19999	0.050

Price($)	Vol.	No.
0.063	20455	1
0.064	15765	1
0.065	55000	2
0.066	25000	1
0.067	29344	1

Last trade - 12.56pm 01/10/2024 (20 minute delay)

RHT (ASX) Chart

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