CPH 0.00% 0.9¢ creso pharma limited

As long as the reason for the capital raising will be for 'rapid...

  1. 12,641 Posts.
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    As long as the reason for the capital raising will be for 'rapid expansion' then I don't think the share price will go down for long... The very low amount of shares on issue gives room for capital raisings without diluting too much...

    For example if they were to raise $10m by issuing 15m shares at 67c, then the total amount of shares afterwards would only be 57m + 15m escrowed gives 72m shares.... This will give a market cap of $57m at 80c with $10m in the bank for rapid expansion... That will not only mean CPH is arguably the best MM stock on the ASX, they have $13m in the bank and ready for massive expansion, and still at half the market cap of MMJ...

    There would have been a few on the sidelines waiting for this capital raising, so I think they will buy up next week...
 
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Currently unlisted public company.

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