If this CR proves that institutional investors have been begging to get on board undiscounted, or even lining up to buy big blocks at a premium, I'll buy your hypothesis and celebrate wildly.
It would be comforting to believe your rationalisation. But the CR at this point is a very negative signal.
RAP has made it clear they have ample cash to wait it out for the US results - and if results are adequate the subsequent CR will be an absolute piece of cake.
Contrary to your hypothesis, does anyone truly believe the begging II's are going to run away BECAUSE the trails are SUCCESSFUL?
Seriously?
CR now means accepting a much lower price than if it was done after a successful result. It signals that management feels a need to hedge.
The only compensating benefit in going prematurely is that it provides extra cash in the bank to more deeply cushion the risk of future failure.
After trading RAP for a year, last Friday I was very close to finally recouping the funds I lost a year ago in the post-trials SP crash.
And then we get this CR....
Not to say RAP won't eventually succeed handsomely, but the management is clearly cognisant of significant risks ahead.
Ann: Trading Halt, page-70
Currently unlisted. Proposed listing date: 4 SEPTEMBER 2024 #
