One of the main reasons for me is I reckon it's somewhat of a '...

One of the main reasons for me is I reckon it's somewhat of a ' misnomer ' that Sophisticated Investor's or so called professional investor's are any but these descriptions , with many of them only in it for the 10 - 20% immediate return.

The clamouring which then takes place after the issue has been placed creates havoc with uncertainty with other ' unsophisticated ' investors. This in-turn creates the often seen retracement to the capital raise pricing. So mainly investor psychology otherwise known as FOMO on what they might expect as their return on their risk and capital.

Where I think it can differ is the situation whereby there is a large degree of underlying understanding of the Company model and its potential expected growth. If investors feel the likelihood is sooner than later , and have evidence or ' peer comparisons ' which support their understanding , then I feel the opposite side of the FOMO , and leaving to much on the table cand tend to pla out more positively.

And obviously the structure of the ' stepped ' raising's would have a lot to do with how it plays out. Especially when there is potentially so much stock being offered. But with so much stock ; in turn comes significantly increased volumes. And so you see these ' multiplier ' type effects from the varying stages of ' seed ' capital being provided to the company. A similar effect would be a Company which is growing strongly and expands it's capital by issuing ' Bonus Shares ' which tend to have the opposite effect, and instead of diluting the share price , they tend to extend the increases to the share price further. We don't see this much in Australia anymore , but is seen quite regularly in the US.

The positivity in my opinion as well can come from a perception in the Investing community that the ' Supply ' of stock is simply not there in meeting the immediate demand. Now , I'm not saying this is the current case for CRO , but I am seeing it elsewhere on the Australian Stock Exchange due the current increased liquidity situation resulting from various COVID-19 government policy interventions and stimulus packages.

And in these situations , there is an argument that if an educated investor can see themselves as gaining a ' free carried position in a Company which is expected to experience significant growth over the short to medium term horizon , then it would makes perfect sense that we don't see the momentum abzting until the SP is well and truly through the 2.0 cent price point. However by this time , the volume of shares required to push the price to these levels becomes so much greater than that of the approximate 50% which would be sold to free carry would continue the share price cycle higher. Add to that potential ' in the money ' options , and then you all of a sudden have ' Twin Engines ' pushing and pulling the head stock further. Much like the ones just issued in the capital raising - BONUS options......

" Canary Capital and CPS Capital acted as joint lead managers to the issue and will receive a fee of 6% of the amount raised and 100m options exercisable at A$0.025 expiring on July 28, 2023. "

Doesn't happen very often , and would be considered quite a unique situation , but I wouldn't dismiss the possibilities here with respects to Cirralto as there has been plenty of reasons put forward as to why it could happen already.....