A capital raise is never any good for retail investors. Its designed to give sophisticated investors an unfair bargain on the SP in exchange for funds for the company. All it does is dilute retail investors current holdings, especially if you hold a significantly large amount of shares and are invested based on a long term plan. I know IBX is a biotech but 3 capital raisings in the same year is just not good enough. IBX has a great product and the share price will bounce back maybe from a dip at 10c or lower depending on the terms of the cap raise, but I am pretty confident we will be on our way to 20c again as long as trials are announced soon. I fully understand the need for a cap raise to raise funds to take the company to the next level, but you have to call a spade a spade, we were on our way to 15c with pretty good momentum and Friday could have been a great day. All that momentum is now extinguished temporarily. A cap raise after clinical trial announcement would have meant a raise at 15c probably, rewarding long term investors who waited patiently the past few months as well as giving sophisticated investors a pretty good price still at 15c to get in on the technology. Instead long term investors are now being undercut and diluted at 8.5c, which is just benefiting the sophisticated investors who are getting a free entry at a bargain of a price for a stock that could be the biggest performer of 2021. Yes I am pissed and salty about all this, but hey, its typical when you invest in pennies, instos will always reap the full benefits. The only good thing from this cap raise is that it probably confirms and solidifies that IBX is moving onto the next level, which will be reflected in the SP soon enough, because sophisticated investors don't get in to make 10% by dumping shares on open after cap raise, they invest in pennies to make a good return, we have seen this already when there was cap raise at 6c and the stock ran to 10c afterwards in a matter of weeks, here is hoping that we run to 20c this time, as long as people don't dump on open. The risk is always there and so are the rewards. We could have a nasty retrace back to 9c, but considering we were at 6c a week ago, I will be holding strong for the eventual rebound.
Not much for crazy theories, but we have seen instos getting in recently on the broker data. What if behind the scenes there is huge interest from various instos and sophisticated investors to get in on IBX, however not enough shares are available on sale for them to accumulate, especially not at 8.5c, what if one of the reasons for this sudden cap raise out of nowhere is to provide instos with a chance for accumulation. Yes it does dilute existing shareholders, but that could be a sign of things to come in terms of the increasing demand for IBX from various desks.
Please DYOR, this is all just my opinion and should not be taken as financial advice.
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