I totally agree with your logic here regarding the overall...

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Bortgm

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27/04/21

09:37

Post #: 52740772
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Originally posted by slura: ↑

@ArtVandelay (wouldn’t let me reply direct to you)

I get why you feel peeved Art and I felt the same way too. I personally thought 26c was undervaluing our share price and it is. As shareholders, you definitely have the right to voice that opinion and think you should towards the management if that’s how you feel. It’s up to us to hold them to a higher standard and to let them know we back them to hold tough negotiations.

Now with that said, I believe your thinking of devaluing the company is flawed and here is why.

Friday afternoon, ADO share price closes at 41.5c valuing ADO at a fully diluted $821m.

Monday morning a corker of a battery announcement that essentially tells us we are close to commercialising our battery tech with a number of large and very large battery industry players.

Straight after that, capital raise for 1.6% dilution at 26c. Fully diluted at 26c would be a market cap of $522m.

So by your feeling, the company will drop $300m in value because they raised $12m-$14m in capital AND dropped a company making battery announcement. Not to forget that when we come out of the trading halt, we will be launching our EuGeni Covid RDT.

I ask a question, does it make sense to drop $300m in value?

Not in my world.

Now to add to that, the book was supposed to close at 9am this morning for the capital raise. However, PAC Partners were swamped in the rush and it was closed at 1pm yesterday. Apparently the email went around at 10am, so that suggests they had the book done in 3 hours. The demand suggests yes we set too low a price, however there will be institutions(read new holders) that come on board who won’t be happy holding at most 0.5% of a company. That’s a blip on their radar.

Another way to look at this, is as an IPO. When an IPO is oversubscribed they get massive buying on the market. Some IPO’s close up massive percentages when they first trade.

Before someone says yes, but what about the overhang, well it won’t be there yet. The new holders won’t have shares on Wednesday.

So if you think about this logically, can anyone justify the ADO share price falling to 26c based on a capital raise that puts us in a stronger position as a company? Backed by a company making battery announcement and the launch of EuGeni. Also about 1-2 weeks from hearing the results of the saliva test trial and about 6 weeks from TGA approval which will provide the launch pad for FDA approval.

There is still so much to be positive about.

Expand

I totally agree with your logic here regarding the overall affect on share price. But the fact remains that someone instigated selling shares to funds and/or instos at a 40+% discount to a value that is already seriously below actual market value. That privilege wasn't offered to retail investors. Timing may be an issue, and I'll await the companies response in that regard.

That said:
The price will definitely not be affected to any great extent.
The news is overwhelmingly good, and SP appreciation is nearly a certainty.
Risk is diminishing daily.
The road ahead is looking as ripe as a peach.

I do have a potential issue with having instos and funds on the register. They care about themselves, not shareholders. When time comes to vote on issues relevant to the companies direction, I'd rather have retail shareholders making the call.

ADO Price at posting: 41.5¢ Sentiment: Buy Disclosure: Held
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Last 2.2¢		Change 0.000(0.00%)		Mkt cap ! $54.77M

Open	High	Low	Value	Volume
2.2¢	2.3¢	2.2¢	$11.78K	531.3K

Buyers (Bids)

No.	Vol.	Price($)
1	272279	2.2¢

Sellers (Offers)

Price($)	Vol.	No.
2.3¢	454657	7

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No.	Vol.	Price($)
1	272447	0.022
11	2009127	0.021
10	1055501	0.020
8	1099486	0.019
6	2172779	0.018

Price($)	Vol.	No.
0.023	454657	7
0.024	213729	5
0.025	1053470	11
0.026	291415	3
0.027	250000	1

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