Bit of fun for us diluted retail shareholders....I asked ChatGPT - if the devil was running a public small cap biotech company, how would he treat the sharehodlers ?
>>If a small-cap biotech company was run by the devil…You wouldn’t spot it at first.
It would look like every other “next-gen” platform biotech with a few charts, a shiny pipeline graphic, and phrases like “global unmet clinical need” sprinkled liberally through every ASX announcement.But give it time—and you'll see the horns under the lab coat. Here's exactly how a small-cap biotech, if run by the devil, would treat its shareholders:
1. Sell the Dream, Never the Product
The announcements would flow:
“Positive in vivo response in preclinical model”
“Accelerated regulatory pathway under review”
“Initial discussions underway with potential licensing partner (confidential)”
Every time the price starts to dip, a new “breakthrough” or “pre-IND milestone” would hit the market. You’d see spikes, chatter, and forum speculation—but never a Phase 2 trial. Never a commercial product. Just a promise that next quarter is the one.
Because in devil-biotech land, the story is the product. Results are a liability.
2. Dilution is the Real Drug
Cash burn? Always “strategic.” Raises? Always “oversubscribed.”
Retail gets shafted with SPPs at inflated prices. Insiders and “sophisticated investors” get placements at a discount plus free options, weeks before the price spikes off some throwaway announcement.Then comes the line:
“The capital raise positions us to accelerate clinical development and unlock long-term value for shareholders.”
No one mentions that your 1% holding just became 0.7%.
This isn’t a biotech—it’s a dilution engine running on hope and oxygen.
3. Hope Is Monetised
No revenue, no sales, no signed partnerships. But endless references to:
AI-driven discovery
Orphan drug pathways
Global interest from pharma (names withheld)
They’ll keep moving the goalposts just enough to keep you holding:
“Q3 becomes Q4… just need additional clarity from regulators… post-COVID resourcing delays…”
It’s all theatre. Designed to keep you engaged, “averaging down,” and telling yourself that surely they wouldn’t keep raising unless something big was coming.
That’s the hook. Hope doesn’t need a molecule—just a headline.
4. Disclosures Without Accountability
The devil doesn’t lie—he hides the truth in plain sight.
Risk factors? In the fine print.
Failure to meet endpoints? Not “failure,” just “did not meet statistical significance but showed directional alignment.”
Clinical trial delays? Blamed on “supply chain headwinds” or “regulatory feedback,” with no timeline updates for 6 months.And the kicker? The 4C shows most of the money goes to “administration” while “R&D” barely changes. But they’ll never break that out in the ASX release.
5. Insiders Always Win
While the share price bleeds, insiders extract value through:
Free options “incentivising performance”
Consultancy agreements via related entities
Director fees padded with equity at floor prices
Even when the company fails, they land softly—often reappearing at the helm of another microcap shell company within months.
And you?
Still holding the bag, waiting for a readout that never comes.6. Shareholder Engagement as a Ritual
The AGM will be a tightly choreographed spectacle:
Glossy decks with molecule diagrams no one understands
Vague answers to real questions
“We value our retail shareholders” said through gritted teeth
And if anyone dares challenge them?
They’ll be labelled a “shorter,” “disgruntled former holder,” or “uninformed retail trader.”Conclusion: The Devil’s Business Model
If a small-cap biotech company were the devil, it wouldn’t need to fake the science.
Just fake the momentum.
Just enough to keep holders distracted while insiders dilute, rotate, and move on.Because in devil-biotech, there’s no need to deliver a product.
Delivering hope is more profitable.If any of this feels familiar…
You might already be in it.
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