The assumptions built into that scenario include a much higher risk appetite among investors than currently exists, and existed at the time.
La Jolla is very opportunistic as a partner, and obviously given an opportunity to take more shares, it will. However, shareholders need to understand that dilution is inevitable as the number of shares on issue has been very low.
I am pretty confident Stroud will be able to sort this out and keep the company afloat for the inevitable deals that are in the pipeline, he is an experienced financier after all.
Meanwhile I don't have a large holding. Delays with other shares have held me back, and this also relates to an extremely cautious investment market. They want a dividend stream and all the money is going into TLS, the banks and to an extent the big miners. The ASX has been a killing field for innovation, which is an appalling situation but one which is worse post GFC.
AEB Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
