cr great for accelerating progress for ado

As I arrived in Melbourne this morning and turned my phone back on I was greeted with the news of a capital raising.

Was I shocked ? NO

Did I expect this now ? NO

Is it a great thing for long term shareholders ? YES

Is It beneficial for new holders ? YES

My thoughts are :

All long termers had the opportunity to understand the potential of ADO and purchase shares over the past couple of years at around an average shareprice of 6 cents.

I personally was very against dilution at this price level (5-7cents) as I believe the market hadn't woken up and realised any of the potential and would have not been the right move for long term shareholders.

I did think that at some stage they would have raised money to accelerate progress as DS had mentioned but I didn't think it would happen to first half 2014.

You need to ask yourself why raise now?

We all know that poc1 (philips) and poc2 (alere) are both getting to the very pointy end of negotiations - we know this because Geoff was able to put a good indication of revenues into his Aus biotech speech.

This gives me even more confidence of what I have been talking about for so long - these deals are real and very high probability of both deals succeeding to revenue - each of these deals worth in excess of $10m pa

By raising money now that isn't saying that cashflows are not coming but more a case of accelerating those revenues so they come bigger and quicker.

There is obviously strong support for the stock and moving forward this will be a great turning point for the company.

If they raise $5m - $7m at 12-13 cents personally I couldn't think of a better situation.

Of course we want to think they would raise at the recent highs but I have no problem with getting new money into Ado.

On the back of this will come research reports and further exposure leading into a massive 2014 for ADO.

I tried to put myself in the shoes of a new ado holder who has bought in recently above say 15 cents and this is what I came up with :

Understand new holders that most of us die hard ado investors have been here since 2010. During that time we backed the company and more importantly backed our CEO Geoff cumming to deliver the best result for shareholders.

So we have held at a guess on average for 3 years to have at a guess a 100% return. I am very happy with this.

So if you bought at 15-20 cents just realise IMO you have stumbled upon a great company in the making and at a great time.

In a few months you will be much further ahead then us shareholders on a percentage return for time invested if you know what I mean.