@bedger ~Firstly may i commend you on your excellent work on...

@bedger

~Firstly may i commend you on your excellent work on this thread. I have learnt much from your regular updates. As my knowledge grows regarding this company, I hope to supplement your contribution with my own analysis.

After checking the shareholders register, I could find few explanations for the volume of sales that occurred shortly after the FDA approval. I know people like to sell the news...but an FDA approval normally merits a far greater rerating. The chunky layering on the offer made me suspect there might be an overhang of sorts. (In my haste to post before I went to sleep I had overlooked the fact that the warrants had indeed expired at the end of 2020 so should not have been worthy of mention). I can only imagine the frustration of the Orthocell warrant holders who recently saw their instruments lapse worthless. I am sure that this lesson was not lost on the holders of the 11m options with a strike price of 39.5p expiring in early May. They needed to ensure that FDA approval would result in a historic 5 day VWAP to give them a healthy premium over the strike price. I am not familiar with cash less exercise facilities but I have been told they are a pretty common feature of ASX listed companies. I can agree with you that the whole 10.8m options were not sold into the market. However, rather than some complicated delta pricing ...I believe there is a defined mechanism for calculating the sale price.

I have tried to apply the actual sums against the formula shown below.

S=3,370,532. =. O=10,800,000 x (57.42p MSP - 39.50p EP)=17.92)/ 57.42 MSP = 3,370,532 (new shares issued)

So 3,370,525 shares have been issued to award 2,325,039 to the individuals named in the Appendix 2A resulting in the total number of shares rising to approx 188,757,000.

I would agree that the Directors normally receive their shares net of dealing costs and personal capital gains tax.....which i assume is the difference of 1,045,486 shares being issued on top of the new personal declarations. Whether or not the latter shares are sold into the market,or the company pays for these shares by another mechanism I will leave you to tell me.

https://www.asx.com.au/asxpdf/20180406/pdf/43t0rc7xm4ytxn.pdf

It would appear that Orthocell is off the radar screen of most ASX investors . It follows a similar pattern to other ASX biotech pre commerciality. I note OCC announced great clinical data regarding its CelGro rotator cuff results back in 2019 and the shares can be bought today for little difference now than the placing of new shares that followed that announcement. I understand that several institutions joined the share register back then, but very few remain today. That is their loss and my gain.

These anomalies, do not normally last for long. Until i speak to management personally, I do not quite have a feel for timing on other inflection points with regards to regulatory approvals ...but I can say this...in my opinion prospects look outstanding. I will have to do a more thorough analysis of competitors products before I am totally convinced. I also hope the non executive Chairman does not ingratiate himself with to many new options in the future.

So @bedger , I look forward to many positives discussion with you about future prospects. Apologies once again if i have misinterpreted any information. Very happy to be corrected. I would hate to misled anyone.

Please do not rely on any facts or opinions expressed in the above post when making an investment decision. OP