Nice little pop for a quiet Melb cup day yesterday. Volume was...

Nice little pop for a quiet Melb cup day yesterday. Volume was strong too. I bought more yesterday and today. I had an outstanding order at 75c the past couple of weeks which didn’t get hit (as low was 76c). So moved the order to market order to ensure it was filled as a vote of confidence on these impressive Sheba 2 AML results, and in recognition of upcoming short term inflection points.

Key near term infection points in next few weeks:

1. ✅ AML Sheba Trial abstract (6/11/23 ASX announcement)

2. Updated strategy and possibly new CEO - hopefully before AGM on 27 Nov. My guess … maybe as soon as next week. We already have an extremely impressive and experienced new Exec Director (and default interim (part-time) CEO) in Dr Peter Smith. Dr Pete has an impressive background combining PhD in science, current CEO/director/Chair roles in biotechs, plus a circa 10 year stint as a Pharma equities analyst for UBS and HSBC. Meaning he should know what institutional biotech investors really want and are looking for. Dr Peter also comes across extremely articulate and comfortably confident in his recent interviews.

3. New formulation (RC220) which will allow easier administration of Bisantrene via IV. (Update expected this quarter).

4. ASH presentation and more data on the Sheba trial (early Dec). Possibly surprise Dom FTO data?!?!

Key lesson … don’t haggle for pennies and potentially miss out on the big moves. As I experienced recently trying to get a low ball buy at 75c, and end up missing out on a quick >25% upside. I could have easily increased my bid 1c or 2c to get an easy fill below 80c at the time.

I wouldn’t be surprised if some on the Board and management, in particular the newbie’s (Exec Director, Dr Peter, and CMO Dr Michelle) buy on market, after now having spent the last 2.5 months with Dr Tillett. My guess for RAC to open the trading window is likely when the updated strategy is announced to the market, unless there are more PS announcements in the pipeline.

Also, the new CEO would likely be issued options (the last CEO was issued circa 750,000 RAC options at around 150% of sp as the strike price (strike of $3.30). Dr Peter and CMO Dr Michelle have staff options with a strike in the high $1’s or low $2’s.

Don’t let the insiders get their shares too cheaply … anything under $2 (to buy on market) is cheap, IMO. Options should be set at at least 200% of current sp. So the higher the current sp, the higher the options strike for the incoming CEO.