Seeing its a quite day on HC today, I'll lead with my chin and share my view on the CR's.
The Loyalty CR raised $23.6m @ $0.35; the Institutional raised $13.0m @ 0.205. Had these not been undertaken, we'd currently only have around $5m in the bank, and as such would be looking at a CR now at a discount to the current price. Ouch!!
Looking at each individually, with the Loyalty raise, like many of us, I took up my full entitlement; and have at times thought 'wow, I could have bought many more shares on market at a much lower price'. For me, that is now academic; as a similar CR now would have diluted my holdings regardless. So was this a good decision at the time - I think so. There have been some comments in the past suggesting the BoD took advantage of SH's with a 'discounted' (given the price at the time) raise at $0.35, knowing the price would drop lower. I dont subscribe to that at all - I'd be astonished if anyone could foresee 12 months ago that the price would regress to where it is now.
As for the Institutional raise, yep - it initially felt like a punch in the guts. But in the days after, thinking more about it, for me it was more so that I couldn't reconcile the incentive options for Bob Clark with those attached to the raise; rather than the deal the Insto was able to negotiate. Up till that point all indications were that come May 2024 the BoD expected the SP to be north of $1; then the Insto options was a 'Wait, What???' moment. So, will this Insto raise be considered a 'good decision'? Well we can answer that when our cash balance is around $18m. If the SP is sub $0.20 at that point, then in hindsight - a great decision. But jeez I wouldn't be happy!!. Id rather see the SP well north of here and be content with my investment being worth a lot more and saying 'Insto - well played, but we've all won'.
Just sharing my opinion only.
IHL Price at posting:
18.3¢ Sentiment: Buy Disclosure: Held
