The pre-float pitch by Paul suggested that CHM would not take the normal slow trajectory of a new biotech company, because of the nature of the asset - Chlorotoxin had already been used in a diagnostic setting - and the limited current treatment options for GBM resulting in a likely accelerated treatment approval pathway in the USA.
I suspect that some investors purchased stock on this basis.
If CHM is now looking for new assets, it raised questions. Where is the money coming from? I would hope the current cash held is allocated to the Chlorotoxin CAR T treatment pipeline. Will there be a capital raising for the purchase and development of new assets? Does this mean CHM is going to change from a lean, focused company developing their primary asset to a company that has many irons in the fire, like IMU, for example?
Whether it is a good thing or not, I guess would depend on the individual investor. For me, I invested on the basis of Paul's pre-float pitch, and so talk of new assets has me concerned on which direction the company is planning to take long term.
CHM Price at posting:
26.5¢ Sentiment: None Disclosure: Held
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