Has ELS just taken us for a Ride?, page-26

Starting to remind me of another Israeli company that just got delisted on the ASX, dreaming to get a nasdaq listing instead, after they burned tens and tens of millions over the last few years here for very limited results. Lot's of broken promises and outlandish sales contracts being spruiked in their prospectus. At least here not too many crazy promises and not so many CRs compared to that other company but this is a really a terrible raise.

My summation is that the previous potential and SP was overestimated by the market thus the poor raise conditions. Maybe this raise had been planned for a while and the SP had been artificially propped up over the last few months to get this away. The trading has been somewhat unusual throughout that whole period. The CEO transition etc was not just thought of a few weeks ago. It has been planned for a long time including his exit strategy and capital needs going forward.

I dumped my options as soon as I did the calcs on its actual value given the short time frame left and the signal given by the Board with these ridiculous new options strike price and date. I may consider buying those when the price and fundamentals are right.

I would also be careful to dump shares too quickly as sometimes these raises are done in a way with some announcements held back to then give an SP kick to allow the underwriters and their mates to get out. That would be the time to loosen holdings if that was the plan for anyone.