imo why a small capital raising now?

Just some more speculation from me. We recently received a grant to progress new cancer types amounting to about $4.5mill. Such grants would not be easy to get and I bet that it would have been conditional an PRR having a plan that would ensure the projects are worthy and viable. There imo would have been a need to demonstrate that PRR was serious and willing to contribute with some of its own funds to progress the initial research stages of the program.

Additional funding needed, could therefore come out of existing capital or there would need to be a capital raising. IMO the first option was not viable because all the funds were needed to progress the existing work of the phase2b and CANVAS trials. This could imo not be jeopardised in any way by diverting existing funds to new programs. When you are signing up patients and doctors and hospitals there has to be a guarantee of certainty that the company will have the wherewithal to continue the trial to conclusion. More funding will be needed at some point in 2014 to further progress CANVAS and imo the company will do that following the 2b results.

So the small capital raising now is predominantly to service the start of pilot trials for the additional three cancers and would imo meet the commitments made to secure the $4.5million contribution from Germany. So while it is occurring when the sp is low they have gone for a relatively small sum for the reasons outlined above. This to me makes sense because there will obviously need to be even more funding and/or partnership arrangements down the track to continue CANVAS. Its clear to me that this small capital raising now will permit another needed capital raising to occur after the 2b results which if successful I would expect the sp to have moved a lot and the CR will be on far less dilutive basis than otherwise would be the case.

Having thought about what has occurred I have formed the above as being the basis for the small capital raising now. I could be wrong but I am feeling more comfortable about it. Time will tell if I have deduced correctly.

cheers