IPO - The Hydroponics Company Ltd, page-355

I like the company and am watching closely for continued signs of positive news. Why haven't I bought yet? I'm still getting comfortable with the story as I'm not a medical weed wizard like the rest of you legends that got this at the IPO. Why not the IPO? I didn't have the balls. What sparked renewed interest? The Placement and if more HNW money is topping up or entering they must be confident in the prospects so I should get more comfort knowing that. Am I an idiot and should resign to the fact that this is a punt if I get some balls? Yes

My understanding of the Placement or a capital raise the share price usually drops post the raise as there are new shares issued at a slight discount. At risk of sounding like every market expert BS statement in hindsight it looks like that has happened this today with a ~10-12% drop in price but it's still well above the Placement price so another good signal to me. At least that's the way i'm reading it if I buy shares. Some more confirmation bias things I am going to look for are if there are any changes to any future substantial shareholders indicating if they did or did not take up the Placement offer. Once again these signals would in my view help me get more comfortable. I continue to closely watch and if I grow some balls jump on the punting train.

All of the above doesn't change my view that the company has now raised another $8m from HNW people and likely some more from SPP in the future from existing investors. I think this is a positive sign of belief in the story. I can think of worse reasons why a CR would be done such as to avoid breaking a Debt rule the banks put on a company or Slater and Gordon to buy that UK company a few years ago. Aside from those signals I have limited understanding of what the future of any business holds. If I get the balls to have a punt on THC it will be a small part of my portfolio to reflect the risks. Some of you have benefitted from those risks to date with huge returns since IPO and I am thinking of having a punt too with the recent CR positive signals only adding to my risk appetite.