@mabjsy In the future, MSB may well be so cashed up that it can...

@mabjsy

In the future, MSB may well be so cashed up that it can conduct buybacks and still fund its R&D and commercialisation efforts.

But to get to that point, it still has to spend hundreds of millions of dollars and as we have just witnessed, every single dollar raised is likely to come from selling shares to investors, institutional shareholders such as today's placement, or big pharmas such as Teva/Celgene/MNK.

Every single time this happens, your proportional ownership of MSB gets a little bit diluted. A single raising like today's looks quite harmless, but a series of them can do serious damage to your proportional ownership of MSB.

The other thing that you need to bear in mind is, if MSB is one day fortunate enough to be in the position to conduct buybacks, it must have succeeded in bringing one or more of its products to commercialisation. When this happens, the share price will be multiple of today's price of around $2.

In other words, if MSB does conduct buybacks at that time, it will be buying back these shares at a much higher price, i.e. SELL LOW BUY HIGH. Personally, I don't think this strategy is a good idea.

Instead of this scenario, I think if MSB one day ever has so much money, it will most likely keep pouring money into its R&D and have a wider suite of products.