I think @davefb has hit the nail on the head here.Biotech...

I think @davefb has hit the nail on the head here.

Biotech failure rate is spectacular. IHL has a good prospects, good people placed strategically in smart positions and a good array of products. But it will live or die on product results.

Another thing to consider is presentation.

A lot of angst appears to come from the fact that our CEO said we are in an enviable cash position a few days before a surprise CR.

And fair enough too.

I remember an explanation running along the lines of ''We had to say that to make it clear to the investor that we wanted them on board, we didn't need them'' or words to that effect.

However, I think you'd have to give Joel credit for at least being cognizant of the flip side to that statement and action, being that the broader market could see it as divisive and lacking transparency. It's not unreasonable to ask ''hang on, you're in an enviable cash position and now a sudden CR?''
WTF??

So assuming Joel was aware that this could be perceived the way it does/has and still the company went ahead with it really only leaves you with 2 options.

1 - They are very shortsighted and just figured everyone would understand a decent tank in the price.

2 - The CR and subsequent investor on board is what the BOD genuinely believes is best for the company long term, and the short term chop will be worth it.

An action that would demonstrate they were of the option 1 mentality would have been selling shares prior to announcing that.

An action that would demonstrate they were of option 2 mentality would be staying invested in their own company.

Something to consider is that every member of the BOD with shares are feeling the exact same SP pain we all are, yet they stay the course.
There has to be something said for backing the horse named self interest.

Even though I am one of the ''early few cent investors'' who is still many bags up, the performance of the SP has been so very disappointing the last year or so. I'd challenge anyone at all on here or anywhere to paint me a picture that makes it otherwise. (the only caveat would be if you hold one of the significant short positions, then you're stoked currently).

The company though, has been reasonably steady in delivering what they said they would deliver in regards to results, timelines and pathway. We have had a few decisions where the full results have yet to manifest themselves (the acquisition, the options offered at 35c and $1 and the CR primarily) and its absolutely correct to question those decisions and their purpose. That's what a diligent investor should do.

Looking at any company with the rose glasses is foolish, IHL is no exception and all the posters who raise valid critical points should be engaged in conversation, not howled down by the adherents who believe no matter what.