From MST today:
- The OPT share price is continuing to digest the recent capital raise, turning over significant volume and presenting an attractive near term buying opportunity…
- We have seen a bit of tax loss selling weigh on the stock, which should abate over the next week.
- We also saw this reaction to OPT’s previous capital raise as well as the recent raising for CU6 (figure 1 & 2).
- This stock has one of the clearest valuation catalysts in small cap biotech… the Phase 3 readout will be one of the biggest events in biotech globally in CY25. We anticipate a rerate into this event, and you want to be on the register before it tightens in the leadup to the data.
Figure 1: OPT share price whilst digesting previous capital raise then subsequent rerate (source Bloomberg)
Figure 2: CU6 share price whilst digesting the capital raise then subsequent rerate (source Bloomberg)
The Company that is the subject of this note has, within the last 12 months, engaged MST Capital to provide investment banking services, including acting as Lead Manager for the August 2023 capital raising of approximately A$90 million and as placement agent (in respect of the Placement), lead manager and bookrunner (in respect of the Entitlement Offer) and sole partial underwriter to the Entitlement Offer for the June 2024 capital raising of approximately A$227 million. MST is also engaged and paid by the subject Company of this note for ongoing research coverage. Not a product of MST Access Research and should not be regarded as a research report. For MST Access Research Reports as well as stock specific disclosures and risks, please see MST Access company-specific reports
MST Access is a registered business name of MST Financial Services Pty Ltd (ACN. 617 475 180, AFSL 500557) (“MST”). MST also provides equity capital markets (“ECM”) and corporate advisory services through its capital markets division, MST Capital Markets (“MST Capital”). MST Capital provides these services to a range of companies including clients of the MST Access service. As such, MST Capital may in future provide ECM and/or corporate advisory services to the companies mentioned here and, accordingly, may receive fees from these companies for providing such services. Please refer to each company-specific report for the full disclaimers and disclosures. This document does not constitute financial product advice and is provided for information purposes only. This document has been prepared without taking into account any investor's objectives, financial situation or needs. This document does not constitute an offer or invitation to invest in any financial product. To the full extent permitted by law, neither MST or its related entities makes any warranty as to the accuracy or completeness of the information in this document and disclaims all liability that may arise due to any information contained in this document being inaccurate, unreliable or incomplete.
This Sales Commentary is distributed only as may be permitted by law. It is not intended for distribution or use by any person or entity located in a jurisdiction where distribution, publication, availability or use would be prohibited. MST makes no claim that MST content may be lawfully viewed or accessed outside of Australia. Access to MST content may not be legal for certain persons and in certain jurisdictions. If you access this service or content from outside of Australia, you are responsible for compliance with the laws of your jurisdiction and/or the jurisdiction of the third party receiving such content.
(20min delay)