Just found the answer to my own question...one thing I'll say about The Speculator, he's sticking with this like a dog to an old bone. He's been very pro VLA for a long time since when he was with The Bulletin years ago, then Money Magazine, now the Eureka Report.
So very interesting as he generally seems to have access to much more in-depth info than others do.
"The Speculator By David Haselhurst May 13, 2009 High hopes for Viralytics options issue
Our portfolio’s cancer-cure hopeful, Viralytics Ltd (VLA), in common with many other biotechs has been carefully husbanding its remaining cash as it continues to fund its research and development programs. With expectations of continuing positive results from its advancing clinical trials, shareholders can hope for a revival in its share price.
At the end of its March quarter, the company had a net cash outflow of $653,000, or a total outflow for the first nine months of the current 2008-09 year of $2.43 million. Offsetting the cash drain was a successful raising of $716,000 under a share purchase plan with existing investors at 4¢ a share last December.
Then, in February, the company placed another 3 million shares at 4¢ with Newcastle Innovation Ltd (the commercial arm of the University of Newcastle), which carries out much of Viralytics’ research and development.
The placement was in partial payment of that institution’s quarterly account and takes the university’s holding in Viralytics from 3.7% to 14.2 million shares (4.8%).
At that point the company’s issued capital stood at 302,138,460 shares. Now, the company has released a prospectus closing May 27 for a one-for-one issue of options at 1¢ each, exercisable by June 29, 2010, at 4¢.
Much will depend on results of trials under way on the effectiveness of the company’s proprietary Coxsackieviruses on destroying advanced multiple cancer types, including melanoma, prostate cancer breast cancer and multiple myeloma.
Any success offers great leverage at 1¢ an option. I’ve sold my 50,000 holding at 3.4¢ and replaced them with an application to take up new options. The one for one options issue is open to shareholders at May 5 who may also apply for oversubscriptions. I’ll do the same with an application for up to 100,000 options.
If fully subscribed, the issue will raise $3 million, with the possibility of another $12.1 million if all are exercised in a year’s time. Funds raised from the options issue alone should secure the company’s programs for at least the next 12 months or so."
VLA Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
