Perspective needed

Sure, it is disappointing that the $1 million placement had to be done before the final results of the smoking cessation trial would have boosted the share price, thereby increasing the dilution to shareholders above what it would have ben otherwise.

But based on the existing 822.747 million shares and 63.5 million unexercised options, the issuance of 71.5 million shares and 51.5 million options to the US institution represents only a 12.62% dilution. That is not the end of the world.

The important thing is that Invion now has approx. 4 months of funding to allow it to announce the smoking cessation results and hopefully do partnering deals with Cpn10 for auto-immune diseases and oral nadolol for smoking cessation.

This good news should boost the share price significantly before the company does any more placements to strategic investors to raise the funds to pay for the 4 new trials (inhaled nadolol in bronchitis, moderate to severe asthma and cystic fibrosis; and inhaled zafirlukast with asthma) that it plans to commence by early next year.

Future placements to institutions at a higher price should be welcomed by shareholders, as although they are dilutionary, the best way to get the share price up is to get fund managers on the register which over time should add to their initial holdings by buying on the market.

I am sure that the directors are just as disappointed at the unexpected delay in the dosing of the smoking cessation trial and the analysis of the results as other shareholders are.

However, I am more disappointed at the disrespect shown to the directors by the posts of some shareholders on this site, with some claiming they do not care about shareholders.

The criticism that the directors should have raised more capital in the company's last raising in March/April at 2.5c a share is not valid as Invion set out to raise $5 million, but ended up receiving and accepting overs of $1.3 million to bring in a total of $6.3 million.

I think we owe a debt of gratitude to the current directors (and the former chairman Dr Ralph Craven) who each lent the company $200,000 in unsecured loans in March, now repayable in July next year. This combined loan of $1.2 million shows their commitment to our company.

As the Managing Director, Dr Greg Collier, said in the announcement on Tuesday, Invion is at a pivotal point. Let's have some faith in and show some appreciation to the Board and management, who in my view have all the skills, experience, contacts and integrity the company needs.

If the results of the smoking cessation trial to be released in a few weeks are as good as the interim results indicated, this should pave the way to Invion's success.

The extent to which shareholders will be rewarded then will depend on how good the results of the 4 future trials are.

I for one will be staying the course to find out.