If you go into negotiations with a small amount of $ in the kitty, limited production capacity and a limited future direction in clinical program development, you go in with your hands tied. I too think it'll be hard for RCE and its majority shareholders to not accept an offer, as they've been getting family involved in all directions (most recently Arthur Graham with 1m shares) - this in my opinion telegraphs a tendency for acquisition. Having said all that, a partnership is a great path to buyout in that buyouts usually only attract a small multiple of current SP prices (2-3x).
All in all, I'm stoked to be in where I am where just recently James Graham bought on market, and Arthur graham attained 1mill shares off-market from Grandfather Melrose to help fund his retirement. The writing's on the wall, but can't go past the fact we're without data and with plenty of clinical risk still to run.
Strategically I think RCE have ticked all the boxes - the securing of their IP patents most recently in the run up to results was perfectly timed in my opinion. Very happy to be holding
RCE Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
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