On the surface the prospectus is about how TIS wants to raise funds to pursue the sizeable opportunities that the Vitrogro technology offers in the wound care market.
Below the surface I get the impression that much of the advice being given to TIS and the steps to be taken revolve around how best to position TIS for a takeover and how to maximise the value of any potential takeover offer...not next week, or next month, but in the next year or two.
The dominant trend in biotech isn't drugs for cancer, depression, diabetes or for that matter wound care. The dominant trend is the wholesale loss of patent protection being experienced by the big pharmas and their current hoovering up of small-medium sized companies who own drugs or compounds with lots of patent protection in high growth markets. And the big pharmas are not being cheap with their offers.
I just get the impression that you could read entire sections of the prospectus and conclude that what TIS is planning to do not only involves an attempt to maximise the revenue generating opportunities from Vitrogro, but it also seeks to give TIS maximum control or "ownership" over the Vitrogro technology and market opportunity. And this would also maximise its attractiveness to a potential acquirer.
So I'll think I'll stick with my long-term buy recommendation and get by cheque book out for this capital raising.
Please DYOR and good luck
TIS Price at posting:
56.8¢ Sentiment: LT Buy Disclosure: Held
