Spot on mate the company increasing expenditure would be a positive signal that the fundamentals are taking shape and given they did so much of their pre clinical research prior to IPO has resulted in a lower MC on listing, especially when compared with the likes of IMU.
What I see playing out is on the back of successful results from these coming trials in the next few months will see Mr Market rerate the company accordingly and thus any need for future placements (say in the next 18-24 months) will be coming off a higher base valuation and in turn having a smaller dilutionary effect on the current shares on issue. This is one of the reasons I was attracted to CHM in the first place.
CHM Price at posting:
36.5¢ Sentiment: None Disclosure: Not Held
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