There are laws in both Australia and the US which limit the amount of funds you can solicit from Private equity investors. I believe ASIC states it is $2million in a financial year.
If the Private equity is NOT solicited by the seller and actually approaches the seller, then there are no limits.
Based on this value we can safely assume the Private equity investor HAS approached MSB, not the other way around.
If we accept that assumption, then it is worthwhile trying to assess what has triggered this interest. Noting that in this type of transaction, which is effectively a CR, the ROI for the investor is not interest payments on a loan facility, however is in the form of dividends over time and capital growth. The point being made here, whoever is investing these funds believe there will be growth.
From the point contact has been made, it can take 6 to 12 weeks to go through due diligence and other associated activities.
Given the announcement also states the investor is from within the industry, we can assume they have access to a lot of information which has given them confidence in what will be a significant investment.
In my view, this means either AGVHD or CHF have triggered this. CLBP results would appear to recent to trigger.
These are purely my views and beyond this I feel anything further is absolute guessing.
IMO and DYOR
Cheers
MSB Price at posting:
$2.46 Sentiment: Hold Disclosure: Held
(20min delay)