The market today reacted negatively to announcement of an EGM to...

The market today reacted negatively to announcement of an EGM to OK
a $1.5m-$3m placement to clients of Paterson Securities at $0.012.

Shares fell 9pc to $0.010.

Unless shares rise, the placement maybe further imperiled.

For Paterson clients would be obliged to pay 20pc above market.

This wouldn't make sense.

Why is the market tanking? Doubts relating to:

1. Rationale for the Pathway Oncology acquisition;

2. Robustness of cancer platform GGTI-2418;

3. Prospect of issuing 240m shares to the family of Paul Hopper;

4. Possibility of Novartis ruling against commercializing TG-4010;

5. Non-appearance of a full report on the independent IP review project.

Virax shares have fallen 40pc since the Hopper deal was announced on St
Patricks Day.

But, as shares drift south, value moves north.

For it's clear from today's EGM announcement that - however shareholders vote on May 9 re the contentious Hopper deal - VHL will prioritize development of its Co-X-GENE cancer platform(s).

At least Co-X-GENE - invented by ANU/CSIRO - has been validated by Big Pharma.

And I sense VHL chairman, Dr Wayne Millen, will soon apply Co-X-GENE to other indications.