You may be further enlightened by looking at the price action seen after OBJ's last Rights Issue back in 2009
30/09/2009: AGM Notice to pass approval for Placement of Shares 01/10/2009: US Study Results + 25% 04/11/2009: MTA Agreement with 3M + 47% 07/12/2009: Rights Issue + 16%
On the 15/03/2010 - less than six months after the board announced first announced its intentions to seek s/holder approval for passing Resolution 3 - the placement of shares our sp had rallied + 1,525%
The big difference between 2009 and 2013 is that today the fundamentals of this company are significantly stronger, and not one of the following announcements have been factored into the current sp:
* Global Industry Expert to Head International Partnering * Introduction of OBJ's FIM Technology Platform * Strategic Alliance with Global FMCG Company * GSK to Progress FIM Technology * Collaborative Development Agreement with GSK * Leveraged Pain Patch Development Program * P&G to Secure Access Rights for Beauty Care * US Dermaportaion Patent Granted * Procter and Gamble Enters Joint Development Agreement * P&G Progresses with solid investment to 2 Clinical Trials * Exclusive Collaboration Agreement with Coty's Philosophy Skin Care * EPO Dermaportation Patent Granted (To be announced)
As a matter of fact the value of the company's securities have dropped - 74.63% since the first of those news events was announced to the market back in 2010.
Imo Friday's 1.7c close may have spooked some previous sellers who may indeed also include those with new buy orders placed into the market depth immediately proceeding the sell off on the day of our Rights Issue announcement, and when looking back at how events unfolded proceeding the company's last rights issue, and also considering that the fundamentals of the company were not anywhere near as strong as they are today, there is good reason to believe that there would be some here certainly in fear missing out...
... especially now we await managements formal public announcement in regards to the EPO granting of the company's key Dermaportation patent application, which we already know is the subject of commercial negotiations with a certain Top 10 global skin care company, and that this key patent is fundamental to the exclusive arrangement recently announced with that same global skin care company ;)
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Hi spatchcock123,
I believe your glass is half full, however I would also consider the following:
If management were to back date the record date for s/holder entitlements to any date which preceeds that of the Rights Issue announcement date, they would in fact also be rewarding those sellers who sold on the day, the ones who were ultimately responsible for the drop in the sp - I don't see any reason why management would be encouraged to reward sellers, just as I believe it would be premature to blame management for the investment decisions made by those sellers...
Management become the hero's when investors buy, and the villains when investors sell, but the only facts which can be relied on is that the stock market is a game which never changes, and the short term sp volatility is nothing more than a picture of human emotions.
In regards to rewarding all long term share holders, it's also worth considering how long its been since any directors have traded shares in this company, and if the directors are in position of any sensative information which is generally not yet known by public trade (which we may certainly be confident that they are) then there remain only a few exclusions to the insider trading black out rules which would allow our directors to accumulate shares in the company.
One of those exclusions to the rule stipulates that an invitation must be extended to the majority of s/holders to participate on the same terms as the directors, such as a Rights Issue...
OBJ Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
(20min delay)