According to the independent expert's report, the average cost...

According to the independent expert's report, the average cost of IPO in the US for Biotech companies is from 15- 20% of the total fund raised.

Now the company is only raising U$27. However, according to previous posts here, the total cost of this merger deal will cost Biota A$6M! (Another reason to blame the greedy management).The estimated cost of IPO includes the underwriting fee for those investment banks. If it is really as PC said in the interview that many US bankers love Biota, Biota would be , like Facebook, highly inflated when doing its IPO.


Furthermore, as to the time an IPO would take, according to what PC said, the company has been planing for the US listing for two years! what have they done for the US listing during the last two years? Why haven't they pushed the US listing work earier during the last two years? IMO, Maybe they just do not want to expose their internal documents and books to those regulators as required by an IPO, or to time the US listing according to those people's retirements. (Another reason to blame the greedy management). Biota's share price at the time before announcement of the shitty merger deal was 94cent, and everyting has been going favorably to Biota, except for the share price since then.

Now the cap raising is to be done at almost the price of the company's lowest prices over the last three years. Existing shareholders have taken all the risks of all the trials and born all the expenses during the last three years. Now Nabi shareholders will easily take up almost 20% of the new company for just U$27. (We have just spent A$20 on Vapendavir, got U$231m funding, and incurred more than $40m total expenses each year during the past two years!)


Is the company management really building wealth for Biota shareholders? More of those free shares should be given to the company's scientiest, not PC alike.

I have conplained a lot here. Here is my conclusion: It is just those people (like those in the Biota management) who are destroying the confidence in small-cap companies in the Australian capital market.

Just my personal views.