RE:RE:RE:Results of rights offering? where is it?Pharma companies are high risk, high reward, so that's what I mean by leveraged. So if phase 2-3 trials show efficacy, this will do well and recover. But the burn rate is high, so yes, they will have to raise more money somehow. I imagine part of the hope is that some of the early results provide a boost to the stock so the warrants are exercisable and bring in more cash. In any case, yeah this is an incredibly speculative investment, and as I said, I am really just hoping to hold the warrants and sell the shares for small gain/small loss.
The kicker here is the Algernon neuro spinoff, which they are raising money at a much higher valuation of 20 M usd (approx 27 M cad), and AGN will hold around 60% of. If they are able to raise at that valuation, that's around 16 m CAD to AGN on a current market cap of 3M cad. They plan to list on nasdaq then possible distribute shares to AGN shareholders. Would be a huge valuation boost if all that works out, but of course highly speculative. THe market is giving this a very low chance of success, which it should, given the value destruction and mismanagement over the last 3+ years. But upside could be many x from here.