Management drops the ballI am still dumbfounded regarding the $600,000 private place announced last night at $1.50
This should not come as a surprise regarding a private placement to raise funds. The financials and the market knew the company had to raise capital at some point, as they eill again ehen we move to phase 3 trial.
As I mentioned yesterday the share price is down 30% in the past 12 months.
I would hope that management knew they had to raise capital in 2024. Did they have a plan in place to do this raise?
I am not sure they did? The share price was at $2.52 just a few months ago with mutiple positive news releases.
Why did they not time the raise around news releases?
Why did they do a private placement at $1.50 back in 2020. Look at what the company has accomplished since 2020 yet they slap shareholders in the face by doing another raise in 2024 at $1.50. The 2024 Arch is a much dtronger company with much lower risk yet management made the decidion to do a raise at $1.50, tge same price they did in 2020. Is that what management feels the value of Arch is?
This company has always had an issue with communication. This company is not well known and that is reflected daily volume with a lack of buyers. What has this company done to promote the science and the story other then news releases. Has management ever attended target specific conferences with a target audience? Has this company engaged larger institutions who have large high networth clients? As I have previously mentioned, management has done many positive things but they have failed at creating investor awareness, promoting the story and driving buyers into the markets.
There is absolutely no logical reason why they waited to raise money at $1.50 yesterday, there eere many missed opportunities at higher share price. This comes across as an act of desperation.
When the share price was at $2.40 to $2.50 they could have easily raised money at a discount but chose not to at $2 to $2.20
The CEO purchased shares in the open market at $1.75, they could have raised money at that time to demonstrate that even CEO thinks price is too low at $1.75 but no they chose to do nothing.
They decided to wait until the share price was at $1.50
Management must have known they were going to do raise. Why didnt they engage a marketing plan prior to the raise to get the buyers into the market and drive dhare price higher. Why didnt they wait until material news release to time it.
Unfortunately this falls back on management and their decision and timing to do this raise just as the lack of buyers and lack of exposure does.