Cash Raising

 In my experience, a cash raising exercise by a company puts downward pressure on the share price, and sometimes that is a long-term effect. The only people who want that are those who have already shorted that stock and those who want to buy shares at an even lower price.

However, sometimes it goes the other way.

Recently BOT did a cash raise for 13 cents a share when the share price was 15,5 cents. I (and others) certainly expected that the share price would drop to 12 or 13 cents. BUT...

The raise was over-subscribed; they wanted to raise $10,000,000 and got $13,500,000. This indicated that there are lots of high net worth investors who agree with the sentiment that I (and plenty of others) have been statin: the fundamentals of GOT are good and the company will go places during this (Australian) financial year.

The share price barely dropped before it started rising again.

There were those who were expecting the drop so they could buy in (or buy more) at a cheaper rate, and they expressed their disappointment.

BOT's long-term future looks exciting. June 2024 should see FDA approval for their sweat blocker that is already seling well in Japan. The revenue raised just last week will fund the manufacturing, marketing and distribution. The money raised from that will then be used to progress their other drugs that are even more exciting and hold even more promise.

I note that a lot of shareholders are now looking to a strong future for BOT. I have a different opinion.

Tthe future is strong, YES! But I don't think BOT will be there. I think a big pharma will pick this company up... buying the whole lot. Shareholders will receive a great windfall, but no long-term benefits, UNLESS the bigger company does a shares offer instead of a cash offer.

The reasoning behind this is BOT's sweat blocker looks to be "best on market" with zero side effects. It is already selling well in Japan and about to hit Korea. Once the FDA approves the drug (and the only objection they had was in the instructions - one missing word, one sentence needing to be in a bigger font, and the layout changed from portrait to landscape) the American market opens up with massive opportunities. 

And since BOT is cashed up, it should open up with a bang.

There will be plenty of people who look back and think "if only...", but that's the case a lot of the time. 

Personally, I am looking forward to what the next 6 months bring, it should be exciting.