Ondine Biomedical Announces Discounted Equity Raise
Why we think this is bad
The significantly discounted equity raise of around 93.3% to the previous closing price is a very negative sign, indicating low investor appetite and confidence in Ondine Biomedical. This type of heavily discounted raise often leads to further share price declines as the new shares are sold into the market. While the small size of the raise relative to the current issued share capital is a mitigating factor, the large discount outweighs this and suggests ongoing funding risks for the micro-cap company.
Key Points
- Ondine Biomedical announces exercise of options to subscribe for 200,000 new ordinary shares
- New shares priced at CA$0.01, representing a 93.3% discount to the previous closing price of 9 GBp
- Small raise size of 0.045% of current issued share capital
Summary
Ondine Biomedical Inc. has announced the exercise of options to subscribe for 200,000 new ordinary shares at a price of CA$0.01 per share, representing a 93.3% discount to the previous closing price of 9 GBp. This small raise, equivalent to around 0.045% of the current issued share capital, could potentially be used for growth or other purposes, but the significant discount is a very negative sign indicating low investor appetite for the company's shares. Heavily discounted raises often lead to further share price declines as the new shares are sold into the market, and this raises concerns about the company's ongoing funding requirements.