Wow, that’s quite a plot twist, doing a 40m rights issue, although it certainly didn’t come out of the blue.
Who would toot their own horn if not themselves.
Value creation also occurs in a situation where funding is secured. I argue that Faron has a discount due to funding uncertainty, which will disappear once we get certainty on how phase 3 will be funded.
So the situation is an x% probability of a partner deal, and y% probability of a funding crisis and equity-based financing from a weak position.
The favorable window for raising equity-based financing is kind of gone already, if it’s not somehow linked to that deal.
For me, Jurriaan’s reduction served as a warning sign, and I cashed out my disproportionately large stack immediately upon that announcement. You have to know a bit about Dutch culture to understand that there’s no kitchen renovation coming up; if you have 8k of your own money tied up, you’d be a fool not to take your money out. There are no “company men” there; self-interest is what matters.
Even though I avoided this bomb, I’ll also state that my investment thesis for this company has now been reset since the next phase is also being done through self-funding, and I no longer want to carry any more binary risk. (Maybe age and my life situation are starting to weigh on me)
Also, if you look at the 5-year price chart, you can see that buy and hold has not been a winning strategy, but there have been plenty of opportunities for swing trading.
I’ve been a Faron permabull, but now the sentiment has shifted and I intend to reduce my participation in this thread. I no longer follow the cancer treatment markets for work, so the topic isn’t as engaging anymore, and with kids, time is more precious, so I can cut back on following a single biotech and maybe just buy ETFs monthly. Good luck to the company though and all the best, but this no longer suits me. Farewell.