InMed Pharmaceuticals Inc (INM)

[lesgetrich]

It's not surprising that a stock's pps would retreat to the pps of its announced public offering. What I don't understand is why they didn't set the price when they first announced it back on April 21. The market reacted by driving the price down from around $.60/share (US) to roughly $.45/share. Had they announced the offering price then at around $.50/share (US equivalent), we would probably still be at that level. Instead they waited until May 23 when we were trading around $.45/share (US) to discount it to roughly $.33/share (US Equivalent). In effect, they took a double whammy on the pps and settled for less than they should have.

Now that the offering is over, we should drift back to at least around $.45/share (US) over the next few weeks. The banker's probably forced them into doing this deal the way they did. I think they thought that InMed was overvalued and wanted to see where it would settle on its own, but it sucks. JMO