Avita Medical Ltd (RCEL)

[melody432]

What you are looking at is the additional shares recently added to the compensation plan. The offering was oversubscribed and they ended up selling 203mil shares for 120mil AUD. This was an unusual confluence of events. There was over 40mil short position put on prior to the NASDAQ uplisting, likely major longs protecting their downside against a pullback after uplist. Pullback didn't happen, shorts stayed on. Then a surprise early inclusion into the ASX200 happened, price spiked. Shorts stayed on expecting pullback after index rebalancing, a known phenomena. Some sold on the spike based on that phenomenon. But before that could happen Avita surprised all us retail shoppers with an equity raise at .59, a 14.5% discount to final closing price, 7.5% discount to 30 day average. So the ETF funds got filled at a lower price and the shorts got a great opportunity to close their positions. None of the above is ever likely to happen again in that order and no one but those involved in the equity offering could have predicted it. All of the above activities are true, conclusions drawn are my own.
What didn't happen is that Avita did not declare bankruptcy.