Tuesday, April 21, 2020 1:28:31 PM
The recent announcement has certainly stirred up a hornet’s nest among the group on this board. So, with Epi-pen in hand, I’d like to offer my thoughts and opinions.
There will be a reverse split 1:100 ASX or 1:5 ADR, the financial effect on current shareholders on the day the transaction is finalized is zero. Instead of having 5 one ounce pieces of pie , you now have 1 five ounce piece. What will matter is what happens from there. Some would lead you to believe that management will act irresponsibly and screw shareholders in unimaginable positions. Others are worried about having fewer shares and their perception of a reverse split. The vast majority of R/s’s end up unfavorably for existing shareholders but that in not always the case. Most are done to avoid delisting for a company that is in financial difficulty
As that does not appear to be the case with Avita, then why?
Right Sizing
A decrease in outstanding shares from 2B to 20M puts it in the realm of biotechs of similar size and valuation.
It will be much easier to measure performance and progress. Suppose over time the company continues to execute and make a $2 million bottom line profit. Profitability is measured by earnings per share, most commonly. With a 2B float that translates to .001 or 1/10 of a cent per share. Under the new structure in equates to 0.10/share. This gives a much clearer picture of a biotech going from a losing company to a profitable one.
Currently, the company’s 2B float probably is more a detriment in attracting new investors, be they individuals or institutions.
Everyone has to make their own decisions based on the facts as they see them. There was angst about the capital raise which turned out to be well timed. There are varying management conspiracy theories but, thus far, I’ve found the leaders to be responsible.
Off topic: Why are so many posts being deleted. I hope not because they are negative about Avita. Let the blowhards blow.
Recent RCEL News
- AVITA Medical to Announce Third Quarter 2024 Financial Results • GlobeNewswire Inc. • 10/10/2024 09:15:00 PM
- AVITA Medical to Present at 2024 Cantor Global Healthcare Conference • GlobeNewswire Inc. • 09/12/2024 08:05:00 PM
- AVITA Medical to Participate in Lake Street’s 8th Annual Best Ideas Growth (BIG8) Conference • GlobeNewswire Inc. • 09/10/2024 08:03:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 08/09/2024 02:40:53 PM
- AVITA Medical to Host Investor Webinar Briefing • GlobeNewswire Inc. • 08/08/2024 11:00:52 PM
- AVITA Medical Reports Second Quarter Financial Results • GlobeNewswire Inc. • 08/08/2024 08:04:00 PM
- AVITA Medical Names Robin VanDenburgh as SVP of U.S. Commercial Sales • GlobeNewswire Inc. • 08/01/2024 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 08:11:11 PM
- AVITA Medical Expands Portfolio with Unique Dermal Matrix to Advance Wound Care • GlobeNewswire Inc. • 07/31/2024 08:05:00 PM
- AVITA Medical to Announce Second Quarter 2024 Financial Results • GlobeNewswire Inc. • 07/11/2024 08:10:00 PM
- AVITA Medical Appoints Nicole Kelsey as Chief Legal and Compliance Officer, and Corporate Secretary • GlobeNewswire Inc. • 07/01/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 12:48:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/06/2024 11:36:12 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/06/2024 08:39:30 PM
- AVITA Medical Achieves Milestone with First Case Using RECELL GO • GlobeNewswire Inc. • 06/05/2024 08:25:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/03/2024 08:34:19 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/30/2024 08:28:05 PM
- AVITA Medical Announces FDA Approval of RECELL GO • GlobeNewswire Inc. • 05/30/2024 01:15:00 PM
- AVITA Medical to Host Investor Webinar Briefing • GlobeNewswire Inc. • 05/16/2024 10:30:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/13/2024 08:04:37 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/13/2024 08:02:24 PM
- AVITA Medical Reports First Quarter Financial Results • GlobeNewswire Inc. • 05/13/2024 08:01:00 PM
- AVITA Medical to Announce First Quarter 2024 Financial Results • GlobeNewswire Inc. • 04/15/2024 09:05:00 PM
- AVITA Medical Updates Expected First Quarter 2024 Revenue • GlobeNewswire Inc. • 04/10/2024 09:11:25 PM
- AVITA Medical Submits Response to FDA, Resuming Review Clock for RECELL GO PMA Supplement • GlobeNewswire Inc. • 02/29/2024 09:02:00 PM
ZenaTech, Inc. (NASDAQ: ZENA) Launchs IQ Nano Drone for Commercial Indoor Use • HALO • Oct 10, 2024 8:09 AM
CBD Life Sciences Inc. (CBDL) Targets Alibaba as the Next Retail Giant for Wholesale Expansion of Top-Selling CBD Products • CBDL • Oct 10, 2024 8:00 AM
Foremost Lithium Announces Option Agreement with Denison on 10 Uranium Projects Spanning over 330,000 Acres in the Athabasca Basin, Saskatchewan • FAT • Oct 10, 2024 5:51 AM
Element79 Gold Corp. Reports Significant Progress in Community Relations and Development Efforts in Chachas, Peru • ELEM • Oct 9, 2024 10:30 AM
Unitronix Corp Launches Share Buyback Initiative • UTRX • Oct 9, 2024 9:10 AM
BASANITE INDUSTRIES, LLC RECEIVES U.S. PATENT FOR ITS BASAFLEX™ BASALT FIBER COMPOSITE REBAR AND METHOD OF MANUFACTURING • BASA • Oct 9, 2024 7:30 AM