Ann: Paradigm PPS a potential in the treatment of viral arthritis-PAR.AX, page-5

Following this market release the PAR share price increased (and has kept going up) and this was reported in the Financial review. I was interested to see why this biotech was so good.

There is no doubt that using a previously used compound is an advantage in its product development strategy. However I think that reporting the limited lab work done and study with 5 people (with potential clinical effects) as a potential breakthrough was a little too sensational. In fact since the 19th Aug there have been 3 market announcements about the potential of the PPS compound.

When you the look at the companies recent financial statements you can see that
- during the last capital raise of 8 million dollars the costs of the capital raise was $632K. So it is extremely profitable being a broker for a PAR capital raise.
- that the cash at the end of the financial year was $2.89 million which appears to be at best one years requirement.

Although I am not qualified to comment on the science if I was an investor in this company I would be concerned that a capital raising was imminent. The generation of market announcements to promote the share price assists when new shares are to be issued to be issued at a discount.

It will be interesting to watch what happens with PAR now and in 3 years time.