Not terribly impressed by current status quo. Based on the available information I won't be buying in to get a slice of the raising because:
At the AGM the chairman referred to "a long and expensive (but tested) road of expanding the depth and breadth of theUS Clinical Trial". This plan seems to have completely disappeared. I infer from this that there has been no interested from either The Carrick Institute or any other medical organisation to conduct any further trials. Neurotech appear to have abandoned all efforts to gain FDA approval.
The near term plan shown in the presentation on page 16 is heavily dependent on user acceptance. The problem with that is that the user space here includes not only the kid with the condition, but parents/carers and medical professionals. There will be an enormous amount of scepticism and caution to overcome. The company's plan looks like a credible build, but will they come in anything like commercial numbers?
The capital impact is huge. The adjusted price per share will be well below 3 cents if 50% of the rights are taken up, and if they're all taken it will be below 2 cents. That's okay, and I've taken up rights at above market price on occasion in order to pony up cash when it's needed, but you only do it you have a solid expectation of a reasonable return on a meaningful time scale. I don't see it.
The company has substantially over-stated its prospects in the past so much and so many times I don't feel that the current presentation has credibility. There's still too much buzzware for my comfort. Meaningless references to "cloud data models", "messaging updates", "eCommerce integration", "subscription model", "clinician onboarding", "systems integration" just sound like a handful of marketing heads sitting around a table.
I'm going to keep watching, but they haven't swung me yet.
NTI Price at posting:
3.6¢ Sentiment: Sell Disclosure: Not Held
