Following this market release the PAR share price increased (and...

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.