Capitulation time for Bionomics?

After the larger than average volume of turnover that went through the market yesterday, and with the shares closing at a decade low of 12.5c, the scene is set for further selling in the days ahead.

It would seem that the Share Purchase Plan is dead in the water with the shares now trading 3c or nearly 20% below the mooted offer price.

Some time ago I postulated whether 10c was a more realistic valuation for this stock given the challenges it faces and the team that it has to deal with those challenges. we may get there yet!

There still needs to be a slew of redundancies and the Board really does need to reconsider its position.

The capital raising has not really pulled in as much capital as the Board wanted/needed and so another raising is likely within 12 months I would suggest. There seems little reason to think that next raise will not be at a price lower than the failed SPP.

Given the lack of buying support in the market, it may well need to be at 10c unless the Board can actually demonstrate where the value is - and even then they will struggle to find support.

All of the current Board were there when the most recent strategies were decided and implemented.

The CEO has already fallen on her sword but remains on the payroll in order to get paid for the Christmas public holidays - what a joke.

The value of the IP is an open question - and its a bit like beauty being in the eyes of the beholder.

Bionomics is not the first and won't be the last to try and reincarnate itself.

The reality is that it will not happen quickly and therefore there seems little reason to stick and around with fingers crossed.

The most obvious salvation possibility would be a milestone or a takeover offer from Merck - but why would they rush or even bother?

GLTA