KZA 0.00% 8.0¢ kazia therapeutics limited

Interesting development. The ADRs jumped yesterday to a high of...

  1. 84 Posts.
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    Interesting development. The ADRs jumped yesterday to a high of .94, on very low volume. The short interest is negligible, barely 26 thousand shares on over 19 million outstanding. I think it's a bad move as the price could be pushed even lower by these shorties and the value could plunge.
    The original sp dump was irrational, going from well over $2 per share to about 30% of its value because one of three research drug threads was pulled, before money was wasted on trials. I could see a 33% dilution at most, considering the Phase II drug was not the one affected.
    Management has done little to bring even cautious optimism to the research, perhaps feeling that it's too early. It's done all the time by other drug researchers, and the hype can move share price significantly. Sure the price can fall to nothing if everything turns out to be wrong, but that would happen anyway.
    The SP right now is lower than many firms that have nothing in trial, and haven't even completed safety testing. Australian firms don't get it. Saving money by not employing a top notch PR person to get media out on a regular basis, updating trial info, even number of patients signed up, centers where trials are being staged etc, is all positive until actual test results are available. At this point the company looks like it is a hermit firm, hiding in a cave somewhere. No one really sees the You tube videos except for Novogen investors. Interest has to get out to the general biotech investment community through information.
    The 1:4 split is a desperation move. IT doesn't make the pricing high enough for any fund to buy shares, so it becomes a way of meeting the NASDAQ requirement to stay listed while potentially diluting value to shareholders. The market may murder Novogen and create a company that is a shell of itself and in a downward financial free fall. Mgt asked for a got an extension of a few months to comply. I don't think it was seen as a way to meet the requirement through mechanics.
 
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Currently unlisted public company.

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