Clarity Pharmaceuticals Ltd

ASX:CU6

Clarity Pharmaceuticals Ltd

ASX:CU6
TradeAdd trade order Follow Unfollow Set Price Alert
$3.04 (0%)
Last close price
#103
Rank
8
Held by
32
Followers
TradeAdd trade order Follow Unfollow Set Price Alert
Reports (1) My Report Forum Investors
Forum Topics CU6 CU6 ASX Announcements

Pinned straw:
mikebrisy
Added 4 months ago

So, some of us have been wondering when $CU6 would raise capital - given their royal cash burn resulting from their mutliple-pronged development program. (Personally, I was expecting something mid next year.)

Answer: They've already done it. $203 million at $4.20 per share, so that must be 48 million shares, a dilution of about 15%. And the capital was provided by "a small group of institutional investors who are close to the company".

At last report they were burning $15-16m a quarter, which of course will ramp up as the development programs mature. But now they have a war chest of $288 million. So that should see them through several key milestones over the coming couple of years.

Drug development is not for the faint-hearted!

Disc: Held in RL and SM

topowl
Added 4 months ago

imagine a coin flip that everyone bets millions and millions of their hard earned cash on….

Then imagine the coin actually has 3 sides (at least, maybe more)…..

Then imagine once tossed it take years and years maybe a decade plus to spin…

and while it’s spinning in the air, everyone is asked to bet more of their hard earned cash on the spinning coin so brokers and extremely highly paid employees can get paid to keep it flipping in the air….…..

years pass……

and more years pass….

with no one really having the foggiest (let’s be honest) whether the coin will even land or not, giving a clear result…

And the whole time, you get told your bet is getting smaller and smaller because other peeps are making new bets on the shiny spinning coin…

and there it is ladies and gentleman…..

welcome to speccy biotechs !

I just don’t get it.

wouldn’t it be easier to just go to the casino and pick a colour at the roulette wheel..

At least it would be over quicker.

anywho, that’s just me, i guess the world would be boring if everyone was like me.

good luck to all involved !



20
Scoonie
Added 4 months ago

As reported, CU6 raised $203m at $4.20, a surprising 18% above the 15 day VWAP. As at writing the share price has lifted 4% off Friday’s close to $4.28. A very surprising result given this is a biotech several years away from meaningful revenue.

In the   ASX release CEO Alan Taylor commented:”…. we can work to complete a number of high value-driving clinical trials, including our pivotal Phase 3 trials, as we progress our products towards potential commercialisation.” So he is not saying he can get to revenue with the $287m of cash CU6 now has. But rather make it to various milestones, that if successful will have real commercial value.

Currently CU6 is 9.7% short, up from 4% in late March.

Phil King from Regal Funds management back in March this year lost $220m on an investment in Opthea (Ph3 results failed).  In an interview with Michael Frazis in late March 2025, Alan Taylor revealed that Regal had the largest short position in CU6. 

Clarity Pharmaceuticals, with chairman Dr Alan Taylor

At the time CU6 was selling for under $2, and since then the share price has more than doubled.  It has been a rough year for Regal in the biotech space. I hope Phi is out of his CU6 short positions or he could be back at David Jones selling undies. 

18
Karmast
Added 4 months ago

A very neat summary @topowl

And this is exactly how my one and only biotech foray with Paradigm has gone so far. With the benefit of hindsight it was an avoidable “stupidity” to paraphrase Munger and one mistake I won’t make again.

Best of luck to those who do decide to keep playing that game though.

9
GazD
Added 4 months ago

Love this analogy. And I’ve done this. Multiple times.

9