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Buy Yourgene - target 0.6p
On 21st December, with its shares having previously closed at 1.85p, Yourgene Health* (YGEN) announced a “capital raising” for “not less than £5.0 million” stated to “provide near-term working capital; and facilitate further restructuring of the group's cost base, removing £2.0 million of annual operating expenditure. The company will also utilise any additional net proceeds to fund regulatory approvals and existing product enhancements”. I.e. it was cash crunch ahoy and, having left the fundraise to that point and with stock market conditions dreadful, the raising was at… 0.30p per share! Unsurprisingly, that sunk the shares, but with new capital now raised and sentiment arguably having hit rock bottom, we see some good recovery potential from a current 0.38p offer price. (now 0.41p)
