A couple of things are happening here, firstly the enlarged group is expected to start to make serious profits, although i can't find any recent forecasts, and secondly the larger market cap and consolidation out of the penny share level is designed to attract institutional investors. A biotech that can make money and may be on a single figure pe will be extremely attractive. I found it very encouraging that they had no trouble placing 200m shares at 1.25p even though the price was down at 1.1p, you have to assume these people did their research, at least they will know more than us. You don't hear the term "ten bagger" these days but this could just be one, even a five bagger would be great.