XMH

XMH: OSK maintains BUY, increases TP to $0.40 (from $0.35). OSK notes that the pricing of the placement and the short expiry of the options led house to believe that XMH is about to make an acquisition. New shareholder Credence will own 8.6% of the enlarged XMH share capital, and the call options will allow it to increase its stake to 19.9% within three months of the placement. The strike price of $0.315 represents a 20.7% premium over what they could have paid, and their willingness to pay the option premium (implicit in the 6.3% higher price) indicates a strong expectation of a large short-term gain.