Well from the attachment page F-8: "2.Liquidity
Post# of 72437
"2.Liquidity AtJune 30, 2016, we had approximately $6.3 million in cash and cash equivalents. We have expended substantial funds on the research and development of ourproduct candidates. Our net losses incurred during the three fiscal years ended June 30, 2016, 2015 and 2014, amounted to approximately $12.9 million, $13.2million and $8.2 million, respectively, and a working capital (deficit) of approximately $(1.
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Management believes that the amounts available from Aspire and under the Company’s effective shelf registration statement will be sufficient to fund the
Company’s operations for the next 12 months.If we are unable to generate enough working capital from our current financing agreement with Aspire Capital when needed or secure additional sources offunding, it may be necessary to significantly reduce our current rate of spending through reductions in staff and delaying, scaling back or stopping certain researchand development programs, including more costly Phase 2 and Phase 3 clinical trials on our whollyowned development programs as these programs progress intolater stage development. Insufficient liquidity may also require us to relinquish greater rights to product candidates at an earlier stage of development or on lessfavorable terms to us and our stockholders than we would otherwise choose in order to obtain upfront license fees needed to fund operations. These events couldprevent us from successfully executing our operating plan."
So, once again the R/S people have very little to their argument. CTIX has enough funding to continue for the next 12 months. In that time, as has been publicly stated, they hope to complete the mid-stage trials to gather the necessary efficacy data to enter into partnerships. Therefore, the risk of the negative financial share price shenanigans which could likely occur under an R/S as compared to the minimal dilution of utilizing the existing funding is not worth it for the company. A reverse split is only good for the shorters and traders at this current time.
(sorry the formatting above is all wonky on my cut and pastes)
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