The recent sell-off has more to do with what’s s
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My biggest concern right now is where the money for Q4 will come from. 10-K stated that cash on hand was $2.4M as of June 30 and burn rate was $700K per month. So they’ll run out of money next month. I see three possible options.
1. Shelf registration. It’s still active and I don’t think there’s a $0.25 minimum requirement. If Leo does a public offering of 20M shares at $0.25, that’ll put $5M on the balance sheet.
2. Aspire. I’m not sure whether the 2017 agreement before the $7M milestone agreement is still active. The avaliable balance is $22.3M. Maybe Leo has sold some to Aspire when he realized that he won’t get any money from the $7M agreement.
3. Another source such as loans or money from management (doubtful).
Quote:
However, continuing operations for the next 12 months from the date of this filing is very much dependent upon our ability to raise equity from existing or new financing sources.
The sooner Leo can address the money issue the better. Either way I expect major dilution coming. If it leads to a deal in Q4 then I don’t mind. All the leverage goes to the partner when they know your company’s fate is in their hands.
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