Let's assume the Board can oust Kristy and reduce cash burn from $12M/Q to $ 8M/Q.
BUBS had $39,000,000 cash available at end of last Quarter. Ignoring access to debt facility, they have 3.2 Quarters of Cash left @ 12M/Q and 4.9 Quarters of Cash @$8M / Q.
Either way, they need to raise capital in 6 - 9 months, during FY24.
If they raised $40M @ $0.19 they would need to issue another 210,526,316 shares. That's a big increase on 751,357,408 shares.
If the valuation remained at $150M following the issue of an additional 210,526,316 shares then $150,000,000 / ( 751,357,408 + 210,526,316 ) =
$0.15 - $0.16
Even if BUBS can increase revenue and cut overhead, a future capital raise will put downward pressure on share price.
This highlights the tension between BUBS need to raise capital to sustain operations and its obligation to maintain shareholder value. Would make for interesting Board Meetings.
BUB Price at posting:
18.5¢ Sentiment: Sell Disclosure: Not Held
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