That biotechs require additional capital to progress along the commercialisation path goes without saying. The issue is that if a biotech (or any company for that matter) does future capital raises at lower prices than previous ones, its failed on some level. The only way a capital raise gets off the ground is if investors believe there is value in their investment. As soon as they have a concern that future raises will be done at lower prices, they won't support the current raise.
CHM will be doing a raise (if it can) at a fraction of the price of its prior raises:
January 2021 IPO - 20c February 2022 - 17c
That's a fail.
This makes it an epic fail: "the Company has and will continue toemploy cash management strategies such as delaying operating activities". There are plenty of out-of-their-control reasons for biotechs to progress slowly without adding failure-to-raise-sufficient cash to the list.
Hopper has usually raised cash well before having to address an upcoming shortfall in a 4c report, but he doesn't seem to be able to now. Too many of his raises in the past 2-3 years are underwater - credibility may now be an issue.
The fact that its got to this stage and that the L1 facility has seemingly disappeared, makes me suspect that there might be an existential threat to CHM.
And not even the suggestion of pulling back on salaries even though "delaying operating activities" is on the table. Not an ounce of humility.
CHM Price at posting:
6.2¢ Sentiment: Sell Disclosure: Not Held
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