This Company needs to go beyond the ‘sufficient’ funds to continue its progress of its IP, it has done this for literally years, and has a sp that reflects this.
Lack of cash is a major issue, combine it with the time frame until commercialisation, the 115 mill AU dollars will only be a temporary ‘fix’, further CR at the nine month mark. Way too much reliance on the hope that the next CRs done at higher levels, a reasonable expectancy that it will happen is not a iron clad guarantee.
Commercialisation is potentially hundreds of millions ‘away’, (risks aside), …. “any future minimal cash requirement …” is a big understatement, change minimal to maximum. Would be a impossible achievement by this Company to have a ‘minimal’ cash requirement when you compare to the spend of its main Competitor, Edwardes LS, R&D spend of one billion US PLUS associated costs of operational costings.
The massive ‘risk’ of this investment is far from diminished.
This Company needed to raise at 250 million plus AU dollars and I am sure, despite the dilution, no pragmatic investor could really argue against the worth of a CR at that amount, that would go close to a ‘massive’ two years worth of funding, it is seemly a case that the current 115 mill AU dollars is stretching the Company’s ability to do raise at such a amount.
Forget the old mantra of ‘minimal’ dilution, as I am sure we all have, but on the effectiveness of the additional dilution, up to date it has seemingly not been too effective despite the obvious of ‘keeping the lights on’.
250 mill AU dollars would have been far more effective than 115 mill AU dollars at this very stage.
Imho.
AVR Price at posting:
$9.30 Sentiment: Sell Disclosure: Not Held
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