So they have almost got the facility in Canada ready to manufacture (still need Health Canada approval) and to "fire this facility up: Staffing/ Production/ Testing etc
They had cash at hand at 31/12/19 of almost $22.5M
At 31/3/20 (3 months later), they had $15M
There are some alarm bells here:
1. How much more capex needed to get the facility up and running?
2. How much more time to get this facility actually ready - is it likely to be 12 months plus before it makes its first "patient ready" batch?
3. What will be the OPEX to run such a facility?
4. Will they burn the balance of their money in the interim?
5. According to current burn rate ($7.5M in last quarter), this company has 2 quarters of cash at hand left.
I am as excited as anyone about this facility getting off the ground, but have to temper the excitement with a little reality check.
AGH Price at posting:
35.0¢ Sentiment: None Disclosure: Held
