I personally see the next raise being similar to that of what Paul Hopper did with CHM. (Not we need to talk about needing cash anytime soon just more for discussion on staff costs and large pipeline cost of progressing assets)
They did an equity placement to essentially give a line of credit with minimal dilution. I especially see this being on the cards with the great data from Pivalate F-18 and a master fund leader wanting in. The latest raise at 14c was only done IMO to give trapped holders an opportunity to top up at 14c cash was not needed. When they do need cash I feel it will be something like this. Paul was a finance guy before he was a biotech guy.
Here’s a snippet of the deal.
Chimeric enters A$30 million Equity Placement Agreement with L1 Capital
• Initial Placement of A$500,000 in ordinary shares at A$0.10 each (being the closing bid price yesterday, 8 June 2022) and 15,000,000 unlisted options exercisable at A$0.255 each expiring 31 March 2024 to be issued within seven days
• Equity placement facility of up to a total of A$30 million over 24 months with L1 Capital, a leading global investment manager, by way of separate placements (the size of which are subject to certain limits)
• Drawdowns under the facility are at Chimeric’s discretion and Chimeric is under no obligation to use the facility • The flexible funding arrangement will further enhance Chimeric’s rapid development of its three CAR T & NK cell platform technologies
There has been some great buying around the 13c mark I have certainly been making the most of it to offset the PIPO and IPO. Hopefully will all be a distant memory in the not too distant future.
To put a team like this together who have left world renown big Pharma like Riccardo from Novartis you have to dangle a sizeable carrot. Management is just as important as assets in an investment in this space and they don’t come much better.
If all goes to plan with Pivalate RAD could see revenue rolling in around 2 years and when it does it’s a cash cow.
See a snippet below on numbers from TLX ($2.2b MC) - From an article from intelligent investor - Telix Pharma - precision medicine - May have to google it as link will be blocked.
Since approval, though, sales have been growing at 30% a month. Telix earned $157m in the 12 months to December (up from $8m in 2021) and $78m of that flowed through in the final quarter. Illuccix has transformed Telix from a handful of promises to a mega-earner, which is why we’re interested now.
This company is just getting started. At $6,000–7,000 a dose, Telix sold around 24,000 doses this year, with nearly half of them in the December quarter. Cancer treatment and imaging isn’t seasonal, so we expect the current run rate to continue – there’s at least $300m of revenue on the table in the year ahead, and probably quite a bit more.
I am sharing this write up as it shows the massive potential of first movers in this space and the sheer $$ on commercialisation. As they say in the article diagnostics is not seasonal it just rolling revenue.
Here is the slide with the projected potential of Pivalate next to the TLX Prostate asset see the bigger addressable market for brain Mets.
