Lets take a look at the recent cap raisings (over the past 3...

Lets take a look at the recent cap raisings (over the past 3 years).

Dec 16, raised $4m at 40 cents.
Dec17, raised $1.5m (SPP) at 34 cents.
Dec18, raised $1.8m at 17 cents (with free attaching options exercisable at 25 cents).
May19, raised $10m at 40 cents.

Positive is that they are now cashed up. Negative is they still have a while to go before they become profitable.

Management have struggled to get any investor buy-in since Dec16, so they were always going to go big this time given the huge uptick in market interest (mostly ST trading-driven). They certainly did that with a $10m raising.

The $10m gives an idea of how long OCC expect to be running until they are able to start generating a profit... their current cash burn is approx $4-5m a year, so the answer is a couple of years at least.

Reality of sales traction of Celgro is that it takes time, with the EU launch demonstrating this.

The US commercial launch of Celgro is not scheduled for until Q2 of 2020 ... so the EU sales will be the driver for short term profitability. Spain and Germany launch is due in the next quarter, but IMO it will take 12-18+ months to get real sales traction.