Hi again
@bontz777,
re thoughts on another CR pre-approval, I do give the prospect a > 0% chance, of course. However, I don't consider it likely - nor do I share the disparaging views that ET has on management of MSB's capital requirements.
There are a number of factors that come into play as the year 2024 wears on. Most of the key ones were actually identified by CEO Itescu at the 2023 AGM, when he said (& I've numbered them for ease of reference):
" ...
Net operating cash usage over the past 2 years has been reduced by 37%, and we are targeting a further 23% reduction for the fiscal year FY '24. And I understand that some of this will be offset by further investment in our Phase III programs for back pain and GVHD. Importantly, these activities to preserve cash are complemented by initiatives that are currently advanced and underway to increase cash inflows, which, by design, allow us to prudently invest in our programs. We're working and we have very advanced discussions on corporate initiatives to strengthen our balance sheet, including royalty monetization (1),
including strategic partnerships(2)and including access to capital markets.
(3)..."
Yes, we all know that the access to capital market raising between December '23 & March '24 was the first of these initiatives implemented. I'm not clear why it was the first implemented. To some degree the CR would IMO make it easier to finalise negotiation on strategic partnership or monetization arrangements - because it's always easier to get a loan when you don't need one (& ditto for closing almost any deal). In fact, the underpinning of capital requirements of the 2024 year also made it possible to retire some of the B/Sheet debt, which sends a similar signal to the market IMO. But I'm not concerned that the CR occurred, simply because the planning for it was disclosed at the company's AGM.
As I see it, there now remains the need for the CEO/ Board to update MSB shareholders on the other two initiatives disclosed to the AGM - royalty monetization & strategic partnerships. Either of these, at any time, would alter the financial perspective for the better.
Of the two, I consider royalty monetization the preferred option for MSB holders at this point in time. I'm keen to see how this plays out.
Cheers,
Although my comments aren't advice, I hope this assists you get your thoughts in order.
(20min delay)