big week next week

I believe next week will bring some exciting news based on recent reports and the capital raising trading halt. Some might see this as overly optimistic, and I have been wrong before, but I cannot be accused of ramping as we are in a trading halt anyway.

Based on page 7 of the last quarterly report (published less than 2 weeks ago), which I have mentioned in previous posts - these quotes are all from the same paragraph:

* "Managemente estimates cash... as of 30 Sep 2010 is sufficient to sustain planned OPERATIONS through the second quarter of fiscal year 2011". The end of the 2nd fiscal year is 31 March 2011.

* "Additional funding will be needed... to support its operations and CAPITAL expenditure requirements. Management has a RANGE OF SHORT AND LONG-TERM FUNDING STRATEGIES AVAILABLE to it in this regard". According to this we will cover capital commitments via these existing and available strategies. Note - I am assuming these "available strategies" do not include a capital raising, as this is mentioned specifiaclly in the next sentence.

* "the Company is also in discussions with additional pharmaceutical customers pertaining to the Unifill syringe and other pipeline products. Should the company enter into commercial relationships relating to the industrialization, commercial supply or preferred use of a device within a particular therapeutic market, the Company may pursue additional funding or revenue streams... through the SALE OF ADDITIONAL EQUITY or debt securities".

It does not seem right that the company would need to raise money (possibly $30M) just to get it though the next few months, as they basically have EXISTING operational and capex requirements under control. Based on the above, I believe the capital raising is in relation to a preferred use agreement with an additional pharma for the Unifill range or possibly a "pipeline product". As mentioned by Snork69 this may be the Select range.

Most likely we will get an announcement before trade opens on Monday morning Australia time, as recent big announcements have been made on the ASX and not NASDAQ.

Again, this is not a ramp, just my belief as to what is happening.