Capital Raising in May

It does not look good for FBR at the moment. I am anticipating another CR in May at a huge discount. Here are my reasons...

What we know so far:
- Cash burn for the last quarter was $8.7m
- $7.3m cash remaining.
- Reduction in payroll costs of approx. $10m/annum.
- Possible R&D rebate in September
Assumption is that there will be a slight reduction in cash burn in the next quarter by $2.5m, possibly other savings so from what we know cash burn for next quarter may be around $6.2m. Which means we have around 1.2 quarters of cash remaining.

If we look back at past capital raises, you can tell that FBR likes to announce CR around a month after the quarterly announcement.
22/01/19 - Quarterly report release ($14.5m cash remaining)
21/02/19 - Capital Raise announced for $17m at 10.5c
31/10/19 - Quarterly report released ($16.5m cash remaining)
5/12/19 - Capital Raise announced for $5.5+$5m at 4.5c (only $8.5m raised)

Since they have just enough cash to survive for 1 more quarter and R&D is still far away, I anticipate FBR CR announcement is less than a month away.

Two previous CR were offered at 15%-20% discount, but this was in midst of bull market. Time has changed, capital market is struggling and $$$ will be hard to come by. IMO FBR will need to offer a significant discount for the next CR, 20%-40% is not out of question. $8m raise at 1.5c - 2c will result in 30%-40% dilution. We could see FBR SP fall below 1c in the next 3 months. IMO DYOR GLTA