Right now the company probably has about 2 quarters worth of working capital at the current burn rate so, yeah, there will need to be another raise likely sometime September/October depending on how expenses increase. And with the company needing $85 - $100 million per year that raise will obviously have to be sizeable. The trial should bring in around $13 million in reimbursements for DurAVR's implanted to offset those costs some but it seems very plausible that the fully paid share count will be pushing 50 million by the end of the year and that probably won't be the final raise before approval.
Dilution is standard for clinical-stage companies years from commercialization but making accurate projections is still difficult. It is a cash-incinerating business at this stage. I have definitely been low with my projections of fully paid shares at commercialization but the share price does what it does and dilution follows for better or worse. Little did I know that those $29 options Perceptive got in early 2023 never had a chance in hell of being exercised.
AVR Price at posting:
$6.84 Sentiment: Hold Disclosure: Held
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