excusing the inexcusable

I've seen the emotions expressed over the last couple of days regarding ACL's handling of its capital raising requirements.

While I am sure that Pete Smith is a lovely guy - I've met him once and spoken to him a few times - I must say that this company has let us all down.

Managing the balance sheet is one of the two biggest priorities of a small-cap biotech CEO and Board.

Some small companies don't have the luxury of institutional interest, and a development program that is sufficiently progressed to attract widespread support.

That is not ACL. ACL does (or at least should) have options and choices. And yet the governance team is acting as though it doesn't. The failure to act quickly after FDA approval came through is inexcusable, and is reflective of a board and management that do not have adequate understanding of capital market dynamics and the importance of not assuming capital market conditions are going to improve in the future.

There were plenty of quiet whispers before the FDA approval came through that this company had capital plans underway to launch as soon as approval happened. Clearly that was just plain wrong.

The company's previous capital raisings have been vanilla rights issues etc.

This time, it seems that they were looking to do something more creative.

I wonder whether they have the ability to execute a more creative deal?

The evidence at present is that they do not.

I repeat - this can not be excused.

But I do not particularly hold Pete to account for this. If it is not Pete's skillset, then the board should have recognised this and made sure there was adequate support around him.

But from all that I have heard, Mel Bridges is spread too thin, and is insufficiently involved in the day to day management of the companies that he chairs.

That is the part that is truly inexcusable.