Media, page-119

Happy reading

Form 8-K for Avita Medical INC filed 10/18/2023

If you start to fall asleep or go cross-eyed, fourdollars numbers look correct to me and my notes are below:

Cash & Credit Facility

• To strengthen balance sheet without significant dilution to shareholders, decided on a debt facility that provided optionality – most shareholder friendly option when the stock isn’t trading at a sufficient level to justify an equity raise
• $60M cash + $40M credit is expected to be more than enough to be profitable and pay down the $40M loan with cash.
• Currently no intention to use the 2x$25M credit options (acting as a contingency in case of unexpected events/delays)
• They say they don’t have a specific need for the $40M and had $60M on the balance sheet as of the end of the third quarter (Q4 cash will be around $89.1M)
• They have a number of initiatives that they’re going to continue, including the TONE study, increasing their commercial footprint for the burns and FTSD in 2024.
• Comfortable with cash level and currently investing the $40M in US treasuries which are earning >5% which reduces the overall cost of capital.
• Credit Agreement Interest Rate: SOFR or 4% (whichever is higher) + 8% = 13.3% (12% minimum)
• OrbiMed Test Dates:

• FY24 revenue guidance: $78.5 to $84.5M