MSB Holders Only, page-5

Thought I'd save some quality posts from the muck of the downramping thread.
https://hotcopper.com.au/posts/51404642/single

They have to raise the funds this week, or it seems they are cooked.

Really, what's your evidence for this? I don't mean to pick on this statement in particular. I could have picked on any of the baseless, excessively negative and sensationalised statements made by countless posters since Friday's announcements.

Let's look at some actual facts.

Mesoblast had US$77m of cash as at 31 December 2020.

The Appendix 4D states on page 22 that the agreement with Hercules requires Mesoblast to maintain 'a minimum unrestricted cash balance equal to four months liquidity (defined as the prior four calendar months net cash outflows in operating activities and investing activities'. Four months of liquidity based on this definition would be be approximately US$42m, based on the last two Appendix 4Cs. This equals about US$10.5m per month. Let's estimate that Mesoblast has spent US$10m per month in January and February this year (US$20m in total). This is probably too high given there are no significant trials ongoing at the moment, but let's go with it to be conservative.

Based on the above figures, Mesoblast probably has about US$57m of cash right now. This is equivalent to about 5.5 months of liquidity, based on the definition in the Hercules agreement. Therefore, Mesoblast probably had at least six weeks to raise additional cash (not one week). This also assumes that Hercules wouldn't have been willing to show any flexibility around this requirement, which they may have done given their willingness to extend the interest only period of the loan on multiple occasions.

Not looking great - especially to have a BoD and management be told by the auditors you have to raise money now or you are not a Going Concern

The 'material uncertainty related to going concern' in the Appendix 4D has been there since the 2016 Appendix 4D. The fact that this keeps being brought up as if it's new information is ridiculous. News flash, Mesoblast is a biotech company which is dependent on external sources of financing (partnerships, capital raising, debt) to continue its operations. If Mesoblast is at death's door now, then they've been at death's door for at least the past four years. Somehow, they've been keeping the lights on, and this time will almost certainly be no