Hi seagull
I always like reading different interpretations on the information we are given. Here is mine.
My concern with the announcement is the fleeting mention of looking for a collaboration partner, but the extensive explanation about the possibility of getting research grants. And let's face it, the 'collaboration/partnership/commercialisation line has been fed to shareholders for an awfully long time.
If the product was commercial ready, would they still need to be spending $500k per quarter on R & D? Nothing on marketing and production. They even sacked the staff member hired to do the marketing.
Also, they have $2.7 million in cash at the end of Sept, with a cash burn of $1.163 million this quarter.
If they get down to $1.5 mill in cash, they are in huge trouble. And that is by the end of December.
Quite simply, even with the research grant, they will have to look at raising funds by early next year unless they get a partner willing to stump up some money for the technology.
Even if they strike a deal, the reality is PSY and their 'partner' would then have to create a product utilising the technology, test it and market it, and start selling it before any real revenue comes in. How long will this take?
So while there was maybe nothing negative in the report, considering the past rhetoric and unmet promises, there is still nothing positive that can be gleaned from the quarterly. And cash burn is a real concern.
As for the chart, it has been making new lows for the past week or two....this speaks for itself. I believe 8,5c becomes the new resistance level, whilst the downside now has no foreseeable support level.
Market cap still around $40 million.
If the AGM 'update' to shareholders on the technical and commercialisation strategy is just a rehash of the last company update, without a firm timeline and substance behind possible deals, the share price will continue to go lower in my opinion.
It's amazing how 10c seemed so cheap just a few weeks back.
Milesy
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