The company had expanded by opening their Sarasota, Florida site significantly increasing their production capacity in anticipation of FDA approval for FebriDx.
When that approval fell through the share price dropped then their appeal was rejected, at that point it became increasingly apparent that they did not have the revenue to support their new site as the new capacity was not being utilised, or only very minimally.
Even after restructuring, including closing their new site, their cash burn was casting significant doubt on whether they would be able to continue as a going concern even with a cash injection via a placement and SPP.
So even with FDA approval, until sales of FebriDx in the US commences and the market sees what revenue they can get there is still some concerns. Cash burn will continue for the foreseeable future.
The IPO was to recapitalise the company for completion and utilisation of the new site, which was entirely wasted money so the IPO price is no longer relevant given all that capacity had to be mothballed.
LDX Price at posting:
9.5¢ Sentiment: None Disclosure: Held
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