Cash shows strength in the event of any negotiations - if you require cash from a partner for your next move you get low balled (you need them) - you have the cash & the drug you hold power (you don't need them but they need you).
Absoultely agree with this. I guess some would argue that, with $3.5mill already in the bank and a cash burn in the last 6 months of less than $500K, was there a need to raise such a large amount now, or if indeed so much good news is on the horizon, would they have been better to bet on a much stronger share price and thus lower dilution of current shares? But then the company has stated they need the money to manufacture product for trials so one can assume the cashburn will increase significantly from this point.
It always a tough one as there are no future guarantees, and if there is a unique opportunity to shore up a large amount of cash then it should be taken.
PAB Price at posting:
6.0¢ Sentiment: None Disclosure: Held
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