Post by
Whalewatcher1 on Mar 31, 2023 9:38pm
Why would anyone purchase their rights offering?
Looking at this rights offering closer, If 100% is subscribed, $2.2M comes in ($2.4M – 0.2M fees). They had $1.9M working capital deficiency as of Feb 28 2023 as per Rights offering doc. They are burning ~$350k per month, thus end of April 2023 when rights offering closes they’ll have -$2.6M in working capital deficiency. Thus the offering doesn’t even cover past expenses. They mention $800k coming from Alergnon Neuro, but who’s going to give that company money so it can be paid back to Algernon Pharma and that entity has over $1.9M in liabilities and no cash? Thus does management really have $4.5M in liabilities spread over the 2 entities?
Now the more realistic scenario is they raise a small portion of $2.4M max and cant even cover the payables and will be so far in debt won’t be able to raise capital to actually run a clinical trial or to cover more “marketing” spend . . . I’m just troubles how this company is run. I mentioned a few days ago this stock is moving towards below $0.25 and seems on its way
What am I missing?