GREY:ATBPF - Post by User
Comment by
RalphRalphon Feb 17, 2021 10:03pm
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Post# 32592515
RE:RE:Last 25 million dollar dilution
RE:RE:Last 25 million dollar dilution The fact that they had to offer warrants is not a good sign. When demand is very high, no warrants are needed to sweeten the deal. The terms of the warrants are also unfavorable - $7.50 / 3 years / no acceleration clause.
The constant need for warrants in their raises reflects the cost of management's inability to get the company onto the NASDAQ. From a business standpoint, their capital management and execution of capital raises has been sub-par. Their current cash position (including bought deal $) is also not enough to fully fund Phase 3 & maintain operations/pipeline development during that stretch of years.
Alex1967 wrote: They have $16 million in cash and cash equivalent. Keep in mind they had to do a lot of animal testing on (absorption, metabolism, and excretion) before they can apply for IND for phase 3.
The extra cash allows them to negotiate with potential partners from point of strength.