ProspectusSo the prospectus was posted on Friday a little while after the annual information form was posted. It was mostly a
regurgitation of what was in the in the annual information form but did have the up to date info on the capital structure of the company.
The fully diluted share count assuming the over-alloment is exercised is now 147 million. I have also updated my listing of current CapEx requirements vs available cash (assuming the over-allotment is exercised):
| Project | Capex |
| Phase 2 | 5,000,000.00 |
| Pharmaceutical Lab/Office Space | 12,000,000.00 |
| Pharma R&D | 1,000,000.00 |
| Working Capital | 3,000,000.00 |
| Module 1 | 35,000,000.00 |
| Total Spend | 56,000,000.00 |
| Cash On Hand | 50,664,422.00 |
| Callable Warrants | 12,000,000.00 |
| Cash Total | 62,664,422.00 |
| Surplus | 6,664,422.00 |
What's really interesting to me is where they stand with future expansions:
| Project | Capex |
| Module 2 | 35,000,000.00 |
| Phase 3 | 35,000,000.00 |
| Total | 70,000,000.00 |
| Cash Surplus | 6,664,422.00 |
| Outstanding Warrants/Options | 54,386,687.00 |
| Total | 61,051,109.00 |
| Shorfall | -8,948,891.00 |
They are nearly fully funded for the 2nd and 3rd modules through their outstanding warrants and options. The catch is I don't think they will see much if any of that money until 2019 so the key to whether we will see any future
dilutions is whether they can get debt financing for phase 2. I think if they wait until Summer/Fall next year they should definitely be able to get enough debt financing for the 2nd module and then will have way more than they need for the 3rd module with the outstanding warrants and cash from operations. While I would love to see them expand faster, being able to fund that expansion without further dilition is much more
beneficial to shareholders in the long run than accelerating expansion plans by a few months.
The bottom line is while this diluition sucks it looks like this company is now very well capitalized to execute all of their buiness plans.