RE:RE:RE:RE:RE:Journal Les Affaires this morning...smartmichel wrote: Hi Francois,
It is not easy to tell you exactly how much the transformation of plant in Belleville will cost but I can tell you FDA must approve the plant and it will cost a large amount of money to have state of the art facilities, it is the case for all laboratories and medical devices. $10M are peanuts in this industry. To give you a target, Taimed Biologics of Tawan will invest $25M US ($30M Can) to double the capacity of its future plant to produce Ibalizumab.
I don't think you have for 1 year before financing. Because 2 months ago PLI had around $75M and the burn rate is normally increasing when you are at the lasts steps of devlopments. Figure 5-6 months.
Splitting number of shares dosn't change anyting about market cap, but permit illusions. PLI is simply too expensive at this stage. The actual price is anticipating 2019-2020 EPS without any disapointments. This is Magic.
The plant in Belleville only need minor modifications, as it's already an existing plant CGMP.
It's not like starting to scratch a new facility of production. Also, in short term, it's not essential to PLI operations.
And as it was stated when they made the acquisition, if minor modifications are made in Q4 2017, the plant would be ready in H2 2018 to support the lauch of IVIG and other products.
So, I doubt it will cost $25M, and it will required cash in the short term.
As for the burn rate, they are not going to spend much more money in the next year, and your amount of cash don't consider the exercise of warrants that should kick in in February. ( I can't see how a billionnaire won't find $ 21M to pay for the 46 cents warrants)