Corrections to MMs intentionally misleading post The company HAD $11 million dollars, when they completed a financing a couple of quarters ago.
to date the company has enjoyed a burn rate of $1Million a month. If I were to venture and take a guess I would say that number is closer to $5 or 6 and dwindling daily.
I'm not sure if this is true but rumour, from what appears to be a former employee, is that the CEO is paid over $800k in total compensation yearly. Not counting the other bloated to F executives. Contributing greatly to draining coffers for the trial.
I don't know if I could place any significance to insider participation in financings because relative to the entire financing it seems like a small olive branch. A talking point for your local broker to tell people insiders are stepping up. Price has shown to go in the other direction.
The baxter interim payment happens at 60% enrolment and that appears to be somewhere around 40 months from now at the average enrolement rate from the last three years. Or maybe longer if we just look at the last 4 months.
Birch and Toray haven't participated in a financing for over 6 years I believe. Check for yourself. But they stand to gain a lot if this were to succeed. Why is it that these massive partners with billions of dollars that stand to gain so much if approved have stopped funding this trial? If not true, it appears that way on the face of it.
Lastly, nothing is unlimited... as their Nov 10, 2022 MD&A states:
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities as they become due. The Company is exposed to liquidity risk, as it continues to have net cash outflows to support its operations. The Company's objective for liquidity risk management is to maintain sufficient liquid financial resources to meet commitments and obligations in the most cost effective manner possible.
The Company achieves this by maintaining sufficient cash and managing working capital. The Company monitors its financial resources on a weekly basis and updates its expected use of cash resources on the latest available data.
The Company will need additional capital to fund its clinical and regulatory programs and commercialization of the ToraymyxinTM therapeutic. Potential sources of capital could include equity and/or debt financings, the collection of revenues resulting from commercialization activities and/or new strategic partnerships.
There can be no assurance that the Company will be able to obtain sufficient capital to meet any or all of the Company’s needs. The availability of equity or debt financing will be affected by, among other things, the ability to obtain regulatory approvals, the market acceptance of its products, the state of the capital market generally, strategic alliance agreements and other relevant commercial considerations. In addition, if the Company raised additional funds by issuing equity securities, its existing security holders will likely experience dilution, and any incurrence of additional debt would result in debt service obligations and could require the Company to agree to operating and financial covenants that would restrict its operations. Any failure on the Company’s part to raise additional funds on terms favourable to it, or at all, may require it to significantly change or curtail its current or planned operations in order to conserve cash until such time, if ever, that sufficient proceeds from operations are generated, and could result in the Company not taking advantage of business opportunities, the curtailment of its product development programs, the sale or assignment of rights to its technologies and/or products and the inability to file market approval applications at all or in time to competitively market its products.
All of the Company's financial liabilities, except for lease liabilities, are classified as current liabilities. Trade and other payables were $2,015 as at September 30, 2022 (December 31, 2021 - $1,522) which have expected settlement dates within one year.
As a side note: numerous employees have taken to sites like stockhouse and Glassdoor to let people know that the company has had mass exits and treats their employees terribly while filling up the pockets of upper management.