GREY:MDCGF - Post by User
Comment by
KingKyleon Nov 06, 2009 11:56am
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Post# 16461257
RE: The money
RE: The moneyLocking the financing deal at this stage does not dilute the value proposition for this company -some people may see it that way but I dont. Thought it is strategic move at all. It even reinforces their position that moving forward with pending Phase 1 approval they will need financing to push toward commercial. With $9M cash on hand that probably is not enough simply looking at similar cash position for NVAX and their increasing burn rate as they progress.
One has to simply recall what happened to some Oil and Gas companies with good assets and no deep pockets to succumb to the financial crunch last year. Oilexco was pianful to watch as it went to bankruptcy - good Nort Sea assets but bad financing. Look at Ford where they are financially positioned today because of what they did prior to the crash.
As one poster said earlier, better to have the cash on hand rather than not having it by the time you need it. Some may see it as dilution but I dont certainly see it that way.