Financing??
I guess that answers the question of financing. Beech was right again.
In the company’s most recent Management Discussion and Analysis, CEO Graeme McRae said Bioniche’s cash position is currently much higher than the Q2 statement because of an outstanding payable of $2.75 million from the Business Development Bank of Canada. This means Bioniche actually has $9.65 million in the bank, not the $6.9 million that was reported. The second reason is that the company now expects to reach a zero burn rate by the end of fiscal 2013. But Bioniche’s renewed focus on its animal health division may, in fact, allow them to do this even more quickly. Q2, 2012 sales of animal health products increased in the quarter by to $7.4 million, up $1.3 million as compared with the same quarter in fiscal 2011. Bioniche management says it has already pulled its burn rate down to $1 million a month in Q2, from the $1.2 it was burning in Q1.
Despite the improved situation of the balance sheet, Mcrae says the company does intend to seek a non-dilutive financing, such as a revolving credit facility or royalty stream debt financing, in the upcoming months.
Tson99