Overpromise and underdeliver masterI should start this off in saying there is hope for the stock but as a shareholder for about a year now there are some things that need to improve in my opinion.
Overall I have been a supporter of Lee's mainly due to the supposedly low monthly cash burn, reasonable expectation that they need partners to get these products to market and that he seems to do a reasonable job of marketing on a very small budget.
The biggest issues I have is that he is the king of overpromise and underdeliver; it is impossible to count on anything he says when it comes to dates or even that the information will actually come. On May 25th he said further details on each of the programs are expected to be released in the coming few weeks - 3.5 months later we get an update on the dermal injector and then a week after some extremely optimistic (likely unrealistic) but extremely general news about talks regarding 2 other products. The following week a news releases states that they have hired a IR firm but can't pay them until the next financing?? If they are so confident about their near term licensing deals that include upfront payments why would they need to do another financing to pay $14k to an IR firm??
Also I was surprised that RP has blown through $7.3m in the past year when they have a $180,000 monthly burn rate. I understand that they need to pay for trials and application fees etc...to move the products along but it seems like they burnt through the $5m (not included in the monthly cash burn) very quickly.
Quotes:
Sept 22, 2017 news release: "...with such retainer payable upon completion of RepliCel's next financing..."
Sept 13, 2017 news release: "...and have also generated significant partnership interest in our biologic assets among strong regional players. We believe it is highly likely that one of these will culminate in a partnership transaction in the near-term..."
May 25, 2017 news release: "...Further details on each of the programs are expected to be released in the coming few weeks..."
May 2017 fact sheet from website: "Current Monthly Burn Rate ~180,000"
February 24, 2017 news release: "...we were able to quickly close a financing with brokered and non-brokered components totaling over $3.1 million..."
Oct 31, 2016 news release: "...RepliCel closed a non-brokered private placement on October 28, 2016 of 8,199,999 units (each, a "Unit") at a price of $0.52 per Unit for proceeds of $4,263,999.48…"