RE:RE:RE:RE:DSV- Healthcare Related CargoFunGuy88 wrote: My analysis is based on the latest financials. FLT has about $9M in current assets and they burn about $4M per quarter. Thus, they will need additional funds in the next 6-9 months. It is encouraging that revenue has started, but I don't expect it be be significant for the rest of the year.
I'm not trying to bash the company at all, financing is simply a reality of early stage companies and until the company is better capitalized, I will remain under-invested in this one.
I was ridiculed for suggesting that a Bought Deal was coming only 3 weeks ago, but to anyone who was paying attention to the financials, this should be no surprise. As at March 31, 2020, the company had $8.5M in cash and a burnrate of $4M/Quarter. Well run companies will not wait until their cash balance hits $0 to raise, they will be proactive and access financing in advance when it is available.
As for the terms of the raise, it seems pretty pricey. I can deal with the offering price of $0.70 (18.6% discount to close), but 2 year half warrants at $0.95 seems excessive as the stock traded just shy of that only last week. Funds were needed, but I don't think most investors will be pleased with this deal. We will see what the market thinks tomorrow, still a great day due to TRUL and APHA.