RE:RE:LMNL FinancingThe way I see it this USD30 Million private placement is to replace the CAD38 Million or so that LMNL did not get from the 'retail private investors rights issue back in 2019. The rights issue back then raised only $37-38 Million out of the then anticipated CAD75 Million that LMNL wanted to raise.
LMNL seems to have anticipated that is the money they needed before Ryplazim BLA approval. It is possible they may need more in future but it will only be after Ryplazim approval which means LMNL will be in much better shape then.
The current News Release mentions : "The Company intends to use the net proceeds from this private placement, together with existing cash resources at September 30, 2020 of CAD$36.0 million, to primarily fund clinical development of fezagepras and the ongoing review by the US Food and Drug Administration (FDA) of the BLA for Ryplazim® (plasminogen), as well as for working capital and other general corporate purposes."
So they have CAD $36 Million (Sep 30) and just raised USD30 MIllion. That should last them end of April / MId May 2021. PDFUA date is Mar 4, 2021 but expected earlier. LMNL will have a couple of months or more after Ryplazim is approved (and anticipated share price jump/spike).
I understand that the current private placement will be under TV control (however it is placed) which while it will dilute LMNL shares also means that TV et al will now control about 90% of LMNL shares at a cost of approximately CAD350 Million (USD 250-260 MIllion) while retail and other investors still owns the remaining 3.2 Million shares (current float). Does it matter whether that makes 15% or 10% of LMNL Shares.
I dont TV et al, intend to 'lose' their investmentsin LMNL (although at current prices their shares are worth 50% or less than their original investments). More than likely they plan to double (or triple or more) of their investments in LMNL. That should give an indication at what price TV et al will be willing to sell or cash in on their investments in LMNL.
That should now be within 4 months to 16 months (2 months have gone by (and more than 50% drop of my LMNL investment at beginning of October) since I was willing to wait 6 to 18 months to cash in my investments in LMNL.
In my opinion at current share price Risk-Reward has gotten much better. I only wish I had the business acumen or foresight as so many of you here have to foresee that big drop in LMNL share price and waited to start buying. Ah well, live and learn ! (yes, a very expensive way to learn, I would not recommend it !)
GTLA