Perspective To put this deal in perspective, the company just sold 30% of all future revenues for Egrifta, Tragarzo, any Nash drug, and any oncology drug for $40M.
that would be the equivalent of them signing a deal with a big Pharma company and saying give us 40M and you can have a third of our company and you don't have to do anything else. You don't have to fund 30% of our trial costs, you don't have to fund 30% of our marketing. Just take 30% of our revenues and we will pay 100% of the expenses.
I can't imagine experienced business people being this incompetent. That leaves only two explanations.
1. The prospects for the company is pretty dire.
2. They were promised a second round of financing by these investment banks at a share price much higher than this round.