RE:RE:A question for SetoGREAT post MM.
Since Seto has always said that there will be no jump to the NASDAQ until the timing is right to maximise share holder value, perhaps when he answers your questions below he can explaing how this dilution is good timimg and is maximising
ALL SHAREHOLDERS share value.
mercedesman wrote: Some answers and more questions
Per Prospectus (pg 10)
Pre-financing
July 22 $ 3.8M cash
244M shares 4.7M warrants, 9.8M options, 800k RSUs
Total 259.3M fully diluted shares o/s
After financing (assuming full exercise of Over-Allotment)
Cash $ 14.5M, (+$ 10.7M)
271M shares, 20 M warrants, 9.8 M options, 800k RSUs
Total 301.6M shares (+42.3M)
Use of Proceeds? (pg.9)
The Company intends to use the net proceeds from the Offering as follows:
• approximately $5.0 million will be used for its Phase III registration trial for its PMX treatment for endotoxemic septic shock, including data analysis and submission of documentation to the FDA,
• approximately $0.5 million will be used at the clinical sites for an EAA sub-study,
• approximately $2.5 million will be used at the clinical sites, including site start-up costs and patient enrollment into the DIMI usability trial,
• approximately $1.2 million for product development and regulatory approval of dialysate bags for use with the DIMI device, and
• the balance (including any proceeds from the exercise of the Over-Allotment Option) will be used for working capital and general corporate purposes.
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To which I ask:
What is the Baxter Money being used for - I thought it was to fund completion of the Tigris Trial?
Wasn't the June 2020 $ 5M raise (.60 cents and .75 warrants) to be used for WC and Tigris?
With only 15 patients enrolled (as at date of AGM), and Tigris pretty much on hold for 15 months, where were the Trial costs coming from? What happened to Baxter's first $ 5M USD tranche? And the $ 5M from June 2020? or the $ 2.4m from .45 cent option exercising?
isn't there another potential $ 5m USD coming form Baxter for tigris, potentially before year end/after Interim enrollmnet? Will a non-dilutive clause exercised by Birch Hill or Toray raise even more $ (and add to the total dilution?)
Can shareholders be foregiven for assuming that no $ were imminently needed (for WC and Tigris), especially since there was no mention of same at the AGM just last month?
Data analysis and submission to the FDA are listed as uses of the $ 5M. But baxter is due to provide funds once Interim enrollment is acheived (60%?). And there is anotther tranche due after that. Isn't that another $ 10M USD that could be used for data analysis adn submission purposes?
What is the EAA sub-study?
What happened to the proposed DIMI raise ? i.e. a spin-out/equity partner - that was supposed to achieve a higher valuation for Spectral as a whole?
Instead we seem to have experienced 30% decline (from a last month trading high of .54 to .38 today?). Wouldn't an equity spin-out have made more sense in funding the last stage of the DIMI Trial or the dialsylate bags product development ?
Or why not a non-dilutive, Distro Agreement with a future DIMI partner - with upfront payments (like Baxter did) to fund the completion of the DIMI Trial?
Can we assume there will be no equtiy partner needed on DIMI now?
What progress has been made on the spin-out of DIMI to shareholders ?
Why didn't the Company promote themselves (pre-raise) like AEMD did (AEMD achieved a $ 17M USD raise overnight while the stock was moving up)? A raise in conjunction with promotion, could have supported a higher offer price, and reduced the dilution by a substantial amount, could it not?
Why did the Company reject the idea of jumping to Nasdaq first, and then raising $ ?
Just asking....on behalf of a curious group of shareholders.
MM