Today s FinancingToday s financing has really just TWO postives IMO.
1-It pushes back the dark cloud of the darn Convert due in less than 12 months .The Convert was an unsecured loan bearing interest at 5.75% and is being repaid by a Secured Term LOan bearing interest at more than 11% .....So more than half of the term loan is used to retire the Convert ,However only 40 million of the term loan is made available at Closing without any conditions .The balance of the term loan will ne made available in 3 tranches upon THTX achieving undisclosed milestones ,,,,,Not knowing what the milestones are its hard to say if they are easily achievable ...(based on sales %% based on stock issues?,based on cash flow ? I dontt hink that clinical results are part of the milestones
SO today the Company is getting oxigen to push back the June 30 2023 Convert darl Cloud....
I am not sure if the company will disclose the milestones which would trigger the disbursements of the tranches,,,,I expect they will after Closing
So a sigh of relief but for now it is just a refinancing of PART of the Convert (Convert 57 million new cash at Closing 40 million)
2-The second positive is that it should be easier to attract new equity investors to fund the R&D since the company will not have the risk of defauting on the Convert in the short term
SO I think we will see some new money rather quickly from partnerships .collaboration agreements,and possibly equity
The market will react favorably once the NEW money comes in