Spectral Medical Inc T.EDT

Expect an announcement re financing in the next two weeks

[MMABStrader]

As of the end of 2^nd quarter (June 30, 2022) Spectral had $3,466,000 cash on hand (per their last earnings announcement). The company’s burn rate is approximately $3,000,000 a quarter. That means they will run out of money in October without a cash infusion. Financing for operations going forward will have to be in place by the end of September to cover operating expenses al least through year end.

I believe the company will have to disclose their source of funding by September 9, or sooner. My hope would be that warrant holders will exercise their warrants. I believe there are about 30 million outstanding warrants. Most probably exercisable around 40 to 45 cents a share. If all were exercised they would probably raise enough cash to cover operating costs until the end game.

Exercising of the warrants should not cause further dilution to share value since I believe most of us believe those warrants will be exercised sooner or later anyway.

[mercedesman]

MMAbsTrainer I like the non-dilutive aspect of your idea.  Not clear to me there would be an incentive to exercise many options or warrants at these price levels. Perhaps a few older options could be exercised. Some have expired since that date From the AIF (March 2022) As at March 23, 2022, the following securities were outstanding: • 11,068,704 options to acquire Shares were issued and

[MMABStrader]

MM... good reply.  I wasn't aware of what all the strike prices are for the outstanding warrants. I still think there will be an announcement by September 9, regarding where they will get funding for at least two more quarters.  I think short term they need at least $6 million, maybe $7 million more to cover through first quarter 2023..

[1stockwatcher]

Does anyone know if they might be getting $$ from their partners for hitting any milestones? They have gooten some good news from the FDA over the last few weeks. It would be nice if they high some milestones that trigger money

[mercedesman]

The next milestone payment option ( by Baxter) is triggered after hitting 90 patients in the Tigris Trial. At the time, Baxter looks at the results and decides if they want to proceed with the second payment of three. The first was $5M USD. The tranche 2 and 3 payment amounts were redacted in the disclosed Distribution Agreement when the partnership was first announced.  There has been some