Post by
geodude13 on Aug 16, 2011 5:51am
High burn rate?
First point:
At June 30, 2011, the Company had cash and cash equivalents of $6.8 million, representing a net decrease of $5.5 million from December 31, 2010. The Company had working capital of $6.1 million at June 30, 2011, a decrease of $4.6 million from December 31, 2010.
It looks like they'll burn through the cash on hand by the end of the year.
Second point:
As of August 10, 2011, the Company has 122,126,537 common shares issued and outstanding and 22,781,505 common share purchase warrants outstanding which expire between March 2015 and July 2018 and entitle warrant holders to purchase common shares at a prices ranging between
.50 and
.65. The weighted average warrant price is
.54 and the weighted average remaining term is 4.4 years.
If there is a financing, WP will upset a lot of warrant holders if a financing is announced below the current share price.
Third Point:
Entered into a US $15 million loan agreement with Oxford Finance LLC. Proceeds are being used to finance Protox's late stage drug development program for the treatment of Benign Prostate Hyperplasia (BPH).
Even with the loan agreement in place; the need for cash only builds out only one additional year, of financing so if there is something to announce it'll need to be promoted by the end of 2012.
Fourth Consideration:
With the Warburg Pincus and Oxford financing secured, the Company will initiate additional BPH clinical activities and as such, development costs associated with clinical trials, drug manufacturing and regulatory activities are expected to increase through 2011 and 2012.
The cash flow needs and financing don't add up....either there is going to be additional "significant" financing or there is a big announcement coming that will drive the share price up to levels that make financing easier and make all those warrants/options attractive to exercise.
The last quarterly update is skinny on future plans....I'm thinking there needs to be an announcement coming to make the stock attractive for future financing opportunities and make all those options and shares valuable and exercisable; why else would a big investor come to the table and put additional millions into PRX? Thoughts?
Comment by
NGLsRgood$ on Aug 17, 2011 1:50pm
I am also a little perplexed by the lack of clinical news. I came across an interesting US link which tracks the various drugs under clinical testing in the US and around the world. (ClinicalTrials.gov) According to it PRX has not started any Phase III patient recruiting yet. Have a look at the other BPH drugs in the testing phase.
Comment by
cabbieJBJ on Aug 18, 2011 10:24pm
Now that the dust has settled, it looks more like a single shareholder that exited a position as there was no depth behind the sharp, temporary move down. Back to the mid 40s. Awaiting the clinical roadmap this fall.