#I agree that the stock movement has been looking good recently. However some elements still perturb me.
1. Cash on hand from the 2016 3rd quarter financial results, was 11.2 million.
2. Quarterly cash burn, on the low side is about 2 million when R&D costs are low. So with Phase III expected to launch by 2H 2017, and costs going up, we're probably taking enough cash for max 1 year. So cash is needed.
3. I believe the good share price increase we have since Dec 13 2016, has been both due to the positive Phase II and also Chaim mentioning that BCLI were looking to partner the product and that helping to cover the large costs for Phase III and then him also telling the market that BCLI weren't looking at investors or attending conferences because these are only required when looking for dilutive financing, which BLCI was not looking for 'at this time'.
However, since then we saw Chaim present at the 9th Annual Biotech Showcase (Jan 9th-11th 2017), where Chaim was available for one-on-one meetings with investors at the conference. And then we hear on the 17th Jan, only 1 day before, that Chaim will be presenting at a 2nd conference (Phacilitate) the next day 18th Jan. Also with regard the Biotech Showcase, we also only found out 1-2 days before the conference. This indicates to me a rush to show up at conferences.
Therefore I believe that BCLI is now actively looking to raise funds at that this would be in the form of dilutive financing from one or more of these investors.
Also to be honest with you given the relative low number of outstanding shares, I'd prefer BCLI to raise money themselves via dilutive financing and keep 100% ownership and maximum profit, than partner it out to cover the Phase III but on a bad long-term deal for BCLI.
Also if BLCI were going to seek dilutive financing, then with the stock at 2.65 - 2.7 (the highest it's been in awhile) this would be perfect timing to get the best deal and sell about 25% less shares than they would need to if the stock were at 2.1 to raise the same cash needs.
Just throwing this out there, and while knowing the stock value as well as my own would suffer a drop, I'm long BCLI and thus in this instance am oddly pro-dilutive financing. If BCLI keep control of the product and given the out-pouring of support for BCLI from threefold the Phase II data, the Clinical trial investigators and the actual ALS patients (I've never before seen so many patients dial into a Year End call), then a hit on the short-term share price is a small price to pay. The intrinsic value of the stock should bring the price back up in any case, and if there is the Phase III approval then the short-term hit will be nothing.
Anyone else's thoughts on the above?
Thanks,
Spidey
AI
