Pretty sure the visit with Deutsche Bank wasn’t to open a checking account. Cryoport is about to get very busy and there is going to be a very large need for eastern US and European expansion to support both Novartis and Kite approvals and prepare for multiple other client approvals in Europe in the coming year or two. (more on that later) They said as much on the conference call. The question is what type of financing are they looking at? I could make a case for either debt or equity. Deutsche is really known as the go-to bank for debt deals in Europe.
This is the relevant (edited) exchange during the Q&A:
Sean Hannan (Needham)
. . . What's being shared with you in terms of ramp-up in activity? How does this materialize timing-wise for cash outlays on your ends and into that something, how that impact is for the investments in the support of the facilities you'd reference that a little bit earlier? . . .
Jerry Shelton
. . . we've been building out our infrastructure to support these therapies and to support our growth. . . . So, you know that we clearly will have to you know finance inventories and accounts receivable and infrastructure and so forth. And we're on the pathway to doing that. As I mentioned there, two facilities, two logistic centers under planning right now and we'll be implementing. But Robert, would you like to add anything to that?
Robert Stefanovich
. . . we want to make sure, we leverage this opportunity that we have, part of leveraging those opportunities is to make sure that we have the infrastructure to support our current commercial clients as well as those that we see in the pipeline. Certainly, all of our clients that are moving from a Phase II to a Phase III or more importantly from a Phase III moving towards BLA filing are expecting us to have the right infrastructure within the U.S. as well as outside of the U.S. and Europe and some of the other countries to support their expected growth. And so those are things that we're carefully evaluating to make sure that we have the infrastructure in place to do so.
