All biotechs that are partnered with need to raise money during stages. That's a reality. The bridge loan does not mean a next collaboration isn't coming. I thought it would be a possibility as these "partnering" agreements take time. I'm still waiting for one of the biotechs that mentioned it over a year ago to come through. The waiting part can be tough. But if you believe that they do not have the science, you are free to that opinion. GL.
I'm fine with the process and understand things take time. I'm still waiting to hear when they get their first IND; and then we start Phase I. :)
Btw, they do have a license agreement already with small Pharma that can be up to $37 mm in milestones in the development stage (Phase I -III). And then if it gets to Commerical another $67 mm. They are also in the best immunotherapy labs in the world. And they are on big Pharma vendor list. Let's not forget they are working for them, the contract extended. So their technology is of interest. It just hasn't made us all wealthy; and that's just the difference. Biotech is about patience and sometimes what we see through the peep hole is only a glimpse of what's to come.
The market didn't like the change in Mgmt today, uncertainty is not good for share price. I think in time it will get over it. I was probably the most disappointed on that front believe it or not. I was not surprised about the bridge loan. They needed money.
As for the "share" count, you're talking about payment in a year from now if it's not paid in cash. It's a loan, and of course the payment terms will be steep if it's paid all in shares and if they fail to make payments. You have no idea what kind of share value they can bring between now and then. But my bet is that the MD ANDERSON deal, which was not included in the collateral, will make the payments easier to make. And I do not fault either the company or the lender for the steep share terms. The company market cap was $10mm. They just received $3 mm, which is essentially 40% of today's share price, that's huge. If I personally loaned a $10mm biotech company 1/3 of its value, of course I would want to ensure I got paid too in hefty shares if the most favored nation clause triggers. It's $3 mm!
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