Zyla Life Sciences (fka ZCOR)

[finesand]

the drama continues ..

Disclaimer: I exited this stock mostly a while ago already, last chunk after this ER.

Ongoing Dilution

Recap:
- 2017-12-31 45.94M (10-K)
- 2018-03-16 46.99M (10-K) +1.05M
- 2018-03-23 50.22M (SC13g, Deerfield 3.239M 6.45%) +3.23M
- 2018-03-21 53.48M 10-Q PR (not filed yet)
- 2018-05-xx 70.70M Speculation - ATM done

See my previous posts as well.

Gameplay

Mind bugling and we have no real idea what is going on here.
Debated this with 01 and other peers, only to conclude some weirdo conspiracy theories might be in place.
Like cheaper buyout or asset sales under dramatic delisting pressure.

Company disclosed their cash position and I think it is only good for maximum three quarters. That alone is pressure enough.
Yes, Arymo ER extended label comes in late this year and will surely help with insurance coverage.
Too little too late? I can't tell.

Based on above OS of 53.48M, company would need at least 66 cents to be NASDAQ CM MCAP compliant and 94 cents to be NASDAQ GM MCAP compliant.
Today is the first of ten trading sessions until the 5/23 deadline, in which company must close above 94 cents to avoid delisting procedures.
If company fails to even stay above 66c for NASDAQ CM MCAP compliance, she would be threatened by an actual delisting procedure triggering accelerated debt default.

Edit: After SEC filed delisting notice the company will go through the appeal process, which may take 1-2 months of time. In recent ER CC they claimed to go this route.

What is going on?

Revenue growth is a given and future cash flow positive could be achieved - in time?
The desired sales of EGL-002 and licensing of the Guardian tech has been on the table for a good while, around one year?
If company would manage to eradicate all their debt by selling assets, she surely would enjoy resurrection.
Puzzled.