There was dilution this summer to get funds to acquire the facility the former ReCell assembler an I would imagine all of the equipment etc so it could be a turn key operation. I am guessing that they got it as a turnkey operation since the other company which was moving operations outside of the state.
It would have not only have benefited Avita but the former assembler as well, in that they would not have to transport the equipment, supplies etc. they could set up operations in a new facility and build that facility out to fit the space.
It would be a win win for both. The past dilution is just how it goes with biotech's before FDA approval as well as approvals/trials in other countries. The dilution is more likely than not over, as they have the $10's of millions left over in the BARDA contract for further trials and approvals in the US.
Money also went into getting the entire operation set up and working on new packaging and promotional material to launch ReCell. They are good with cash now to get this all done and now that ReCell is going to be making $$ they may not show a profit but they will have the money to continue to grow and face what they need to without further dilution.
The dilution was over a 3+ year period and is not uncommon with these types of investments. Most biotech's that start on the NASDAQ are very highly priced at the outset and after dilution over the next 3-5 years they too drop in price.
ReCell did what most do not in this space got through it with a first to market solution of this kind and will be the only one for the foreseeable as competitors are 3-5 years away from FDA approval at best.
I pointed this excerpt out before from an old post I made here last winter
"Biotechs, Junior Mining Co's and Oil and Gas Exploration companies have four things in common, the investment will take 5 years maybe more to pay off, your shares will be diluted and your share price will go down popping up only when a significant milestone has been met and they all cost a lot of money to reach their final objectives.."
Now we are good, and the amount of shares is not AVMXY shares but AVH shares which 20 of those makes an AVMXY share. The British model based exchanges/markets have huge floats with low prices, I first became aware of it when I moved to London in '96 its very different. I would listen to financial news and read the Financial Times and everything was stocks traded 15 p 30p or were up 3p to 72 p thats just there way, I highly doubt a RS is coming as it is never mentioned on Hot Copper board and that has some of the most negative, manipulative posters with hidden agendas one can find and RS has never been mentioned once, its a non issue.
Have a great weekend all, Peace out.
