Athersys Inc (ATHXQ)

[SH1TFORBRAINS]

The direct benefit for Athersys, Inc. (NASDAQ:ATHX), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. However, the trade-off is ATHX will have to adhere to stricter debt covenants and have less financial flexibility. Zero-debt can alleviate some risk associated with the company meeting debt obligations, but this doesn’t automatically mean ATHX has outstanding financial strength. I recommend you look at the following hurdles to assess ATHX’s financial health