Lowman, I give management enough credit to believe they thoroughly vetted La Jolla before deciding to do business with them.
Rocketeer mentioned another La Jolla client MCET, which was a ten-bagger plus before subsequently collapsing. So, as with Cornell, financing doesn't mean shareholders are doomed.
As was the case with Cornell, the company has access to funds that enable it to continue executing its business plan. While I've given up making share price predictions, I believe CSMG will succeed. And that can only benefit shareholders.