Is what possible--that Alseres has that much debt? I don't know their debt structure details--I do know that they go on month by month via an infusion of another 500,000-1 million by Robert Gipson, who is approaching being a majority owner. He apparently likes their Altropane Phase III PD imaging program, which is pretty much a waste of time and money. A company's debt overhang becomes critical when the debt comes due--which is why, for example, Epix Pharma went bankrupt last year, and why Elan had to sell a chunk of itself to JNJ.
<<I don't understand why the fear/explanation was; without this deal, Corx was about to go under. These early stage biotech's can trade forever. There will almost always be a route to stay in existence>>
I could list close to fifty private and public CNS companies which have gone out of business over the past six years. If you presume that a company's only motivation is to limp on for the sake of management salaries, I suppose that some find a way to linger. But that assumes a cynical version of reality.
if you want a "serious/competent nearterm driver" for Cortex, there is only one over which Cortex has control, and has a clear reason to anticipate success: ADHD. Any other scenario would involve ]a leap of faith, a hope that events will luckily fall into place. So they had to obtain the resources that allow them to make that happen--albeit without any guarantee of success (probability yes, guarantee no). Playing out the string was a hypothesis advanced by some as a raison d'etre for Cortex, but if you do not assume that would have been sufficient from their perspective, then they had to generate enough cash to make a critical mass event happen. Other things could happen--SA, HI--but ADHD will happen. Whether it turns out in such a way that validates the time and money put into it--we will see when the data comes out.
NeuroInvestment
