You obviously are not focusing on the cost of the Trial. It is on hold. Why? Because they have run into a situation where they want to enlarge the focused area within the RPE channel. They do not want to incur more expense until the FDA either gives them a thumbs up to proceed with a larger definition of the target area or a thumbs down and they have to stay within the originally specified portion of the channel.
But, this halt is due to conserve cash. Every patient brought in requires a rental of the extremely expensive facility. Every school's physicians likewise have to be paid for their expertise and utilization of the instruments.
Further, let's discuss funding, shall we? Are you aware of the difficulty of the last funding(s)? Are you aware that they have in place language that requires ACTC to make whole prior funding sources? That in the last fundings, these amounted to 300 hundred million shares?
I don't care one whit about a reverse split. But, the next financing is going to kill this company's shareholders UNLESS extremely important, positive news is forthcoming. And I don't mean a lot of hoopla associated with mindless PRs. I'm talking about serious dollars and cents now.
I imagine that if the Company does a reverse split without news, they will lose 20% to 30% of their capitalized value off the top at the close of the 2nd or 3 business day after the RS. Why? Because this Company is sucking wind and is vulnerable to a bear raid. There's no momentum in the shares. Look at the last 6 months for the trend.
Let's say they do an 80:1 split. 8.4 cents times 80 = $6.72 a share. But without news, the shorts will jump in and start to look at dropping the shares below $5.00, a 25% haircut. This is the threshold for most biotech funds where they won't invest due to restrictions in their investment policies.
Then and only then if ACTC decides to get more funding, how much more of the Company do the common shareholders have to give up to get the funds??? How many additional shares have to be issued to prior funding folks to keep them whole?????
Sorry, but having this trial on hold (whether they admit it or not) is a real kick in the teeth for the common shareholder.
AI
