Arrowhead Research Corp (ARWR)

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ARWR research report... http://www.edisoninvestmentresearch.co.uk/researchreports/Arrowhead_090113_update.pdf

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Financials
Arrowhead provides financial, administrative, corporate and strategic resources to its two majority owned subsidiaries, Calando (79% owned) and Ablaris, (64%). Cash at year end (September) was $3.4m, which has since been boosted by the issue in December 2012 of 1.8m unit at $2.26 per unit, to raise c $4m. Each unit incorporates one share plus a warrant to purchase 0.5 of a share. The warrants have a five-year term and an exercise price of $2.20 per share at year end. We have not included any warrants exercised in our forecasts. Cash burn is expected to remain in range of $1.1-1.4m per month.

Arrowhead Research Corp | 9 January 2013

Arrowhead retains an equity credit line with Lincoln Park Capital for up to $15m over three years. $14m of this facility remains available. For 2013 we have a forecast financing requirement of $15m. Arrowhead has a number of available options to address this, including equity credit line drawdown, issuance of new equity, or revenues from potential licensing partners. For simplicity, we reflect this requirement in long-term debt in our financial model (Exhibit 7).