Hey Value and JSB,
Good Sunday Morning to you. Building on the discussion between myself and JSB, let me clarify to you why the secondary IMO is more than likely needed in 2H 2014.
The company does not have enough cash. LOL!!!
Ok, all jokes aside that's really the reason. And cash is important to give the management team the flexibility to leverage the Femprox opportunity as well as things we or even they may not see yet going forward.
While it's easy to look at the expected revenue of additional license agreements, and royalties from expected sales of Vitaros as reason they will not need to raise capital, the more prudent view point is to assume those revenues will disappoint.
Ask yourself this.
Would you rather see the company build it's treasury via a offering on the heels of perceived good news, like a launch or a Femprox deal, or in a time period of "need" on the heels of sales results of Vitaros that fail to meet expectation?
Do not get me wrong... I'm not saying Vitaros will be a dud.
What I'm saying is no amount of conjured up numbers backed by stats about diabetics and people with heart conditions can assure otherwise. Therefore the move seems like a must from my perspective. If Vitaros sells like crazy then the company has some cash on the balance sheet it will need to find other ways to leverage. No biggie...
If they raise in the right moment and also announce a strategic mission for the funds like pressing forward on Femprox in the US on their own? It could be highly positive.
All that said... JSB, and I do not agree 100% on the burn rates and the money needed to produce product, but I think JSB really knows his stuff, and I would give more weight to his points of view.
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