Replies to post #115237 on Bioelectronics Corp (BIEL)

[uksausage]

not sure what you mean by

Some funds which have been diverted that way could have been used to do a clinical back trial and promote the product.

No funds were diverted to IBEX. IBEX was providing funds in return for restricted shares and had a hard cap on the maximum they could hold based on their "revolving line of credit" style loan.

If the company wanted to do a better trials or promotion then IBEX was a source of funds for them or they could go to other financing companies (as their financials show they have)

The only limitation would be the number of shares available in the A/S count. IBEX could sell of a chunk of their shares (as they are typically maxed out), and then loan that money back to BIEL so they could do their plans and receive "top up shares" to max out the number their agreement allows them.

That's how the financing works and like all small unprofitable OTC companies they are funded through dilution and issuing more shares - no magic piggy bank to get cash from.

They have a monthly run rate of bills to pay - rent, salaries etc plus funding inventory build up or packaging changes, third arty R&D/testing all sorts of expenses meaning they have to keep a share eye on what they spend and how many shares are left until they go cash flow positive (end of year may be) .

Andy has shown that he has run a tight ship in terms of not wasting any cash. unfortunately some of these one of expenses that you and I think are vital he hasn't yet. I do know he was expecting to get others t pay for marketing/distribution etc but without full clearance those deals - discussed over many years - fell through.