Replies to post #64788 on Ayala Pharmaceuticals Inc (ADXS)

[hovacre]

Also important that cash on hand is still necessary day to day, and a lot of their cash isn't available absolutely immediately, so that's another motivation for raising cash.

[jckrdu]

I didn't say - or imply - that they wouldn't have to raise cash until 2nd QTR 2019. In fact, I stated that if they do need to raise more cash it would likely occur after the AXAL deal.

Need to see terms of coming AXAL deal which I'm sure will have an upfront cash component. IMO, that deal is coming in 2018, before the fall. Both Advaxis and potential partner's have their interests aligned to get a deal done BEFORE EMA decision...

Advaxis wants a deal done before EMA decision because EMA may reject.

Partner wants a deal done before EMA decision because it'll be much more expensive to partner afterwards if EMA approves.

[Keithz]

Your second point implies they won't have to raise cash until 2Q19, which is not true. They raised cash now because if they didn't, from am audit standpoint, they would have to report they are a "Going Concern" so the $2 raise bought them another 3-4 month before they need to bring in more cash to have at least a years worth and doing another dilution at this stock price would be catastrophic to sharehdoler value even more than the last dilution.


FBG - Good point. If you think about it the timing (3-4 months)corresponds with Tony's comments about a new CEO/CMO by mid year. So one would hope they know they will have a sufficient cash deal around that point in time. Why would a new CEO want to come into a company where they dilute the company twice in less than a year for peanuts and ultimately are still running on fumes. I just don't see that being the case. Even if AXAL is approved it's not going to provide enough funding for the company to survive initially anyways.

[mm2k]

FBG, I'm not an accountant, but I think you have this backwards. They want to be a "going concern", which means there is little risk of liquidation in some time period, in this case typically 1 year or more.