In biotech, dilution is normal—that’s how companies raise capital. One is foolish to think otherwise. The statement alluding to massive dilution seems over-the-top.
Recently, I revisited the past 3 years of company press releases.
And it appears 10M per 5 quarters is the company burn rate, so that in itself should get the company to the 4th quarter of 2021, perhaps beyond.
Who knows?
By then big Pharma may be wanting to partner. Of course that’s speculation, but with COVID-19 being the current trend, NTRP (NBI) will likely see a growing interesting in its pursuit to treat Alzheimer’s, as the COVID race becomes old news.
However, let’s see what massive dilution gets—
Float: Say Massive dilution is 200M
Alzheimer’s revenue potential 300
billion by 2022 (and that’s conservative—do your on research to validate).
Take 20% of the Alzheimer’s sector = 60 billion, leaving revenue stream opportunity for other competitors.
Now do the basic division
(60 billion divide by 200 million)
$300/share
Or, do some DD and come up with your own share value forecast scenarios.
So even if there was massive dilution, the potential is just as massive, even more so IMO
So with the past 3 years of trial failure & learnings, along with the current collaboration expertise moving into the upcoming 6 month trial, becomes difficult not to think, Third Time is (going to be) the Charm.