Seems that SP may be reacting to the "cash on hand" comment this morning. Someone correct me if I'm wrong....
Cash-on-hand 6/30: 26M (after the GE loan)
Cash-on-hand 9/27: 54M (less the 29M fromn Crede = 25M)
Debt as of 6/30: 27M
Debt as of 9/20: 28M (reported as part of the Crede filings)
I thought that they wouldn't be making much money prior to the pass through? I would be surprised to find that they were getting paid for LS right now, as I thought that Cardinal was giving away LS for free right now. To see that there are sales would be tremendous but I don't believe it. It's more likely that it's an error in an offhand statement- that he took the end of quarter number and added the current +30M to it.
I remember that part of the deal of the sale of neoprobe GDS business was "up to 20M$" in royalties based on Devicore achievements of certain milestones.
Can it be the source of the additional cash? I would prefer LS to be already generating enough cash but to be honest I think LS will sell very well but it is still too early for now.
There could be other sources of cash. It was Sept last year that the NIH awarded a 3yr grant for RIGS. It's possible a second installment came in, total grant was up to 1.2M. You also have the two grants for NAV4694 totalling near 500,000 and they have a total of 4.1M...I doubt we reached additional milestones more installments already,but we don't know. So I suspect the grants may account for an additional 1M+
Why would a company with such good sales of LS go for an equity offering now? why not wait until you earnings get out and be pretty sure that the stock price would go up? Get a lot more money for same or less stock. Doesn't make sense, other than they have no confidence in their own stock.