I sent several emails to IR to explain my concerns and have not heard back. This is going on for a month already with at least 2 emails per week.
My concerns are:
1) that they will need to raise money yet again hence raising the authorized share amount to 125 million shares from 75 million;
2) that they might file for Bankruptcy;
3) Nasdaq delisting notice, under $1 which could result in a reverse stock split (most likely outcome if they raise more money in an offering at say 75 cents a share, hence the large share authorization increase).
The Company has incurred cumulative net losses of $157.3 million through September 30, 2013, and negative cash flows from operating activities and expects to incur losses for the next several years. Management plans to continue to finance the Company’s operations with equity or debt issuances or through collaboration arrangements. There is no guarantee that such funding will be available to the Company on acceptable terms, or at all, or that such funding will be received in a timely manner, if at all. If adequate funds are not available, the Company may be required to delay, reduce the scope of, or eliminate one or more of its development or commercialization programs. There is no guarantee that the Company will be able to reduce its expenditures without materially and adversely affecting the business. These conditions, among other factors, raise substantial doubt about the Company’s ability to continue as a going concern.
The latest money raise was horrific:
On March 20, 2013, the Company completed the sale of 14,251,368 shares of its common stock at a price to the public of $1.05 per share.
I shot an email with some questions only to be unanswered. Not impressed at all. Perhaps it went into the SPAM inbox as yours did. Perhaps your questions were too spamalicious and not worthy of a response.
I think NASDAQ will be lenient with Cardica in the case of a delisting hearing. With FDA clearance eminent, I doubt NASDAQ would want to relegate Cardica to a lower rung. This is a development stage company where you get in while others are fearful.
I think Cardica will become a story stock. The story levitates the stock price before sales and earnings catch up. The story is quite good and will gain visibility with FDA clearance. Stapler technology hasn't advanced much in 20 years and current staplers are too bulky for smaller procedures. In addition, the PAS-Port anastomosis makes it easier for surgeons to attached veins to arteries while reducing incidence of stroke from loosened plaque. It lowers the threshold for surgical skill needed to perform these delicate procedures.
Good that you read the 10Q. I noticed that you failed to research the potential of Cardica IP. Why don't you do that
research, then weigh risks vs. rewards and your own investment time horizon. You are the only one who knows
whats right for you. Not a Message board. Good luck!