Aug they financed with Platinum, indicating they then had enough funds to get the product through both EMA and FDA approval. One would have thought financing was done until possibly near product launch. But in december they completed a public offering, I guess to fund their Christmas party . And today they announce another public offering. Did they Christmas party go over budget? Investors didn't expect the financing in Dec, and now they do in again in Jan? What's going on with management at Echo therapeutics? When will Platinum step in and take control or is Platinum on the way out?
I guess Echo could find Platinum's financing terms too steep and figured they'd tap the equity market instead, but it would be unsettling to me, if I were still an investor.
Are they desperate for cash or are they preparing for a product launch (once they get their CE Mark)? They have made some positive hires lately which i wouldn't see them doing if they were on the ropes...i don't know what to think but i do know diluting shares with no warning twice in 2 months is BS
Dilution is always unsettling, unfortunately necessary for start ups. It's not the dilution, it's the terms and the utilization of the capital for ROI that is always the question at hand. It doesn't help that the last offering was announced, then delayed. And now, another, relatively soon after. It looks like a cluster F....k and losing management credibility. The product may have potential, but management looks questionable in bringing it efficiently to approval and market. Just venting for now.
Agreed, It's not the financing per se....Financing is often needed. But it's it has come about. They claimed they had enough working capital to get them through both approvals back in March. So why tap the equity market? The Dec financing was successful and the full over allotment sold. So then why tap it again one month later? Either there is an unknown that we haven't accounted for or there is incompetency within management. Tapping the equity markets back to back months is difficult to justify.