Hi fox -
The source is Dimethaid's burn rate, and projected sales. The cost of these trials should easily exceed $2 million. When one adds that cost to the burn rate, the total says "Add money".
However, as posted, RK may have paid for these trials by some alternative method - selling off some of the Oxo Chemie goodies (Oxoferin, for instance). Alternatively, she could have made a partnership with a third party, which partnership would pay for the trials by taking a cut of the profits, or some such.
Another alternative would be financing. In that case, the "someone" who will give her money will be you, through more dilution. She won't get money from The Street; she hasn't even tried for years.
However, I've long believed that if FDA approval comes, it will come in the next 12 months. It is possible that she has concluded a deal with McNeil and FDA to expedite approval, ie., she has concluded years of "negotiations", through the Standstill Agreement.
However RK proposes to do it, Dimethaid investors are (as usual) in the dark. This company has a history of hiding bad news.
But be of good cheer. FDA may save us all, and the investing world may yet watch in astonishment as DMX simultaneously sucks and blows, on approval.
Regards,
Jim |
