All,
My observations:
Without the $12 million in funding from this latest financing, XOMA had enough cash to last 5 months.
The trial ends in March, plus the 90-day follow up period, equals 5 months until XOMA knows if rBPI-21 works.
IMO, that's too close for comfort.
Many companies that are running low on cash, that are anticipating good news in the near future, often do these little 3 month financing deals. $12 million is 3 months for XOMA.
Doing a financing for more than 3 months is considered too much unnecessary dilution and less than 3 months is considered a waste of overhead in doing multiple small financing deals one after another.
Why did XOMA do the financing now instead of in March or April? Since XOMA has no control over ending the trial, April could arrive without an end to the trial, with a more immediate need to raise cash, with the stock trading at $3. XOMA did the conservative thing.
All IMO,
Ed. |
